Story perspectives

Two Arrested in $100M Senior Gold-Bar Scam

8/8/2026

Summary

Scammers Arrested

Police arrested Chu Lin and Xiean Cheng after they posed as federal agents.
On July 8 they emailed and called an 85-year-old man, claiming funds were at risk and urging him to buy $200,000 in gold bars.
The gold dealer recognized the scam and alerted the Minneapolis Police Financial and Cyber Crimes Unit and the FBI.
The suspects now face second-degree financial fraud charges.

Summary

James Warns Seniors

Attorney General Letitia James said gold-bar scam has taken more than $100 million in New York, Hawaii, Maine, Washington DC and Wisconsin over the past two years.
James warned seniors not to answer pop-up alerts, grant access, or give cash, gold or secrecy to callers after a security-breach message.
Police say fraudsters promise to turn purchased gold into cryptocurrency or invest it, and stress no legitimate agency ever demands cash, gold or secrecy.

History

Historical Context

The 2008 collapse of Bernie Madoff’s $65 billion Ponzi scheme—exposed after his sons alerted the FBI on December 11, 2008—revealed SEC oversight failures dating back to 1999 and spurred tougher fraud-detection laws. Today, New York Attorney General Letitia James cites that legacy while warning seniors in New York, Hawaii and Wisconsin about scams selling $200,000 gold bars.

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Scammers Arrested

Police arrested Chu Lin and Xiean Cheng after they posed as federal agents.
On July 8 they emailed and called an 85-year-old man, claiming funds were at risk and urging him to buy $200,000 in gold bars.
The gold dealer recognized the scam and alerted the Minneapolis Police Financial and Cyber Crimes Unit and the FBI.
The suspects now face second-degree financial fraud charges.

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