Police say thousands of fraudulent online orders were routed through Arizona drop houses before merchandise was transported to California and shipped overseas.
PEORIA, Ariz. — Six people were arrested after a two-month investigation uncovered an alleged Walmart fraud scheme involving about 15,500 online orders and roughly $1.23 million in merchandise, according to police and newly released court documents.
The investigation began Aug. 22 after a Walmart delivery driver reported an unusual number of packages being delivered to one Peoria home. The driver told police that about 30 to 50 packages bearing different names had arrived at the address within several days. Soon afterward, another person reported that their Walmart account had been compromised and used to make unauthorized purchases. Investigators said those reports helped uncover a much larger operation spanning several Phoenix-area communities and extending to California and Vietnam.
According to court documents cited by Arizona’s Family, investigators believe the group used compromised Walmart customer accounts along with stolen credit and debit card information to place thousands of orders on Walmart.com. Delivery addresses were allegedly altered in ways intended to avoid fraud alerts. Police linked 11,364 orders worth more than $768,000 to six drop houses in Peoria, Mesa, Glendale and Avondale. Investigators estimated the broader alleged scheme at about $1.23 million, although some reports described the case as a $1.4 million fraud investigation.
The merchandise allegedly moved from the drop houses through two boba shops in Peoria and Tolleson before being transported by vehicle to California. Police allege the goods were then loaded into shipping containers and sent to Vietnam through U.S. Cargo Shipping LLC. Photographs released by authorities showed large quantities of consumer products, including shampoo, lotion, dental adhesive, candy and other everyday merchandise. Peoria police Officer William Kennedy said the suspicious-delivery report was critical to bringing the activity to investigators’ attention.
Authorities said the investigation resulted in the recovery of about $25,000 in Walmart merchandise. Officers also seized about $35,000 in cash and gold bars valued at roughly $45,000. Walmart had confirmed $57,501 in chargeback losses involving two victims, while JPMorgan Chase identified 203 customers connected to about $8,821 in unauthorized purchases, according to the court documents. Those confirmed figures represent only portions of the total losses investigators have attributed to the alleged operation.
Investigators identified 30-year-old Hoài Nguyen Nguyen as the alleged organizer of an operation they say involved at least nine other people. Nguyen denied involvement when questioned by police and said he was an employee of U.S. Cargo Shipping LLC. Investigators, however, said they believe he owns the company. Two other suspects told police that Nguyen recruited them to receive packages under different names, monitor deliveries and load merchandise into a van and U-Haul trailer for trips to California in exchange for a portion of the shipment value, according to court records.
Search warrants were served at multiple locations across the Phoenix metropolitan area with assistance from SWAT teams, Homeland Security Investigations and Walmart investigators. Ten people were initially detained, and four were later released. Police booked Thien Tran, 42; Uy Vu Phan, 55; Minh Ngọc Nguyen, 57; Hie Xuan Le, 24; Hoài Nguyen Nguyen, 30; and Hailey Hang Nguyen, 26, into the Maricopa County Jail.
All six face allegations that include fraudulent schemes and artifices, possession of an access device violation, computer tampering for fraud, aggravated taking of identity and first-degree trafficking in stolen property, according to court records. The allegations have not been proven in court, and the defendants are presumed innocent unless convicted. FOX 10 Phoenix reported that the six were being held on $500,000 cash-only bonds following their arrests.
The case remains under investigation as authorities work to determine the full number of compromised accounts, unauthorized transactions and people connected to the alleged network. Investigators have not announced whether additional arrests or charges will follow.
Author note: Last updated October 23, 2026.