Two Chinese nationals living in Los Angeles were recently arrested for allegedly running a scheme to smuggle counterfeit goods from China through Southern California ports, according to the US Attorney's Office of the Central District of California.
Zhongliang Wang, 39, and Chenyu Zhao, 31, both of Hacienda Heights, were taken into custody last week over an alleged "cargo-swapping scheme" operating out of the ports of Los Angeles and Long Beach - by which they are accused of taking cargo ship containers selected for inspection by the US Customs and Border Protection (CBP), breaking the security seals, removing the contraband, and then stuffing the containers with junk cargo before replacing the broken seals with counterfeit ones.
Wang and Zhao's co-conspirators would then transport the containers to a CBP-authorized location for inspection, according to prosecutors. The co-conspirators were allegedly paid much higher than normal trucking fees - $15,000 for each cargo container diverted from inspection in November and December 2024.
As the Epoch Times notes further, a photo in the complaint showed a fake luxury handbag bearing the brand name Christian Dior, while another photo showed several boxes with the word Prada.
Wang and Zhao allegedly began their scheme in July 2023, according to the complaint.
“Protecting our nation’s borders from illegal smuggling is a top priority,” U.S. Attorney Joseph McNally said in a statement. “These arrests highlight the unrelenting efforts of law enforcement to dismantle criminal networks that seek to exploit our trade system and endanger American businesses and consumers.”
Zhao, a Chinese citizen and lawful permanent U.S. resident, was arrested at the Los Angeles International Airport on Jan. 30, just before he returned to China on a one-way flight, prosecutors said.
According to the complaint, Zhao told law enforcement officials at the airport that he was aware of media coverage that some individuals had been charged with similar smuggling activities via the Ports of Los Angeles and Long Beach.
On Jan. 27, the U.S. Attorney’s Office of the Central District of California announced charges against nine individuals, including executives of logistic companies, warehouse owners, and truck drivers, after prosecutors seized $130 million in contraband. Eight were arrested while one was a fugitive at the time of the announcement.
As of Feb. 6, prosecutors said local law enforcement officials had seized more than $1.3 billion of contraband in connection with cargo-swapping schemes, including in Wang and Zhao’s case.
Wang and Zhao have been charged with conspiracy and illegally removing goods from customs custody. They face a maximum sentence of five years in prison for each conspiracy count and up to 10 years of imprisonment for each count of breaking customs security seals.
In fiscal year 2024, CBP seized more than 32 million counterfeit items, which would have been worth more than $5.4 billion if they had been genuine, according to a report.
The report also found that counterfeit goods from China and Hong Kong accounted for about 90 percent of the total quantity seized.
The top five commodities seized in fiscal year 2024 were pharmaceuticals, sunglasses, consumer electronics, perfumes, and personal care items, according to the report.
On Feb. 6, the CBP officials in Louisville, Kentucky, announced that it had seized 28 shipments in January, most of which came from either China or Hong Kong. The shipment contained fake designer watches, bracelets, rings, necklaces, and earrings, all of which would have a combined manufacturer’s suggested retail price of $27.5 million if the items were genuine.
It’s not known if Wang and Zhao have attorneys.
Two Chinese nationals living in Los Angeles were recently arrested for allegedly running a scheme to smuggle counterfeit goods from China through Southern California ports, according to the US Attorney’s Office of the Central District of California.
Zhongliang Wang, 39, and Chenyu Zhao, 31, both of Hacienda Heights, were taken into custody last week over an alleged “cargo-swapping scheme” operating out of the ports of Los Angeles and Long Beach – by which they are accused of taking cargo ship containers selected for inspection by the US Customs and Border Protection (CBP), breaking the security seals, removing the contraband, and then stuffing the containers with junk cargo before replacing the broken seals with counterfeit ones.
Wang and Zhao’s co-conspirators would then transport the containers to a CBP-authorized location for inspection, according to prosecutors. The co-conspirators were allegedly paid much higher than normal trucking fees – $15,000 for each cargo container diverted from inspection in November and December 2024.
As the Epoch Times notes further, a photo in the complaint showed a fake luxury handbag bearing the brand name Christian Dior, while another photo showed several boxes with the word Prada.
Wang and Zhao allegedly began their scheme in July 2023, according to the complaint.
“Protecting our nation’s borders from illegal smuggling is a top priority,” U.S. Attorney Joseph McNally said in a statement. “These arrests highlight the unrelenting efforts of law enforcement to dismantle criminal networks that seek to exploit our trade system and endanger American businesses and consumers.”
Zhao, a Chinese citizen and lawful permanent U.S. resident, was arrested at the Los Angeles International Airport on Jan. 30, just before he returned to China on a one-way flight, prosecutors said.
According to the complaint, Zhao told law enforcement officials at the airport that he was aware of media coverage that some individuals had been charged with similar smuggling activities via the Ports of Los Angeles and Long Beach.
On Jan. 27, the U.S. Attorney’s Office of the Central District of California announced charges against nine individuals, including executives of logistic companies, warehouse owners, and truck drivers, after prosecutors seized $130 million in contraband. Eight were arrested while one was a fugitive at the time of the announcement.
As of Feb. 6, prosecutors said local law enforcement officials had seized more than $1.3 billion of contraband in connection with cargo-swapping schemes, including in Wang and Zhao’s case.
Wang and Zhao have been charged with conspiracy and illegally removing goods from customs custody. They face a maximum sentence of five years in prison for each conspiracy count and up to 10 years of imprisonment for each count of breaking customs security seals.
In fiscal year 2024, CBP seized more than 32 million counterfeit items, which would have been worth more than $5.4 billion if they had been genuine, according to a report.
The report also found that counterfeit goods from China and Hong Kong accounted for about 90 percent of the total quantity seized.
The top five commodities seized in fiscal year 2024 were pharmaceuticals, sunglasses, consumer electronics, perfumes, and personal care items, according to the report.
On Feb. 6, the CBP officials in Louisville, Kentucky, announced that it had seized 28 shipments in January, most of which came from either China or Hong Kong. The shipment contained fake designer watches, bracelets, rings, necklaces, and earrings, all of which would have a combined manufacturer’s suggested retail price of $27.5 million if the items were genuine.
It’s not known if Wang and Zhao have attorneys.
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