New York Man Admits Role in International $200 Million Credit Card Fraud Conspiracy

TRENTON, NJ—A New York man today admitted his role in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.

Khawaja Ikram, 41, of Staten Island, New York, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud. Two co-defendants, Tarsem Lal, 73, of Iselin, New Jersey, and Azhar Ikram, 40, of Howard Beach, New York, pleaded guilty before Judge Thompson in Trenton on April 2, 2014, to informations charging them with conspiracy to commit bank fraud.

According to documents filed in this case and statements made in court:

Khawaja Ikram was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions.

The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and finally, run up large loans.

The scope of the criminal fraud enterprise required Ikram and his conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments, and post office boxes, which they used as the mailing addresses of the false identities.

Ikram admitted he helped obtain credit cards in the name of third parties—many of which were fictional—and then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted he knew the cards would be used fraudulently at businesses.

The charge to which Ikram pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for September 23, 2014. Azhar Ikram and Lal are scheduled to be sentenced September 17, 2014.

U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford; postal inspectors, under the direction of Postal Inspector in Charge Maria L. Kelokates; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, for the investigation leading to today’s guilty plea. He also thanked the U.S. Social Security Administration for its role in the investigation.

The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit in Newark.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.

Trenton Mayor Sentenced to 58 Months in Prison on Federal Extortion, Bribery, and Mail and Wire Fraud Charges

TRENTON, NJ—Trenton Mayor Tony F. Mack was sentenced today to 58 months in prison after being convicted at trial in February on all six federal extortion, bribery, and mail and wire fraud charges against him, U.S. Attorney Paul J. Fishman announced.

Mack’s brother, Ralphiel Mack, who was also convicted on three of the charges but found not guilty on three mail fraud and wire fraud counts, was sentenced to 30 months in prison. The Macks had been convicted following a five-week trial before U.S. District Judge Michael A. Shipp, who imposed the sentences today in Trenton federal court.

The Macks were charged in connection with a scheme to accept $119,000 in bribes in exchange for Mayor Mack’s official actions and influence in assisting cooperating witnesses in the development of an automated parking garage on city-owned land.

“Nearly four years ago, Tony Mack raised his hand and swore to uphold the state and federal constitutions as he assumed the office of mayor of the capital city of New Jersey,” U.S. Attorney Fishman said. “Within 10 weeks, he began selling that office and, with the help of his brother and others, he sold out the people of Trenton in the process. Today, he learned the true cost of his actions: He will spend 58 months in federal prison.”

“Instead of providing transparent government to the citizens of Trenton, Tony Mack and his brother allowed themselves to succumb to self-interest and greed,” FBI Special Agent in Charge Aaron T. Ford said. “This investigation brought to light the unsavory underworld of secret meetings with convicted felons, the calculated use of ‘buffers’ and bagmen, and bribe payments associated with inside deals to give away the city’s treasures, its property. The citizens of Trenton are entitled to political figures who discharge their duties with goodness of heart and not those motivated by personal gain.”

Tony F. Mack, 48, and Ralphiel Mack, 41, both of Trenton, originally were charged by complaint on September 10, 2012, with one count of conspiracy to obstruct commerce by extortion under color of official right related to the $119,000 extortion scheme. Also charged at that time was Joseph A. Giorgianni, 64, of Ewing, New Jersey. An indictment returned in December 2012 added charges against all three defendants.

Giorgianni pleaded guilty on December 13, 2013, to one count of conspiring with the Macks and others to obstruct interstate commerce by extorting individuals under color of official right, in addition to a separate extortion scheme, a narcotics charge and illegal weapons possession, all charges unrelated to the Macks.

Mayor Mack was convicted of the six counts charged in the indictment:

• Conspiracy to obstruct and affect interstate commerce by extortion under color of official right
• Attempted obstruction of commerce by extortion under the color of official right
• Accepting and agreeing to accept bribes
• Two counts of wire fraud
• Mail fraud

Ralphiel Mack was convicted on the same first three counts and found not guilty of the mail and wire fraud charges. The jury members deliberated for seven hours before returning their verdicts.

