Two men from Hacienda Heights have been apprehended on charges of participating in a conspiracy to smuggle contraband from China into the United States through the Ports of Los Angeles and Long Beach. This announcement was made by the Justice Department.
Zhongliang Wang, 39, was taken into custody on Wednesday, while Chenyu Zhao, 31, was arrested last Thursday as he attempted to board a plane bound for China with a one-way ticket. Both individuals face charges of conspiracy and illegally removing goods from customs custody. It is alleged that Wang and Zhao orchestrated the redirection of cargo shipping containers marked for U.S. Customs and Border Protection (CBP) secondary inspection to unauthorized locations. At these sites, they allegedly unloaded the contraband, replaced it with filler cargo, and returned the containers for inspection to deceive customs officials.
Authorities have seized over $1.3 billion worth of contraband linked to this and similar schemes. A search of a warehouse associated with the group resulted in the confiscation of counterfeit luxury items and approximately 19.5 kilograms of enobosarm, an illicit steroid.
Acting United States Attorney Joseph McNally stated, “Protecting our nation’s borders from illegal smuggling is a top priority.” He added that these arrests demonstrate law enforcement's commitment to dismantling criminal networks that exploit trade systems.
Court documents reveal that Zhao and other co-conspirators managed warehouses used to store contraband goods illegally imported from China. When CBP selected containers for inspection, defendants allegedly hired truck drivers to move them from ports to controlled locations such as a warehouse in the City of Industry.
At these sites, security seals on containers were broken to remove contraband before applying counterfeit seals. The containers were then transported back for CBP inspection with filler cargo inside.
Wang and Zhao are accused of paying high fees above standard trucking rates for transporting these containers. For instance, Wang reportedly paid $15,000 to divert one container in December 2024.
It is important to note that a criminal complaint is merely an allegation; all defendants are presumed innocent until proven guilty beyond reasonable doubt in court.
If convicted on all charges, Wang and Zhao could face up to five years in federal prison per conspiracy count and up to ten years per count related to breaking customs seals.
The investigation involves Homeland Security Investigations, U.S. Customs and Border Protection, and Coast Guard Investigative Services under an Organized Crime Drug Enforcement Task Force (OCDETF) operation aimed at dismantling high-level criminal organizations threatening the United States.
Assistant United States Attorneys Colin S. Scott and Amanda B. Elbogen are prosecuting this case.