ICE New York investigation leads to arrest of man charged with defrauding company of more than $2M

Immigration and Customs Enforcement's picture

NEW YORK — A Long Island City man was arrested on wire fraud charges Thursday following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) New York’s El Dorado Task Force, which is focused on complex financial investigations such as wire fraud, bank fraud and money laundering, among others.

Randy Wang, 33, was arrested on charges stemming from his scheme to defraud his former employer, a company based in Manhattan that manages a global airline alliance whose members consisted of approximately 13 international airlines and their affiliates (“Company”), by incurring more than $2.2 million in unauthorized charges on the Company’s credit card account, and then making changes to the Company’s accounting system to evade detection.

Using his position as business manager, Wang allegedly developed a scheme to defraud his employer of millions of dollars by means of unauthorized credit card purchases and altered accounting records,” said Angel M. Melendez, special agent in charge of HSI New York.  “Twenty-five years ago, HSI New York formed the El Dorado Task Force specifically to target all levels of financial crime, including wire fraud like today’s arrest.  With more than 30 local, state and federal law enforcement partners under one roof, El Dorado continues to be a leader in financial fraud investigations, working together to bring these perpetrators to justice.”

“As alleged, Randy Wang took advantage of his position at a major New York-based company to charge millions of dollars’ worth of non-business-related purchases on the company’s credit card. Wang allegedly purchased hundreds of electronic devices, including cell phones, computers, and tablets, and then falsified paperwork to hide the transactions.  Wang allegedly tried to take his employer for a ride, but instead he may be facing a trip to prison," said Acting U.S. Attorney for the Southern District of New York, Joon H. Kim.

According to the Complaint unsealed Thursday in Manhattan federal court, during the relevant time period, Wang was employed as a Business Manager for the Company, and for approximately the last two months of the scheme, Wang also served as the Company’s interim Chief Financial Officer. From at least in or about January 2016 through in or about October 2017, Wang incurred more than $2.2 million of unauthorized charges on the Company’s credit card account, by making hundreds of purchases at both online and brick-and-mortar retailers. His purchases, which were entirely unrelated to his official duties and were not for the benefit of the Company, included approximately 443 laptop computers, 241 mobile electronic devices, 24 tablet computers, and numerous other electronics. In order to evade detection of his criminal conduct, Wang made changes to the Company’s accounting records to disguise the nature of the credit card charges.

Wang is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.  This case is being prosecuted by SDNY’s Securities and Commodities Fraud Task Force. The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

The El Dorado Task Force is headquartered at the HSI New York Special Agent in Charge Office and at other locations in the New York/New Jersey Metropolitan area.  Task force agents educate the private financial sector to identify and eliminate vulnerabilities and promote anti-money laundering legislation through training and other outreach programs. Prosecutors use a full range of criminal and civil laws to prosecute targets and forfeit the proceeds of their illicit activity.  Since its inception, the Task Force has branched out to address all financial crimes--evolving into the largest, most successful financial crimes task force in the world.

Copy this html code to your website/blog to embed this press release.


Post new comment

4 + 3 =

To prevent automated spam submissions leave this field empty.