Target gift card scam lands man in Ocala jail facing multiple felony charges
Ocala police officers arrested a Dallas man earlier this week and accused him of participating in an elaborate scheme to cheat Target and its customers in a gift card scam.
Here's a rundown of what happened:
Accused's name: Donghui Liao
Where and when was he arrested? Target, 2000 SW College Road, on Oct. 18.
What is he accused of doing? According to a police report, Officer Hagan Samson was at Target working on a different case when a loss prevention official told the officer about a possible fraud at the gift card section.
Samson watched surveillance video that showed a male removing numerous gift cards from a bag he was carrying and putting them onto a display. When he was finished, the man was seen making his way to the gift card kiosk, where he took gift cards that were on display and put them into that same bag.
The individual then walked out the store without paying for the cards that he took.
Detained: Samson went to the parking lot, detained Liao and took him to an office inside the store, according to the report. Another store video showed a male exiting a vehicle with a similar bag and entering the store. The male was identified as Liao.
Part of a larger scam? The store's corporate office was contacted and local officials were told that they had been a target of an organized gift card fraud, the report noted.
Here's how the scam works: Thieves steal gift cards from numerous Target stores and save the security codes and card numbers. The compromised cards are then returned to Target stores and placed onto shelves.
The cards are then purchased by unsuspecting legitimate customers.
Officials say they have linked Liao to other scams elsewhere in Florida and other states.
Liao's interview: Liao was interviewed by Ocala Police Department Detective M. Pfeifer. Through translation, Liao said he responded to a Chinese job posting asking for someone to take cards from, and put cards on, Target shelves.
The employer, according to the ad, would pay Liao 30 cents for every card he put on the shelf. Liao said he was mailed the cards, and whenever he got new cards, he was instructed to mail them to his employer.
Gift cards: Officials said the gift cards were a mixture of Target and Visa cards whose value ranged from $50 to $500. Authorities said they found the compromised cards that Liao was carrying. At the time of his arrest, the report states, the cards had not been purchased by customers or activated.
Officials said a majority of the gift cards put on the shelves by Liao were compromised. Officials said the number of gift cards found in Liao's bag were also Target and Visa cards, and they were not yet purchased or activated.
All told, the cards found on the shelves and in Liao's bag were worth more than $60,000.
Charges: Officers charged Liao with 54 counts of theft of credit card and one count each of organized fraud $20,000 or more and traffic/possess 50 or more counterfeit credit cards.
Court: Documents indicate Liao made his first court appearance in front of County Judge Tommy Thompson on Oct. 19 and was denied bail. Those same records showed he has two dependents and requested the services of the Public Defender's Office.
Liao told the court that he earns $37,000 annually from his job. His employer's name was not listed. The records showed Liao was appointed a public defender to represent him.
Liao's wife: Through a translator, Liao's wife, who said she's in Dallas, told a Star-Banner reporter they've been married for six years and have two children. She said a friend told her about her husband's arrest.
She said "he wouldn't do such a thing," and "she trusts him." As for the gift cards, she said maybe he likes the colors of the cards. She said "the police are wrong" and she plans to come to Florida "as soon as possible."
Target's response: An official at the local Target store referred a reporter to the corporate office. In an email, a spokesperson wrote: "As this is an active investigation, I’d refer your request to law enforcement."
The spokesperson also said, “We are aware of the prevalence of gift card scams and take them very seriously. We have signs in our stores and share general safety tips with our team members so they can stay alert and help guests as best they can at our registers. Our centralized cyber fraud team helps educate our team members about common scams and encourages them to look for guests purchasing high dollar amounts or large quantities of gift cards, or tampering with gift cards in stores.
"Guests who believe they have been victims of fraud should contact our guest relations team at 1-800-440-0680.”
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Other scams involving Target: Multiple media reports state Target has been the victim of many gift card scams.
For instance, according to a FOX5 news report from Alexandria, Virginia, a class -ction lawsuit has been filed against Target by customers over what they call fake gift cards. In a press release last month, the Justice Department detailed the convictions of three people caught in a Target gift card scam.
Contact Austin L. Miller at austin.miller@starbanner.com or @almillerosb
This article originally appeared on Ocala Star-Banner: Gift card scam at Target foiled; Ocala police charge man with felonies
