The 15-count indictment, returned last month and
unsealed Friday, charges nine defendants with conspiracy, smuggling and
breaking customs seals. 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.
“Secure seaports and borders are critical to our
national security,” said Acting United States Attorney Joseph T. McNally. “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.”
During the investigation into this group,
investigators seized more than $130 million in contraband, and the organization
is believed to be responsible for smuggling at least $200 million worth of
goods. According to the indictment, a search of one warehouse used by the group
led to the seizure in June 2024 of $20 million worth of counterfeit items
including shoes, perfume, luxury handbags, apparel and watches.
Seven defendants were arrested Friday, an eighth was
taken into custody Saturday evening, and one defendant is a fugitive. The seven
arrested last week were arraigned Friday in United States District Court, where
each pleaded not guilty to the charges against them. A trial date was scheduled for March 18. The eighth defendant, who
was arrested on unrelated state charges, is expected to be arraigned in federal
court in the coming days.
“Homeland Security Investigations (HSI) Los Angeles
and its partners are committed to enforcing customs laws and practices,
facilitating legitimate trade, and protecting the integrity of the nation’s
supply chain,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “The $1.3 billion dollars’ worth of
contraband seized during the investigation into this type of scheme illuminates
how complex smuggling schemes try to exploit our legitimate trade practices and
the American consumer.”
The 15-count indictment details a conspiracy to
coordinate the shipment of large quantities of contraband from China to the
United States through the Port of Los Angeles from at least August 2023 to June
2024.
If convicted
of all charges, the defendants would face a statutory maximum sentence of five
years in federal prison for each conspiracy count, up to 10 years in federal
prison for each count of breaking customs seals, and up to 20 years in prison
for each smuggling count.