Multiple Arrests Made In Alleged $200 Million Smuggling Scheme, Justice Department Announces

Federal authorities arrested eight defendants in an alleged operation to smuggle at least $200 million worth of goods from China into the United States.

The Justice Department alleged those charged in the indictment smuggled “counterfeit and other illegal goods” via the Ports of Los Angeles and Long Beach.

“The 15-count indictment, returned last month and unsealed Friday, charges nine defendants with conspiracy, smuggling and breaking customs seals,” U.S. Attorney’s Office, Central District of California stated in a press release.

“The defendants allegedly took containers flagged for off-site secondary inspection, unloaded the contraband, then stuffed the targeted containers with filler cargo to deceive customs officials and evade law enforcement,” it continued.

#BREAKING: Feds uncover a $200 million smuggling operation tied to China, using the Ports of LA. https://t.co/uXbNeDGBYE

— FOX 11 Los Angeles (@FOXLA) January 27, 2025

Per CBS News:

While investigating the group, federal investigators say that they seized more than $130 million in contraband. They believe they are responsible for smuggling at least $200 million worth of goods.

The indictment claims that investigators searched one warehouse used by the group in June 2024, where they seized $20 million in counterfeit items like shoes, perfume, luxury handbags, watches and other apparel.

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Eight of those defendants were arrested, while the ninth person and the alleged ringleader of the group is in China, authorities believe.

Authorities arrested seven of the members on Friday, while the eighth was taken into custody on Saturday, they said. Each of those arrested on Friday has pleaded not guilty to the charges against them and a preliminary trial date is set for March 18. The eighth defendant, who prosecutors say was arrested on unrelated state charges, is awaiting arraignment.

WATCH:

Feds uncover $200 million smuggling operation tied to China pic.twitter.com/mjTgWfVr9N

— Karli Bonne’ (@KarluskaP) January 28, 2025

“Secure seaports and borders are critical to our national security,” Acting United States Attorney Joseph T. McNally said.

“The smuggling of huge amounts of contraband from China through our nation’s largest port hurts American businesses and consumers. The charges and arrests here demonstrate our commitment to enforce our customs laws and keep the American public safe,” McNally added.

From the Los Angeles Times:

Authorities at the ports of L.A. and Long Beach regularly intercept all manner of counterfeit goods — electronics, clothing and handbags, guitars, engines and more. In recent years, they have confiscated shipments of prohibited chemicals, plants and animal products, weapons parts and counterfeit coins. In 2022, U.S. Customs and Border Protection announced that the ports had seized $1 billion worth of counterfeit products in one year, a record high driven by a pandemic-era surge in online shopping.

Although customs officials have rigorous standards to prevent tampering with security seals before inspection, authorities acknowledged that the scheme exposed a serious vulnerability at the nation’s busiest port complex. The L.A.-Long Beach ports handle about 30% of the international seaborne cargo coming into and out of the country, and only a fraction of the thousands of shipping containers moving through every day are opened and inspected.

“With this much activity, transnational criminal organizations have a wide berth to operate and exploit vulnerabilities, and the defendants charged in this indictment took full advantage,” Eddy Wang, special agent in charge with the U.S. Department of Homeland Security Investigations in Los Angeles, said at a news conference Monday at the Port of Los Angeles.

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