Date: May 1, 2025
Contact: [email protected]
Charlotte, NC — Two Chinese nationals and a California man, all members of a prolific Chinese money laundering organization (CMLO), have pleaded guilty to money laundering charges involving drug trafficking proceeds, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
Matthew R. Galeotti, head of the Justice Department’s Criminal Division, Special Agent in Charge Donald “Trey” Eakins of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, and Acting Special Agent in Charge Jae W. Chung of the Drug Enforcement Administration (DEA), Atlanta Division, join U.S. Attorney Ferguson in making the announcement.
According to court documents, Maoxuan Xia, of China, Shao Neng Lin, of Baldwin Park, California, and Zhou Yu, of China, were members of the CMLO that laundered over $92 million in illicit funds, including proceeds from the importation and distribution of illegal drugs into the United States, primarily through Mexico. Xia was one of the most active members of the Organization, traveling throughout the United States to collect drug trafficking proceeds from U.S.-based drug traffickers and deposit those illicit funds, using both real and fake identities, into shell company bank accounts registered by other members of the CMLO, such as Lin and Yu.
Xia and Yu each pleaded guilty to one count of money laundering conspiracy, one count of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and one count of monetary transactions involving criminally derived property greater than $10,000. Lin pleaded guilty to one count of money laundering conspiracy, two counts of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and two counts of monetary transactions involving criminally derived property greater than $10,000. Pursuant to his plea agreement, Xia admitted that he was personally responsible for laundering more than $30 million of illicit funds, including drug trafficking proceeds, in less than two years. Xia further admitted that he knew funds laundered in the conspiracy included drug trafficking proceeds or funds intended to promote drug trafficking. Pursuant to their respective plea agreements, Lin and Yu both admitted that they each received, through the shell company bank accounts that they created and operated for the CMLO, approximately $20 million in illicit funds, including drug trafficking proceeds. Lin and Yu both admitted that the total amount of illicit funds laundered in the conspiracy for which they had actual knowledge and involvement was approximately $40 million.
“Let this case be a warning to foreign money launderers and drug traffickers,” said U.S. Attorney Russ Ferguson. “We will work day and night to dismantle criminal operations that exploit our robust financial system to fund criminal networks, fuel addiction in our communities, and spread violence in our streets.”
“IRS Criminal Investigation is committed to going after money laundering networks attempting to move cash made from the sale of drugs in the United States,” said Special Agent in Charge Eakins. “Our special agents will continue to use their financial expertise to follow the money trail while working alongside partner agencies to stop those who profit from drug sales in the United States.”
“DEA strives every day to keep the American public safe from criminal organizations who threaten our communities,” said Acting Special Agent in Charge Chung. “This case demonstrates our ability to leverage every tool to attack and dismantle dangerous drug trafficking and money laundering organizations.”
The defendants face a maximum penalty of 20 years in prison on each of the conspiracy and money laundering counts and a maximum of 10 years in prison on each of the monetary transactions counts. A federal district court judge will determine their respective sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS-CI and the DEA are investigating the case.
Acting Assistant Deputy Chief Mingda Hang and Trial Attorney Jayce Born of the Justice Department’s Narcotic and Dangerous Drug Section, and Assistant U.S. Attorneys Alfredo De La Rosa and Seth Johnson of the U.S. Attorney’s Office for the Western District of North Carolina are prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s and Project Safe Neighborhoods (PSN).
IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 20 field offices located across the U.S. and 14 attaché posts abroad.