According to documents filed in this case and the evidence presented at trial:

Tony Mack, Giorgianni, and Ralphiel Mack conspired to accept approximately $119,000 in cash and other valuables, of which $54,000 was accepted and another $65,000 that the defendants planned to accept from two cooperating witnesses (CW-1 and CW-2). In exchange for the payments, Tony Mack agreed to and did assist CW-1 and CW-2 in their efforts to acquire a city-owned lot (East State Street Lot) to develop an automated parking garage (the Parking Garage Project). The scheme included a plan to divert $100,000 of the purchase amount that CW-2 had indicated a willingness to pay to the city of Trenton for the lot as a bribe and kickback payment to Giorgianni and Tony Mack. The mayor authorized and directed a Trenton official responsible for disposition of city-owned land to offer the East State Street Lot to CW-2 for $100,000, significantly less than the amount originally proposed by CW-2.

The defendants went to great lengths to conceal their corrupt activity to keep Tony Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Tony Mack’s benefit. Tony Mack also used another city of Trenton employee involved in the scheme, Charles Hall, III, 49, of Trenton, to contact other Trenton officials to facilitate the Parking Garage Project and to inform the mayor when Giorgianni had received corrupt cash payments. Hall pleaded guilty before Judge Shipp in February 2013 to an information charging him with one count of conspiracy to obstruct commerce by extortion under color of official right and one count of conspiring to distribute narcotics with others, including Giorgianni.

To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases. One such code word was “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Tony Mack that a corrupt payment had been received. For example, on October 29, 2011, Giorgianni telephoned Hall and informed him that Giorgianni had to “see” Tony Mack and that “I got Uncle Remus for him,” meaning a corrupt cash payment that Giorgianni had received from CW-1 two days earlier. Giorgianni directed Hall to bring Tony Mack to a meeting location controlled by Giorgianni (Giorgianni’s Clubhouse), stating “we gotta talk” because “I got something that might be good for him” and that “they’ve already come with Uncle Remus,” meaning a corrupt cash payment. On June 13, 2012, Giorgianni telephoned Tony Mack and informed him that “Uncle Remus,” meaning a corrupt cash payment, “was there.” Tony Mack replied, “I’ll call you, J. Okay?” In text messages to Tony Mack related to the scheme, Giorgianni would refer to himself as “Mr. Baker.”

The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including at Giorgianni’s residence, a restaurant maintained by Giorgianni known as JoJo’s Steakhouse, Giorgianni’s Clubhouse, and Atlantic City restaurants. At one Atlantic City meeting among Tony Mack, Giorgianni, Hall, and CW-2, Tony Mack instructed Giorgianni to ensure that no photographs were taken in order to conceal the corrupt arrangement.

In addition to the prison terms, Judge Shipp sentenced Tony Mack to three years of supervised release, 100 hours of community service, and fined him $3,000. He sentenced Ralphiel Mack to three years of supervised release and fined him $1,500.

U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.

Former Bank Officer Sentenced to 18 Months in Prison for Accepting Bribes, Bank Fraud

CAMDEN, NJ—A former bank officer was sentenced today to 18 months in prison for accepting bribes of more than $50,000 in return for his assistance in corrupt financial transactions, as well as bank fraud, U.S. Attorney Paul J. Fishman announced.

Jose Dominguez, 47, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with soliciting and accepting bribes in excess of $1,000 as a bank officer. He had also pleaded guilty to a separate indictment charging him with bank fraud and conspiracy to commit bank fraud. Judge Hillman imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

From January 1988 to February 2007, Dominguez was employed as a loan officer at Spencer Savings Bank in Elmwood Park, New Jersey. From September 2004 to November 2004, Dominguez and Victor Patela, 38, a former Newark Police officer, conspired to fraudulently obtain a $1.92 million commercial loan from Spencer Savings Bank so that they could purchase apartment buildings in Elizabeth, New Jersey. In connection with this scheme, Dominguez and Patela made false representations to Spencer Savings Bank relating to Patela’s assets in order to obtain the commercial loan. Dominguez also accepted bribe payments from Patela in exchange for using his influence as a loan officer to obtain the $1.92 million loan. In June 2012, Patela was convicted at trial of bank fraud, conspiracy to commit bank fraud, two counts of loan application fraud, and bank bribery and sentenced in April 2013 to 48 months in prison.

