On July 17, 2026, the Eastern District of New York’s federal prosecutor announced that 27-year-old Zhuoying Chen (English name Jolene) residing in Brooklyn and 38-year-old Haojie Zhang (English name Kevin) residing in Queens, both of Chinese descent, are accused of involvement in a transnational money laundering network originating in China, aiding in laundering proceeds from “pig slaughter” investment fraud schemes, with the amount involved being at least 43 million US dollars. The two individuals were arrested by the FBI on the 16th and appeared in court for the first time that afternoon at the Brooklyn Federal Court.
According to the indictment, the two defendants are charged with money laundering conspiracy, allegedly managing a money laundering network consisting of more than ten members in Brooklyn and Queens from 2020 to 2022. They used around 45 shell companies and 140 corporate bank accounts to transfer proceeds from “pig slaughter” investment fraud schemes, ultimately channeling the funds to bank accounts in China.
The so-called “pig slaughter” is a rampant form of online investment fraud in recent years. Fraudulent groups reach out to victims through social media or messaging apps, build trust over time, lure them into investing by offering false high-profit opportunities, show fake profits on investment platforms, persuade victims to increase investments, and ultimately abscond with the funds.
Prosecutors stated that Chen and Zhang allegedly collaborated with partners in China, using shell companies to open bank accounts, receive funds sent by victims, and transfer the ill-gotten gains abroad through multiple transactions layers, diverting at least 43 million US dollars of fraudulent funds to China.
Joseph Nocella Jr., the federal prosecutor for the Eastern District of New York, described the defendants as “key members of a sophisticated money laundering network” that funneled victim funds to bank accounts in China. A.Tysen Duva, Assistant Attorney General of the Criminal Division of the Department of Justice, emphasized that dismantling the Chinese money laundering network supporting investment fraud is essential to protect Americans from financial loss, and the Department of Justice will continue to investigate all financial networks profiting from such scams.
The Federal Bureau of Investigation (FBI), Internal Revenue Service Criminal Investigation Division (IRS-CI), and the United States Postal Inspection Service (USPIS) involved in the investigation highlighted the significance of inter-agency cooperation in combating transnational financial crimes. They affirmed their commitment to pursuing related money laundering groups and investment fraud crimes.
Both defendants face charges of money laundering conspiracy, and if found guilty, each could potentially face up to 20 years of federal imprisonment.