Federal authorities have apprehended eight individuals following a grand jury indictment accusing them of orchestrating a large-scale smuggling operation. The scheme allegedly involved executives from logistics companies, warehouse owners, and truck drivers conspiring to import counterfeit and illegal goods from China through the Ports of Los Angeles and Long Beach.
The indictment, which was unsealed last Friday, charges nine defendants with conspiracy, smuggling, and breaking customs seals. It is alleged that the group used deceptive practices to bypass customs inspections by unloading contraband from containers marked for secondary inspection and replacing it with filler cargo.
During the investigation, authorities seized over $130 million in contraband. The organization is believed to have smuggled at least $200 million worth of goods. A search in June 2024 uncovered $20 million worth of counterfeit items such as shoes, perfume, luxury handbags, apparel, and watches.
Seven defendants were arrested on Friday, with an eighth taken into custody on Saturday. One individual remains at large. Those arrested have pleaded not guilty in court, with a trial date set for March 18.
Acting United States Attorney Joseph T. McNally emphasized the importance of secure seaports for national security: "The smuggling of huge amounts of contraband from China through our nation’s largest port hurts American businesses and consumers."
HSI Los Angeles Special Agent Eddy Wang highlighted the scale of the operation: "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."
The defendants include Weijun Zheng (fugitive), Hexi Wang, Jin "Mark" Liu, Dong "Liam" Lin, Marck Anthony Gomez, Andy Estuardo Castillo Perez, Jesse James Rosales, Daniel Acosta Hoffman, and Galvin Biao Liufu.
The indictment details how these individuals maintained warehouses to store illegally imported goods. They allegedly used commercial truck drivers to transport containers from the port to controlled locations where they removed contraband and affixed counterfeit seals before returning them for inspection.
Cheryl Davies from U.S. Customs praised her team’s vigilance in uncovering the scheme: "This case attests to their unwavering vigilance...in protecting the integrity of lawful trade."
If convicted on all charges, each defendant faces significant prison time under federal law.
Homeland Security Investigations is leading this investigation as part of an Organized Crime Drug Enforcement Task Force operation aimed at dismantling high-level criminal organizations threatening U.S. security.
Assistant United States Attorneys Colin S. Scott and Amanda B. Elbogen are prosecuting this case.
