A Troy resident thought they had found a sure path to easy money in an online investing group that bragged about guaranteed returns from an AI trading program. Instead, prosecutors say, the promise of artificial intelligence turned into a very real six-figure loss.
Oakland County prosecutors have charged 32-year-old Yanling Xie with one count of false pretenses with intent to defraud $100,000 or more after the resident reported they could not withdraw their supposed profits. The victim told detectives they made eight in-person payments between March and May, sometimes handing over cash and even gold bars to people tied to the group. When the withdrawals never came through, the victim contacted police and later agreed to help set up another face-to-face meeting so investigators could step in.
How investigators say the scheme worked
In court testimony, investigators described a setup that looked high-tech online but played out the old-fashioned way on the ground. The group’s website allegedly showed fake account balances that made it appear the victim’s money was growing, while designated collectors met buyers in person to pick up cash and bullion.
Police say some exchanges were “verified” with a gimmick that involved matching serial numbers on $1 bills. At one point, the victim was allegedly told to bring a final $89,700 before any funds would be released. Authorities now believe the total handed over across several months could be far higher than the original six-figure report, with court testimony putting losses at roughly $520,000. As reported by New Media Detroit.
Arrest, charges and court date
According to Troy police, investigators worked with prosecutors to set up a police-arranged meeting with the suspect. Officers moved in after the victim agreed to the plan, and the arrest was made without incident.
Oakland County has charged Xie with one count of false pretenses with intent to defraud $100,000 or more. At arraignment, a judge ordered him held on a $100,000 cash bond. He is scheduled to return to Oakland County court for a probable cause conference at 9:15 a.m. on Aug. 6, according to local reporting. As reported by ClickOnDetroit.
Police warning for would-be investors
Troy police are using the case as a cautionary tale for anyone tempted by slick “AI” pitches that promise the moon. They warn that any investment offering “guaranteed returns,” especially one that pushes you to pay in cash, gold or cryptocurrency, should set off sirens.
“Once your money is sent, it is often gone for good,” the department told local reporters as they urged residents to be skeptical of AI-branded investment deals. Investigators say people should keep records of messages, websites and transactions, and contact law enforcement as soon as they suspect something is off. As reported by ClickOnDetroit.
What the charges mean
The charge in this case, false pretenses with intent to defraud, falls under Michigan law that scales penalties based on how much money was obtained. When the amount reaches six figures, the offense enters higher felony tiers, which can bring stiffer prison sentences and court-ordered restitution if there is a conviction.
To secure that conviction under MCL 750.218, prosecutors must prove that the defendant intended to defraud and that money was obtained through false representations. The full statute is available from the Michigan Legislature.
How to report suspected scams
Metro Detroit residents who believe they have been targeted in a similar investment scheme can file a report with the Troy Police Department or call the department’s non-emergency line.
Troy PD’s non-emergency number is 248-524-3477, and online reporting resources are listed on the city’s police page. Officials stress that reporting suspected scams helps them spot patterns and can increase the chances of recovering money or obtaining restitution, per the Troy Police Department.
