Zhi Xiong Chen, Tobacco Smuggling, CA 2024

LOS ANGELES – Los Angeles resident Zhi Xiong Chen, 56, of Chinatown, has pleaded guilty to a felony charge for illegally importing tobacco products. For nearly five years, Chen admitted to receiving 15,128 cartons of Chinese-brand cigarettes without a permit. U.S. Customs and Border Protection intercepted an additional 9,824 cartons at international mail facilities in California and New York.

Chen confessed to evading over $467,000 in federal and state excise taxes on the illegal imports. United States Attorney Eileen M. Decker highlighted that Chen’s actions not only defrauded taxpayers but also potentially endangered consumers by selling unregulated products.

Acting Deputy Assistant Attorney General Stuart M. Goldberg emphasized the importance of fair competition among importers, stating that those who evade legal obligations will face investigation and prosecution. Chen is set to be sentenced on April 17 before United States District Judge George H. Wu, facing a maximum penalty of five years in federal prison.

This case is a joint effort by the Alcohol and Tobacco Tax and Trade Bureau, the U.S. Food and Drug Administration’s Criminal Investigations, and IRS Criminal Investigation. Assistant United States Attorney Valerie L. Makarewicz and Trial Attorney Christopher S. Strauss are prosecuting the case.

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