Police Say Duo Ran Tesla Fraud Scheme, Faking Vehicle Thefts

man arrested tesla scheme
Image Credit: Daytona Beach Police Department / Facebook.

Every so often a crime story comes along that makes you tilt your head and go “wait, how does that even work?” This is one of those. Daytona Beach Police have arrested two people accused of running a scheme built around Tesla vehicles that were fraudulently reported as stolen, and investigators say the operation may not have stopped at Florida’s border.

According to a statement from the Daytona Beach Police Department, Liwei Sun and Hongyu Kuang were taken into custody following an investigation into the alleged scheme. Police believe similar activity tied to the pair has been occurring in other states as well, suggesting this wasn’t a one-time idea somebody cooked up on a slow Tuesday.

Sun is facing a heavier list of charges, including Organized Scheme to Defraud over $50,000, Unauthorized Possession of a Driver’s License, and Grand Theft of a Motor Vehicle. Kuang is facing multiple counts of Unauthorized Possession of a Driver’s License and Trespassing in a Structure or Conveyance. Police haven’t released the full details of how the alleged scheme worked, so exactly how a Tesla gets reported stolen without actually being stolen remains a bit of a mystery for now.

What we do know is that Teslas come loaded with cameras, GPS tracking, and an app that can practically tell the owner what the car had for breakfast. That makes a scheme like this sound like an odd choice of target, which is part of what makes the case interesting.

Modern Cars Are Hard to Fool, Which Makes This Case Stand Out

Tesla owners are used to being able to pull up their car’s location on a phone screen within seconds. That kind of built-in tracking is exactly why stolen Tesla cases tend to get solved quickly compared to older vehicles without any onboard technology.

A fraud scheme involving these cars specifically raises the question of whether the suspects found some clever workaround, or whether they were simply banking on paperwork and reports moving faster than anyone would bother to check the fine print.

Either way, it’s a reminder that fraud doesn’t always look like someone breaking a window and hot-wiring a car in the dark. Sometimes it looks like documents, driver’s licenses, and reports filed with a straight face.

Alarming Arrests

Multi-state investigations involving driver’s license fraud and vehicle theft charges tend to widen rather than shrink once detectives start pulling threads, and that seems to be exactly what’s happening here. If the scheme really did stretch across state lines, Sun and Kuang may end up with more charges before this is finished, and other agencies could have their own paperwork to compare.

For now, the arrests stand as a solid reminder that even the most tech-loaded vehicles on the road aren’t immune to someone trying to game the system on paper instead of hacking it electronically.

Author: Olivia Richman

Olivia Richman has been a journalist for 10 years, specializing in esports, games, cars, and all things tech. When she isn’t writing nerdy stuff, Olivia is taking her cars to the track, eating pho, and playing the Pokemon TCG.

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