GATLINBURG, Tenn. – A Canadian man was arrested in Gatlinburg after allegedly scamming a local resident out of more than $200,000 in an online investment scheme.
According to Gatlinburg Police Chief Ronnie Barrett, the scam began when the victim struck up a social media friendship with someone he believed to be a woman. Over time, the relationship led to the man transferring over $200,000 for what he thought were investments.
The scammer reportedly told the victim that his investments had grown to $1.4 million. When the victim requested to withdraw the funds, he was told he needed to pay an additional $280,000 in taxes to access the money.
Fortunately, the man became suspicious and contacted local police.
An investigation was launched by the Gatlinburg Police Department, the Sevier County Sheriff’s Office Criminal Investigations Division, and the Narcotics Organized & Violent Crimes Apprehension Unit.
Police arranged a sting operation in a parking lot across from city hall, where 31-year-old Yinn Cheng of Canada was arrested after flying into Knoxville and driving to Gatlinburg to collect the $280,000.
Cheng now faces charges of fraud, theft, and exploitation. Authorities believe he may have scammed others and are urging the public to be cautious.
“This is happening all over the world,” said Chief Barrett. “If someone you don’t know reaches out on social media and asks to manage your money, that’s a huge red flag.”
BBB Warns of Rising Investment Scams
Michele Mason of the Better Business Bureau in Chattanooga says these types of scams are becoming more common.
“The Federal Trade Commission reported over $10 billion in fraud for a few years in a row, then saw a 12.5% increase last year—investment scams making up a large portion,” Mason said.
Law enforcement officials encourage anyone contacted under suspicious circumstances to report it immediately.
