Watertown police, working with HSI and other agencies, intercepted a planned second pickup of $157,000 in gold from an elderly woman who had already lost the same amount to scammers. Investigators substituted imitation coins, arrested two suspects at the scene and say those men were not the original collectors. The case underscores a growing fraud pattern in which callers impersonate government or financial officials and direct victims to buy precious metals; the FBI reported over $55 million in related losses in late 2023.
Watertown Sting: Police Foil Second $157,000 Gold Scam After Elderly Woman Lost First Shipment
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An elderly Watertown, New York, woman had already handed over $157,000 in gold when callers returned asking her to repeat the payment. Local police and federal partners staged a sting that prevented a second six-figure loss and led to two arrests.
How the Scam Worked
According to Watertown police and WWNY-TV reporting, the scheme began in June when the victim received a phone call from someone claiming to represent the Federal Trade Commission. The caller said her identity had been compromised and instructed her to withdraw funds from her bank and convert them into gold bars and coins to "protect" her assets. The woman purchased $157,000 in gold at a local jeweler and handed the metals to men during a meeting at a city gas station.
Second Demand and Police Intervention
The scammers returned, demanding another $157,000 in gold. Before the second handoff could be completed, a family member recognized the pattern as a scam and alerted authorities. Watertown police received the fraud complaint on Aug. 5 and contacted Homeland Security Investigations (HSI), which joined a multiagency operation that included the Jefferson County Sheriff's Office, New York State Police and U.S. Customs and Border Protection.
The Sting
Rather than simply canceling the pickup, investigators substituted imitation coins for the woman's second $157,000 order and staged a controlled handoff so they could identify and arrest the collectors. Undercover officers and a drone monitored the exchange at 1255 Arsenal Street. Police say Weifu Cai, 43, collected the decoy package and walked toward a vehicle where Wenping Chen, 35, was waiting; both were arrested before they could depart with the package.
Charges And Ongoing Investigation
Both men were arraigned in Watertown City Court and face one felony count each of second-degree attempted grand larceny. Watertown police emphasized that Cai and Chen are accused in connection with the attempted second pickup and were not the individuals who collected the woman's original $157,000 at the gas station; police described the first collectors as different men from China. After arraignment, both suspects were turned over to the custody of the U.S. Department of Homeland Security, which continues to investigate.
Context And Warnings
The FBI's Internet Crime Complaint Center (IC3) has warned about "cash-and-precious-metals courier" scams in which fraudsters urge victims—often older adults—to liquidate savings and buy gold, silver or other metals. Between May and December 2023, the FBI reported more than $55 million in losses from this type of scheme.
Key warning signs: Callers claiming to be government or bank officials who instruct you to buy and surrender precious metals are almost certainly fraudulent. The FTC says real government agents will not tell you to buy and deliver gold bars to protect accounts.
What To Do If Contacted Or Victimized
If someone unexpectedly calls claiming your identity or bank account is compromised, end the call immediately. Do not use contact details the caller provides; verify the claim through the agency's official website or your bank. If a pickup is requested, contact local law enforcement before meeting anyone.
Report suspected phone or online fraud to the FBI at IC3.gov and to the FTC at ReportFraud.ftc.gov. Watertown residents told to exchange money for gold coins can contact the Watertown Police Department at 315-786-2601 and ask for Sgt. O'Hearn.
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