U.S. Arrests Conspirator in $200 Million Drug Smuggler Through Southern California Ports
On January 27, the U.S. Attorney’s Office in California announced charges and arrests in a complex smuggling operation that they estimate has smuggled at least $200 million worth of counterfeit and illegal goods from China into the United States through the ports of Los Angeles and Long Beach. Law enforcement officials say they have seized more than $1.3 billion worth of counterfeit goods in these and similar smuggling operations at the ports.
The charges were announced Friday, and seven people have been arrested in connection with the conspiracy. An eighth person was arrested Saturday, and a ninth remains at large. The trial is scheduled for March.
Authorities say it was a complex conspiracy involving logistics company executives, warehouse owners, transportation companies and truck driver managers. Together, they smuggled goods through the ports of Los Angeles and Long Beach and concealed the operation from customs and law enforcement.
“Securing our seaports and borders is vital to our national security,” said Acting U.S. Attorney Joseph McNally. “The smuggling of vast quantities of contraband from China through our nation’s largest ports harms American businesses and consumers. These charges and arrests demonstrate our commitment to enforcing our customs laws and keeping the American public safe.”
Law enforcement officials said the conspirators were redirecting containers bound for the port to an inspection station on the coast. The containers were transported by drivers hired by the conspirators and delivered to locations, including a warehouse in the City of Industry, that were controlled by one of the defendants.
“A team of agricultural specialists assigned by U.S. Customs and Border Protection to the Port of Los Angeles/Long Beach first discovered this during a routine inspection of a container in 2023,” said Cheryl Davis, director of field operations for U.S. Customs and Border Protection in Los Angeles.
Once the conspirators delivered the containers to their destinations, they opened the security seals on the containers and removed the contraband. They then stuffed the containers with “stuffing” to deceive Customs and law enforcement agencies and affixed fake seals to hide the fact that the containers had been opened. The containers were transported to Customs and Border Protection, where they were inspected.
Investigators seized more than $130 million worth of contraband during their investigation of the operation. According to the indictment, a search of a warehouse used by the group in June 2024 seized $20 million worth of counterfeit goods, including shoes, perfumes, luxury handbags, clothing and watches.
The defendants include the president of a logistics company, the director of a company that hired truck drivers to deliver containers from the Port of Los Angeles, and the warehouse manager. The owner of a transportation company, a driver, a manager who coordinated the transportation of trucks from the port to the warehouse, and the truck manager were also charged.
The indictment alleges that the operation lasted from August 2023 to at least June 2024. The contraband sold in the United States came from China, and law enforcement believes this is just one example of similar “trafficking in goods” behavior.
