New York Man Pleads Guilty to Role in International Money Laundering Conspiracy

BOSTON - A New York man pleaded guilty yesterday to his involvement in a sophisticated international money laundering and drug trafficking organization.

Yanbing Chen, 30, of Brooklyn, N.Y., pleaded guilty to conspiracy to commit money laundering and conspiracy to distribute five kilograms or more of cocaine. U.S. District Judge Angel Kelley scheduled sentencing for Jan. 21, 2025.

In May 2023, a federal grand jury in Boston returned a superseding indictment charging 12 individuals from Massachusetts, Rhode Island, New York and California for their alleged involvement in a sophisticated international money laundering and drug trafficking organization. Jin Hua Zhang, based in Staten Island, was identified as the leader of the organization along with a number of his criminal associates. The investigation revealed that, for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than one year, Zhang and his organization laundered at least $25 million worth of drug proceeds and funds from other illegal businesses through undercover agents.

In July 2022, on Zhang's behalf, Chen delivered $50,000 in drug funds to undercover agents to be laundered. Those funds were converted to Tether, a type of cryptocurrency, and transferred to Zhang, the organization's leader, minus a fee. Funds were eventually traced from the Zhang organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations. Cash and cryptocurrency in accounts tied to Zhang were seized at the conclusion of the investigation.

In addition, in two separate meetings in August and September 2022, Zhang sent Chen to meet with cooperating witnesses near South Station in Boston. Chen was recorded by the undercover agents as he delivered a total of five kilograms of cocaine at Zhang's direction.

Zhang pleaded guilty and is scheduled to be sentenced on Jan. 15, 2024.

The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. The charge of conspiracy to distribute five kilograms of cocaine calls for a sentence of up to life in prison, a minimum of five years of supervised release, and a $10 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was also provided by the Quincy Police Department. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of Levy's Criminal Division are prosecuting the case.

The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty