Two women arrested in nation-wide $900,000 IRS fraud scam

On September 20, the Fontana Police Department in Fontana, California, reported that they had opened an investigation earlier in September after one of their community residents received a “cold call” from a scammer impersonating the Internal Revenue Service (IRS).  The caller threatened to arrest the victim if he didn’t pay the scammer in $2,200 worth of Target gift cards. 

Unfortunately, the unsuspecting victim complied and purchased the Target gift cards. The victim furnished the gift cards to the caller, but later reported the incident to Fontana Police.

Fontana detectives tracked the redemption of the cards to a Target store in in the Los Angeles area. Detectives and Target’s Loss Prevention Team worked together to locate surveillance video of the transactions.  Target’s Loss Prevention Unit recalled a similar case where Indiana University Police were investigating a similar incident. 

Fontana detectives and Loss Prevention Agents compared the videos and determined the same female suspect conducted the transactions.  Working leads in the case, detectives were able to identify two suspects, Ailing Lu, 25, of Los Angeles, and Ji Hyun Lee, 25, of Gardena. They conducted surveillance on suspected locations and vehicles in the Los Angeles Area. 

Police said that their suspects in this case are connected to a nation-wide fraud endeavor where victims have lost about $900,000.

Detectives stopped several vehicles during the surveillance and located items purchased with the gift cards. Detectives served search warrants on two locations and located approximately $900,000 in new goods including electronics, gift cards and other items purchased with gift cards from unsuspecting victims. Police say that the two suspects were well organized and preyed on the victims’ fear of arrest across the U.S.  

We’re encouraging the public to contact their local law enforcement agency if they received a similar call from a scammer and followed though with the scammer’s request(s).  As a reminder, no law enforcement or public agency will ever ask you to pay in gift cards. 

We encourage the public to be wary of any “cold call.”  They should scrutinize the information given to them. Conduct their own research to find a legitimate contact for the organization the person is claiming to work for and verify it’s not a scam. ~ Fontana Police Department

Both Lu and Lee were arrested, charged and booked into the West Valley Detention Center.

Lu was charged with Theft by False Pretenses and Conspiracy to commit crime.  Lee was charged with Conspiracy to commit crime.

KTLA-5 reported that both women have since been released on bail.  Police believe that more people are involved in these crimes and they will continue to follow up on leads. 

(Ailing Lu and Ji Hyun Lee, both 25, busted.  Cover image credit:  Fontana Police Department)

~ Posted by Richard Webster, Ace News Today / Connect with Richard on Facebook and Twitter