A New York man identified as a courier in a scheme that convinced an Indiana woman to buy more than $625,000 in gold bars has been sentenced to three years in prison.
Kunmig Zhou, 29, of Flushing, New York, entered a plea agreement in Hancock Circuit Court after originally facing a Level 4 felony fraud charge.
Police said the woman was manipulated into believing her money needed to be converted into gold and that the precious metals would be held by the U.S. Treasury Department for safekeeping.
According to the Greenfield Reporter, Zhou received a three-year sentence in the Indiana Department of Correction and will receive credit for time he has already spent in custody.
The Woman Was Told Her Gold Would Be Kept Safe
The scheme involved someone claiming to work with the U.S. Treasury Department and convincing the victim that converting her money into gold would protect her assets. The instructions went beyond simply purchasing precious metals.
Police said the woman was directed to turn the bars over to couriers who supposedly would get them to the government for safekeeping. By the time authorities investigated, she told officers that she had purchased more than $625,000 worth of gold during three separate transactions. The gold was collected during three separate pickups by three men the woman did not know.
Police Identified Zhou as One of the Couriers
Investigators described Zhou as one of the couriers involved in collecting the gold rather than the person who originated the scam or delivered the entire story to the victim. He was arrested in February 2025 and initially faced a Level 4 felony fraud charge.
At an early court appearance, Hancock Circuit Court Judge Scott Sirk told Zhou that a conviction on the original Level 4 felony could carry a sentence ranging from two to 12 years. The court set a $50,000 cash bond.
Zhou remained in the Hancock County Jail while the criminal case proceeded. He initially pleaded not guilty but later withdrew that plea and entered a plea agreement. Zhou received a three-year sentence in the Indiana Department of Correction. The court also ordered that the time he has already spent in custody be credited toward that sentence.
Government Agents Will Not Tell You to Buy Gold for Safekeeping
Any unexpected caller who claims that money must be converted into gold to protect it from hackers, criminals or government seizure should be treated as a scammer. The Federal Trade Commission warns that legitimate government agents do not tell consumers to buy gold bars and hand them to couriers.
Someone receiving such instructions should stop communicating with the caller and independently contact the government agency or financial institution being impersonated using a telephone number obtained from its official website, account statement or payment card.
Anyone who has already purchased gold but has not surrendered it should not meet a courier. Contact local law enforcement immediately and preserve emails, telephone numbers, text messages, receipts, delivery instructions and descriptions of anyone who was supposed to collect the metal.
Victims who have already handed over gold should report the fraud as quickly as possible to local police and through ReportFraud.ftc.gov. Rapid reporting may give investigators a better chance to identify couriers, trace transactions or prevent another planned pickup.