The U.S. Department of Justice (DOJ) announced on February 25 that three Chinese individuals were arrested for founding shell companies and laundering over $13 million, and have been prosecuted. The DOJ pointed out that all these substantial funds originated from the "pig butchering" scam, with two of them being Chinese citizens who were overstaying.

Early morning raid in Los Angeles, three suspects apprehended

On the morning of the 25th, U.S. law enforcement agencies raided downtown Los Angeles and surrounding areas, successfully arresting three Chinese individuals involved. Later that afternoon, they were taken to the federal court in Santa Ana for a hearing.

Identifications of the three defendants:

1️⃣ Mingzhi Li, also known as "Lin Zheng", 24 years old, residing in downtown Los Angeles.

2️⃣ Zeyue Jia, also known as "Liu Jiaojiao", 23 years old, also residing in downtown Los Angeles.

3️⃣ Jun Shi, 55 years old, residing in San Gabriel.

Money laundering method: Using shell companies to conceal "pig butchering" funds flow

According to the indictment, these three individuals registered shell companies, operated illegal underground remittance services, and helped the "pig butchering" scam syndicate launder money. The DOJ pointed out that their accounts circulated $13 million in a short period, all originating from online investment scam victims.

This type of scam usually operates through social media or dating apps, using fake investment platforms to lure victims into transferring money, ultimately sweeping away the victims' funds, leading to many losing their entire fortunes.

All three face federal felony charges, potentially up to 5 years in prison

The three defendants are currently facing federal charges of "operating a remittance business without a license," a federal felony in the United States. If convicted, they could face up to 5 years in prison and may be deported back to China.

The DOJ stated that it will continue to investigate the larger-scale money laundering network involved in this case, and more suspects may be arrested.