In 2003, Dominguez was contacted by a bank customer who wanted to refinance some loans with Spencer Savings Bank and wanted to do so without paying significant prepayment penalty fees. Dominguez advised the customer that if the customer made corrupt payments to Dominguez, the customer could obtain a lower interest rate without paying a prepayment penalty to Spencer Savings Bank.

Between August 2003 and December 2003, Dominguez accepted $55,529.57 in corrupt payments from the customer to influence the requested loan modification. Dominguez also admitted to accepting additional bribes from other bank customers in the amounts of $4,500 and $5,000, respectively.

In addition to the prison term, Judge Hillman sentenced Dominguez to three years of supervised release and fined him $4,000.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

Two Men Admit Roles in Armed Robbery of New Jersey Target Store on Black Friday 2012

TRENTON, NJ—Two New Jersey men admitted this week to participating in an armed robbery of a Target Store in Union, New Jersey, on Black Friday in November 2012, U.S. Attorney Paul J. Fishman announced today.

Maryland Liggins, III, 29, of Newark, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with conspiracy to commit a Hobbs Act robbery. On May 20, 2014, Darrell A. Carter, 24, of Irvington, New Jersey, pleaded guilty before Judge Thompson to an information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence.

Carter, Liggins and two other men—Lavell Jones, 28, of East Orange, New Jersey, and DaQuaan Vaughn, 36, of Newark—were arrested on June 19, 2013, and charged by complaint in connection with the Target robbery. On April 29, 2013, a federal grand jury returned an indictment against Jones and Vaughn charging both men with one count of Hobbs Act robbery and charging Vaughn with one count of using a firearm in furtherance of a crime of violence.

According to documents filed in this case and statements made in court:

On November 23, 2012, Carter and Liggins allegedly participated in an armed robbery of the Target store on Springfield Avenue in Union on Black Friday—the day after Thanksgiving—which is considered to be one of the busiest shopping days of the year. Carter and Vaughn allegedly entered the store and robbed the store’s employees at gunpoint and Liggins served as the getaway driver. Jones allegedly posed as a shopper and served as a lookout inside the store.

While in the store, Carter and Vaughn restrained Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe located in the cash room. The two men then fled the store and ran out to a vehicle driven by Liggins that was parked on the shoulder of nearby Route 78.

The charge of Hobbs Act robbery is punishable by a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. Each of these counts also carries a maximum fine of $250,000. Sentencing for Liggins is scheduled for September 25, 2014; sentencing for Carter is scheduled for September 24, 2014.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.

The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton and Assistant U.S. Attorney Jonathan Romankow, acting deputy chief of the U.S. Attorney’s Office General Crimes Unit.

New Jersey Pharmacist Admits Attempting to Weaponize Deadly Toxins and Possessing Narcotics Manufacturing Equipment

WASHINGTON—A licensed pharmacist pleaded guilty in federal court today to attempting to develop, produce, and possess the potentially deadly toxins ricin and abrin for use as weapons and to possessing equipment for producing illegal narcotics, New Jersey U.S. Attorney Paul J. Fishman announced.

Jordan S. Gonzalez, 34, of New York and formerly of Jersey City, New Jersey, entered his guilty plea before U.S. District Judge Mary L. Cooper in Trenton federal court.

“Jordan Gonzalez admitted today that he worked to manufacture and deploy deadly toxins, stockpiled weapons and body armor, and acquired manuals training him for violent confrontation,” said U.S. Attorney Fishman. “We all have seen the devastation possible when these behaviors go unchecked. With today’s guilty plea, Jordan Gonzalez will face justice and will not be a threat to society.”

