The Massachusetts Attorney General’s Office (AGO) announced that the Statewide Grand Jury has returned 15 indictments against Xue Tan Zheng, 50, of Braintree and Xiu Rong Li, 55, of Braintree, respectively, for their operation of two unlicensed casinos in Chinatown and Quincy. The Grand Jury indicted Li and Zheng each on charges of Money Laundering (2 counts); Tax Evasion (2 counts); Trafficking Unstamped Cigarettes (3 counts); Transportation of Unstamped Cigarettes (2 counts); Possession or Operation of an Electronic Gaming Device (2 counts); Registering Bets (2 counts); and filing a false or fraudulent tax return for tax years ending December 31, 2022, and December 31, 2023 (2 counts).
The indictments are the result of a two-year joint investigation by the Massachusetts Department of Revenue’s Criminal Investigation Bureau (CIB) and the Massachusetts State Police Detective’s Unit. The investigation, initiated by the Commonwealth’s Illegal Tobacco Task Force (ITTF), revealed that, since 2022, Li and Zheng operated two unlicensed casinos: the first at 299 Newport Avenue, Quincy and the second at 32B Oxford Street, Boston. At these casinos, Li, Zheng, and their employees provided gaming tables and devices, including slot machines, which provided cash payouts; and offered illegal unstamped tobacco products for sale.
The investigation also established that Li and Zheng purchased out-of-state and international cigarettes, which they offered for sale in Massachusetts, without charging the required tax by the Commissioner of Revenue. Investigators executed a search warrant in September 2024 and seized 600,000 packs of unstamped cigarettes, which held an approximate value of $6,000,0000, 22 slot machines, and approximately $141,000 in U.S. currency from the couple’s various residences and businesses. A review of all available evidence showed that Li and Zheng underreported their taxable income on their 2022 and 2023 returns.
These charges are allegations, and the defendants are presumed innocent until proven guilty.
This criminal matter is being prosecuted by Assistant Attorney General Keri Angus, with assistance from Financial Analyst William Marshall and Intelligence Analyst Nicole Harvey, all of the AGO’s Gaming Enforcement Division, in partnership with the Massachusetts State Police assigned to the AGO, the Massachusetts Department of Revenue, Illegal Tobacco Task Force, and the Boston, Quincy, and Lexington Police Departments. The AGO’s Fair Labor Division and Victim Services also provided valuable assistance.
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