Conspirators Brought $200M in Chinese Contraband through L.A. Ports, Feds Say

Feds Uncover Massive Scheme to Smuggle Counterfeit Goods from China

The United States Justice Department has announced that nine individuals 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.

How the Scheme Worked

The accused, including executives of logistics companies, warehouse owners, and truck drivers, worked together to import counterfeit goods and evade inspections in 2023 and 2024. The scheme involved breaking the security seals on shipping containers, removing the contraband, and replacing it with filler cargo to deceive customs officials and evade law enforcement.

False Customs Seals Used to Conceal Smuggling

Co-conspirators used false customs seals to conceal the removal of contraband from shipping containers. They would break the security seals on the containers, remove the contraband, and then affix counterfeit security seals to the containers to make it appear that the cargo had not been tampered with.

Accused Individuals

The nine individuals charged in the scheme include:

• 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

Seized Contraband and Estimated Losses

Authorities have seized $130 million in contraband, including luxury handbags, shoes, and perfumes. However, it is estimated that at least $200 million worth of goods was smuggled through the ports by this group.

Impact of Seal-Swapping Schemes

This scheme is not an isolated incident. Federal officials estimate that about $1.3 billion in contraband has been seized during seal-swapping schemes like this one. These schemes exploit legitimate trade practices and put American businesses and consumers at risk.

Conclusion

The investigation into this scheme highlights the importance of secure seaports and borders in protecting national security and preventing the smuggling of contraband. The defendants face serious charges and potential sentences of up to 20 years in prison if convicted. The trial is expected to begin on March 18.

FAQs

* What is the alleged scheme? Nine individuals are accused of smuggling 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.
* How did the scheme work? The accused used false customs seals to conceal the removal of contraband from shipping containers and replaced it with filler cargo to deceive customs officials and evade law enforcement.
* How much contraband was seized? Authorities have seized $130 million in contraband, including luxury handbags, shoes, and perfumes.
* How much contraband is estimated to have been smuggled? At least $200 million worth of goods is believed to have been smuggled through the ports by this group.
* How much contraband has been seized in similar schemes? About $1.3 billion in contraband has been seized during seal-swapping schemes like this one.