Federal prosecutors allege that local group smuggled more than $200 million in counterfeit, illegal goods through LA ports

 

Federal prosecutors allege that local group smuggled more than $200 million in counterfeit, illegal goods through LA ports

 

Federal prosecutors on Monday announced charges against eight people whom they alleged smuggled hundreds of millions of dollars worth of counterfeit and illegal goods from China into the United States by using the Ports of Los Angeles and Long Beach.

 

The 15-count indictment was unsealed last Friday, charging nine defendants with conspiracy, smuggling and breaking customs seals, according to a release from the United States Department of Justice.

 

“The defendants allegedly took containers flagged for off-site secondary inspection, unloaded the contraband, then stuffed the targeted containers with filler cargo to deceive customs officials and evade law enforcement,” the statement said.

 

While investigating the group, federal investigators say that they seized more than $130 million in contraband. They believe they are responsible for smuggling at least $200 million worth of goods.

 

The indictment claims that investigators searched one warehouse used by the group in June 2024, where they seized $20 million in counterfeit items like shoes, perfume, luxury handbags, watches and other apparel.

 

Eight of those defendants were arrested, while the ninth person and the alleged ringleader of the group is in China, authorities believe.

 

Authorities arrested seven of the members on Friday, while the eighth was taken into custody on Saturday, they said. Each of those arrested on Friday has pleaded not guilty to the charges against them and a preliminary trial date is set for March 18. The eighth defendant, who prosecutors say was arrested on unrelated state charges, is awaiting arraignment.

 

“Secure seaports and borders are critical to our national security,” said Joseph T. McNally, the acting United States Attorney. “The smuggling of huge amounts of contraband from China through our nation’s largest port hurts American businesses and consumers. The charges and arrests here demonstrate our commitment to enforce our customs laws and keep the American public safe.”

 

Prosecutors further noted that the 15-count indictment details what is believed to be a conspiracy to coordinate the shipment of large quantities of contraband from China to the U.S. The defendants who have been charged are:

 

Weijun Zheng, a.k.a. “Sonic,” a 57-year-old from Diamond Bar. He is the “lone fugitive” in the case, whom prosecutors allege controls several logistics companies that operate through Los Angeles;

Hexi Wang, a 32-year-old El Monte resident that manages K&P International Logistics LLC. which is based in the city of Industry. The company hires commercial truckers to transport shipper containers from the Port of Los Angeles;

Jim Liu, a.k.a. “Mark,” a 42-year-old from Irvine who owns K&P International Logistics LLC. They alleged managed the finances of one of the warehouses.

Dong Lin, a.k.a. “Liam,” a 31-year-old from Hacienda Heights who, along with Zheng, controlled and operated one of the contraband warehouses where goods were unloaded and drivers who smuggled those goods were paid;

Marck Anthony Gomez, a 49-year-old from West Covina who owns and operates Fannum Trucks LLC, a West Covina-based business that coordinated the movement of shipping containers from the Port of LA, which included shipments of the alleged contraband items that were smuggled from China;

Andy Estuardo Castilllo Perez, a 32-year-old from Apple Valley. They allegedly drove for M4 Transportation Inc., which is based in Carson and transports containers from the Port of LA;

Jesse James Rosales, a 41-year-old from Apple Valley who helped coordinate trucker routes from ports to warehouses;

Daniel Acosta Hoffman, a 41-year-old from Hacienda Heights that worked with Rosales to bring cargo containers to warehouses from the Port of LA’

Galvin Biao Liufu, a 33-year-old from Ontario that directed and managed truck drivers who brought the contraband to warehouses.

The indictment says that Zheng, Wang and Liu operated the warehouses in order to store, conceal and sell the contraband items.

 

 

“When the contraband containers were selected by U.S. Customs and Border Protection (CBP) for inspection, the defendants hired commercial truck drivers to transport the containers from the Port of Los Angeles to locations that the conspirators controlled, including warehouses in the City of Industry that were controlled or managed by Zheng, Wang and others,” the statement said.

 

Once containers were delivered to these locations, prosecutors say that the group would break the security seals and remove the items from inside. They would then put counterfeit security seals back onto the containers in order to hide the cargo that had just been removed.

 

After they did this and counterfeit seals were re-secured, the conspirators would direct where the containers were to be transported to CBP-authorized locations.

 

“It was a team of CBP agriculture specialists assigned to the Los Angeles/Long Beach seaport who in 2023, during a routine examination of a container made the initial discovery,” said Cheryl Davies, the Director of Field Operations in Los Angeles for CBP. “This case attests to their unwavering vigilance, upmost professionalism, and keen focus in protecting the integrity of lawful trade, a key component of our critical national security mission.”

 

If all defendants are convicted as charged, they each face statutory maximum sentences of five years in federal prison for each conspiracy count, up to 10 years for each count of breaking customs seals and up to 20 years in prison for each smuggling count.

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