A Georgia resident has admitted guilt in a conspiracy to launder tens of millions of dollars from drug proceeds for foreign drug trafficking organizations, including the Sinaloa Cartel and the Jalisco Cartel. Earlier this year, on August 5, a foreign national living in Illinois also pleaded guilty for his involvement in the same scheme.
Court documents reveal that Li Pei Tan, 46, from Buford, and Chaojie Chen, 41, a Chinese national residing in Chicago, were part of an organization that laundered millions related to illegal drug importation into the United States through Mexico. The group distributed drugs unlawfully within the country. Tan and Chen traveled across the U.S. to collect money from trafficking fentanyl, cocaine, and other drugs. They coordinated with associates in China and other countries to conceal these funds through financial transactions involving trade-based money laundering schemes like purchasing bulk electronics in the U.S. and shipping them to China.
Before Chen's arrest in May, law enforcement seized hundreds of thousands of dollars in cash drug proceeds from him at various locations across the U.S. Additionally, Tan was intercepted by authorities in South Carolina while attempting to transport over $197,000 in drug proceeds.
The Drug Enforcement Administration (DEA)’s National Drug Threat Assessment indicates that the Sinaloa and Jalisco cartels are central to the fentanyl crisis affecting the United States.
Tan and Chen have pleaded guilty to conspiracy to commit money laundering. As part of their plea agreements, they will forfeit several assets to the government including a residence, a firearm, body armor, and more than $270,000 in seized currency. They also agreed to money judgments exceeding $23 million. Sentencing is scheduled for November 14 for Chen and February 7, 2025 for Tan. Both face up to 20 years imprisonment; however, final sentencing will be determined by a federal district court judge considering U.S. Sentencing Guidelines among other factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri from the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; and DEA Administrator Anne Milgram announced these developments.
The DEA’s Special Operations Division is leading investigations with support from its Office of Special Intelligence as well as DEA offices located in Chicago; Atlanta; Charlotte; North Carolina; Charleston; South Carolina; along with assistance from Anderson County Sheriff’s Office in South Carolina.
Trial Attorney Mary K. Daly from the Criminal Division’s Money Laundering and Asset Recovery Section alongside Assistant U.S. Attorney Edgardo J. Rodriguez are prosecuting this case.
