Yellowhammer Times

Two Chinese nationals, Jiadong Cao, 36, and Xuejun Zheng, 48, have been indicted by a federal grand jury in Birmingham on charges of possessing counterfeit and unauthorized access devices. The announcement was made by U.S. Attorney Prim F. Escalona.

According to court documents, the defendants are accused of executing a scheme that targeted retail gift cards. They allegedly stole un-activated gift cards from stores, altered them so they could later access funds loaded by consumers at checkout, and then returned the tampered cards to store shelves. After unsuspecting customers purchased and loaded money onto these cards, the perpetrators reportedly drained the funds electronically for personal use.

The investigation began after the Hoover Police Department issued a "be on the lookout" (BOLO) alert on June 20, 2025, for two Asian males driving a Lexus SUV believed to be involved in switching gift cards at CVS locations. The following day, Pelham Police stopped a Lexus SUV matching the description and obtained consent to search it. Officers discovered multiple boxes containing more than 5,000 gift cards inside the vehicle. Investigators found that most of these cards had their numbers or PINs altered or obliterated.

"The United States Secret Service investigated the case along with the Hoover Police Department and Pelham Police Department. Assistant United States Attorney Ryan S. Rummage is prosecuting the case," according to officials.

If convicted, Cao and Zheng face up to 10 years in prison for this offense.

"An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty in a court of law," stated authorities.