Google has initiated legal action against two app developers accused of orchestrating an elaborate investment scam. The lawsuit alleges that Yunfeng Sun, also known as ‘Alphonse Sun’, and Hongnam Cheung, aka ‘Zhang Hongnim’ or ‘Stanford Fischer’, engaged in an “international online consumer investment fraud scheme” targeting users of the Google Play Store and other platforms.

According to Google's complaint, the defendants purportedly uploaded approximately 87 crypto-related applications to the Google Play Store, enticing users with promises of high returns on their investments. These apps, downloaded by over 100,000 users since at least 2019, allegedly served as the conduit for the fraudulent scheme, resulting in significant financial losses for unsuspecting victims.

“The gains conveyed by the apps were illusory,” stated Google in its complaint. “And the scheme did not end there.”

The defendants allegedly compounded the deception by soliciting additional fees from victims under the guise of facilitating withdrawals.

“When victims attempt to withdraw funds, they cannot do so. The fraudsters frequently respond to attempts to withdraw funds by requesting additional investment, taxes, or fees, promising that these payments will allow victims to access their accounts. But no matter how much money the victim hands over or how many promises the fraudsters make, the moment the victims “invest” the money, it is gone,” Google said.

The company accused the defendants of employing various distribution methods, including text messages via Google Voice and affiliate marketing campaigns, to lure victims into downloading the fraudulent apps.

The lawsuit further accuses Sun and Cheung of violating multiple policies, including the Racketeer Influenced and Corrupt Organizations Act (RICO), wire fraud statutes, and various Google platform terms of service.

“By using Google Play to conduct their fraud scheme, defendants have threatened the integrity of Google Play and the user experience,” the company stated.