A pile of fraudulent gift cards uncovered in a retail fraud investigation.
In a significant crackdown on retail crime, two Chinese nationals, Guangji Zhang and Huachao Sun, were arrested in Dearborn, Michigan for an elaborate gift card fraud scheme. The men are accused of stealing thousands of gift cards from retail locations and exploiting them for financial gain. Facing serious charges, including operating a criminal enterprise, they are due in court on March 18. The investigation highlights the growing challenge of organized retail crime and the impact it has on consumer trust.
Dearborn has found itself at the center of a high-stakes scam involving two Chinese nationals who were arrested, underlining the ongoing challenges of retail crime in America. On March 5, 2025, law enforcement officials took Guangji Zhang, 46, from Irvine, California, and Huachao Sun, 35, from Los Angeles into custody. The pair now faces serious charges that could keep them behind bars for a long time.
Just a couple of days after their arrest, on March 7, investigators charged the men with one count of conducting a criminal enterprise, a crime that carries a hefty penalty of up to 20 years in prison. They also face two lesser charges related to the possession of fraudulent or altered transaction devices. These charges stem from an elaborate scheme that involved stealing empty, unsold gift cards from various retail stores.
According to the investigation, the duo was engaged in theft and fraud that would make any law-abiding citizen’s blood boil. They reportedly stole gift cards, noted their unique redemption codes, and then returned them, making it seem like nothing had happened. To be particularly crafty, they used computer programs to track when these gift cards were activated by unsuspecting shoppers.
Once a customer loaded money onto a card, Zhang and Sun quickly moved to deplete its balance. They transferred the funds to their own digital accounts, leaving the card worthless for anyone who came after them. This deceitful tactic shows just how deep the rabbit hole goes regarding organized retail crime.
The investigation kicked off when a United States Postal Inspection Service agent stumbled upon a suspicious package addressed to the two men at a hotel in Dearborn. Inside, they found over 1,500 gift cards, raising red flags for the inspecting agent. Following this discovery, law enforcement kept a close watch on Zhang and Sun, as they were seen tampering with gift cards and placing them back on the shelves at various Meijer stores across the region—including locations in White Lake, Waterford, Auburn Hills, Southgate, Allen Park, and Taylor.
A search executed on March 5 targeted both their hotel room and vehicle. The results were shocking, revealing more than 3,000 gift cards, all part of what is being described as a sophisticated fraud operation that undermines trust and inflicts financial damage on consumers.
Michigan Attorney General Dana Nessel announced the apprehensions, shedding light on the broader implications of such schemes. She emphasized that these acts hurt the community and erode consumer confidence in retail systems. Alongside the announcement, a video was released to educate Michiganders on the tactics employed by fraudsters and tips on how to protect themselves. It’s a reminder for all shoppers to be vigilant and aware of the potential dangers lurking in seemingly harmless gift cards.
The investigation was supported by the Focused Organized Retail Crime Enforcement (FORCE) Team, which collaborates with various federal and local agencies. Established in January 2023, the FORCE Team aims to tackle organized retail crimes and promote safety for both businesses and consumers. Notable corporate partners that contribute to these ongoing efforts include giants like Sam’s Club/Walmart, Meijer, Target, and many others.
As the legal proceedings continue, both Zhang and Sun are set to appear in the 51st District Court on March 18 for a probable cause conference. The road ahead looks rocky for these individuals, as they deal with the consequences of their alleged actions.
Dearborn might be back to its usual routine soon, but the scare left by this scam serves as a stark reminder of the vulnerabilities present in our retail environments. Always be cautious and keep an eye out for suspicious activities, especially when handling gift cards. After all, it’s better to be safe than sorry!
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