Los Angeles, CA – Nine individuals are facing federal charges for their roles in an alleged scheme to smuggle counterfeit and illegal goods worth hundreds of millions of dollars from China into the United States through the Ports of Los Angeles and Long Beach, according to the U.S. Department of Justice (DOJ).
The accused include executives from logistics companies, warehouse operators, and truck drivers who allegedly worked together to bypass customs inspections in 2023 and 2024, federal officials said in a Monday news release.
Smuggling Scheme Details
According to the DOJ, the defendants manipulated the shipping process by diverting containers flagged for off-site secondary inspection, unloading contraband, and replacing it with filler cargo to mislead customs authorities. Officials stated that false customs seals were used to cover up the activity.
“Co-conspirators broke the security seals on the shipping containers and removed the contraband from inside,” the DOJ explained. “They then affixed counterfeit security seals onto the containers to make it appear as though nothing had been altered.”
The scheme reportedly facilitated the smuggling of at least $200 million worth of goods. Federal authorities have seized approximately $130 million in contraband, including counterfeit luxury handbags, shoes, and perfumes.
Arrests and Charges
Authorities said eight of the nine suspects have been taken into custody—seven on Friday and one on Saturday. The remaining individual remains a fugitive. The individuals charged include:
Weijun Zheng, 57, aka “Sonic,” of Diamond Bar, is the only fugitive. He reportedly controls several logistics companies in the Los Angeles area.
Hexi Wang, 32, of El Monte, manages K&P International Logistics LLC, a City of Industry-based company that hires truckers to transport shipping containers.
Jin “Mark” Liu, 42, of Irvine, owns K&P International Logistics LLC and managed the finances of a warehouse used for unloading contraband.
Dong “Liam” Lin, 31, of Hacienda Heights, operated one of the contraband warehouses with Zheng.
Marck Anthony Gomez, 49, of West Covina, owns Fannum Trucks LLC, a company that moved shipping containers, including contraband shipments.
Andy Estuardo Castillo Perez, 32, of Apple Valley, is a driver for M4 Transportation Inc., which transports shipping containers.
Jesse James Rosales, 41, of Apple Valley, coordinated truckers transporting goods from the ports to warehouses.
Daniel Acosta Hoffman, 41, of Hacienda Heights, assisted Rosales in transporting cargo containers.
Galvin Biao Liufu, 33, of Ontario, directed truck drivers in bringing contraband into warehouses.
The seven arrested individuals pleaded not guilty to all charges, while the eighth is expected to be arraigned soon, officials said.
Impact and Federal Response
Federal authorities revealed that this smuggling method—known as a seal-swapping scheme—has been responsible for around $1.3 billion in contraband seizures. Homeland Security Investigations (HSI) Los Angeles emphasized the importance of safeguarding legitimate trade and protecting national supply chains.
“HSI Los Angeles and its partners are committed to enforcing customs laws, facilitating lawful trade, and protecting the integrity of the nation’s supply chain,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “The $1.3 billion dollars’ worth of contraband seized during this investigation highlights how complex smuggling networks exploit trade practices and impact American consumers.”
Acting U.S. Attorney Joseph T. McNally also underscored the national security implications of these illegal operations.
Secure seaports and borders are critical to our national security,” McNally said. “The smuggling of vast amounts of contraband through the nation’s largest ports negatively affects American businesses and consumers.”
Potential Sentences
The indictment includes 15 counts. If convicted on all charges, the defendants could face severe penalties:
Up to five years in federal prison for each conspiracy charge
Up to 10 years for breaking customs seals
Up to 20 years for each smuggling-related charge
The case remains under investigation as authorities continue efforts to locate the remaining fugitive and further examine the smuggling network.
