Three members of a large Chinese money laundering organization, including two Chinese nationals and a woman from New York, have pleaded guilty to charges tied to laundering tens of millions of dollars in drug money across America.
The three defendants, identified as Enhua Fang, 38, and Jianfei Lu, 30, both from China, along with Shu Jun Zhen, 36, of New York, were the final members of a six-person group charged in a recent federal indictment. Their guilty pleas hopefully symbolize the official end of a prolific group that the Department of Justice has officially labeled as a “Chinese Money Laundering Organization” (CMLO).
According to court documents, this CMLO funneled over $92 million in drug trafficking profits, much of it originating from a variety of different drugs imported into the United States via Mexico.
Fang played a central role as an organizer, coordinating a network of couriers who collected bulk cash from drug traffickers around the country. The money, usually more than $10,000 per pickup according to investigators, was then funneled into shell company bank accounts to “clean” its dirty origins.
Fang is said to have personally laundered at least $90 million in under two years, using burner phones and encrypted messaging apps to avoid detection from the feds.
Lu also acted as a manager within the organization, collecting drug proceeds and moving them into shell accounts using both his genuine identity and a collection of fake identities. Prosecutors say he even helped supply fake driver’s licenses to the couriers depositing the dirty money into major American banks.
Lu admitted to authorities that he was involved in laundering between $25 million and $65 million.
Zhen, under Fang’s and Lu’s direction, handled nearly $25 million in cash pickups and deposits, also occasionally using fake names to move money.
All three defendants pleaded guilty to multiple charges, including conspiracy to commit money laundering and money laundering to conceal the source of illegal funds. They each face up to 20 years in prison on the conspiracy and laundering counts, and up to 10 years on monetary transaction charges. Their sentences will be set at a later date.