SAINT MATTHEWS, Ky. — Four men are facing numerous charges in a significant gift card scam uncovered by the St. Matthews Police Department.
On Saturday, officers found thousands of counterfeit gift cards linked to an organized crime operation affecting individuals across the country. Chief Barry Wilkerson informed WLKY that the fake cards recovered from the suspects are valued at approximately $1 million.
The investigation began when a suspect was caught placing altered gift cards on display at the Kroger on North Hubbards Lane in St. Matthews. Surveillance footage from October 19 shows a man spending considerable time in the store’s gift card section. A store employee alerted the police, who later identified three accomplices.
“Thus far, all individuals apprehended have been Chinese Nationalists,” said Wilkerson. The arrested suspects are Chaoming Lin, Zhiqiang Huang, Huixing Yu, and Tianlong Chen. Lin and Huang face 999 counts of criminal possession of a forged instrument, while Yu and Chen each face three charges: one count of criminal possession of a forged instrument, one count of fleeing or evading police, and one count of engaging in organized crime.
They allegedly opened gift cards at major retailers to acquire their serial numbers, resealed them, and returned them to store shelves. The plan involved stealing the funds loaded onto the cards once activated.
“What are they using the money for?” Wilkerson questioned. “Is it linked to terrorism? I don’t know. That’s why we hand these cases over to federal agencies for a deeper investigation.”
The St. Matthews police have forwarded the case to the United States Department of Homeland Security, which recognizes it as part of a larger organized crime effort linked to Chinese nationals. The suspects are believed to have targeted stores in New York, Pennsylvania, Ohio, and Kentucky.
The Kentucky Retail Federation highlighted that this issue has escalated over the past year in the state. Spokesperson Steve McClain noted, “Kentucky appears to be a focal point due to our three major interstates crisscrossing the state.”
The federation plans to meet with Kentucky Attorney General Russell Coleman to advocate for stricter legislation aimed at combating this crime at major retailers. Police expressed concern that the typical consequences for such offenses are often reduced sentences.
“Sadly, many cases are amended down just to expedite the judicial process,” Wilkerson stated.
In the meantime, police urge shoppers to be cautious when purchasing gift cards from Kroger and other retail outlets. They recommend the following precautions:
- Inspect the packaging for any signs of tampering before purchasing.
- Retain the activation code receipt and share it with the gift card recipient.
- Consider buying gift cards directly from the retailer or opting for digital versions from official websites.
- If you suspect you’ve fallen victim to a gift card scam, report it immediately to the card issuer and file a report with local law enforcement and the Federal Trade Commission.