Three Plead Guilty in $92 Million Chinese Drug Money Laundering Case

Three individuals linked to a prolific Chinese money laundering organisation (CMLO) have pleaded guilty to laundering over $92 million in drug trafficking proceeds, a major milestone in the United States' ongoing efforts to disrupt transnational criminal networks.

Maoxuan Xia, 29, and Zhou Yu, 42, both Chinese nationals, alongside Shao Neng Lin, 58, of Baldwin Park, California, admitted to federal charges involving money laundering conspiracy and transactions with criminally derived property. The guilty pleas mark a significant breakthrough in the Department of Justice’s Operation Take Back America, which targets cartels and international organised crime.

Money Laundering Network Tied to Mexican Drug Trade

According to court documents, the CMLO facilitated the laundering of funds derived from the importation and distribution of illicit drugs into the United States, with strong operational links to Mexico. Xia played a central role, travelling across the country to collect proceeds from drug traffickers and deposit them into shell company accounts using both real and fraudulent identities.

Xia admitted to laundering over $30 million within two years, fully aware that the proceeds stemmed from drug trafficking. Lin and Yu, who each received and processed approximately $20 million through corporate fronts they operated, confirmed their roles in handling illicit funds and acknowledged knowledge of the criminal source of the money.

Multiple Charges & Severe Sentencing Risk

Xia and Yu each pleaded guilty to three counts: conspiracy to commit money laundering, laundering to conceal the origins and ownership of criminal proceeds, and conducting monetary transactions exceeding $10,000 involving illicit funds. Lin faced an even broader set of charges, including two counts each of laundering to conceal illicit origins and engaging in large monetary transactions, in addition to the conspiracy charge.

Each of the conspiracy and money laundering counts carries a potential 20-year prison sentence, with the monetary transaction offences carrying a maximum penalty of 10 years each. Sentencing will be determined by a federal district court judge, taking into account the U.S. Sentencing Guidelines and other statutory considerations.

Multi-Agency Collaboration Yields Results

The case, prosecuted by the Justice Department’s Narcotic and Dangerous Drug Section and the U.S. Attorney’s Office for the Western District of North Carolina, is being investigated by the Drug Enforcement Administration (DEA) Charlotte District Office and the Internal Revenue Service Criminal Investigation (IRS-CI) Charlotte Field Office. Senior officials from the Justice Department and both investigative agencies praised the coordination that led to the successful pleas.

Operation Take Back America: Combating Transnational Crime

This prosecution is part of Operation Take Back America, a strategic federal initiative aimed at dismantling transnational criminal organisations, eliminating cartel influence, and enhancing community safety. The operation leverages the combined power of the Department of Justice’s Organised Crime Drug Enforcement Task Forces and Project Safe Neighbourhoods to disrupt the flow of narcotics and illegal finance into the United States.

Read the press release here.