A 35-year-old Chinese man named Kong Gao from Queens, New York, has been accused by prosecutors of manufacturing nearly 200 data modems embedded with malicious software. He allegedly participated in a large-scale theft scheme involving cable streaming services and wireless internet (Wi-Fi) in the Flushing and Whitestone areas. The prosecution has charged him with forging electronic access devices and illegally possessing forged equipment.
The Queens District Attorney’s Office, led by Melinda Katz, disclosed on November 18th that the malicious software created by Gao imitated legitimate cable TV and streaming services, including Spectrum operated by Charter Communications.
Moreover, Chinese advertisements in Flushing’s Main Street promoting Wi-Fi services and modem installations became a breakthrough for Charter Communications in uncovering the fraudulent accounts. This revelation led to the exposure of a multi-million dollar theft scheme.
According to the prosecution, Kong Gao, aged 35, resides on 154th Street in Whitestone. On November 14th, investigators from the Queens District Attorney’s office executed a search warrant at Gao’s residence, seizing 200 data modems for sale, a soldering iron, and other tools used for creating access devices, as well as malicious software necessary for infiltrating Charter Communications services.
Investigators estimated that the telecommunication company incurred losses exceeding $1 million.
Gao was arraigned on criminal charges last Friday, November 15th. He faces charges of second-degree forgery of electronic access devices and illegal possession of forged equipment. If convicted, Gao could face up to 7 years of imprisonment.
Judge Marty Lentz of the Queens Criminal Court ordered Gao to appear for trial on January 16, 2025.
Court documents reveal that since April, Charter Communications had been conducting an external investigation into a widespread theft of streaming media and Wi-Fi services in the Flushing area. The company discovered 6,000 fraudulent Spectrum accounts unauthorized for service use.
In August, Charter Communications employees learned of numerous Chinese advertisements on Flushing’s Main Street claiming to provide Wi-Fi internet services and modem installations. Subsequently, after hiring a private investigation firm to gather intelligence and make undercover purchases, the lead to Gao emerged.
Upon learning that Gao planned to meet with clients and replace their modems with ones containing malware, Charter Communications turned over the case to the Queens District Attorney’s Office.
Prosecutor Katz stated that Gao stands accused of stealing cable TV services for personal gain, noting, “The data modems he manufactured deliberately implanted with malicious software not only pose security threats but also result in significant business losses, increasing the cost of living for law-abiding residents.”