Final Three Members of Chinese Money Laundering Cell Plead Guilty, Dismantling $92 Million Operation

Three members of a Chinese money laundering organisation have pleaded guilty in a landmark case that dismantled one of the most prolific criminal cells operating in the United States. The guilty pleas mark the final chapter in a federal crackdown on the Chinese Money Laundering Organisation (CMLO), which laundered over $92 million in drug trafficking proceeds through a complex web of shell companies, fake identities and encrypted communications.

Enhua Fang, 38, and Jianfei Lu, 30, both Chinese nationals, along with Shu Jun Zhen, 36, of Staten Island, New York, admitted to their roles in concealing the origins of tens of millions of dollars in illicit drug money, largely generated through narcotics trafficked into the United States via Mexico.

Fang was identified as a key organiser, orchestrating the laundering of more than $90 million in less than two years. Her methods included directing couriers to collect bulk cash and deposit it into accounts controlled by the CMLO, effectively obscuring the source of the funds. Lu acted as both courier and manager, facilitating deposits and producing fraudulent identity documents to support the operation. Zhen, under Fang and Lu’s direction, deposited approximately $25 million in drug-related cash using both real and fake identities.

Each individual has admitted full awareness that the funds were the proceeds of narcotics trafficking or were intended to promote it. The charges include conspiracy to commit money laundering and conducting monetary transactions involving criminally derived property exceeding $10,000, with maximum prison sentences ranging from 10 to 20 years per count.

This enforcement action brings to a close the prosecution of all six defendants named in the indictment. All have now pleaded guilty, effectively dismantling the CMLO cell that operated across the United States with a high degree of sophistication and international coordination.

The case forms part of Operation Take Back America, a national strategy spearheaded by the Department of Justice to combat transnational criminal organisations and safeguard communities from violent and financial crime. The initiative consolidates efforts from the DEA, IRS Criminal Investigation, the DOJ’s Narcotic and Dangerous Drug Section, and local US Attorneys’ offices under the umbrella of the Department’s organised crime and public safety task forces.

As authorities continue to highlight the growing convergence of international money laundering networks and drug trafficking, this case sets a precedent for collaborative, intelligence-led enforcement efforts. The dismantling of this CMLO cell sends a clear signal: the US government is intensifying its focus on cutting off the financial lifelines that enable transnational criminal networks to thrive.

Read the press release here.