Seventeen Individuals Indicted Alleging A Sophisticated Nationwide Money Laundering Scheme Originating With Violent Crime In Baltimore City

Baltimore, Maryland - 17 individuals were indicted yesterday in a Drug Enforcement Administration and Department of Homeland Security investigation involving a sophisticated money laundering scheme and illegal marijuana distribution network resulting in the seizure of over $6,000,000 and over 2000 pounds of marijuana in illegal proceeds to date.

The investigation - which was undertaken by the Drug Enforcement Administration-Baltimore Field Office and Department of Homeland Security-Baltimore Field Office ("HSI"), with support from DEA offices in New Jersey, New York, Washington, and Oregon - began in March 2023 with two separate non-fatal shootings of one individual in Baltimore, Maryland, that has subsequently revealed a sprawling network of individuals laundering millions of dollars generated from the illegal distribution of massive quantities of marijuana. That network includes large-scale launderers operating a Chinese Money Laundering Organization (MLO) in New York city, and drug traffickers operating in Maryland, sending large quantities of bulk cash proceeds from Maryland to other states, including New York, New Jersey, and Oregon to obtain further shipments of marijuana and to conceal the source of the proceeds.

The Indictment charges the following individuals in count one with Conspiracy to Engage in Money Laundering, and in count two with Conspiracy to Distribute Controlled Substances: Qihai Tao; Michael Micklos; Can Xu; Praveen Morgan; Michael Tilmon, III; Emanuel Dukes; Steven Mack; William Brown, III; Malik Bridgers; David Hilliard; Derian Green; Huayi Zhong; Zebin Liu; Chunbing Qin; Peng Huang; Isaac Huynh, and Li Chen. The maximum penalty for Conspiracy to Engage in Money Laundering is twenty years imprisonment and up to a $500,000 fine. The maximum penalty for Conspiracy to Distribute Controlled Substances, as charged in the indictment, is up to twenty years imprisonment and up to $1,000,000, per defendant. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Additionally, Michael Tilmon III, and Steven Mack are charged in one count each with Possession of a Firearm by a Prohibited Person. The maximum penalty for this offense is up to fifteen years imprisonment, and up to a $250,000 fine.

"When violence erupts in our communities, we will track it down to its core. This investigation demonstrates how organized international money laundering drives gun violence and illegal drug trafficking," said Erek L. Barron, U.S. Attorney for the District of Maryland. "Through the coordinated efforts of our OCDETF Strike Force and law enforcement partners, our highest priority is protecting the nation's safety and security."

"This investigation is a clear example of how we use DEA's collective resources to identify money laundering schemes and drug distribution networks in order to disrupt and dismantle their operations," emphasized Jarod Forget, Special Agent in Charge of DEA Washington Division. "The increasingly dynamic and complex nature of the illicit drug trade demands enhanced cooperation with local, state and federal partners that reflects the reality of a globalized supply chain for illegal drugs and its transnational money laundering activities. We will pursue all enablers of these illicit activities by denying the criminal networks of their ill-gotten proceeds and interrupt their ability to transfer working capital to fund their range of illicit activities."

"This investigation stands as a compelling example of the remarkable outcomes achieved when law enforcement agencies collaborate toward a common objective," said Special Agent in Charge Michael McCarthy of HSI Baltimore. "What began as an inquiry into two seemingly unrelated shootings in Baltimore evolved into a comprehensive investigation that exposed a vast criminal enterprise engaged in drug trafficking and the laundering of millions of dollars. This nefarious network extended its reach from Maryland to New York and beyond, infiltrating multiple communities. HSI remains resolute in its commitment to safeguarding Maryland's neighborhoods by working in close coordination with our law enforcement partners to dismantle and disrupt such criminal organizations."

An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty at some later criminal proceedings.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan and surrounding areas. The Baltimore Strike Force is comprised of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service, United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff's Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.

U.S. Attorney Barron commended the DEA-Baltimore Field Office, the HSI-Baltimore Field Office, Baltimore County Police Department, Maryland Department of Public Safety and Correctional Services, and Maryland State Police. Mr. Barron thanked the U.S. Attorney's Office for the Eastern District of New York, the Southern District of New York, the District of New Jersey, the Western District of Washington, the District of Oregon, and the Eastern District of Texas for their vital cooperation in this investigation. Mr. Barron also thanked Assistant U.S. Attorneys Alex Kalim, Alex Levin, and James Wallner, who are prosecuting the federal case.

For more information on the Maryland U.S. Attorney's Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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