Xue Fang Cheng, 55, of New York, was arrested after a federal grand jury in the Eastern District of New York returned an indictment charging Cheng with providing illegal check cashing services.
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 2–3% fee. Cheng documented the cashed checks via text and audio messages and instructed the undercover agent that they should “plan to do [it] long term,” cautioning that “[i]t is very dangerous.” From March 2025 through July 2026, Cheng allegedly participated in providing over $1.1 million in cash to her customers. In connection with the investigation, law enforcement seized approximately $875,000.
Cheng is charged with conspiracy to operate an unlicensed money transmitting business. If convicted, she faces a maximum penalty of five years in prison.
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 (HHS-OIG); Pete Gizas, Acting Special Agent in Charge, Homeland Security Investigations (HSI) New York; and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), made the announcement.
HHS-OIG, HSI New York, and the NYPD are investigating the case.
Deputy Chief Patrick J. Campbell and Trial Attorney Leonid Sandlar of the Fraud Division’s Health Care Fraud Section are prosecuting the case.
On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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