Lakeville Police Arrest Suspect Tied to Theft-by-Swindle Case Involving Nearly $500,000 Loss
Published: March 26, 2026
LAKEVILLE, MINNESOTA - A man, whose court records say he resides in California, is now in custody and is facing charges in a Dakota County case involving an alleged large-scale financial scam that drained hundreds of thousands of dollars from an elderly Lakeville resident.
According to a criminal complaint filed in Dakota County, Zihao Xu, 32, of San Gabriel, California, has been charged with one count of felony theft by swindling over $5,000. The charge carries a maximum penalty of up to 10 years in prison and fines ranging from $6,000 to $20,000 if convicted.
Investigation Began After Bank Alert
The case began on April 26, 2024, when the Lakeville Police Department received a report from Wells Fargo Bank expressing concern about a customer making unusually large cash withdrawals. According to the report, the victim’s account balance had dropped from approximately $500,000 to zero over a period of time.
Investigators, along with a Dakota County Adult Protective Services worker, met with the victim at a senior living facility in Lakeville on May 1, 2024. At the time, staff indicated the victim lived independently and did not show signs of memory impairment. The victim told investigators he believed he was investing money through his brother in small businesses, though authorities quickly became concerned that the situation may involve fraud.
Suspect Identified Through Records and Surveillance
Information later provided by the Owatonna Police Department helped identify Xu as a suspect. Lyft records showed Xu was in Lakeville on April 16, 2024, the same day investigators believe one of the cash exchanges occurred. Xu admitted to investigators that he traveled to Lakeville, met with the victim, and picked up a bag of cash.
Surveillance footage from the senior living facility reportedly shows Xu waiting inside the building before stepping outside. Shortly afterward, the victim exits with a plastic bag and returns without it. The victim later told investigators he recalled handing over approximately $20,000 in cash during that encounter.
Multiple Cash Transfers and International Wires
Further investigation revealed the alleged scheme began in March 2024, when the victim received an email from someone identifying themselves as “David Miller,” who claimed they could help “repair” the victim’s bank account. The victim was instructed to reduce his account balance to $10,000. Over time, he withdrew large sums of cash and moved money between multiple accounts, including Wells Fargo, Lakeview Bank, and Chase Bank. Authorities say the victim made at least 12 separate in-person cash handoffs to different individuals. Xu is alleged to have been one of those individuals.
During this time, the victim also noticed unexplained wire transfers being sent to Peru. Bank records confirmed the financial losses. The victim’s Wells Fargo account reportedly began with a balance of $499,804.55 in early March 2024. By September 10, 2024, his remaining balance at Lakeview Bank was just $10,605.70.
Prior Conviction and Arrest
Court documents state Xu was previously convicted of felony theft by swindling in August 2024 in Steele County, Minnesota. He also had an active warrant in that case.
Due to concerns that Xu might not appear in court, particularly after investigators learned he had plans to travel internationally, a nationwide warrant was issued on August 12, 2025.
According to court records, Xu was arrested by the Lakeville Police Department on March 25, 2026.
Bail and Court Conditions
Court records show that the prosecution is requesting that bail in the Dakota County case be set at $40,000 without conditions, or $20,000 with conditions. Those conditions include not leaving Minnesota without court approval and surrendering his passport. Prosecutors noted concerns about Xu’s willingness to appear in court, citing his prior case and reported travel plans abroad.
Authorities continue to emphasize the importance of recognizing financial scams, particularly those targeting older adults, and encourage individuals to report suspicious financial activity to law enforcement. As with all criminal cases, the defendant is presumed innocent until proven guilty in a court of law.
Provided by the Dakota County Jail.
Written by: Will Wight
