A trio of Chinese nationals has pleaded guilty in New Hampshire to a scheme involving stolen gift cards and counterfeit Apple products used to buy electronics for resale in East Asia, federal prosecutors announced.
The defendants—Naxin Wu, 26; Mengying Jiang, 34; and Mingdong Chen, 28—admitted to conspiracy to commit wire fraud after running a scam throughout 2023. Court documents reveal they used stolen gift cards to purchase Apple products, stockpiling them in a warehouse in Salem, New Hampshire, before shipping them to China and Hong Kong. The operation also involved returning counterfeit Apple devices to stores for gift cards, which were then used to buy more electronics.
Law enforcement uncovered the scheme as part of a broader investigation into $100 million in losses linked to romance fraud, elder scams, and cyber intrusions. Investigators found $8 million worth of Apple products, 2,000 counterfeit devices, and $10,000 in cash in a warehouse used by the group. An additional $20,000 in electronics was discovered in a vehicle belonging to one of the defendants.
Prosecutors say the New Hampshire cell was part of a larger network operating across the United States. The group exploited tax-free states like New Hampshire to maximize profits, using stolen gift cards purchased at online auctions, often tied to romance scams targeting elderly Americans. The stolen funds were processed through cryptocurrency, according to court filings.
Jiang’s attorney, Olivier D. Sakellarios, stated his client’s role was minor, asserting, “This scam comes from way higher than my client. Nonetheless, he realized he was doing something wrong and wanted to take accountability.” Attorneys for the other defendants did not immediately respond to requests for comment.
The National Retail Federation estimates that fraud schemes like this contribute to $101 billion in annual losses, with an average of $13.70 lost for every $100 in returned products. Prosecutors say similar cells have purchased 50,000 Apple products valued at $45 million, shipping them to countries like China, Russia, and Vietnam.
Sentencing for Wu, Jiang, and Chen is scheduled for April in the U.S. District Court for the District of New Hampshire.
