by | Published
NEW BRAUNFELS, Texas - A California man has been sentenced to 18 years in prison after pleading guilty to possessing the personal identifying information of more than 50 victims as part of an organized retail fraud scheme that used stolen financial data to purchase gift cards.
Meng Cao pleaded guilty on June 16, 2026, to Fraudulent Use or Possession of Identifying Information Greater Than 50 Items. Judge Stephanie Bascon of the 466th District Court sentenced him to 18 years in the Texas Department of Criminal Justice.
The case stemmed from an investigation that began on Nov. 11, 2024, when New Braunfels police responded to a reported theft in progress at the H-E-B store located at 651 S. Walnut Ave.
According to investigators, the store's Regional Loss Prevention Manager recognized Cao through surveillance cameras as someone previously linked to a theft ring operating throughout San Antonio and surrounding communities.
Authorities said the organization used stolen financial information, believed to have been purchased on the dark web, to make fraudulent purchases of gift cards and other merchandise using digital payment methods stored on cellphones.
Surveillance video captured Cao purchasing multiple gift cards at a self-checkout register using his cellphone as payment. Officers detained him as he exited the store.
Police said Cao initially claimed he could neither speak nor understand English. However, investigators reported that he later began speaking English and appeared to fully understand their questions. Cao told officers he was living in California.
When investigators asked Cao to identify the payment card on his cellphone that had been used to purchase the gift cards, he was unable to do so.
Officers recovered two cellphones and eight gift cards, each valued at $180, from Cao. Investigators said each gift card had been purchased separately within approximately 10 minutes.
A forensic examination of the two cellphones later uncovered between 100 and 200 stolen credit card account numbers belonging to numerous victims. Detectives determined the account information had been fraudulently obtained and was being used as part of the organized theft scheme.
An inventory of Cao's vehicle also uncovered $2,661 in cash, a T-Mobile cellphone activation card and numerous additional gift cards.
The case was prosecuted by Assistant District Attorney Lauren Cole.
The investigation was conducted through a collaborative effort involving the New Braunfels Police Department, the Texas Department of Public Safety Organized Crime Unit, the San Antonio Police Department, and H-E-B's Regional Loss Prevention and Asset Protection teams.
