District of Maryland | Seventeen individuals charged in connection with a sophisticated nationwide money laundering scheme stemming from violent crimes in the city of Baltimore

BaltimoreMaryland – Yesterday, 17 individuals were charged in a Drug Enforcement Administration and Department of Homeland Security investigation involving a sophisticated money laundering scheme and an illegal marijuana distribution network, resulting in the seizure of more than $6,000,000 and more than 2,000 pounds of marijuana illegal proceeds to date.

The investigation – which was conducted by the Drug Enforcement Administration-Washington Division and the Department of Homeland Security-Baltimore Field Office (“HSI”), with support from DEA offices in New Jersey, New York, Washington and Oregon – began in March 2023. with two separate non-fatal shootings of one person in Baltimore, Maryland, which subsequently revealed an extensive network of individuals laundering millions of dollars generated through the illegal distribution of massive amounts of marijuana. That network includes large-scale money launderers operating a Chinese Money Laundering Organization (MLO) in New York City, and drug traffickers operating in Maryland and sending large amounts of cash proceeds from Maryland to other states, including New York, New Jersey and Oregon. to obtain further shipments of marijuana and conceal the source of the proceeds.

The indictment charges the following individuals in count one of conspiracy to engage in money laundering, and in count two of conspiracy to distribute controlled substances: Qihai Tao; Michael Micklos; Kan Xu; Praveen Morgan; Michael Tilmon, III; Emanuel Dukes; Steven Mack; William Brown, III; Malik Bridgers; David Hilliard; Derian Green; Huayi Zhong; Zebin Liu; Chunbing Qin; Peng Huang; Isaac Huynh and Li Chen. The maximum penalty for conspiracy to commit money laundering is 20 years in prison and a fine of up to $500,000. The maximum penalty for conspiracy to distribute controlled substances, as charged in the indictment, is twenty years in prison and a maximum of $1,000,000 per defendant. The actual penalties for federal crimes are generally lower than the maximum penalties. A federal district court judge will determine any sentence, taking into account U.S. Sentencing Guidelines and other statutory factors.

In addition, Michael Tilmon III and Steven Mack are each charged in one count of possession of a firearm by a prohibited person. The maximum penalty for this crime is fifteen years in prison and a fine of up to $250,000.

“If violence breaks out in our communities, we will get to the root of it. This investigation shows how organized international money laundering fuels gun violence and the illegal drug trade,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “Through the coordinated efforts of our OCDETF Strike Force and law enforcement partners, our highest priority is protecting the safety and security of the nation.”

“This investigation is a clear example of how we are using the DEA’s collective resources to identify money laundering and drug distribution networks to disrupt and dismantle their operations,” emphasized Jarod Forget, Special Agent in Charge of the DEA’s Washington Division. “The increasingly dynamic and complex nature of the illicit drug trade requires enhanced collaboration with local, state and federal partners that reflects the reality of a globalized illicit drug supply chain and its transnational money laundering activities. We will prosecute all facilitators of these illegal activities by denying the criminal networks their ill-gotten gains and disrupting their ability to transfer working capital to finance their range of illegal activities.”

“This investigation is a compelling example of the remarkable results achieved when law enforcement agencies work together toward a common goal,” said Special Agent in Charge Michael McCarthy of HSI Baltimore. “What began as an investigation into two seemingly unrelated shootings in Baltimore evolved into a comprehensive investigation that uncovered a massive criminal enterprise involved in drug trafficking and millions of dollars in laundering. This nefarious network expanded its reach from Maryland to New York and beyond, infiltrating multiple communities. HSI remains resolute in its commitment to protecting Maryland neighborhoods by working closely with our law enforcement partners to dismantle and disrupt such criminal organizations.”

An indictment is merely an accusation of criminal behavior, not evidence. All suspects are presumed innocent until proven guilty in subsequent criminal proceedings.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the creation of permanent, multi-agency task force teams working side-by-side at the same location. This co-located model allows agents from different agencies to work together on intelligence-led, multi-jurisdictional operations to disrupt and dismantle major drug traffickers, money launderers, gangs and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan areas and surrounding areas. The Baltimore Strike Force consists of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service , the United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff’s Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.

U.S. Attorney Barron commended the DEA-Baltimore Field Office, the HSI-Baltimore Field Office, the Baltimore County Police Department, the Maryland Department of Public Safety and Correctional Services, and the Maryland State Police. Mr. Barron thanked the United States Attorney’s Office for the Eastern District of New York, the Southern District of New York, the District of New Jersey, the Western District of Washington, the District of Oregon and the Eastern District of Texas for their critical cooperation in this research. Mr. Barron also thanked Assistant U.S. Attorneys Alex Kalim, Alex Levin and James Wallner, who are prosecuting the federal case.

For more information about the Maryland US Attorney’s Office, its priorities and the resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community -outreach .

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