A large-scale theft operation of cable streaming and Wi-Fi services has been dismantled in Queens. Kong Gao, the man behind the scheme, faces charges of fraudulent making of an electronic access device and criminal possession of forgery devices, as reported by DA Melinda Katz's office. Gao allegedly crafted around 200 illegal modems loaded with malware designed to mimic legitimate services like those offered by Spectrum, operated by Charter Communications.
"The defendant is accused of stealing network cable services for his own personal gain," DA Katz commented in a statement acquired by Queens District Attorney’s Office. These fraudulent modems not only pose a security risk but also can inflate prices for consumers due to the financial losses incurred. Katz's office has committed to upholding security against such deceptive practices. Gao, a 35-year-old resident of Whitestone, could face up to seven years in prison if convicted on the top charge.
Spectrum's Senior Vice President, Jane Rhodes, weighed in on the situation, stressing the adverse impact of unauthorized modems on network performance and security. "Buying and using cloned modems might seem harmless, but it’s not a victimless crime," Rhodes emphasized. Customers are advised to always use authorized equipment to ensure optimal service and protection. Spectrum expressed gratitude towards law enforcement for their support in this matter, according to the Queens District Attorney’s Office.
After Charter Communications initiated an investigation in April, they discovered a concentration of cloned accounts and unauthorized device use in Flushing. Ads that offered Wi-Fi services in Chinese caught their attention in August, ultimately leading to the identification of Gao as the supplier. Even after the service to these modems was disrupted, Gao allegedly met with his clients to replace the devices, sustaining the illegal access. His home was raided last Thursday by detectives from the DA’s office, who uncovered a stash of modems and the necessary tools for their production. The estimated revenue loss caused by this fraudulent operation exceeds $1 million.
Charter Communications teamed up with the Queens District Attorney’s Detectives Bureau, including Detective Iftekhar Khan, for this investigation. The Cybercrime and Cryptocurrency Unit led by various supervising officers, including Chief Investigator Robert LaPollo, played a crucial role in this operation. Assistant DA Catherine Jahn is prosecuting the case, which falls under the larger umbrella of the Major Economic Crimes Bureau headed by Executive Assistant DA Gerard A. Brave. Gao's court date is set for January 16, 2025.
