Overview

• Santa Rosa police said the Aug. 7 arrests followed automated license-plate reader hits and an undercover observation of a suspect manipulating cards in a Santa Rosa CVS.
• Searches recovered about 10,000 bundled cards in the suspects’ vehicle and roughly 15,000 more from a Hayward hotel room a week later, along with $7,000 in cash and detailed notes.
• The alleged method involved removing gift cards from displays, recording or altering activation data, resealing the packaging, and draining funds once the cards were purchased and activated.
• Yongsheng Zhao, 29, and Zhipeng Li, 33, were booked on six felony counts each with bail set at $100,000; Li remains in custody and a Sept. 5 warrant was issued for Zhao after a bail violation.
• Santa Rosa police are working with CVS asset protection and partner agencies to trace the scheme’s reach and remove compromised cards, while urging shoppers to check packaging for signs of tampering.