SAN FRANCISCO — Federal prosecutors here say they have identified a Daly City resident as a notorious fraudster responsible for an estimated $2 million in ill-gotten funds and “dozens, if not hundreds” of victims across the United States.
Mingtao Chen, 28, is accused of using a fake passport and making false statements to a bank. But prosecutors say both charges are based on much more serious allegations. Chen was reportedly caught using his passport to open a bank account under a pseudonym. Authorities say victims of his scams were tricked into transferring money to that account.
According to court records, Chen was arrested in mid-July, shortly after booking a flight to Beijing. Prosecutors successfully requested that he be remanded in custody while the case is pending, a relatively rare occurrence in cases involving alleged financial crimes. They say Chen has remained in the United States since entering the country on a tourist visa in 2017, but “does not appear to have children, family, or a legitimate, steady job in this district, nor does he attend school here.”
“Rather, Chen appears to spend the majority of his time engaging in fraudulent activities,” the indictment states. “It appears that the vast majority, if not all, of his income comes from engaging in criminal activities. In addition to the acts he is charged with, Chen has engaged in other criminal activities, including establishing brothels and other financial fraud.”
U.S. Magistrate Judge Lisa Cisneros ordered Chen to be held in custody pending charges, writing in the order that she feared Chen would simply remove the GPS ankle bracelet and carry out his plans to flee the country, even if she transferred him to a halfway house under strict conditions.
The passport offence charge carries a maximum sentence of 10 years in prison, while the false statement charge carries a maximum sentence of 30 years. He is being held in Santa Rita Jail in Dublin and cannot be released on bail.
Chen’s alleged fraud took many forms, prosecutors say, but the indictment describes a case that prosecutors say was fairly typical. In May, federal agents interviewed a Seattle woman who had been tricked into wiring $98,000 into the account after being told there was a warrant for her arrest. Agents reported that the woman was “clear-headed” but also appeared to be suffering from dementia, the indictment says.
While Chen is in custody, prosecutors say they are now moving on to the second phase of the investigation: the search for the money.
“Although Chen moved millions of dollars, law enforcement seized only $27,790 from his residence,” prosecutors said in court documents. “Agents appear to have only scratched the surface of the web of accounts and financial assets Chen has. Reviewing his phone will likely uncover additional bank accounts or crypto accounts previously unknown to law enforcement.”
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