Authorities Crack $200 Million Smuggling Operation Tied To China, Exploited US Ports

Federal agents have dismantled a sophisticated smuggling network responsible for illegally importing at least $200 million in counterfeit and restricted goods through the Los Angeles-Long Beach port complex. Nine individuals, including logistics executives, warehouse owners, and truck drivers, have been indicted for their role in the scheme, which used fraudulent customs seals to move shipments past inspections.

Eight suspects were taken into custody over the weekend, while one remains at large. Acting U.S. Attorney Joseph McNally stated that the operation posed a serious national security risk, as criminals manipulated security protocols to transport contraband—including hazardous chemicals and counterfeit luxury goods—into the country undetected.

The smuggling ring relied on an intricate deception process. Shipping containers flagged for additional scrutiny were secretly rerouted to off-site warehouses, where illegal goods were offloaded. The original cargo was replaced with filler material, and counterfeit security seals were affixed to make the containers appear untampered. These shipments were then returned to customs authorities, successfully evading inspections.

Authorities seized more than $130 million in contraband during the investigation. Among the recovered items were fake designer handbags, high-end perfumes, clothing, and watches. A raid in June 2024 led to the discovery of $20 million in counterfeit merchandise stored in one of the warehouses used by the network.

The 15-count indictment lists charges of conspiracy, smuggling, and tampering with customs seals. Prosecutors identified Weijun Zheng, a fugitive accused of overseeing the operation, along with other key players who coordinated transportation, financial logistics, and warehouse storage.

The operation ran from August 2023 to June 2024, taking advantage of weaknesses in port security. Investigators continue working to identify additional co-conspirators, and authorities have warned that more arrests may be forthcoming.