Two Ames Residents Indicted for Wire and Mail Fraud Involving e-Fencing and the Counterfeiting of Product Serial Numbers
United States Attorney Matthew G. Whitaker announced that on September 24, 2008, the Federal Grand Jury in Des Moines returned an indictment against Wilson Yat-Sun Kwong, age 25, and Liyin Lau, age 23, both of Ames, Iowa. The indictment charges Kwong and Lau with one count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349; three counts of wire fraud in violation of Title 18, United States Code, Section 1343; one count of conspiracy to commit mail fraud; and three counts of mail fraud in violation of Title 18, United States Code, Section 1341. The indictment also seeks forfeiture of any property constituting proceeds of the alleged offenses or traceable to such proceeds.
The indictment alleges that the Defendants made credit card purchases of electronic equipment at various stores across the Midwest, including the Southern District of Iowa, substituted similar broken electronic equipment for the newly purchased equipment by placing counterfeit serial numbers on the broken equipment, returned the broken equipment to the store claiming it to be the newly purchased equipment, requested and received a refund on the broken equipment, and sold the newly purchased equipment on the internet. The indictment alleges that the defendants fraudulently obtained at least $96,934.99 in property from the scheme.
An indictment is merely a statement of charges. The defendants are each presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wilson Yat-Sun Kwong and Liyin Lau each appeared before United States Magistrate Judge Celeste F. Bremer on September 24, 2008. Both defendants were detained in the custody of the United States Marshal following their initial appearance, with an arraignment and detention hearing each set for September 30, 2008.
If convicted on the charges, each defendant faces the following penalties. On the conspiracy to commit wire fraud, the defendants face imprisonment of not more than 30 years, a fine of not more than $1,000,000.00, both imprisonment and fine, and a term of supervised release following any imprisonment. On each count of wire fraud, the defendants face imprisonment of not more than 30 years, a fine of not more than $1,000,000.00, both imprisonment and fine, and a term of supervised release following any imprisonment. On the count of conspiracy to commit mail fraud, the defendants face imprisonment of not more than 20 years, a fine of not more than $250,000.00, both imprisonment and a fine, and a term of supervised release following any imprisonment. On each count of mail fraud, the defendants face imprisonment of not more than 20 years, a fine of not more than $250,000.00, both imprisonment and a fine, and a term of supervised release following any imprisonment.
This case is being prosecuted by the United States Attorney for the Southern District of Iowa. The case is being investigated by the United States Postal Inspection Service.