Three members of a major Chinese money laundering ring—two Chinese nationals and a California man—pleaded guilty to laundering more than $92 million in drug trafficking proceeds, primarily linked to drugs smuggled from Mexico into the U.S., officials announced Thursday.
Maoxuan Xia, 29, of China; Shao Neng Lin, 58, of Baldwin Park, California; and Zhou Yu, 42, of China, were part of the Chinese Money Laundering Organization (CMLO). Xia, a key operative, traveled across the U.S. collecting drug cash and depositing it into shell company accounts using real and fake IDs. Lin and Yu helped run those accounts.
Xia admitted to laundering over $30 million in under two years, knowing it was drug money. Lin and Yu each admitted to handling around $20 million through their shell companies, fully aware the funds were tied to drug trafficking.
Each faces up to 20 years in prison per conspiracy and money laundering charge, and 10 years per monetary transaction count. Sentencing will be determined by a federal judge.
The DEA Charlotte District Office and the IRS-CI Charlotte Field Office are investigating the case.