Eight individuals have been arrested in connection with a large-scale smuggling scheme that allegedly funneled hundreds of millions of dollars’ worth of counterfeit and illegal goods from China through the Ports of Los Angeles and Long Beach, federal authorities announced.
A 15-count federal grand jury indictment, unsealed Friday, accuses nine defendants of conspiracy, smuggling, and breaking customs seals. The scheme reportedly involved executives from logistics companies, warehouse operators, and truck drivers collaborating to bypass customs inspections and move contraband into the US.
Authorities seized over $130 million in illegal goods during the investigation and estimate the organization smuggled at least $200 million worth of merchandise. Among the contraband uncovered in a June 2024 warehouse raid were counterfeit luxury items valued at $20 million, including handbags, shoes, apparel, watches, and perfume.
The arrests include seven defendants apprehended Friday, all of whom pleaded not guilty during their arraignment in US District Court. An eighth suspect was taken into custody Saturday on unrelated state charges and is expected to appear in federal court soon. One individual, identified as Weijun “Sonic” Zheng, 57, of Diamond Bar, remains at large.
According to the indictment, the defendants exploited legitimate trade systems to bypass customs inspections. Containers flagged by US Customs and Border Protection (CBP) for additional screening were transported to warehouses controlled by the conspirators. There, contraband was removed, and the containers were resealed with counterfeit security locks before being sent to authorized inspection sites. The defendants allegedly paid significantly above-market trucking fees to facilitate the illegal transportation.
“This smuggling of huge amounts of contraband hurts American businesses and consumers,” said Acting US Attorney Joseph T. McNally. “The arrests here demonstrate our commitment to enforcing customs laws and protecting the American public.”
Homeland Security Investigations (HSI) Special Agent Eddy Wang highlighted the complexity of the operation, noting, “The $1.3 billion in seized contraband during this investigation underscores how these schemes exploit legitimate trade systems and harm consumers.”
CBP Director of Field Operations Cheryl Davies praised the vigilance of agriculture specialists who identified the smuggling operation during a routine inspection in 2023.
Those allegedly involved include:
- Weijun Zheng, 57, a logistics executive and the operation’s fugitive leader.
- Hexi Wang, 32, manager of K&P International Logistics LLC in City of Industry.
- Jin “Mark” Liu, 42, owner of K&P International Logistics.
- Dong “Liam” Lin, 31, warehouse operator.
- Marck Anthony Gomez, 49, owner of Fannum Trucks LLC.
- Andy Estuardo Castillo Perez, 32, a truck driver.
- Jesse James Rosales, 41, a trucking coordinator.
- Daniel Acosta Hoffman, 41, a trucking collaborator.
- Galvin Biao Liufu, 33, a trucking manager.
- If convicted, the defendants face a range of penalties, including up to 20 years in federal prison for smuggling charges, 10 years for breaking customs seals, and five years for conspiracy. The case is part of the Organized Crime Drug Enforcement Task Force (OCDETF) initiative, which targets high-level criminal organizations threatening US interests.
