Liang Zhou, Unlicensed Money Transmitting, California 2021

A 37-year-old Las Vegas resident, Liang Zhou, pleaded guilty in federal court today to operating an unlicensed money transmitting business, transferring large sums of money between the United States and China.

According to court documents, Zhou sold hard currency in U.S. dollars to customers who could not readily access cash in the United States due to Chinese capital controls. These customers typically had bank accounts in China and needed the money to gamble at the casinos in Las Vegas. Zhou would receive U.S. dollars from his customers and transfer an equivalent value in yuan to a separate bank account in China.

This illegal operation allowed individuals to circumvent domestic and foreign laws regarding monetary transfers and reporting, including United States anti-money laundering scrutiny and Chinese capital flight controls.

As part of his agreement to plead guilty, Zhou agreed to forfeit $446,330 to the United States as property involved in the operation of his unlicensed money transmitting business.

U.S. Attorney Robert S. Brewer commended prosecutors Daniel Silva and Mark Pletcher, as well as federal agents from Homeland Security Investigations, IRS Criminal Investigation Las Vegas Financial Crimes Task Force, and the Drug Enforcement Administration for their excellent work on this case.

Sentencing is scheduled for January 8, 2021, before U.S. District Court Judge Dana Sabraw.

Zhou faces a maximum penalty of five years in prison, forfeiture, and a $250,000 fine for his crimes.

The charges against Zhou include operation of an unlicensed money transmitting business, as outlined in Title 18, U.S.C., Section 1960.

Source: https://www.justice.gov/usao-sdca/pr/operator-underground-international-financial-institution-pleads-guilty-operating