Allegheny Valley Regional Police make arrest in international fraudulent banking scam

Police in Springdale Township arrested a Chinese-national on Friday believed to be connected with a large-scale scam ring that took one local resident for more than $100,000.

Zhudi Chen, 40, of New York is charged with felony theft and financial exploitation.

Allegheny Valley Regional Police Chief Michael Naviglia said his department worked with the local FBI office to craft an undercover sting operation that led to Chen’s arrest.

Police allege Chen’s group of scammers had extracted about $130,000 from a 76-year-old Springdale Township man before the arrest.

According to Naviglia, the scammers claimed to be federal agents investigating a rogue PNC employee who had supposedly been withdrawing money from client accounts.

The scammers installed malware on the man’s computer, making it appear they had deposited money in his accounts before instructing him to make large cash withdrawals, Naviglia said.

According to a criminal complaint filed against Chen, three separate in-person hand offs of cash occurred before police became involved.

The resident handed off the cash to at least two different individuals, according to the complaint.

In late September, the scammers asked the man to acquire more than $103,000 of gold for a subsequent hand-off, which was organized with police.

When Chen was dropped off at the man’s house to retrieve the gold in a white Volkswagen with out-of-state plates, Naviglia arrested him with assistance from FBI agents.

Police have not located the car or its other occupants, Naviglia said.

Naviglia said it was his department’s first successful undercover sting operation for an alleged fraud scheme.

He described the scam as a “large-scale, international operation.” The Springdale Township man, Naviglia said, is not the only victim.

Chen admitted to crossing the border illegally, telling police he had previously been apprehended by Homeland Security agents, according to the complaint.

Naviglia said federal authorities would likely lead the case.

Pittsburgh FBI spokesman Bradford Arick said he could not comment on the case because of the ongoing federal government shutdown.

A PNC spokesperson said the company couldn’t comment on the case, but it “takes these matters very seriously, and review and investigate allegations of fraud in line with regulatory guidelines.”

The bank encourages its clients to be vigilant about new fraud methods, especially “social engineering” schemes, which frequently see scammers conduct extensive research on individuals or corporations to tailor their approach to match the target.

If residents are at all suspicious of potentially fraudulent communications, Naviglia said to consult local police.

Chen was denied bond by District Judge Bruce J. Boni because he has no ties to the area. He remains in the Allegheny County Jail.

His preliminary hearing is set for Oct. 20 before District Judge Michael Girardi.