After an investigation that lasted around four years, three individuals have pleaded guilty to a conspiracy to launder over $30 million in drug trafficking proceeds in the US for foreign drug trafficking organizations (DTOs).
For several years, the defendants used casinos, foreign and domestic bank accounts, bulk cash smuggling and front companies to launder money for transnational DTOs primarily involved in cocaine trafficking. The DTOs paid the defendants to carry out financial transactions to conceal the source of the illicit funds. As part of the scheme, the defendants transported drug proceeds across the US. They also exchanged the dollars of drug proceeds into Chinese and Mexican currency through ‘mirror transfers’, among other methods.
New York-based defendant Jiayu Chen received drug proceeds of over $2.8 million and delivered them to others who carried out financial transactions to conceal the source. Hong Kong-based Tao Liu accepted bulk drug proceeds for a co-defendant. He then deposited the money into the bank accounts shared by the co-defendant. Liu also agreed to pay bribes to an undercover DEA agent who he thought was a corrupt official. Jingyuan Li of California used a local seafood import/export business for laundering over $3.8 million. He used the drug proceeds to purchase goods through the business. He then shipped the goods to China and Hong Kong for sale.
Source: US Department of Justice