General Crime

* Palo Alto Couple Sheng Qiang, Also Known As Becky Qiang And Yezhou Zhao, Also Known As Jack Zhao Or Jake Chao Charged With Fraud

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A Palo Alto husband and wife have been charged in federal court in San Jose with defrauding a computer networking company by submitting more than $80,000 worth of false claims for rebates, federal prosecutors announced today. U.S. Attorney Joseph Russoniello said Sheng Qiang, also known as Becky Qiang, was arrested at her Palo Alto home on July 24.She was arraigned before a federal magistrate that day and pleaded not guilty to 25 fraud and money laundering counts in a previously sealed grand jury indictment issued on July 15. The indictment was unsealed after her arrest. Qiang’s husband, Yezhou Zhao, also known as Jack Zhao or Jake Chao, is a fugitive and is being sought by federal authorities, Russoniello said. Qiang and Zhao are accused of submitting 11 false claims totaling more than $80,000 to 3Com Corp., a computer networking equipment maker,between 2003 and 2008 under the company’s Trade-Up program.The program gave customers a 15 percent rebate when they replaced old equipment with new 3Com computer parts. At the time, the couple lived in Milpitas, the indictment said.Qiang and Zhao allegedly created fraudulent invoices, sent the rebate requests to 3Com under phony company names, established private mailbox addresses to receive the rebates, and deposited the checks in bank accounts under the phony company names, according to the indictment.The two are also accused of laundering proceeds of the alleged scheme by transferring rebate money to accounts they controlled in Hong Kong and the People’s Republic of China. They face one count of conspiracy to commit mail fraud, 11 counts of mail fraud, one count of conspiracy to launder money and 12 counts of money laundering. Prosecutors are also seeking forfeiture of their alleged proceeds. The charges each carry possible maximum sentences ranging from five to 20 years in prison, but the actual penalty, if the defendants on convicted, would be determined after consideration of federal sentencing guidelines. Qiang was granted release by a magistrate on Wednesday on a $500,000 bond and is due to appear before U.S. District Judge Ronald Whyte on Aug. 24 for a hearing on the next steps in the case.

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4 Comments

  • My guess is that the judge had a Tee time and could not be bothered. I read they put a 3mil bail on that Bart cop like he is going to leave. Is our system broke? or are there pin heads in-charge?

  • I’m sure she is a nice person and will show up to court or the judge would not have let her out on bail. All they took was $80,000. NOT thats all they were caught taking your right what the hell was this judge thinking??????

  • haaa That is so true maybe the judge gets a bonus if they leave the country and save the tax payers from the cost of going to court.

  • What was that judge thinking releasing her on bail. Humm they are stashing money in China and the husband is on the run. Oh ya I forgot she is facing 5 to 20 years in the federal pen. She is so not showing up to court. Who wants to bet she never shows up to court? Good thinking your honor!

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