Arrests Made in Widespread Smuggling Scheme at Ports of L.A., Long Beach

Large-Scale Operation Involving Contraband Goods Worth Millions

Federal authorities have arrested eight individuals and issued a warrant for a ninth suspect in a large-scale smuggling scheme that brought millions of dollars’ worth of contraband goods into the ports of Los Angeles and Long Beach from 2023 to 2024. The operation involved evading security seals on shipping containers and replacing the contraband goods with generic products.

Charges Filed Against Suspects

Federal charges carrying a minimum of 20 years in prison were filed against all eight suspects, including logistics company owners, warehouse managers, and truckers. The suspects allegedly took thousands of dollars under the table for participating in the scheme.

Authorities Describe Operation as “Criminal Network”

According to Acting U.S. Attorney Joseph T. McNally, the operation was a “wide-ranging scheme to circumvent inspections at the ports of Los Angeles and Long Beach.” The scheme involved logistics companies, warehouse owners, and corrupt truckers.

Items Included Chemicals to Produce Illegal Medications and Narcotics

The contraband goods included chemicals used to produce illegal medications and narcotics, as well as other illegal goods. The scheme was uncovered when a team of CBP agriculture specialists assigned to the Los Angeles/Long Beach seaport made a routine examination of a container in 2023.

Authorities Seize Over $1.3 Billion Worth of Counterfeit Goods

To date, law enforcement has seized more than $1.3 billion worth of counterfeit goods associated with this and similar seal-swapping schemes. The operation highlights the importance of border security and the need to prevent illegal goods from entering the country.

Those Arrested and Charged

• Hexi Wang, 32, of El Monte, who manages K&P International Logistics LLC, a City of Industry 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 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 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.

Conclusion

The arrests and charges in this case demonstrate the importance of law enforcement’s efforts to prevent illegal goods from entering the country. The scheme’s scope and scale highlight the need for continued vigilance and cooperation between authorities to protect the integrity of lawful trade and national security.

FAQs

Q: What was the scope of the smuggling scheme?
A: The scheme involved smuggling millions of dollars’ worth of contraband goods into the ports of Los Angeles and Long Beach from 2023 to 2024.

Q: Who was arrested and charged in the scheme?
A: Eight individuals were arrested and charged, including logistics company owners, warehouse managers, and truckers. A ninth suspect, believed to be the mastermind, remains a fugitive.

Q: What types of goods were smuggled?
A: The contraband goods included chemicals used to produce illegal medications and narcotics, as well as other illegal goods.

Q: How much was seized in connection with the scheme?
A: Law enforcement has seized over $1.3 billion worth of counterfeit goods associated with this and similar seal-swapping schemes.