BIRMINGHAM, Ala. – A slick, systematic scheme to drain funds from unsuspecting consumers has landed two Chinese nationals in federal court. Jiadong Cao, 36, and Xuejun Zheng, 48, face serious charges after a federal grand jury in Birmingham returned an indictment accusing them of possessing counterfeit and unauthorized access devices – in layman’s terms, rigged gift cards.
The indictment, filed in U.S. District Court, details a calculated operation where the pair allegedly targeted gift cards purchased at retail stores across the region. According to court documents, Cao and Zheng didn’t just steal money; they meticulously manipulated the cards themselves. They reportedly swiped un-activated gift cards, subtly compromised the packaging to hide tampering, and altered the cards to siphon funds loaded by customers at checkout. They then brazenly returned the doctored cards to store shelves, waiting for the next victim to unwittingly load them with cash.
The scheme began to unravel on June 20, 2025, when the Hoover Police Department issued a “Be On the Lookout” (BOLO) alert for two Asian males driving a Lexus SUV suspected of switching gift cards at local CVS stores. The next day, Pelham Police pulled over the vehicle and, with the driver’s consent, conducted a search. What they found was staggering: over 5,000 gift cards packed into multiple boxes. A closer examination revealed that the serial numbers and/or PINs on the vast majority of those cards had been deliberately obscured or changed.
This wasn’t a smash-and-grab operation. This was a carefully orchestrated fraud designed to exploit the convenience of gift cards and the trust of consumers. Authorities believe Cao and Zheng were electronically draining funds from the altered cards as soon as they were activated by unsuspecting buyers. The scale of the operation suggests a significant financial haul, although the exact amount remains under investigation.
The United States Secret Service spearheaded the investigation, working alongside the Hoover and Pelham Police Departments. Assistant U.S. Attorney Ryan S. Rummage is prosecuting the case, and if convicted, Cao and Zheng each face a maximum sentence of 10 years in federal prison. An indictment is, of course, merely an accusation, and both defendants are presumed innocent until proven guilty in a court of law. But the evidence, as presented thus far, paints a grim picture of a calculated and callous fraud.
Grimy Times will continue to follow this case as it develops, bringing you the unvarnished truth about the criminals preying on hardworking Americans. The Secret Service has not released information regarding potential additional suspects or the scope of the fraud beyond Alabama. Stay tuned for updates.
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Key Facts
- State: Alabama
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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