Carlos A. Grijalva, a 59-year-old resident of Simi Valley, California, has entered a guilty plea to one count of conspiracy to launder monetary instruments amounting to approximately $46.4 million. This development was announced by the United States Attorney’s Office for the Middle District of Pennsylvania.
Grijalva is the second individual to plead guilty in this case, following Bruce Jin's guilty plea earlier this year. In April 2025, Grijalva and another defendant, Brian R. Cleland, faced charges in a superseding indictment related to laundering monetary instruments and other offenses. The initial charges against them were filed in August 2023.
Acting United States Attorney John C. Gurganus reported that Grijalva admitted his involvement with Cleland and Jin in laundering state unemployment compensation funds fraudulently obtained between 2021 and early 2022. They purportedly operated businesses selling COVID-19 personal protective equipment as a cover for their activities while knowing these funds were derived from fraudulent state unemployment compensation benefits.
Grijalva also confessed to having knowledge that bank accounts belonging to identity theft victims across the United States were accessed unlawfully, leading to fraudulent unemployment claims paid into these accounts by various state treasuries, including Pennsylvania's. He understood that these activities were conducted by individuals based in China.
Furthermore, Grijalva admitted that he and Cleland provided payment processing companies with bank account information from identity theft victims to generate ACH payments into accounts they controlled. This information was supplied by an individual referred to as “COCONSPIRATOR 2” in China. Their scheme allowed them to acquire over $46 million fraudulently.
The financial transactions involved transferring more than $30 million through various bank accounts to entities managed by Bruce Jin and an individual known as “COCONSPIRATOR 1.” Grijalva confirmed discussions with Cleland regarding using PPE sales as a cover story for their actions.
As part of his plea agreement, Grijalva consented to forfeiture of certain properties purchased with illicit funds, including real estate in Hawaii and California registered under a family member's name.
Jin remains detained since his arrest in August 2023 awaiting sentencing while Cleland has pleaded not guilty and awaits trial.
This investigation was led by the Federal Bureau of Investigation alongside the U.S. Department of Labor’s Office of Inspector General with prosecution handled by Assistant U.S. Attorneys Ravi Romel Sharma and K. Wesley Mishoe along with Trial Attorney Patrick B. Gushue from the Department of Justice’s Money Laundering & Asset Recovery Section.
The COVID-19 Fraud Enforcement Task Force established by the U.S Attorney General aims at combating pandemic-related fraud through collaboration across government agencies.
Penalties for conspiracy include up to 20 years imprisonment, supervised release post-imprisonment, and fines but sentencing will follow judicial review based on federal statutes and guidelines ensuring presumption of innocence until proven guilty in court.
