Federal Agents Uncover $200 Million Smuggling Ring With Ties To China
Authorities have dismantled a massive smuggling network that funneled at least $200 million in illicit goods into the U.S. through the Ports of Los Angeles and Long Beach. Nine individuals have been arrested in connection with the scheme, which relied on fraudulent customs seals, corrupt trucking operations, and warehouse networks to bypass security measures.
Acting U.S. Attorney Joseph McNally described the operation as a major national security threat. He explained how criminals exploited shipment tracking systems to obtain serial numbers assigned to cargo containers. They then created counterfeit seals in China, which were sent to accomplices in the U.S. and used to bypass customs inspections.
Rather than delivering the containers to official secondary inspection sites, truck drivers involved in the conspiracy transported them to secret warehouses, where the contents were unloaded. The empty containers were then resealed with fake customs tags before being returned for processing, allowing the contraband to enter the country undetected.
Investigators have seized more than $130 million in illegal goods so far, including hazardous chemicals such as R-22 refrigerant, counterfeit luxury items, and unapproved food products. In June 2024, a warehouse search uncovered $20 million worth of fake designer handbags, shoes, watches, and perfume.
The 15-count indictment charges the defendants with conspiracy, smuggling, and customs violations. Among those charged is Weijun Zheng, a fugitive who operated multiple logistics companies. Other suspects include warehouse managers, trucking company owners, and drivers who helped move the shipments from the port to storage facilities.
Authorities say the network ran from August 2023 to June 2024, using sophisticated tactics to avoid detection. The investigation remains ongoing, and federal officials have not ruled out further arrests.
