On September 27, the Commonwealth of Australia extradited Jin Guanghua, 53, to the United States. Jin, a Chinese national, and his co-conspirators North Korean banker Sim Hyon-Sop, 50, and Chinese nationals Qin Guoming, 60, and Han Linlin, 41, were charged by indictment in 2022 for facilitating the sale of tobacco to North Korea through the U.S. financial system in violation of sanctions. Jin made his initial appearance in the District of Columbia today.
Between 2009 and 2019, the defendants allegedly purchased leaf tobacco for North Korean-owned entities using front companies and false documentation. This caused U.S. financial institutions to process at least 310 transactions worth approximately $74 million that would have otherwise been frozen or blocked if their true nature was known. These transactions generated nearly $700 million in revenue for North Korean entities and ultimately for the government of North Korea. The charges include conspiracy to commit bank fraud, conspiracy to violate and violations of International Emergency Economic Powers Act (IEEPA) and North Korean sanctions regulations, as well as conspiracy to launder monetary instruments.
Jin was residing in Australia and attempting to depart for China when he was arrested by Australian authorities on March 23, 2023. The arrest followed a request by the United States for his provisional arrest with a view toward extradition.
This case is part of a larger Justice Department response to ongoing efforts by North Korea to evade sanctions and use the U.S. financial system for illicit trafficking of tobacco products. As alleged in the indictment, such trafficking generates revenue for advancing North Korea’s Weapons of Mass Destruction (WMD) programs. Since at least 2006, North Korea has financed nuclear weapons development through illicit trade including counterfeit cigarettes production estimated at over two billion packs a year.
If convicted, Jin faces up to 30 years in prison for bank fraud, up to 20 years for violating IEEPA, and up to 20 years for money laundering. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Matthew M. Graves for the District of Columbia; and Executive Assistant Director Robert Wells of the FBI’s National Security Branch announced this development.
The FBI Phoenix Field Office and HSI Colorado Springs are investigating the case with assistance from various Australian agencies including the Attorney-General’s Department and Federal Police along with support from the Justice Department’s Office of International Affairs.
Prosecuting attorneys include Assistant U.S. Attorneys Karen P. Seifert, David Recker, Steven Wasserman from the District of Columbia; Trial Attorney Emma Ellenrieder from National Security Division’s Counterintelligence Section; with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas.
An indictment is merely an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.