Three Chinese in Georgia indicted by federal authorities for alleged exploitation of Chinese labor

Two Chinese-Americans and one Chinese citizen in Georgia, USA were recently indicted by the federal authorities for allegedly withholding victims’ visas and subjecting them to labor exploitation.

According to an announcement from the Northern District of Georgia’s federal prosecutor’s office on August 12th, the three individuals in question reside in Cartersville, Georgia. They are 60-year-old Zhu Chen and his 31-year-old nephew Jiayi Chen, both Chinese-Americans, as well as 55-year-old Chinese citizen Jianjun Lu. The indictment from the grand jury in the Northern District of Georgia accuses them of coercing victims into forced labor using visas and debts and harboring foreign nationals without legal immigration status.

The court documents suggest that Zhu Chen, Jiayi Chen, and Jianjun Lu recruited Chinese citizens under false pretenses, facilitated their entry into the US using B-1 business visas and L-1 intracompany transfer visas, and had them work at Wellmade Industries, a flooring manufacturer in Georgia, where Zhu Chen is the owner.

The federal prosecutor’s office alleges that upon the victims’ arrival in the US, the defendants allegedly confiscated their immigration documents, housed them at the factory in Cartersville, Georgia, operated by Wellmade Industries, and made them work twelve hours a day, six days a week. The wages paid were reportedly lower than promised, with no overtime pay or medical benefits provided.

Furthermore, the defendants are accused of threatening victims with deportation and substantial debts, as well as subjecting them to verbal abuse and physical and psychological mistreatment. Despite the victims’ visas not permitting them to legally reside in the US, the defendants allegedly housed them in accommodations owned by the company.

US Federal Prosecutor Theodore S. Hertzberg stated in a press release, “The allegations suggest that the defendants subjected foreign workers to forced labor through physical violence, threats of deportation, and insurmountable debt, forcing them to work long shifts and placing them in overcrowded, unsanitary living conditions. I will ensure that those who profit from trafficking and exploiting vulnerable workers and violate US immigration laws are investigated, arrested, and prosecuted.”

The three defendants face charges of forced labor and conspiracy to commit forced labor, with Zhu Chen also facing a charge of harboring individuals without legal status.

It is important to note that indictment does not imply guilt. If convicted, the defendants could face up to twenty years in prison.

In previous reports and records from Bartow County Sheriff’s Office in Georgia, Zhu Chen and his nephew Jiayi Chen were arrested during a factory raid on March 26, 2025, with Jianjun Lu being apprehended approximately ten days later on April 5.

ICE official Steven Schrank mentioned in the ‘Atlanta Journal-Constitution’ that during the search at the Cartersville factory, law enforcement encountered 60 “extremely dire” victims of forced labor.

Moreover, according to the ‘Atlanta Journal-Constitution,’ Zhu Chen’s lawyer claimed that Zhu Chen, a law-abiding citizen who has resided in the US for over a decade, has diligently built a successful business in the Georgia area.

Records from Bartow County Sheriff’s Office indicated that Zhu Chen and Jiayi Chen posted $200,000 bail each and were released on April 8, 2025, while Jianjun Lu was released on May 7 after posting the same bail amount.

The indictment on August 12th was presented by the grand jury of the Northern District of Georgia and will be prosecuted in federal court.

Additionally, some factory workers filed a federal civil lawsuit on May 27, 2025, seeking to recover unpaid wages and related damages.