Two out of state men were arrested and charged for their alleged role in a cryptocurrency fraud case worth $50,000, according to a statement from the New Hartford Police Department.
The investigation began after a New Hartford town resident who owns and operates a business reported police that he had been the victim of a fraudulent investment scheme involving cryptocurrency trading platforms and online communications.
During the course of the investigation, New Hartford investigators determined the victim had allegedly been manipulated into transferring large sums of money to the fraudulent investment scheme, and then further manipulated into preparing to transfer additional large sums of money under false pretenses.
Investigators further determined multiple individuals were allegedly operating as couriers responsible for arriving in person to the town of New Hartford and physically collecting large amounts of money from the victim on behalf of an organized fraud enterprise.
At around noon on June 4, investigators with the New Hartford Police Department, assisted by agents from the Federal Bureau of Investigation (FBI), Homeland Security Investigations, Immigration and Customs Enforcement (ICE), as well members of the Utica and New York Mills Police Departments and Oneida County District Attorney’s Office, conducted an undercover operation at a local business within the town of New Hartford which resulted in the apprehension and arrest of Xingxuan Li, of Chicago, IL, who allegedly acted as a courier for the organized fraud enterprise.
Police said that Li allegedly arrived for the purpose of collecting in excess of $50,000 from a New Hartford resident, before transporting the money out of the area.
The investigation further revealed the organized criminal enterprise allegedly coordinated interstate travel for Li to make his way to New Hartford in furtherance of the operation, including arranging for him to fly from Chicago, providing him with a rental vehicle, and arranging for a departing return flight later that same evening.
Later that same afternoon, at approximately 3:30 p.m., a second arrest was made. In this second attempt to steal by way of this fraudulent investment scheme, Xiaohui Lu, of New York City, was arrested and charged.
Investigators determined Lu had traveled from the New York City area and attempted to make a collection of money from the victim.
Following surveillance, both Li and Lu were taken into custody without incident. Investigators further determined both individuals are currently present in the United States under pending asylum status.
Further investigation into immigration status will be conducted by the United States Department of Homeland Security Investigations and ICE.
The New Hartford Police Department has charged Xingxuan Li and Xiaohui Lu with second-degree attempted grand larceny and second-degree scheme to defraud.
Xingxuan Li was arraigned in the Town of New Hartford Court and released pending future court proceedings. Xiaohui Lu was arraigned in Oneida County Centralized Arraignment Part Court and released pending future court proceedings.
“Investigators believe this incident may be connected to broader organized fraud activity involving cryptocurrency scams and financial exploitation operating across multiple states,” New Hartford Police officials said in a statement. “Additional charges and arrests may be forthcoming by way of the Federal Bureau of Investigation.”
The New Hartford Police Department is urging residents to use vigilance and a high level of caution when making any type of financial transaction online or with institutions that are not locally based and or whose reputations are not verifiable by a trusted source.
“Anyone who willingly arrives to meet with you in person to collect from you large sums of money should not be trusted as that’s not the way legitimate investment professionals conduct business,” New Hartford Police officials said in a statement.
Law enforcement encourages people to use the United States Securities and Exchange Commission Investor Broker Check, found at https://www.investor.gov , to verify the legitimacy of investment brokers information.
This article originally appeared on Observer-Dispatch: 2 arrested in alleged cryptocurrency fraud case in New Hartford
Reporting by Casey Pritchard, Utica Observer Dispatch / Observer-Dispatch
USA TODAY Network via Reuters Connect
By Casey Pritchard, Utica Observer Dispatch | USA TODAY Network
