Police say compromised customer accounts and stolen payment information were used for thousands of online orders routed through Phoenix-area drop houses.
PEORIA, Ariz. — Six people were arrested after a two-month investigation into an alleged Walmart fraud operation involving thousands of online orders and more than $1 million in merchandise, according to Peoria police and court records.
The investigation began Aug. 22 after a Walmart delivery driver reported an unusual pattern at a Peoria home, police said. The driver told investigators that roughly 30 to 50 packages carrying different names had been delivered to the same address over several days. A Walmart customer later reported that an account had been compromised and used for purchases the customer did not authorize. Investigators said those reports helped expose an operation that allegedly stretched across several Phoenix-area communities, California and Vietnam.
Investigators allege the group placed about 15,500 orders through Walmart.com using compromised customer accounts and stolen credit and debit card information. Court records reviewed by Arizona’s Family showed police connected 11,364 orders valued at more than $768,000 to six suspected drop houses in Peoria, Mesa, Glendale and Avondale. Investigators estimated the broader value of the suspected operation at about $1.23 million, while Peoria police and some local reports have described the case as a roughly $1.4 million fraud investigation.
Police said merchandise delivered to the drop houses was moved through two boba shops in Peoria and Tolleson. Investigators allege the goods were then transported by vehicle to California and placed into shipping containers bound for Vietnam through U.S. Cargo Shipping LLC. Images released by police showed boxes and bags containing common consumer products, including shampoo, lotion, dental adhesive, candy and other merchandise.
Peoria police Officer William Kennedy credited the Walmart delivery driver’s report with bringing the suspicious activity to investigators’ attention. Police said the investigation eventually led detectives to multiple addresses and businesses associated with the suspected operation. Search warrants were served at locations across the Phoenix metropolitan area with assistance from SWAT teams, Homeland Security Investigations and Walmart investigators.
Authorities said officers recovered about $25,000 in Walmart merchandise during the investigation. Police also reported seizing about $35,000 in cash and gold bars valued at approximately $45,000. According to court records reported by Arizona’s Family, Walmart had confirmed $57,501 in chargeback losses involving two victims. JPMorgan Chase identified 203 customers connected to about $8,821 in unauthorized purchases. Those figures represent confirmed portions of the losses investigators say are connected to the larger suspected operation.
Investigators identified Hoài Nguyen Nguyen, 30, as the suspected organizer of an operation they allege included at least nine other people. Nguyen denied involvement when questioned by police and said he was an employee of U.S. Cargo Shipping LLC, according to court records. Investigators said they believe he owns the company. Two other suspects told investigators that Nguyen recruited them to receive packages under various names, monitor deliveries and help load merchandise for trips to California in exchange for a share of shipment values, according to the records.
Police said 10 people were initially detained during the operation and four were later released. The six people booked into the Maricopa County Jail were Thien Tran, 42; Uy Vu Phan, 55; Minh Ngọc Nguyen, 57; Hie Xuan Le, 24; Hoài Nguyen Nguyen, 30; and Hailey Hang Nguyen, 26. FOX 10 Phoenix reported that the six were being held on $500,000 cash-only bonds following their arrests.
Court records say the six face allegations including fraudulent schemes and artifices, an access-device violation, computer tampering for fraud, aggravated taking of identity and first-degree trafficking in stolen property. The allegations have not been proven in court. Authorities have not announced that the defendants have been convicted of any offense connected to the investigation.
The investigation remains active as authorities work to determine the full number of compromised accounts, unauthorized purchases and people who may have been connected to the suspected network. Police had not announced additional arrests or charges as of Saturday.
Author note: Last updated October 24, 2026.