Eight arrested in US on suspicion of fake goods smuggling

Eight people have been arrested in connection with a large-scale operation smuggling counterfeit and other illegal goods from China to the US.

The alleged conspiracy involved "logistic companies' executives, warehouse owners and truck drivers," according to a Department of Justice statement which claims that their activities resulted in hundreds of millions of dollars' worth of illicit shipments from China into the US via the ports of Los Angeles and Long Beach.

One feature of the scheme was to break customs seals on shipping containers and replacer them with fakes, according to a 15-count indictment unsealed last Friday which names nine defendants. They are accused of taking containers flagged for off-site secondary inspection, unloading the contraband, and then stuffing them with filler cargo to deceive customs officials and evade law enforcement.

An investigation into the activities resulted in the seizure of more than $130m in smuggled goods, including around $20m in counterfeit items including shoes, perfume, luxury handbags, apparel and watches. The group is believed to be responsible for smuggling at least $200m worth of goods.

All eight of those detained have pleaded not guilty to the charges against them, while a ninth remains at large. They are identified by the DoJ as follows:

• Weijun Zheng, 57, a.k.a. "Sonic," of Diamond Bar, the lone fugitive in the case, who controls several logistics companies operating in the Los Angeles area;
• Hexi Wang, 32, of El Monte, who manages K&P International Logistics LLC, a City of Industry-based company that hires commercial truckers to transport shipping containers from the Port of Los Angeles;
• Jin "Mark" Liu, 42, of Irvine, the owner of K&P International Logistics LLC and who managed the finances of one of the warehouses where contraband was unloaded and issued payments to truck drivers who transported smuggled goods;
• Dong "Liam" Lin, 31, of Hacienda Heights, who – along with Zheng – controlled and operated one of the contraband warehouses;
• Marck Anthony Gomez, 49, of West Covina, the owner and operator of Fannum Trucks LLC, a West Covina-based company that coordinated the movement of shipping containers from the Port of Los Angeles, including large shipments of contraband smuggled into the United States from China;
• Andy Estuardo Castillo Perez, 32, of Apple Valley, a driver for M4 Transportation Inc., a Carson-based company that transports shipping containers from the Port of Los Angeles;
• Jesse James Rosales, 41, of Apple Valley, who coordinated truckers from the ports to warehouses;
• Daniel Acosta Hoffman, 41, of Hacienda Heights, worked with Rosales to bring cargo containers from the Port of Los Angeles to warehouses; and
• Galvin Biao Liufu, 33, of Ontario, directed and managed truck drivers to bring the contraband into the warehouses.

"Secure seaports and borders are critical to our national security," said Acting US Attorney Joseph McNally. "The smuggling of huge amounts of contraband from China through our nation's largest port hurts American businesses and consumers. The charges and arrests here demonstrate our commitment to enforce our customs laws and keep the American public safe."