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Yahoo
28-01-2025
- Yahoo
Logistics workers charged with importing $200M in fake goods via LA, Long Beach ports
Truck drivers, logistics executives and warehouse owners are among nine people who face charges in what authorities say was a conspiracy to import $200 million worth of counterfeit and other illegal goods from China into the United States through the ports of Long Beach and Los Angeles. A 15-count indictment unsealed Friday alleges the defendants unloaded contraband from containers slated for secondary inspection and filled them with other cargo to get them through customs. Eight people have been arrested, and a ninth is a fugitive, the Justice Department said in a statement Monday. Seven defendants pleaded not guilty in federal court, and the eighth person in custody is to be arraigned soon, the statement said. A trial date has been set for March 18. The charges include conspiracy, smuggling and breaking customs seals. Authorities have seized contraband valued at $130 million – including $20 million worth of counterfeit shoes and other clothing, luxury handbags, watches, and perfume from a single warehouse. The indictment states that the smuggling took place from August 2023 through June 2024. 'Secure seaports and borders are critical to our national security,' acting U.S. Attorney Joseph T. McNally said in the statement. 'The smuggling of huge amounts of contraband from China through our nation's largest port hurts American businesses and consumers.' Investigators said they have seized goods worth $1.3 billion in this and other 'seal-swapping' operations. '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 defendants charged are: Weijun Zheng, 57, aka 'Sonic,' of Diamond Bar, California, the lone fugitive in the case, who controls several logistics companies operating in the Los Angeles area. Hexi Wang, 32, of El Monte, California, who manages K&P International Logistics LLC, a City of Industry, California-based company that hires commercial truckers to transport shipping containers from the Port of Los Angeles. Jin 'Mark' Liu, 42, of Irvine, California, owner of K&P International Logistics LLC. Liu managed the finances of one of the warehouses where investigators say contraband was unloaded and issued payments to truck drivers who transported smuggled goods. Dong 'Liam' Lin, 31, of Hacienda Heights, California, who – along with Zheng – controlled and operated one of the warehouses allegedly used for contraband. Marck Anthony Gomez, 49, of West Covina, California, owner and operator of Fannum Trucks LLC, a West Covina-based company that coordinated the movement of shipping containers from the Port of Los Angeles, including large shipments of alleged contraband smuggled into the United States from China. Andy Estuardo Castillo Perez, 32, of Apple Valley, California, a driver for M4 Transportation Inc., a Carson, California-based company that transports shipping containers from the Port of Los Angeles. Jesse James Rosales, 41, of Apple Valley, who allegedly coordinated truckers from the ports to warehouses. Daniel Acosta Hoffman, 41, of Hacienda Heights, who investigators say worked with Rosales to bring cargo containers from the Port of Los Angeles to warehouses. Galvin Biao Liufu, 33, of Ontario, California, who allegedly directed and managed truck drivers to bring the contraband into the warehouses. The indictment states that containers selected for inspection by U.S. Customs and Border Protection were transported to warehouses or other locations controlled by the defendants. Co-conspirators broke the security seals on the containers and removed the contraband, then placed counterfeit seals on the containers, which were then returned for inspection. 'It was a team of CBP agriculture specialists assigned to the Los Angeles/Long Beach seaport who in 2023, during a routine examination of a container, made the initial discovery,' said Cheryl Davies, CBP director of field operations in Los Angeles. 'This case attests to their unwavering vigilance, utmost professionalism, and keen focus in protecting the integrity of lawful trade, a key component of our critical national security mission.' The defendants face up to five years in federal prison on each conspiracy count, up to 10 years for each count of breaking seals and up to 20 years on each smuggling count. Coast Guard Investigative Services is assisting in the investigation. Related: US to exclude Chinese e-commerce from duty free import The post Logistics workers charged with importing $200M in fake goods via LA, Long Beach ports appeared first on FreightWaves.
