HARRISBURG, PA — A 20-year-old Chinese national, Zhixiang Chen, has been sentenced to 1.5 to 3 years in prison after pleading guilty to charges of corrupt organizations and organized retail crime for his involvement in a gift card scam targeting Wal-Mart stores in the Pittsburgh area and surrounding counties.
The sentencing, announced by Attorney General Michelle Henry, also includes a $25,000 fine, the forfeiture of $16,143 in stolen funds, equipment used in the scheme, and a lifetime ban from Wal-Mart stores. Chen now faces deportation proceedings as he is in the United States illegally.
“This defendant not only committed high-dollar thefts from retail stores, he also victimized consumers who bought the gift cards he had returned to store shelves after altering them for his own profit,” stated Attorney General Henry. “This conviction and prison sentence show our commitment to combating organized retail theft crimes that harm businesses and consumers.”
The fraud involved Apple gift cards stolen from at least six Wal-Mart stores, which Chen altered to divert funds to himself before replacing them on store shelves. Customers who bought the tampered cards unknowingly loaded money onto them, only to have their balances quickly drained. Investigators estimate that Chen, along with possible associates, profited hundreds of thousands of dollars through this operation.
Chen’s crimes came to light after he was apprehended in May 2024 attempting to leave a Wal-Mart with 126 stolen gift cards concealed inside his jacket. Authorities later searched his vehicle and discovered nearly 4,000 Apple gift cards, potentially valued at close to $1 million, along with cash and equipment used in the scheme.
The investigation was a collaborative effort between the Frazer Township Police Department, Homeland Security Investigations-Pittsburgh, and the Office of Attorney General. Surveillance footage from multiple stores provided key evidence against Chen.
This case was prosecuted by Deputy Attorney General Rachel Wheeler and Senior Deputy Attorney General Heather Serrano.
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