Two Chinese nationals and a woman from New York have pleaded guilty to money laundering charges related to drug trafficking proceeds. This announcement was made by Russ Ferguson, U.S. Attorney for the Western District of North Carolina. The individuals are the last of six defendants charged in this case.
Enhua Fang, 38, Jianfei Lu, 30, both from China, and Shu Jun Zhen, 36, from Staten Island, New York, were part of a Chinese money laundering organization (CMLO) that laundered over $92 million in illegal funds. These funds were primarily derived from drug trafficking activities involving drugs imported into the United States through Mexico.
Fang played an organizational role within the CMLO. She directed couriers to collect bulk cash proceeds from unlawful activities across the United States. These funds were then deposited into shell company bank accounts controlled by the CMLO to hide their illicit nature. Fang admitted responsibility for laundering at least $90 million in less than two years and acknowledged that these funds included drug trafficking proceeds.
Lu collected drug trafficking proceeds and deposited them into shell company accounts using real and fake identities. He also managed operations for the CMLO while Fang was in China and obtained fake driver’s licenses for couriers to facilitate deposits at major U.S. banks. Lu admitted involvement in laundering between $25 million and $65 million.
Zhen picked up and deposited nearly $25 million of illicit cash under Fang’s and Lu’s direction using both her real and fake identities. She acknowledged that she knew these funds included drug trafficking proceeds.
Fang and Zhen each pleaded guilty to one count of money laundering conspiracy among other charges, while Lu pleaded guilty to multiple counts including conspiracy and monetary transactions involving criminally derived property.
The defendants face up to 20 years in prison on each conspiracy and money laundering count with additional penalties possible for other charges. Sentencing will be determined by a federal district court judge considering various guidelines.
This case is part of Operation Take Back America aimed at combating illegal immigration, dismantling cartels, transnational criminal organizations, and protecting communities from violent crime perpetrators.
U.S. Attorney Ferguson was joined by Matthew R. Galeotti from the Justice Department’s Criminal Division along with DEA Atlanta Division Acting Special Agent Jae W. Chung and IRS-CI Charlotte Field Office Chief Guy Ficco in making this announcement.
The investigation is being conducted by the DEA Charlotte District Office alongside IRS-CI Charlotte Field Office with prosecution led by Assistant U.S. Attorney Alfredo De La Rosa among others involved in narcotic-related cases under Operation Take Back America initiatives.
