Source: Office of United States Attorneys
LOS ANGELES – Two men have been arrested on a criminal complaint by federal law enforcement for allegedly participating in a conspiracy to smuggle contraband from China into the United States via the Ports of Los Angeles and Long Beach, the Justice Department announced today.
Zhongliang Wang, 39, of Hacienda Heights, was arrested Wednesday. Chenyu Zhao, 31, also of Hacienda Heights, was arrested last Thursday as he was boarding a plane on a one-way ticket to China. Both defendants were charged with conspiracy and illegally removing goods from customs custody. Wang and Zhao allegedly directed cargo shipping containers flagged for U.S. Customs and Border Protection (CBP) secondary inspection to unauthorized off-site locations, where they unloaded the contraband in the containers, replaced it with filler cargo, and then returned the cargo containers to CBP for inspection, in an attempt to deceive customs officials and evade law enforcement.
To date, law enforcement has seized more than $1.3 billion worth of contraband associated with this and similar cargo-swapping schemes. According to the court documents, a search of one warehouse used by the group charged in this case led to the seizure of significant quantities of counterfeit goods, including luxury handbags and footwear, as well as approximately 19.5 kilograms of enobosarm, an illicit steroid.
“Protecting our nation’s borders from illegal smuggling is a top priority,” said Acting United States Attorney Joseph McNally. “These arrests highlight the unrelenting efforts of law enforcement to dismantle criminal networks that seek to exploit our trade system and endanger American businesses and consumers.”
According to court documents, Zhao and other co-conspirators maintained and operated warehouses to store, conceal and sell large amounts of contraband goods that were illegally imported into the United States from China. When the contraband containers were selected by CBP for inspection, the defendants hired commercial truck drivers to transport the containers from the ports to locations that the conspirators controlled, including at least one warehouse in the City of Industry that was controlled or managed by Zhao and others.
At these locations, co-conspirators broke the security seals on the shipping containers and removed the contraband from inside. Then, they affixed counterfeit security seals onto the containers to conceal that the cargo had been tampered with. Wang, Zhao and others then directed co-conspirators to transport the containers – after they had been emptied of much of their original cargo and re-secured with counterfeit seals – to CBP-authorized locations for the “filler” cargo to be presented to customs officials for inspection.
Wang, Zhao and others paid fees to co-conspirators that were substantially above normal trucking fees to transport the contraband shipping containers. As alleged in the complaint, Wang paid $15,000 to divert a single cargo container in December of 2024.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Wang and Zhao would face a statutory maximum sentence of five years in federal prison for each conspiracy count and up to 10 years in federal prison for each count of breaking customs seals.
Homeland Security Investigations, U.S. Customs and Border Protection, and Coast Guard Investigative Services are investigating this matter.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant United States Attorneys Colin S. Scott and Amanda B. Elbogen of the Terrorism and Export Crimes Section are prosecuting this matter.