CBS News
28-01-2025
- CBS News
Federal prosecutors allege that local group smuggled more than $200 million in counterfeit, illegal goods through LA ports
Federal prosecutors on Monday announced charges against eight people whom they alleged smuggled hundreds of millions of dollars worth of counterfeit and illegal goods from China into the United States by using the Ports of Los Angeles and Long Beach. The 15-count indictment was unsealed last Friday, charging nine defendants with conspiracy, smuggling and breaking customs seals, according to a release from the United States Department of Justice. "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," the statement said. 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. 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. "Secure seaports and borders are critical to our national security," said Joseph T. McNally, the acting United States Attorney. "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." Prosecutors further noted that the 15-count indictment details what is believed to be a conspiracy to coordinate the shipment of large quantities of contraband from China to the U.S. The defendants who have been charged are: Weijun Zheng, a.k.a. "Sonic," a 57-year-old from Diamond Bar. He is the "lone fugitive" in the case, whom prosecutors allege controls several logistics companies that operate through Los Angeles; Hexi Wang, a 32-year-old El Monte resident that manages K&P International Logistics LLC. which is based in the city of Industry. The company hires commercial truckers to transport shipper containers from the Port of Los Angeles; Jim Liu, a.k.a. "Mark," a 42-year-old from Irvine who owns K&P International Logistics LLC. They alleged managed the finances of one of the warehouses. Dong Lin, a.k.a. "Liam," a 31-year-old from Hacienda Heights who, along with Zheng, controlled and operated one of the contraband warehouses where goods were unloaded and drivers who smuggled those goods were paid; Marck Anthony Gomez, a 49-year-old from West Covina who owns and operates Fannum Trucks LLC, a West Covina-based business that coordinated the movement of shipping containers from the Port of LA, which included shipments of the alleged contraband items that were smuggled from China; Andy Estuardo Castilllo Perez, a 32-year-old from Apple Valley. They allegedly drove for M4 Transportation Inc., which is based in Carson and transports containers from the Port of LA; Jesse James Rosales, a 41-year-old from Apple Valley who helped coordinate trucker routes from ports to warehouses; Daniel Acosta Hoffman, a 41-year-old from Hacienda Heights that worked with Rosales to bring cargo containers to warehouses from the Port of LA' Galvin Biao Liufu, a 33-year-old from Ontario that directed and managed truck drivers who brought the contraband to warehouses. The indictment says that Zheng, Wang and Liu operated the warehouses in order to store, conceal and sell the contraband items. "When the contraband containers were selected by U.S. Customs and Border Protection (CBP) for inspection, the defendants hired commercial truck drivers to transport the containers from the Port of Los Angeles to locations that the conspirators controlled, including warehouses in the City of Industry that were controlled or managed by Zheng, Wang and others," the statement said. Once containers were delivered to these locations, prosecutors say that the group would break the security seals and remove the items from inside. They would then put counterfeit security seals back onto the containers in order to hide the cargo that had just been removed. After they did this and counterfeit seals were re-secured, the conspirators would direct where the containers were to be transported to CBP-authorized locations. "It was a team of CBP agriculture specialists assigned to the Los Angeles/Long Beach seaport who in 2023, during a routine examination of a container made the initial discovery," said Cheryl Davies, the Director of Field Operations in Los Angeles for CBP. "This case attests to their unwavering vigilance, upmost professionalism, and keen focus in protecting the integrity of lawful trade, a key component of our critical national security mission." If all defendants are convicted as charged, they each face statutory maximum sentences of five years in federal prison for each conspiracy count, up to 10 years for each count of breaking customs seals and up to 20 years in prison for each smuggling count.
Yahoo
27-01-2025
- Yahoo
Conspirators brought $200M in Chinese contraband through L.A. ports, feds say
Nine people are facing federal charges for their roles in an alleged conspiracy to 'smuggle hundreds of millions of dollars' worth of counterfeit and other illegal goods from China into the United States via the Ports of Los Angeles and Long Beach,' the United States Justice Department said. The accused include executives of logistic companies, warehouse owners and truck drivers who worked together to import counterfeit goods and evade inspections in 2023 and 2024, the DOJ said in a news release on Monday. '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,' officials explained. That scheme was enabled by the use of false customs seals, officials said. 'Co-conspirators broke the security seals on the shipping containers and removed the contraband from inside,' the release said. 'Then, they affixed counterfeit security seals onto the containers to conceal that cargo had been removed from them.' Eight of the nine people involved have been taken into custody — seven on Friday, one on Saturday — and the ninth remains a fugitive, officials said. The accused are: Weijun Zheng, 57, aka 'Sonic,' of Diamond Bar, the lone fugitive in the case, who controls several logistics companies operating in the Los Angeles area Hexi Wang, 32, of El Monte, who manages K&P International Logistics LLC, a City of Industry-based company that hires commercial truckers to transport shipping containers from the Port of Los Angeles Jin 'Mark' Liu, 42, of Irvine, the owner of K&P International Logistics LLC and who managed the finances of one of the warehouses where contraband was unloaded and issued payments to truck drivers who transported smuggled goods Dong 'Liam' Lin, 31, of Hacienda Heights, who – along with Zheng – controlled and operated one of the contraband warehouses Marck Anthony Gomez, 49, of West Covina, the owner and operator of Fannum Trucks LLC, a West Covina-based company that coordinated the movement of shipping containers from the Port of Los Angeles, including large shipments of contraband smuggled into the United States from China Andy Estuardo Castillo Perez, 32, of Apple Valley, a driver for M4 Transportation Inc., a Carson-based company that transports shipping containers from the Port of Los Angeles Jesse James Rosales, 41, of Apple Valley, who coordinated truckers from the ports to warehouses Daniel Acosta Hoffman, 41, of Hacienda Heights, worked with Rosales to bring cargo containers from the Port of Los Angeles to warehouses Galvin Biao Liufu, 33, of Ontario, directed and managed truck drivers to bring the contraband into the warehouses Authorities said the investigation yielded $130 million in seized contraband like luxury handbags, shoes and perfumes, though at least $200 million worth of goods is believed to have been smuggled through the ports by this group. This group is not alone in using these types of tactics, however. Federal officials estimate that about $1.3 billion in contraband has been seized during seal-swapping schemes like this one. '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.' 'Secure seaports and borders are critical to our national security,' added 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.' In this specific case, the seven arrested on Friday have pleaded not guilty to all charges, while the eighth is expected to be arraigned soon. The indictment includes 15 counts, and if convicted on all of them, the defendants could be sentenced to 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. The trial is expected to begin on March 18. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
