Washington DC: A federal judge in Chicago on December 20 sentenced Haiping Pan, a 44-year-old Chinese national, to 10 years in prison for his role in laundering USD 62 million in drug proceeds on behalf of Mexican drug traffickers.
The sentencing follows an extensive investigation by Homeland Security Investigations (HSI) Chicago.
From 2016 to 2018, Pan orchestrated a sophisticated money laundering scheme, facilitating the transfer of illicit drug money across international borders. Operating with co-conspirators, he arranged for up to USD 3 million to be laundered each month.
The operation involved secretive money pickups in cities like Chicago, New York, and Los Angeles, followed by currency swaps between the US, China, and Mexico, the HSI, a federal law enforcement agency within the Department of Homeland Security (DHS), said in a statement.
Pan utilised his international financial expertise and connections with members of Mexican drug cartels to ensure the funds moved seamlessly through various businesses and banks, ultimately reaching traffickers in Mexico.
The money laundering process included frequent pickups of between USD 150,000 and USD 1 million per transaction, with Pan and his associates completing one to two pickups every week. In total, Pan was involved in the laundering and attempted laundering of approximately USD 62 million in drug money.
HSI Chicago Special Agent in Charge, Sean Fitzgerald, called Pan’s sentencing a significant victory in the fight against transnational criminal organisations.
“Pan’s criminal activities posed a serious threat to financial systems and public safety worldwide,” Fitzgerald said. “This case underscores the importance of international collaboration in combating illicit activities.”
Pan was arrested in Mexico and extradited to the US in 2022. US District Judge Sharon Johnson Coleman handed down the sentence during a hearing on December 12 in Chicago.
The investigation also led to the convictions of Pan’s co-conspirators, including Xianbing Gan, sentenced to 14 years, and Huanxin Long, who received a five-and-a-half-year sentence.
The government argued that Pan was a key player in a growing trend of Chinese money brokers, particularly in Mexico, dominating international money laundering markets. His operations allowed drug traffickers to move their illicit profits faster, more securely, and at a lower cost than ever before.
The case highlights the ongoing efforts by law enforcement agencies to dismantle complex money laundering networks that support global criminal enterprises.
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