Michael Pearse, an Australian national, and Yongchao Liu, a Chinese national, have been extradited to the United States and charged with a multimillion-dollar text messaging consumer fraud scheme.
According to a complaint filed in the United States District Court for the Southern District of New York, Pearse and Liu were extradited on charges of conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and, as to Pearse, conspiracy to commit money laundering.
The scheme allegedly generated more than $50 million in proceeds for the defendants and their co-conspirators, who charged mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent.
Pearse and Liu will be presented and arraigned today before U.S. Magistrate Judge Debra Freeman. The case has been assigned to U.S. District Judge Analisa Torres.
“As alleged, Michael Pearse and Yongchao Liu played key roles in an international consumer fraud conspiracy that victimized hundreds of thousands of mobile phone customers to the tune of more than $50 million,” said Manhattan U.S. Attorney Audrey Strauss.
The case has been ongoing for over five years, with co-conspirator Darcy Wedd previously being convicted and sentenced.
Pearse and Liu were extradited from Australia and arrived in the United States yesterday. Their extradition is a significant victory for law enforcement agencies and a reminder that those who commit crimes abroad can still be held accountable in the United States.
“Pearse and Liu will finally face the consequences for the text messaging scheme they were charged with more than five years ago,” said FBI Assistant Director William F. Sweeney Jr.
Pearse and Liu are currently being held without bail and will face serious charges in this District. The case has been assigned to U.S. District Judge Analisa Torres and is ongoing.
Defendant: Michael Pearse
Charges: Conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and conspiracy to commit money laundering
City and state: New York
Date: April 3, 2023
Sentence/Outcome: Currently being held without bail
Amount: Over $50 million in proceeds
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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