U.S. authorities have charged two New York residents, including Zhuoying Chen, in connection with an alleged Chinese money laundering network accused of laundering at least $43 million generated through cyber investment fraud schemes. The indictment, unsealed in Brooklyn, alleges the operation ran between 2020 and 2022 and involved an extensive network of shell companies and bank accounts.
According to prosecutors, Zhuoying Chen, 27, of Brooklyn, and Haojie Zhang, 38, of Queens, managed more than a dozen individuals across Brooklyn and Queens. The group allegedly opened 140 bank accounts under approximately 45 shell companies to move proceeds from fraudulent investment scams before transferring the funds to co-conspirators based in China.
Authorities said the investment fraud schemes began with perpetrators contacting victims through messaging platforms and social media. They allegedly built trust over time, persuaded victims to invest in seemingly lucrative opportunities, displayed fake profits to encourage additional investments, and ultimately stole the victims’ money.
Officials Vow Crackdown on Chinese Money Laundering Operations
Commenting on the Chinese money laundering case, Assistant Attorney General A. Tysen Duva said, “As alleged in the indictment, the defendants laundered fraud proceeds, enabling scammers to continue to victimize Americans and deprive them of their hard-earned money.” He added that dismantling Chinese money laundering networks supporting investment fraud is critical to protecting Americans and that the Criminal Division “will relentlessly pursue the financial networks that fuel and profit from these fraud schemes.”…