New York Woman Charged in Alleged $1.1 Million Check-Cashing Scheme

NEW YORK: Xue Fang Cheng, 55, of New York, was arrested on Monday 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. According to court documents, Cheng was an owner of a New York convenience store that allegedly 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 allegedly directed customers to deposit checks into business bank accounts held by various companies and controlled by other individuals. She then provided cash to customers in exchange for a fee of 2% to 3%. According to the indictment, Cheng documented the transactions through text and audio messages. She also allegedly told an undercover agent that they should “plan to do [it] long term,” while warning that “[i]t is very dangerous.”

From March 2025 through July 2026, Cheng allegedly participated in providing more than $1.1 million in cash to customers. Law enforcement officials seized approximately $875,000 in connection with the investigation. Cheng is charged with conspiracy to operate an unlicensed money transmitting business. If convicted, she faces a maximum sentence of five years in prison.

The announcement was made by 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 the U.S. Department of Health and Human Services Office of Inspector General; Pete Gizas, acting special agent in charge of Homeland Security Investigations in New York; and New York City Police Commissioner Jessica S. Tisch.

The HHS Office of Inspector General, Homeland Security Investigations in New York and the NYPD are investigating the case. Deputy Chief Patrick J. Campbell and Trial Attorney Leonid Sandlar of the Justice Department’s Fraud Division Health Care Fraud Section are prosecuting the case.

The Justice Department announced the creation of its Fraud Division on April 7. The division focuses on investigating and prosecuting fraud against the American people. The department’s anti-fraud efforts support President Donald Trump’s Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance, which aims to address fraud, waste and abuse in federal benefit programs.

The Justice Department’s Health Care Fraud Strike Force Program consists of nine strike forces operating in federal districts across the country. Since 2007, the program has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion.

The Centers for Medicare & Medicaid Services, working with the HHS Office of Inspector General, are also taking steps to hold providers accountable for their involvement in health care fraud schemes. More information is available at the Justice Department’s Health Care Fraud Section website.