SAN FRANCISCO — Federal prosecutors here say they’ve identified a Daly City resident as a prolific scam artist responsible for an estimated $2 million in ill-gotten funds and “dozens, if not hundreds” of victims across the United States.
Mingtao Chen, 28, has been charged with using a fake passport and making false statements to a bank, but prosecutors say both charges stem from much more serious allegations. Chen was reportedly caught using the passport to set up a bank account using a pseudonym, and authorities say victims of his scams would be duped into wiring money into that account.
Chen was arrested in mid-July, shortly after booking a flight to Beijing, according to court records. Prosecutors successfully moved to have him detained while the case is pending, a relatively rare occurrence in cases involved alleged financial crimes. They say Chen has remained in the United States since coming here in 2017 on a tourist visa but, “appears to have no children, family, or legitimate, steady job in this District, nor is he attending school here.”
“Rather, Chen appears to spend the bulk of his time on fraudulent activity,” the prosecution motion says. “It appears that the vast majority, if not all, of his income comes from participating in criminal activity. In addition to the charged conduct, Chen has participated in other criminal activity, including setting up brothels and other financial fraud.”
U.S. Magistrate Judge Lisa Cisneros ordered Chen detained while the charges are pending, writing in an order that she was concerned he would simply cut off a GPS ankle monitor and follow through on plans to flee the country even if she released him to a halfway house with strict conditions.
The passport charge carries up to 10 years in federal prison and the false statement charge carries a maximum 30-year sentence, records show. He is being housed at Santa Rita Jail in Dublin and cannot be bailed out.
Chen’s alleged fraud came in many forms, prosecutors say, but the criminal complaint details one instance that prosecutors say was fairly typical. In May, federal agents interviewed a Seattle woman who’d been duped into wiring $98,000 into the account after being told she had a warrant for her arrest. Agents reported the woman was “lucid” but also appeared to be suffering from dementia, the complaint says.
With Chen in custody, prosecutors say they’re looking into the second phase of the investigation: following the money.
“Despite Chen having moved millions of dollars, law enforcement seized only $27,790 from his residence,” prosecutors said in court filings. “Agents have seemingly only scratched the surface of the web of accounts and financial resources available to Chen. Review of his phone is likely to reveal additional bank accounts or crypto accounts that were previously unknown to law enforcement.”
