Five defendants were indicted by a New York City grand jury and variously charged with mortgage fraud, identity theft, forgery and other crimes for their roles in a scheme to fraudulently obtain a “cash-out” mortgage on home in the Flushing section of Queens that they did not own.
According to the charges brought against them, the scheme was allegedly orchestrated by a Queens real estate broker with two of the defendants pretending to be the actual homeowners at the closing. Three corporations were also named in the indictment, along with a Jane Doe defendant whose identity has yet to be ascertained.
According to the charges, Gui Li and an unidentified woman allegedly impersonated a husband and wife who legitimately owned a Flushing property during a November 2024 closing for a cash-out mortgage. Tony Wanyiu Cheng, a real estate broker who allegedly oversaw the scheme, and Chun Kong Lau were both allegedly also present during the closing.
Gui Li and Jane Doe presented the title closer with fraudulent Pennsylvania drivers’ licenses and Social Security cards with the victims’ personal information. Cheng was given two checks made out to the male homeowner.
One day later, Lau and Qiang Li, who both allegedly impersonated the male homeowner by using a fake Maryland drivers’ license with the victims’ date of birth, opened a joint bank account in person at the South Flushing TD Bank. The mortgage checks totaling $688,403 were deposited into the bank account.
After the mortgage check was deposited, some of the money was transferred by check into the three business bank accounts held by defendant Cheng. Some of the funds were then transferred electronically into Cheng’s personal bank account. Cheng’s personal and business accounts received more than $269,000 of the funds. The rest of the money was transferred into other bank accounts owned by people with unknown relationships to the defendants. Once all the money was transferred out, the defendants closed the TD Bank account in January 2025.
The legitimate homeowner reported the mortgage fraud to the Queens District Attorney’s Office.
Tony Wanyiu Cheng, Chun Kong Lau, Gui Li, and Jane Doe were indicted on charges of residential mortgage fraud in the second degree, five counts of falsifying business records in the first degree, six counts of identity theft in the first degree, one count of forgery in the second degree, two counts of criminal possession of a forged instrument in the second degree and one count of offering a false instrument for filing in the first degree. The defendants, along with Qiang Li, were also charged with grand larceny in the second degree.
Cheng, Lau and Qiang Li were also charged with two counts of money laundering in the second degree, two counts of money laundering in the fourth degree and one count of criminal possession of stolen property in the second degree. Lau and Qiang Li were also charged with one count of forgery in the second degree, one count of criminal possession of a forged instrument in the second degree and two counts of identity theft in the first degree.
Three corporations associated with Cheng – CB Direct Store Inc., YW Capital LLC and MTR Development Co. LLC – were charged with two counts of money laundering in the second degree.
The defendants face up to 15 years in prison, if convicted. Queens Supreme Court Justice Leigh Cheng ordered the defendants to return to court July 29; Gui Li and Jane Doe remain at large.
Photo: Gui Li
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