A Chinese national, Younjian You, 41, has been sentenced to two years and three months in federal prison for his role in a gift card fraud scheme in Lexington, Kentucky. Authorities say the fraud could have impacted consumers by more than $1 million.
You was living in the United States illegally and will be deported after serving his 27-month sentence, according to court records. He was involved in an organized retail crime operation that targeted gift cards from major retailers, such as Amazon and Apple.
The scam typically involved stealing gift cards from store displays, tampering with them to allow criminals access after money was loaded onto the cards by unsuspecting customers, and then returning the altered cards to the shelves. Once a legitimate buyer activated a card, the fraudsters would drain the funds.
You was arrested on July 8, 2024, after being seen stealing and swapping tampered gift cards at several Kroger locations in Lexington. At the Kroger on Tates Creek Centre Drive, employees discovered 17 compromised cards. Later that day, police apprehended You at the Bryan Station Road Kroger with 54 untampered cards in his possession and found five more altered cards still on the shelf.
Further investigation uncovered over 2,600 gift cards in You’s car and in packages mailed from Ohio and Lexington to California, where they were allegedly being altered. If fully loaded, the cards could have held more than $1 million, according to the plea agreement. However, You’s defense attorney, Noel E. Caldwell, argued it was unlikely each card would be loaded with the maximum value.
Despite efforts to seek a reduced sentence, U.S. District Judge Danny C. Reeves imposed the maximum penalty within the recommended range on May 2, 2025.
You’s case is part of a broader crackdown on gift card fraud in Kentucky. Four other individuals — Zhiqiang Huang, Chaoming Lin, Huixing Yu, and Tianlong Chen — are facing similar federal charges in Louisville. Authorities allege the group possessed thousands of altered cards and were caught placing tampered cards on store racks.
The Federal Trade Commission urges consumers to inspect gift cards for signs of tampering before purchase. U.S. Immigration and Customs Enforcement has also highlighted the growing issue of gift card fraud and offers guidance on how to avoid being scammed.
