Cartel-linked drug money launderers in Georgia and Chicago admit to role in scheme
Alexandria, Virginia – A Georgia man has pled guilty to his involvement in a large-scale international conspiracy to launder drug profits for notorious foreign cartels, including Mexico’s Sinaloa and Cartel de Jalisco Nueva Generación (CJNG). The guilty plea by Li Pei Tan, 46, of Buford, Georgia, marks a significant development in an ongoing investigation targeting sophisticated drug trafficking and money laundering networks across the United States and beyond. Earlier in August, co-conspirator Chaojie Chen, 41, a Chinese national residing in Chicago, also pled guilty to his role in the same criminal enterprise.
Details of the Money Laundering Conspiracy
According to federal court documents, Tan, Chen, and other associates were involved in laundering millions of dollars connected to the trafficking of illegal drugs, primarily imported into the United States through Mexico. Their operation included managing drug proceeds from fentanyl, cocaine, and other controlled substances distributed in U.S. cities. The cartel-linked organization in which Tan and Chen were embedded used various strategies to obscure the origins of the drug proceeds, relying on an intricate trade-based money laundering scheme.
In the scheme, Tan, Chen, and their associates coordinated with co-conspirators in China and other countries. They used financial transactions disguised as legitimate trades to hide the illegal origins of drug funds. One of their primary methods involved purchasing large quantities of bulk electronics in the United States, which were then shipped to associates in China. These shipments served as a front to channel millions of dollars in cartel money, concealing the funds as legitimate revenue generated by business transactions.
Law Enforcement Interceptions and Seizures
The investigation into Tan and Chen’s activities involved multiple agencies, including the Drug Enforcement Administration’s (DEA) Special Operations Division. Law enforcement agencies intercepted significant amounts of cash drug proceeds from Chen on multiple occasions across various U.S. locations before his arrest in May. In one instance, authorities seized over $197,000 in cash from Tan in South Carolina while he was attempting to transport the drug proceeds to another location. The seized funds are believed to be only a fraction of the millions laundered by the network.
Assets Forfeited and Potential Sentences
As part of their plea agreements, both Tan and Chen agreed to forfeit numerous assets to the U.S. government. These include residential property, a firearm, body armor, and more than $270,000 in cash that was seized during law enforcement actions. The plea agreement also stipulates that the defendants are subject to money judgments amounting to over $23 million. This hefty penalty reflects the large-scale financial transactions involved in their criminal enterprise.
Chen, who is scheduled for sentencing on November 14, faces up to 20 years in federal prison. Tan will be sentenced on February 7, 2025, and also faces a maximum sentence of 20 years. The final sentences will be determined by a federal district court judge, who will consider guidelines from the U.S. Sentencing Guidelines as well as additional statutory factors.
Impact on the Fentanyl Crisis in the United States
The DEA’s National Drug Threat Assessment identifies the Sinaloa and CJNG cartels as major players in the ongoing fentanyl crisis affecting the United States. Both cartels have established sophisticated networks to import and distribute fentanyl—a synthetic opioid responsible for thousands of overdose deaths—alongside other illegal drugs. The recent investigation into Tan, Chen, and their associates highlights the extent to which these cartels rely on international money laundering operations to finance their activities and maintain a foothold in the U.S. market.
Coordinated Effort Among Federal Agencies
The case was investigated through a collaborative effort involving the DEA’s Bilateral Investigations Unit, its Office of Special Intelligence, the Document and Media Exploitation Unit, and field offices in Chicago, Atlanta, Charlotte, and Charleston. Local support was also provided by the Anderson County Sheriff’s Office in South Carolina.
Prosecution of the case was handled by Assistant U.S. Attorney Edgardo J. Rodriguez for the Eastern District of Virginia and Trial Attorney Mary K. Daly from the Department of Justice’s Money Laundering and Asset Recovery Section, with assistance from the U.S. Attorney’s Offices in Georgia and Illinois. The Organized Crime Drug Enforcement Task Force (OCDETF) was instrumental in coordinating efforts to disrupt and dismantle this high-level criminal organization, leveraging a prosecutor-led, intelligence-driven approach with support from multiple agencies.
The OCDETF, a key program in the federal government’s fight against organized crime, focuses on targeting the most significant criminal organizations that pose a threat to the United States. Further details on the program are available at the Department of Justice website.
