NEW HARTFORD, NY — Two out-of-state men were arrested during a law enforcement operation as part of a cryptocurrency-related fraud investigation involving the theft and attempted theft of substantial sums of United States currency from a town resident.
The investigation began after a town resident who also owns and operates a business in New Hartford reported to police that he had been the victim of a fraudulent investment scheme involving cryptocurrency trading platforms and online communications.
During the course of the investigation, police investigators determined that the victim had allegedly been manipulated into transferring large sums of money to the fraudulent investment scheme and then further manipulated into preparing to transfer additional large sums of money under false pretenses connected to this cryptocurrency investment scam.
Investigators further determined that multiple individuals were allegedly operating as couriers responsible for arriving in person to New Hartford and physically collecting large amounts of United States currency from the victim on behalf of an organized fraud enterprise.
On June 4, at approximately 12 p.m., investigators with the New Hartford Police Department, assisted by agents from the Federal Bureau of Investigation, Homeland Security Investigations, Immigration and Customs Enforcement, as well members of the Utica and New York Mills police departments and Oneida County District Attorney’s Office, conducted an undercover operation at a local business which resulted in the apprehension and arrest of Xingxuan Li, of Los Angeles, California, who allegedly acted as a courier for the organized fraud enterprise.
Investigators determined that Li allegedly arrived for the purpose of collecting in excess of $50,000 in U.S. currency before transporting the money out of the area.
The investigation further revealed that the organized criminal enterprise allegedly coordinated interstate travel for Li to make his way to New Hartford in furtherance of the operation, including arranging for him to fly from Los Angeles, providing him with a rental vehicle, and arranging for a departing return flight later that same evening.
Later that same afternoon, at approximately 3:30 p.m., a second arrest was made.
Xiaohui Lu, of New York City, was charged in connection to this investigation.
Investigators determined that Lu had traveled from the New York City area and attempted to make a collection of money from the victim.
Following surveillance, both Li and Lu were taken into custody without incident.
Investigators further determined that both individuals are currently present in the United States under pending asylum status.
Further investigation into immigration status will be conducted by the United States Department of Homeland Security Investigations and Immigration and Customs Enforcement.
The New Hartford Police Department has charged Xingxuan Li and Xiaohui Lu with attempted grand larceny in the second degree, a Class D felony, and scheme to defraud in the second degree, a Class A misdemeanor.
Xingxuan Li was arraigned in the Town of New Hartford Court and released pending future court proceedings.
Xiaohui Lu was arraigned in Oneida County Centralized Arraignment Part Court and released pending future court proceedings.
Investigators believe this incident may be connected to broader organized fraud activity involving cryptocurrency scams and financial exploitation operating across multiple states.
Additional charges and arrests may be forthcoming by way of the Federal Bureau of Investigation.
