A federal grand jury has indicted Binghui Liu, a 32-year-old Chinese citizen formerly living in San Jose, on charges of a money laundering conspiracy tied to a scam that saw perpetrators impersonate federal officers. Acting U.S. Attorney Michele Beckwith announced the development following allegations that Liu, along with co-conspirators, was involved in fraudulent activities running from February 2024 through April.
The scheme consisted of fraudsters, posing as federal employees or law enforcement officers, who would dupe victims into believing their bank accounts were at risk of being frozen due to false charges. In one example, detailed by court documents, an elderly victim was fleeced of $780,000. These criminals coached their victims on how to withdraw and hand over their money, using code words, and fake names, to conceal their identities and to lend credence to their lies.
Liu played the role of the person collecting the money, presenting himself as a federal employee or law enforcement officer to victims in California and Nevada. On April 9, Liu was caught in an FBI sting as he attempted to collect what he thought was $20,000 from an elderly victim, only to find out too late that the money was fake. His actions led to his arrest shortly after the attempted pickup.
For those who may have been affected by this scam, the FBI urges individuals to submit information at tips.fbi.gov or to contact their local FBI office. Liu, if convicted, faces up to 20 years in prison and a maximum fine of $500,000 or twice the value of the laundered property, whichever is greater. Despite the charges, Liu maintains the legal presumption of innocence until proven guilty. The case falls under the jurisdiction of Assistant U.S. Attorneys Cody S. Chapple and Arelis M. Clemente.
