Carlsbad, California, December 3, 2025
Two men have pleaded guilty to defrauding a Carlsbad retiree of nearly $1.5 million through a fraudulent gold purchase scheme. The defendants, Xilin Sun and Alexander Charles James, convinced the victim to transfer funds under false pretenses posed as government and bank representatives. The scam involved creating a fake urgency regarding her funds, leading to significant financial loss. Authorities emphasize preventive measures against such scams targeting the elderly.
San Diego, California
Two men have pleaded guilty in federal court to defrauding a Carlsbad resident out of nearly $1.5 million through a fraudulent gold purchase scheme.
Details of the Scam
In a scheme that spanned several months, the victim, a 70-year-old retiree from Carlsbad, was deceived by individuals posing as government, bank, and tech support employees. The fraud began when a pop-up message appeared on her computer, falsely indicating that her system had been hacked. This led her to contact the scammers, who convinced her to safeguard her funds by purchasing gold bars and sending them to the U.S. Treasury for safekeeping. Over two months, she transferred approximately $1,335,000 via wire transfers to a precious metal business in San Marcos, California. Subsequently, she was instructed to pick up the purchased gold and hand it over to individuals under the false pretense of securing it for safekeeping.
Involvement of the Defendants
On December 2, 2025, Xilin Sun, 35, of Ontario, California, pleaded guilty to conspiracy to commit money laundering. His co-defendant, Alexander Charles James, 21, of Los Angeles, had previously pleaded guilty on November 25, 2025, to conspiracy to commit wire fraud. Both men admitted to participating knowingly with an organization that operated technical support, bank impersonation, and government impersonation scams targeting elderly victims throughout the United States, including in the Southern District of California.
Investigation and Arrests
The San Diego Elder Justice Task Force initiated an investigation after the victim reported the fraud to the Carlsbad Police Department. In February 2024, with the victim’s assistance, federal agents set up a sting operation. The victim was directed by the scammers to deliver a final payment of $100,000 in gold bars. During surveillance, federal agents observed James meeting with the victim. After receiving the “secret” word, the victim handed James a package purportedly containing the gold. James then met with co-conspirator Sun, who took possession of the package. Sun was subsequently arrested, and authorities discovered the package contained fake gold bars, along with a false California driver’s license and $12,900 in bulk cash from another victim.
Sentencing and Legal Proceedings
Sentencing hearings for Sun and James are scheduled for February 12, 2025, before U.S. District Judge Barry Ted Moskowitz. Both men face significant penalties, including lengthy prison terms and substantial fines.
Background on Similar Scams
This case is part of a broader pattern of scams targeting elderly individuals. In a similar incident, a Carlsbad man was sentenced to over seven years in federal prison for defrauding investors in a Ponzi scheme, highlighting the ongoing issue of financial fraud in the region.
Preventive Measures and Resources
Authorities emphasize the importance of vigilance against such scams. Residents are advised to be cautious of unsolicited communications and to verify the legitimacy of requests for personal or financial information. The National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311), offers assistance to those who believe they have been victims of financial fraud.
Frequently Asked Questions (FAQ)
What was the nature of the scam involving the Carlsbad resident?
The scam involved fraudsters posing as government, bank, and tech support employees who convinced the victim to transfer approximately $1,335,000 to a precious metal business in San Marcos, California, under the false pretense of purchasing gold bars for safekeeping.
Who are the individuals involved in this scam?
Xilin Sun, 35, of Ontario, California, pleaded guilty to conspiracy to commit money laundering. Alexander Charles James, 21, of Los Angeles, pleaded guilty to conspiracy to commit wire fraud. Both admitted to participating knowingly with an organization that operated similar scams targeting elderly victims throughout the United States.
What are the potential penalties for Sun and James?
Both individuals face significant penalties, including lengthy prison terms and substantial fines, with sentencing hearings scheduled for February 12, 2025.
How can residents protect themselves from similar scams?
Residents are advised to be cautious of unsolicited communications and to verify the legitimacy of requests for personal or financial information. The National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311), offers assistance to those who believe they have been victims of financial fraud.
Key Features of the Case
| Feature | Details |
|---|---|
| Location | Carlsbad, California |
| Victim | 70-year-old retiree |
| Amount Defrauded | Approximately $1,335,000 |
| Defendants | Xilin Sun (35, Ontario, CA) and Alexander Charles James (21, Los Angeles, CA) |
| Charges | Sun: Conspiracy to commit money laundering; James: Conspiracy to commit wire fraud |
| Sentencing Date | February 12, 2025 |
| Preventive Resource | National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311) |
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