BOSTON – The feds snagged another one. Virayuth Chau, 40, of Temecula, California, pleaded guilty today to running a massive marijuana distribution and money laundering scheme stretching from the Golden State to the East Coast. Chau, also known as David Chau, faces serious time for flooding our streets with pot and then trying to wash the profits clean.
Chau admitted to one count of conspiracy to distribute marijuana and one count of conspiracy to launder monetary instruments. He was initially arrested and indicted back in September 2016, alongside his accomplice, Ratanack Oung, a/k/a Yoshi, 31, of Allentown, Pennsylvania. U.S. District Court Judge Nathaniel M. Gorton has set Chau’s sentencing date for June 22, 2017, at 3:00 p.m. – expect a harsh sentence.
The operation, which kicked off around January 2014, saw Chau and Oung shipping between 1,000 and 3,000 kilograms of marijuana westward to the East Coast. But moving the product was only half the battle. When payment was due, they employed a classic “smurfing” technique, depositing cash in amounts typically under $10,000 into a network of “feeder” accounts. These accounts, held under the names of shell businesses or associates, were designed to obscure the dirty money’s origins.
Once the cash hit those feeder accounts, it was either withdrawn as cold, hard cash back in California or funneled into “target” accounts controlled directly by Chau. This allowed him to pull out the illicit funds with relative ease. The total haul? A staggering $6,135,035 in drug proceeds, all tainted by illegal activity. Oung is scheduled to enter his guilty plea on April 14, 2017 – likely hoping for a deal in exchange for cooperation.
Chau’s facing up to 20 years in the slammer for the marijuana conspiracy charge, plus a minimum of three years (potentially a lifetime) of supervised release and a $1 million fine. The money laundering charge carries a similar maximum sentence of 20 years, three years of supervised release, and a $250,000 fine. While these are the maximums, federal sentencing guidelines and other factors will determine the actual punishment. Don’t expect a slap on the wrist.
The takedown was a joint effort led by Acting U.S. Attorney William D. Weinreb, with key contributions from Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in Boston. The DEA’s Los Angeles Division, Riverside County Sheriff’s Department, and Murrieta Police Department also played a vital role. Assistant U.S. Attorney Eric Rosen is handling the prosecution, ensuring these criminals face justice. This bust sends a clear message: moving illegal drugs and dirty money across state lines will land you in federal prison.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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