Two men have been charged for their involvement in a large-scale gift card fraud operation in metro Detroit. Guangji Zhang, 46, of Irvine, California, and Huachao Sun, 35, of Los Angeles, are facing charges related to stealing and altering gift cards from Meijer stores.
The Michigan Attorney General’s Office revealed that both men were charged with one count of Conducting a Criminal Enterprise and two counts of Possession of a Fraudulent or Altered Transaction Device. The duo allegedly carried out an extensive fraud scheme that targeted unsold gift cards, altering them for personal gain.
How the Scam Worked: The accused would steal unused gift cards from Meijer stores and extract their redemption codes. After recording the codes, they would reapply adhesive to hide signs of tampering before returning the cards to store shelves. Once the cards were activated and funds added, the criminals would transfer the balances to digital accounts, leaving the cards empty when eventually redeemed by customers.
The operation came to light when a suspicious package was intercepted by the U.S. Postal Inspection Service. The package, sent to a hotel in Dearborn, contained over 1,500 gift cards addressed to Zhang and Sun. Further investigation by the FORCE Team, with assistance from Michigan State Police detectives, revealed that the suspects had visited several Meijer stores in White Lake, Waterford, Auburn Hills, Southgate, Allen Park, and Taylor, placing the altered gift cards back into circulation.
It’s estimated that the suspects were in possession of over 3,000 gift cards when arrested. Michigan Attorney General Dana Nessel praised the efforts of the FORCE Team in dismantling this fraudulent operation. Nessel also urged consumers to be vigilant when purchasing gift cards to avoid falling victim to similar scams.
