Yujen Chen, Wire Fraud, California 2016

Crime Pays Off for No One: A Tale of Betrayal and Deceit in Cupertino

A stunning example of the lengths to which some individuals will go to line their pockets with other people’s money has come to light in the San Francisco Bay Area. Yujen Chen, 61, and his wife Maria Chen, 59, have been sentenced to prison for their roles in a complex wire fraud scheme that involved leasing luxury vehicles and exporting them abroad.

The Chens, who are residents of Cupertino, California, were sentenced on December 17, 2015 to 75 months in prison and 64 months in prison, respectively. The sentences were handed down by the Honorable Edward J. Davila, U.S. District Judge.

According to the evidence presented in court, the Chens used their automotive business, 888 Auto Corporation, to fraudulently lease luxury vehicles from dealerships. They would then export these vehicles abroad, leaving the innocent lessees with broken leases and no cars.

The Chens’ scheme was designed to deceive and cheat their victims, who were often recruited through friends and associates. They promised these individuals that they would assume the lease payments and that they would not be financially responsible for the lease. However, once the Chens convinced the person to sign the lease arrangement, they would make only initial payments to the automotive finance companies on behalf of the lessees.

The Chens’ scheme also involved the use of stolen identities. They collected money and personal identifying information from individuals who had come into their business expressing interest in making a legitimate vehicle purchase. They then used this information to gain possession of cars using fraudulent leases or finance agreements.

The defendants were originally charged in a 24-count indictment filed November 20, 2013. They each pleaded guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1343, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A.

As part of the plea agreement, the government agreed to dismiss the remaining open charges at the time of sentencing. The defendants currently are out of custody on bond.

Assistant United States Attorneys Daniel Kaleba and Jeffrey Nedrow are prosecuting the case with the assistance of Susan Kreider and Laurie. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge. Judge Davila also imposed a term of three years supervised release on each defendant.

A restitution hearing has been set for March 2, 2017 to consider an appropriate order of restitution for the individual and corporate victims in the case.

Related Federal Cases