“The overriding focus of the FBI’s WMD Directorate and the primary focus of our overall efforts is prevention,” said FBI Newark Division Special Agent in Charge Aaron T. Ford. “To make this happen, we pull together various resources from the FBI and work closely with our law enforcement partners. In this case, the FBI worked swiftly and tirelessly with our partners to prevent and neutralize all threats posed by this defendant.”

Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said, “The men and women of DEA are dedicated to protecting the citizens of this nation. This investigation reveals how DEA and its law enforcement partners worked together to prevent Mr. Gonzalez from doing harm to the citizens of our communities.”

According documents filed in this case and statements made in court:

From September 18, 2011 through March 19, 2013, Gonzalez purchased thousands of seeds containing ricin and abrin and materials to extract and administer those toxins to others, including filtering equipment, respirators, glass vials, a spraying device, and projectile weapons including a crossbow pistol. Gonzalez also purchased materials for making RDX, an explosive compound used in military and commercial demolition applications. Gonzalez made the purchases through an online third-party vendor marketplace, and all the items were delivered to him at his Jersey City apartment.

Gonzalez learned how to extract toxins from the seeds and about deployment methods from manuals he acquired. He also kept manuals teaching how to make improvised explosive devices and synthesize explosive compounds, including RDX.

On November 8, 2013, while living in New York, Gonzalez purchased one kilogram of sodium azide, a toxic, gas-forming compound that can explode at high temperatures and is lethal if ingested or absorbed through the skin. Law enforcement officers intercepted the delivery during the investigation.

On November 14, 2013, Gonzalez was arrested in Jersey City, and search warrants were executed at three locations he used: apartments in Manhattan and Jersey City and a storage unit in Jersey City. Collectively, material collected through the searches included thousands of seeds containing ricin and abrin; explosive precursor chemicals; manuals related to toxins, explosives, and improvised explosive devices; approximately one thousand rounds of ammunition, handguns, components for assault rifles, and high-capacity magazines; a bulletproof vest; and books and documents related to the collapse of social order and techniques for surviving in a lawless environment. Gonzalez has been in custody since his arrest.

Even small doses of ricin and abrin are potentially lethal to humans if ingested, inhaled, or injected—causing death within 36 to 72 hours from the time of exposure.

During his guilty plea, Gonzalez admitted that acquiring this knowledge and these materials were substantial steps toward developing ricin and abrin as weapons and that he acquired all the materials—including the firearms, ammunition, and body armor—in anticipation of using them in confrontations with other people in the future.

Gonzalez also acquired manuals for synthesizing controlled substances, including methylenedioxyamphetamine (MDA) and methylenedioxymethamphetamine (MDMA), also known as Ecstasy. He bought and had delivered to the Jersey City apartment a three-neck round-bottom flask, gel capsules, and an encapsulating machine, as well as precursor chemicals used in the manufacture of MDA and MDMA. Possession of that type of flask is prohibited if intended for use in the manufacturing of controlled substances.

The toxin charge to which Gonzalez pleaded guilty carries a maximum potential penalty of any term of years or life in prison and a $250,000 fine. The narcotics charge carries a maximum potential penalty of four years in prison and a $250,000 fine. Sentencing is currently scheduled for September 17, 2014.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, and the DEA, under the direction of Special Agent in Charge Kotowski in New Jersey, with the investigation leading to today’s plea. He also thanked members of FBI Newark’s Joint Terrorism Task Force; FBI’s New York Office and Weapons of Mass Destruction Directorate Laboratory Division; DEA’s New York Division; and the New Jersey Office of Homeland Security and Preparedness for their work on the case, as well as the police and fire departments of Jersey City and the city of New York, as well as the New Jersey State Police for their assistance.

The government is represented by Assistant U.S. Attorney L. Judson Welle of the U.S. Attorney’s Office National Security Unit and Assistant U.S. Attorney Francisco J. Navarro of the Office’s Criminal Division, both in Newark. Valuable support was provided by attorneys of the Department of Justice’s National Security Division-Counterterrorism Section.

