The Brief
- Eight individuals have been arrested and charged in a 15-count indictment for a smuggling operation that brought counterfeit goods from China into the U.S. through the Ports of Los Angeles and Long Beach, with a ninth suspect still at large.
- The scheme, active from August 2023 to June 2024, involved manipulating shipping containers with counterfeit seals to bypass customs inspections, smuggling at least $200 million worth of goods.
- The defendants face significant prison sentences, with arraignments underway and a trial set for March 18, as authorities continue to investigate and dismantle similar smuggling operations.
LOS ANGELES – Federal authorities have arrested eight individuals in connection with a large-scale smuggling operation that allegedly brought counterfeit and illegal goods from China into the United States through the Ports of Los Angeles and Long Beach.
The operation, involving logistics companies, warehouse owners, and corrupt truck drivers, is believed to have smuggled at least $200 million worth of goods. An additional defendant, believed to be the lead orchestrator, remains at large and is thought to be in China. The defendants face multiple charges, including conspiracy, smuggling, and breaking customs seals.
9 charged in 15-count indictment
What We Know: Federal law enforcement has charged nine defendants in a 15-count indictment with conspiracy, smuggling, and breaking customs seals. The defendants allegedly collaborated with partners in China to manipulate shipping containers flagged for inspection, using logistics companies to facilitate the smuggling of counterfeit goods into the U.S. Investigators have seized over $130 million in contraband, and the organization is believed to have smuggled at least $200 million worth of goods through this scheme. The Ports of Los Angeles and Long Beach, the busiest container ports in the Western Hemisphere, were the focal points of the operation.
How the crime ring operated
According to Acting United States Attorney Joseph T. McNally, the scheme involved logistics companies, warehouse owners, and corrupt truck drivers working together to defy U.S. customs laws. The defendants and their partners in China filled shipping containers with contraband, including counterfeit goods and illegal chemicals. They circumvented the security system by learning the unique serial numbers of security seals and creating duplicate fake seals. These counterfeit seals were sent from China to the U.S. When shipments arrived at the port, instead of going to secondary inspection sites, corrupt truck drivers took the containers to offsite warehouses. There, the seals were cut, contraband removed, and new counterfeit seals applied before presenting the containers to Customs and Border Protection (CBP) for inspection. Truck drivers were paid significantly above normal rates to transport the containers illegally.
Timeline: The indictment details a conspiracy that operated from at least August 2023 to June 2024. The scheme involved filling shipping containers in China with contraband, counterfeit goods, and illegal chemicals. These containers were sealed with unique security seals, whose numbers the conspirators obtained in advance to create duplicate fake seals. Upon arrival in the U.S., the containers were diverted to offsite warehouses instead of secondary inspection sites, where the contraband was removed, and new counterfeit seals were applied before presenting the containers for Customs and Border Protection (CBP) inspection. Seven defendants were arrested on Friday, with an eighth taken into custody on Saturday. The arraignment for the seven arrested took place on Friday, where they pleaded not guilty, and a trial date was set for March 18. The eighth defendant is expected to be arraigned soon.…