Two Chinese men have admitted to laundering money for drug cartels in China and elsewhere. On Wednesday, 46-year-old Li Pei Tan admitted to being involved in a conspiracy to launder money for one of the largest foreign drug trafficking organizations. On August 5th, another Chinese man, 41-year-old Chaojie Chen who resides in Illinois, also admitted to participating in the same money laundering scheme.
The foreign drug trafficking organizations include the Sinaloa Cartel and the Cartel de Jalisco Nueva Generación, which according to the U.S. Drug Enforcement Administration’s (DEA) National Drug Threat Assessment, are core organizations contributing to the fentanyl crisis in the United States.
According to court documents, Li Pei Tan and Chaojie Chen worked for an overseas organization, helping launder millions of dollars in the United States. The organization illegally imported drugs from places like Mexico to the U.S. and distributed these drugs illegally in America. The two, along with other accomplices, traveled across the U.S., responsible for collecting profits from selling fentanyl, cocaine, and other drugs.
They also communicated and collaborated with accomplices in foreign countries like China to arrange financial transactions for money laundering in order to conceal the illegal sources of drug proceeds. This included complex trade-based money laundering schemes, buying bulk electronic products in the U.S., and shipping these electronic products to their Chinese accomplices.
Before Chaojie Chen’s arrest in May, law enforcement had seized hundreds of thousands of dollars in cash from him at different locations, believed to be drug proceeds. Li Pei Tan was intercepted by South Carolina law enforcement while transporting over $197,000 in drug proceeds.
Li Pei Tan and Chaojie Chen have pleaded guilty to conspiracy to launder money. As part of their plea agreements, they agreed to surrender a substantial amount of assets to the U.S. government, including a residence, a firearm, body armor, and over $270,000 in seized cash.
Additionally, they agreed to a total fine exceeding $23 million.
Chaojie Chen is scheduled to be sentenced on November 14, 2024, while Li Pei Tan will be sentenced on February 7, 2025. Both men face a maximum penalty of up to 20 years in prison.