A federal grand jury has indicted Binghui Liu, 32, a Chinese citizen formerly residing in San Jose, on charges of a money laundering conspiracy. Acting U.S. Attorney Michele Beckwith made the announcement.
According to court documents, between February 2024 and April 2025, Liu and his co-conspirators were involved in a scheme to launder funds acquired through a government impersonation fraud. The conspirators posed as federal officers or employees to deceive victims. They misled targets by falsely claiming wrongful charges against them and the freezing of their bank accounts. Victims were instructed to withdraw cash, which was collected by an impersonator claiming to provide safekeeping.
Liu played the role of the money launderer, collecting funds from victims in California and Nevada, while using fake names and pretending to be a federal worker or law enforcement officer.
In one incident, scammers convinced an elderly victim of a fake arrest warrant and claimed their bank account was at risk of being frozen. The victim was instructed to hand over money to supposed federal reserve employees. The scammers guided the victim on withdrawing cash, communicating with the bank regarding large withdrawals, and packaging the funds for pickup. On April 9, 2025, during a sting operation by the FBI, Liu collected what he believed to be $20,000, which was actually fake money, from the elderly victim's home, leading to his arrest. The victim had lost over $780,000 due to the scheme.
Authorities urge anyone with relevant information or who believes they might be a victim to report at tips.fbi.gov or contact their local FBI office.
The investigation was conducted by the FBI, with prosecution by Assistant U.S. Attorneys Cody S. Chapple and Arelis M. Clemente.
If convicted, Liu could face up to 20 years in prison and a $500,000 fine or twice the value of the money involved in the transaction. However, sentencing decisions will depend on the court's discretion, statutory considerations, and Federal Sentencing Guidelines. The indictment is based on allegations, and Liu is presumed innocent until proven guilty.