Man arrested after State College couple scammed out of more than $200K, police say
A Florida man was arrested Thursday evening on charges he acted as a courier in a sophisticated $265,000 scam that drained nearly all the life savings of a State College couple in their 60s and 70s.
Kevin Gan, 24, is charged with felony counts of theft and receiving stolen property. Borough police said in a press release that he is also a resident of New York.
In an affidavit of probable cause, officers painted Gan as an accomplice as opposed to a ringleader. The investigation is ongoing and additional charges may follow, the police department said in its release.
A woman told police she received a pop-up on her laptop in June that claimed she was a victim of a breach. She then spoke with a man who falsely said large sums of money were being transferred from her bank account to support child sexual abuse material, police wrote.
The woman was later transferred to what she believed was the Treasury Department. During that phone call, she said she was told she was in violation of “numerous government acts” and at risk of losing her Social Security number if she did not send money.
Police said she and her husband later handed over about $97,000 worth of gold coins to a man outside their residence. In that instance and subsequent drop-offs, police said the couple was given specific passwords to verify the transfer.
Communication continued almost daily for several weeks and police said the couple withdrew and delivered an additional $116,000 across four other separate transactions. The alleged fraud also included the couple buying and giving away an additional $22,000 worth of gold coins.
Having already received $235,000, police said the scammer asked Monday for a final $30,000 payment. The woman said she was reluctant because that was “all they had left,” according to the affidavit.
She then contacted borough police, who set up an undercover investigation to apprehend the man who was to receive the money.
At about 6:25 p.m. Thursday at the Hamilton Square Shopping Center, police said Gan took the “bait money” and started walking away from the scene before he was arrested by borough police officers.
During an interview, Gan told officers a man offered him $1,000 to come to State College to pick up the package. The man allegedly told Gan to “look around the area for undercover police officers” when he arrived to the pickup point.
Homeland Security Investigations and Citizens Bank assisted the investigation, police said in the press release.
Gan was denied bail by District Judge Gregory Koehle, who described him as a public safety threat. Gan is incarcerated at the Centre County Correctional Facility, and his preliminary hearing is scheduled for July 29.
Legitimate government agencies, financial institutions and technology companies will never demand cash, instruct people to transfer money or threaten arrest over the phone, police said in their release. Anyone who receives similar communications should immediately end the conversation and contact their local law enforcement agency.