Xue Fang Cheng, 55, of New York, was arrested on Monday after a federal grand jury in the Eastern District of New York returned an indictment on Oct. 23 charging her with providing illegal check-cashing services, the U.S. Department of Justice said.

Source: U.S. Department of Justice

According to court documents cited by the Justice Department, Cheng was an owner of a New York convenience store that provided unlicensed check-cashing services to at least three individuals, including a social adult day care centre owner and an undercover law enforcement agent.

Prosecutors allege Cheng directed that checks be deposited in business bank accounts held by various companies and controlled by others, and provided cash to her customers for a fee of 2 to 3 per cent. She allegedly documented the cashed checks via text and audio messages and told the undercover agent they should plan to do it long term, cautioning that it is very dangerous.

From March 2025 through July 2026, Cheng allegedly participated in providing over $1.1 million (yaani about 11 lakh dollars) in cash to her customers. In connection with the investigation, law enforcement seized approximately $875,000 (yaani about 8.75 lakh dollars), the department said. Good Day Sports, reporting the same Justice Department announcement on Monday, gave the same $1.1 million figure, the 2 to 3 per cent fee and the $875,000 seizure.

Source: Good Day Sports

Cheng is charged with conspiracy to operate an unlicensed money transmitting business. If convicted, she faces a maximum penalty of five years in prison. The case is being investigated by the Department of Health and Human Services Office of Inspector General, Homeland Security Investigations New York and the New York City Police Department. An indictment is merely an allegation, and Cheng is presumed innocent until proven guilty in court.