Eight Arrested in $200 Million Operation Involving Smuggling of Counterfeit Goods from China

January 29, 2025 TruthUSA

Federal law enforcement authorities apprehended eight suspects implicated in orchestrating a substantial smuggling network that imported counterfeit products from China into the United States. The suspected leader of this operation is still at large, as reported by the U.S. Attorney’s Office.

Prosecutors charged that the operation, which functioned through the Ports of Los Angeles and Long Beach between August 2023 and June 2024, smuggled approximately $200 million worth of counterfeit and other illicit merchandise into the United States.

The conspiracy was uncovered during a routine inspection of a shipping container by a team of Customs and Border Protection (CBP) agricultural experts in 2023, leading to an extensive investigation.

In June 2024, investigators raided a warehouse supposedly utilized by the group and discovered $20 million in counterfeit goods, which included shoes, perfumes, high-end handbags, clothing, and watches.

To date, authorities have confiscated over $130 million in illicit items from several sites allegedly managed by the organization.

Seven defendants—including logistics executives and warehouse proprietors—were arrested on Friday, while an eighth was taken into custody on Saturday evening. The alleged mastermind, 57-year-old Weijun Zheng, also known as “Sonic,” is still evading capture.

All seven individuals entered not guilty pleas during their arraignment. The eighth defendant, arrested on separate state charges, has yet to be arraigned.

Per the 15-count indictment, the nine individuals are accused of moving containers flagged by CBP for inspection to locations under their control, including warehouses located in the City of Industry in Los Angeles County.

At these sites, the group and their associates broke the security seals on the shipping containers and extracted the illegal items. Following this, the containers were filled with filler cargo and resealed with counterfeit security seals before being returned to their original position in the harbor.

According to the indictment, the defendants employed commercial truck drivers through logistics firms they managed to transport the containers to and from the harbor, offering fees that were significantly higher than standard trucking rates.

“Securing our seaports and borders is vital for our national security,” U.S. Attorney Joseph T. McNally expressed in a press release.

“The illegal importation of vast amounts of contraband from China through our country’s largest port negatively impacts American businesses and consumers. The charges and arrests made here reflect our determination to uphold our customs laws and protect the American people.”

The U.S. Attorney’s Office has reported that over $1.3 billion in counterfeit goods have been seized in connection with this and similar “seal-swapping” operations.

If found guilty, the defendants could face a maximum sentence of five years in federal prison for each conspiracy count, up to 10 years in federal prison for each count of damaging customs seals, and up to 20 years in prison for each smuggling count.

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