Jersey City Police Officer Pleads Guilty to Transportation of Stolen Goods and Extortion

TRENTON, NJ—A Jersey City, New Jersey police officer today admitted stealing more than half a million cigarettes from a trailer and extorting $20,000 from a drug courier who turned out to be an undercover FBI agent, U.S. Attorney Paul J. Fishman announced.

Mario Rodriguez, 39, of Jersey City, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with transportation of stolen goods and extortion under color of official right.

According to documents filed in the case and statements made in court:

On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, New Jersey to break into a trailer, steal cigarettes, and sell the stolen goods to the CI’s associate. Law enforcement agents had previously parked the trailer at the warehouse and established surveillance of the area.

After using bolt-cutters to cut the lock off of the trailer, Rodriguez and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, New York, Rodriguez made several phone calls seeking buyers for the TVs.

The pair met the CI’s associate—actually an undercover officer—in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.

On July 10, 2013, Rodriguez, the CI and an undercover law enforcement agent met in New Jersey and discussed the possibility of robbing a drug courier, who was actually another undercover officer. On July 24, 2013, the group met again in Staten Island to discuss the plan. The undercover officer told Rodriguez the courier would be delivering cocaine to them that day in exchange for a $20,000 payment. Rodriguez suggested a Jersey City mall parking lot due to an absence of surveillance cameras and called his associate, Anthony Roman, 48, of Jersey City, who was not a law enforcement officer, to help him with the robbery. Roman was charged with one count of Hobbs Act extortion.

Later that day, Rodriguez and Roman drove an SUV to the location where the CI and the drug courier were parked. Law enforcement agents had already established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman approached the car and identified themselves as law enforcement officers who were investigating the CI. They pretended to arrest the CI, threatened to arrest the drug courier and took the cash.

Later that day, Rodriguez, the CI and the undercover agent met in a hotel room at a Pennsylvania casino to split the cash.

The cargo theft and conspiracy to commit extortion charges to which Rodriguez pleaded guilty carry a maximum potential penalty of 10 and 20 years in prison, respectively. Both counts also carry a maximum fine of $250,000. Sentencing is scheduled for September 26, 2014. Rodriguez has been suspended from the police department.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to today’s plea. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.

The government is represented by Acting Deputy Chief of the General Crimes Unit Jonathan W. Romankow in Newark.

The charges against Roman remain pending. They are merely accusations, and he remains innocent unless and until proven guilty.

Member of Largest Counterfeit Goods Conspiracy Ever Charged Sentenced to 46 Months in Prison

NEWARK—A member of a massive, international counterfeit goods conspiracy was sentenced today to 46 months in prison for his role in the scheme, U.S. Attorney Paul J. Fishman announced.

Ming Zheng, a/k/a “Uncle Mi,” 48, of New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with a conspiracy to launder money. Judge Salas imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

From November 2009 through February 2012, Zheng’s co-defendants ran one of the largest counterfeit goods smuggling and distribution conspiracies ever charged by the Department of Justice. The defendants and others conspired to import hundreds of containers of counterfeit goods—primarily handbags, footwear, and perfume—from China into the United States in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.

Zheng was a money launderer who was introduced to undercover special agents (collectively, the UCs) by co-defendants who were running the counterfeiting operation. Conspirators obtained cash from the UCs, purportedly the proceeds of gambling and other unlawful activities. These other conspirators then provided the money to Zheng. For every $50,000 in cash the UCs provided, Zheng and others would return approximately $42,500—via wire transfers from banks in China—into a bank account set up by the UCs. When other conspirators received money from the UCs to be laundered, one of the conspirators would then contact Zheng, who in turn contacted a Chinese-based conspirator, and transferred the money to locations in China. Then the money (less the laundering fee) was transferred from Fujian, China, to a bank in Guangzho, China, where it was subsequently withdrawn and physically transported via courier to a bank in Hong Kong. The final transfer was from the bank in Hong Kong to the UCs’ bank account. Zheng was therefore instrumental in each of the money laundering transactions—he received the cash from other conspirators and caused it to be transferred overseas in furtherance of the laundering process.

U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Andrew M. McLees, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.