A 55-year-old New York woman has been arrested after a federal grand jury indicted her on a charge related to allegedly providing unlicensed check-cashing services involving more than $1.1 million.
Xue Fang Cheng, of New York, was arrested after the grand jury in the Eastern District of New York returned an indictment on October 23. She is accused of conspiring to operate an unlicensed money-transmitting business.
According to the US Department of Justice, Cheng owned a convenience store that allegedly provided check-cashing services to at least three people, including the owner of a social adult day care centre and an undercover law enforcement agent.
Investigators Allege Customers Paid Fees to Receive Cash
Court documents allege that Cheng instructed customers to deposit checks into business bank accounts held by various companies controlled by other individuals.
She allegedly provided cash in return and charged customers fees of between 2% and 3% of the check amounts.
Investigators also allege that Cheng kept records of the transactions through text messages and audio messages.
During communications with an undercover agent, Cheng reportedly advised that they should “plan to do [it] long term” while warning that “[i]t is very dangerous.”
According to the indictment, the alleged activity took place between March 2025 and July 2026, during which Cheng participated in providing customers with more than $1.1 million in cash.
Authorities Seize Approximately $875,000
Law enforcement officials seized approximately $875,000 in connection with the investigation.
The case is being investigated by the US Department of Health and Human Services Office of Inspector General, Homeland Security Investigations in New York and the New York City Police Department.
The authorities announced the arrest and charges through officials from the Justice Department, the US Attorney’s Office for the Eastern District of New York, HHS-OIG, Homeland Security Investigations and the NYPD.
Cheng Faces Up to Five Years in Prison if Convicted
Cheng faces a charge of conspiracy to operate an unlicensed money-transmitting business. If convicted, she could receive a maximum prison sentence of five years.
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 indictment sets out allegations against Cheng; it does not establish guilt. She is presumed innocent unless proven guilty beyond a reasonable doubt in court.
Justice Department Highlights Broader Fraud Enforcement Efforts
The Justice Department said its Fraud Division was established on April 7 to investigate and prosecute fraud against the American public.
The department’s work forms part of President Donald Trump’s Task Force to Eliminate Fraud, a government-wide initiative chaired by Vice President J.D. Vance. The task force is intended to address fraud, waste and abuse involving federal benefit programmes.
The department also highlighted the work of its Health Care Fraud Strike Force Program, which operates nine strike forces in federal districts across the United States.
Since 2007, the programme has charged more than 6,200 defendants who collectively billed federal health care programmes and private insurers for more than $45 billion, according to the department.
The Centers for Medicare & Medicaid Services and the Department of Health and Human Services Office of Inspector General are also taking steps to hold providers accountable for involvement in health care fraud schemes.
Further information about the Justice Department’s health care fraud enforcement work is available at justice.gov/criminal-fraud/health-care-fraud-unit.
