New York Woman Xue Fang Cheng Charged in $1.1M Unlicensed Check Cashing Scheme: 2-3% Fees, About $875,000 Seized
The U.S. Department of Justice announced on October 26 that Xue Fang Cheng, 55, of New York, New York, was arrested that day after a federal grand jury in the Eastern District of New York returned an indictment on October 23 charging her with providing illegal check cashing services. From March 2025 through July 2026, Cheng allegedly participated in providing over $1.1 million in cash to her customers, and law enforcement seized approximately $875,000 in connection with the investigation. Cheng is charged with conspiracy to operate an unlicensed money transmitting business and faces a maximum penalty of five years in prison if convicted. An indictment is merely an allegation, and she is presumed innocent until proven guilty.
According to court documents, Cheng was an owner of a New York convenience store that provided unlicensed check cashing services to at least three individuals, including a social adult day care center owner and an undercover law enforcement agent. Cheng directed that checks be deposited in business bank accounts held by various companies and controlled by others, and she provided cash to her customers for a 2 to 3 percent fee. She documented the cashed checks via text and audio messages and told the undercover agent that they should plan to do it long term, cautioning that it is very dangerous.
The case is being investigated by the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Homeland Security Investigations (HSI) New York, and the New York City Police Department (NYPD). Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division, U.S. Attorney Joseph Nocella, Jr. for the Eastern District of New York, Acting Deputy Inspector General for Investigations Miranda L. Bennett of HHS-OIG, HSI New York Acting Special Agent in Charge Pete Gizas, and NYPD Commissioner Jessica S. Tisch made the announcement. Deputy Chief Patrick J. Campbell and Trial Attorney Leonid Sandlar of the Fraud Division's Health Care Fraud Section are prosecuting the case.
Source: GSM · USA (original Chinese edition)
Photo: New York 天际线（自 Brooklyn Bridge Park 望向 Lower Manhattan），Kidfly182 摄，CC BY-SA，Wikimedia Commons
