We’re learning more today about how federal authorities may have broken up a Chinese-money laundering ring which attempted to funnel large amounts of drug money in Chicago to Mexico by way of China.
A judge on Tuesday sentenced Xianbing Gan to 14 years in prison for the plot, reports CBS2.
“The defendant was part of a recent phenomenon in which a relatively small network of Chinese money brokers based in Mexico have come to dominate international money laundering markets,” said Assistant U.S. Attorneys Sean J.B. Franzblau and Richard M. Rothblatt in a statement.
“Like defendant, many of these brokers are also engaged in legitimate business, and use that business as cover for and to further money laundering activity.”
Gan thought he was dealing with a money courier when he tried to launder more than 500,000, but that “courier” turned out to be an undercover officer.
Details obtained by the Chicago Sun Times reveal how a second defendant, Huazhi Han, received a call from a man who identified himself as a Mexican money courier. The man told Han he had been spotted by police and suggested they find a new drop off spot.
“You Asian, I’m Mexican — not a good look,” the courier said according to court records obtained by the Sun Times.
The men agreed in advance that Han would receive a $1 bill with a specific serial number to identify him to Han as the right person.
They met and the man handed Han a bag of cash with almost $200,000 in it. That courier also turned out to be an undercover officer.
Han is facing trial for money laundering in Chicago.
Court document reveal authorities searched this home and seized about $1.2 million they found hidden in the ceiling.
Investigators started investigating this scheme in 2015 when they say Mexico drug operatives began turning to the Chinese as a cheaper way to funnel cash.
“They do not need to charge as much as other laundering organizations because their processes have been in place for many generations and date back to the earliest forms of tax evasion in Chinese history,” said Mark Giuffre, a retired DEA supervisor, to the Sun Times.
Authorities got an inside look at the operation when Seok Pheng Lim who is now awaiting sentencing began cooperating with authorities in exchange for a less prison time.
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