A 33-year-old Chinese man who used to live in San Jose, California, admitted on Monday (October 5) to conspiring to commit money laundering. He had impersonated federal officials and swindled approximately $597,000 from 24 victims.
According to the announcement made by the office of Eric Grant, the Federal Prosecutor for the Eastern District of California, the 33-year-old Chinese citizen, Binghui Liu, pleaded guilty to one count of conspiracy to commit money laundering. Liu, who previously resided in San Jose, is currently applying for asylum.
Between February 2024 and April 2025, Liu, along with other conspirators, posed as federal personnel and collected cash from victims by pretending to be federal law enforcement officers or employees. They contacted victims, falsely claiming that they were facing criminal charges and that their bank accounts would be frozen.
The scammers operated both within the United States and internationally, including in India. They instructed victims to withdraw cash from their banks under the guise of “safekeeping” and informed them that federal officials would come to collect the money. They used aliases and coded language, even asking victims to take photos of themselves with the bundled cash.
Prosecutors stated that Liu was responsible for laundering money for the scam group. Between March and April 2025, he collected approximately $597,100 from 24 victims in California and Nevada. The victims were led to believe that Liu was a federal employee or law enforcement officer.
On April 9, 2025, a sting operation was set up by investigators. Liu visited a victim’s home and took $20,000 in cash, which turned out to be counterfeit. The prosecution emphasized that Liu had never been a federal law enforcement officer or employee.
An elderly victim received a call from someone claiming to be a U.S. Marshal, falsely stating that there was an arrest warrant issued for the victim and their bank account might be frozen. The scammers instructed the victim to hand the money to a supposed Federal Reserve System employee for “protection” of the funds, and taught them how to withdraw money, handle bank inquiries, and pack cash. Subsequently, Liu and other conspirators pretended to be federal officials collecting the cash. This victim incurred total losses exceeding $700,000.
Liu is scheduled to be sentenced by Federal District Judge Kirk E. Sherriff on January 4, 2027. Per sentencing guidelines, he faces a maximum of 20 years in prison and a fine of $500,000 or twice the value of the involved property, whichever is higher. The actual sentence will be determined by the court based on statutory factors and federal sentencing guidelines.
The FBI is handling this case. The FBI urges individuals with relevant information or who believe they may be victims to report through the tips.fbi.gov website, call 1-800-CALL-FBI (1-800-225-5324), or contact their local FBI office.