LOS ANGELES – A Pasadena man was sentenced to over six years in federal prison for leading an identity-theft ring that defrauded several victim financial institutions out of millions of dollars.
Lei Chen, 51, a.k.a. ‘Uncle Chen,’ was sentenced by United States District Judge Michael W. Fitzgerald on Monday to 81 months in federal prison followed by five years of supervised release. Chen was also ordered to pay restitution to eight victim financial institutions in the amount of $2,725,451.96.
Chen pled guilty in 2016 to conspiracy to commit wire fraud and bank fraud and aggravated identity theft. The conviction for aggravated identity theft required the Court to impose a mandatory, consecutive term of 24 months’ imprisonment in addition to the custodial sentence for the fraud conspiracy.
Chen was the leader of a large criminal organization that engaged in extensive credit card fraud and identity theft in Los Angeles and Orange Counties. The organization obtained personal identifying information of victims for the purpose of obtaining credit cards in their names. Co-conspirators then applied for credit cards in the names of the victims and picked up the cards at ‘drop addresses,’ which were locations controlled by the organization.
In addition, Chen’s organization sent ‘shoppers’ – impersonators who pretended to be the identity theft victims – to retail stores where they used the fraudulently obtained credit cards to purchase luxury goods. The shoppers’ purchases included Rolex watches, iPhones, Van Cleef & Arpels jewelry, and Chanel purses. Those purchases totaled millions of dollars, resulting in millions of dollars in loss to the victim financial institutions that issued the credit cards.
The remaining three defendants charged in this case – Cynthia Li, Hsiang-Chi Yi, and Richard Wang – are scheduled for trial on September 25, 2018. This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Terrence P. Mann of the Santa Ana branch office.
Defendant: Lei Chen
Criminal Charges: Conspiracy to commit wire fraud and bank fraud and aggravated identity theft
City and State: Pasadena, California
Exact Date: Monday, (no date specified)
Sentence or Outcome: 81 months in federal prison followed by five years of supervised release
Dollar Amounts: $2,725,451.96 in restitution
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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