Man sentenced for Apple gift card scam targeting Western Pennsylvania Walmart stores

Man sentenced for Apple gift card scam targeting Western Pennsylvania Walmart stores
FILE PHOTO: Logo of Walmart is pictured outside a store in Mexico City

HARRISBURG, P.A. — A Chinese national has been sentenced to up to three years in prison for orchestrating a large-scale Apple gift card theft scheme across Walmart stores in Western Pennsylvania, Attorney General Michelle Henry announced.

Zhixiang Chen, 20, pleaded guilty in Lawrence County Court to charges of corrupt organizations and organized retail crime. As part of his 1.5-to-3-year prison sentence, Chen is banned from all Walmart stores and faces deportation proceedings.

The court also ordered Chen to forfeit $16,143 in stolen funds and equipment used in the scheme, in addition to paying a $25,000 fine.

“This defendant not only stole from retailers but also harmed consumers who unknowingly purchased altered gift cards,” Attorney General Henry stated. “This conviction demonstrates our commitment to holding those accountable for organized retail theft that impacts both businesses and customers.”

Investigators revealed that Chen and his associates stole Apple gift cards from at least six Walmart locations, altered them to redirect funds, and returned them to store shelves. Once unsuspecting customers loaded value onto the tampered cards, Chen would drain the balances, leaving victims with worthless cards.

In May 2024, Chen was caught leaving a Walmart with 126 gift cards hidden in his jacket. A subsequent search of his vehicle uncovered nearly 4,000 additional Apple gift cards—potentially valued at nearly $1 million—along with cash and tools used to modify the cards.

The investigation was led by the Pennsylvania Office of Attorney General with assistance from the Frazer Township Police Department and Homeland Security Investigations-Pittsburgh.