Xiong Lo, Money Laundering & Drug Crimes, Wisconsin 2018

MADISON, WIS. – A Wausau couple has been sentenced for their involvement in money laundering and drug trafficking crimes. U.S. Attorney Scott C. Blader announced that on December 4, 2018, Chief U.S. District Judge James D. Peterson sentenced Xiong Lo, 53, Wausau, Wisconsin, to 30 months in federal prison and a $50,000 fine, and Ying Lo, 40, also of Wausau, to 4 months in federal prison and a $10,000 fine, for money laundering and distribution of marijuana.

The charges against Xiong and Ying Lo were the result of an investigation conducted by the Wisconsin Division of Criminal Investigation, IRS Criminal Investigation, Marathon County Sheriff’s Office, and the Wausau Police Department. The investigation revealed that Xiong Lo pleaded guilty to the money laundering charge on June 26, 2018, and Ying Lo pleaded guilty to the drug charge on the same date. The two defendants are husband and wife and agreed to the forfeiture of $541,734 in drug proceeds.

According to the investigation, on July 2, 2015, law enforcement agents arrested Ying Lo after she delivered 28 pounds of marijuana to another co-conspirator. This delivery was at the direction of her husband, Xiong Lo. In addition to the 28-pound seizure, search warrants executed at the defendants’ home and business uncovered large amounts of marijuana, approximately $50,000, drug ledgers, digital scales, and drug packaging materials, including vacuum sealers and rolls of vacuum sealed bags. Further, agents seized safe deposit keys from the defendants’ home, which led to the seizure of $491,000 in cash from safe deposit boxes rented by the defendants.

An investigation by IRS Criminal Investigation (IRSCI) during a 13-month period ending in July 2015, revealed that the Los made cash deposits over $1,000,000 into their bank accounts. Further, IRSCI agents determined that the defendants purchased two real estate properties for $180,000 in 2015. The defendants paid for these properties up-front, in full, with an unusual combination of cashier’s checks, teller checks, and money orders from different financial institutions. Shortly thereafter, the properties were sold to relatives for a fraction of the appraised value.

The defendants’ involvement in money laundering and drug trafficking crimes has been brought to an end with their sentencing. The case serves as a reminder of the consequences of such illegal activities. The investigation and prosecution of this case were handled by Assistant U.S. Attorney David J. Reinhard.

The charges against Xiong and Ying Lo are a result of their involvement in money laundering and distribution of marijuana. The sentencing of the two defendants brings an end to this case and serves as a reminder of the consequences of such illegal activities.

Source: https://www.justice.gov/usao-wdwi/pr/wausau-couple-sentenced-money-laundering-drug-crimes