A Houston couple has been sentenced to prison for unlicensed money transmitting and money laundering, as announced by U.S. Attorney Alamdar S. Hamdani. Vinh Quang Phan and Diana Le Phan, who pleaded guilty in June, were sentenced by U.S. District Judge Keith Ellison to 120 months in federal prison each, followed by three years of supervised release.
The court ordered the couple to pay $80,000 in fines and forfeit their home in Houston along with cash and seized accounts totaling over $486,000. Judge Ellison commented on the case, stating: “This is one of the least sympathetic cases of need I have encountered,” emphasizing the foreseeable consequences of their actions.
U.S. Attorney Hamdani highlighted the extent of the crime: “Crime flourishes only when it pays, and Vinh and Diana Phan helped it pay, for years, to the tune of more than $33 million.” Acting Special Agent in Charge Lucy Tan from IRS Criminal Investigation’s Houston Field Office described the investigation process involving records from over 20 financial institutions and virtual currency companies.
The Phans operated an unlicensed business that transmitted funds received as bulk cash from drug trafficking activities. Over approximately 21 months, they managed more than $33 million through their operation using "money mules" to introduce cash into the banking system before converting it into virtual currency sold in California.
Previously transporting cash physically across states until a robbery incident led them to switch methods in January 2020. The couple did not register their business with relevant authorities nor obtained a state license for money transmission.
They remain on bond pending surrender to designated U.S. Bureau of Prisons facilities. The investigation was conducted by a task force led by IRS Criminal Investigation with assistance from various law enforcement agencies including DEA and Houston Police Department.
Assistant U.S. Attorneys Stephanie Bauman and Eun Kate Suh prosecuted alongside Deputy Chief Brandon Fyffe from Asset Recovery Section.