CARLSBAD, Calif. — Two California men have admitted to taking part in a nationwide fraud scheme that stole nearly $1.5 million from an elderly Carlsbad woman after scammers convinced her to buy and hand over gold bars under the false promise of protecting her savings. Federal prosecutors say 35-year-old Xilin Sun of Ontario and 21-year-old Alexander Charles James of Los Angeles were part of an organized network behind tech-support scams, bank impersonation calls, and government impersonation schemes targeting older victims across the country. James pleaded guilty to a wire fraud conspiracy charge on November 25, 2025, while Sun entered a guilty plea Tuesday to a money laundering conspiracy charge.
Investigators began looking into the scheme after the victim contacted Carlsbad police, explaining she had been manipulated for months by scammers posing as federal agents and banking officials. The fraud began with a fake computer pop-up claiming her device had been hacked and instructing her to call for assistance. Once scammers discovered she had significant savings, they instructed her to convert her funds into gold bars, claiming they would be stored in a secure U.S. Treasury “locker” under her name.
Over two months, the woman sent roughly $1,335,000 in three wire transfers to a San Marcos precious metals business. After each purchase, she picked up the gold bars, packaged them, and handed them to a courier who claimed he was keeping them safe for federal authorities. In February 2024, the FBI worked with the victim to set up a sting involving a final delivery of $100,000 in gold bars. Agents watched as James met the victim, confirmed a secret word, and accepted the package before meeting with Sun, who took possession of what he believed were real gold bars.
Agents arrested Sun shortly afterward. He was found carrying the fake gold bars, a bogus California driver’s license, and a package containing $12,900 in cash that had been sent by another victim. Both men are set to be sentenced on February 12, 2025, before U.S. District Judge Barry Ted Moskowitz. Sun faces up to 20 years in prison and a $500,000 fine, while James faces up to 30 years in prison and up to a $1 million fine.
