NEW ORLEANS – A Chinese national residing in New Orleans has been sentenced to 27 months of imprisonment and three years of supervised release for his role in a bankruptcy fraud scheme and violating federal controlled substances and gun control acts.
SHI GANG ZHENG, age 55, was sentenced on January 16, 2025, by United States District Judge Barry W. Ashe, after previously pleading guilty to making false statements under oath in a bankruptcy proceeding, possession with intent to distribute marijuana, and being an illegal alien in possession of a firearm.
ZHENG, who was ordered removed from the United States in 1991 but remained in the country due to the government of China’s refusal to facilitate his removal, filed a petition for Chapter 7 bankruptcy in July 2018, in which he falsely stated that he did not own any firearms, significant jewelry, or other assets.
Further investigation by the United States Trustee revealed numerous fraudulent Chapter 7 bankruptcy documents submitted by ZHENG, along with unreported assets, including numerous firearms. ZHENG admitted ownership of those firearms and learned he was prohibited from possessing them due to his immigration status.
In September 2023, members of the Jefferson Parish Sheriff’s Office witnessed ZHENG conducting a drug transaction, and subsequent searches of his vehicle, residence, and arrest yielded approximately 51 kilograms of marijuana and a firearm, both of which were prohibited due to his immigration status.
This case is part of Project Safe Neighborhoods (PSN), a program aimed at reducing violent crime and gun violence in communities. The case was investigated by the Department of Homeland Security/Homeland Security Investigations and prosecuted by Assistant United States Attorney Tracey N. Knight, Chief of the Criminal Division.
The government’s violent crime reduction strategy, launched in 2021, focuses on fostering trust and legitimacy in communities, supporting community-based organizations, setting strategic enforcement priorities, and measuring results.
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Key Facts
- State: Louisiana
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime
- Source: DOJ Press Release â†â€â€
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