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Leader of Transnational Money Laundering Network Pleads Guilty
A Chinese national and naturalized U.S. citizen, Xizhi Li, 48, has pleaded guilty to his involvement in a years-long conspiracy to launder at least $30 million in drug proceeds on behalf of foreign drug trafficking organizations.
According to court documents, Li played a leadership role in using a foreign casino, foreign and domestic front companies, foreign and domestic bank accounts, false passports, and other false identification documents, and bulk cash smuggling to launder money on behalf of transnational drug trafficking organizations, whose main drug trafficking activities involved cocaine.
Li dealt directly with members of drug trafficking organizations or their representatives to obtain and service ‘contracts’ to move their drug proceeds. Once Li and his co-conspirators obtained a ‘contract’ to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original funds, in return for the payment of commissions.
Li’s co-conspirator, Tao Liu, 46, of Hong Kong, helped to execute the money laundering scheme. Liu accepted bulk drug cash on behalf of Li, which he later deposited into bank accounts that Li provided. Liu was also involved in a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. official to obtain U.S. passports for individuals, including Liu himself, who were not otherwise entitled to use or possess such documents.
Liu was sentenced to 7 years in prison for his role in the conspiracy. The case demonstrates the importance of collaboration between agencies across the government and with international partners to dismantle and hold accountable transnational criminal organizations.
U.S. Attorney Raj Parekh praised the efforts of federal law enforcement partners and the U.S. Attorney’s Office for the Eastern District of Virginia in unraveling the multimillion-dollar money laundering scheme.
The guilty plea and sentence underscore the Justice Department’s commitment to dismantling the financial infrastructure of transnational criminal organizations. The DEA Administrator, Anne Milgram, stated that the collective efforts of the DEA and law enforcement partners have led to the pursuit of individuals who profit from the deadly trade of drug trafficking.
Key Facts
- State: Virginia
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime
- Source: DOJ Press Release â†â€â€
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