Eight people have been taken into custody by federal authorities concerning a massive smuggling operation that allegedly used the Ports of Los Angeles and Long Beach to bring illegal and counterfeit goods into the United States from China.
It is estimated that the scheme, which involved dishonest truck drivers, warehouse owners, and logistics firms, smuggled at least $200 million worth of goods. The lead orchestrator, another defendant, is still at large and is believed to be in China. The defendants are accused of breaking customs seals, smuggling, and conspiracy, among other offenses.
During a smuggling bust at the ports in Los Angeles, federal investigators discovered $200 million worth of counterfeit and/or “dangerous” goods, Fox Los Angeles reported.
Nine defendants are accused of conspiracy, smuggling, and breaking customs seals in a 15-count indictment filed by federal law enforcement. The defendants allegedly used logistics firms to help smuggle counterfeit goods into the United States by working with Chinese partners to manipulate shipping containers that were flagged for inspection.
The organization is thought to have smuggled at least $200 million worth of goods through this scheme, and investigators have seized over $130 million in contraband. The operation’s main targets were the busiest container ports in the Western Hemisphere, the Ports of Los Angeles and Long Beach.
The plot, according to Acting U.S. Attorney Joseph T. McNally, involved dishonest truck drivers, warehouse owners, and logistics firms conspiring to violate U.S. customs regulations. The defendants and their Chinese partners loaded illegal chemicals and counterfeit goods into shipping containers. By learning the distinct serial numbers of security seals and producing duplicate fake seals, they were able to get around the security system. The United States received these fake seals from China.
Corrupt truck drivers transported the containers to offsite warehouses when shipments arrived at the port rather than to secondary inspection locations. Before delivering the containers to Customs and Border Protection (CBP) for examination, the seals were cut, the contraband was taken out, and fresh fake seals were put on. In order to transport the containers illegally, truck drivers were paid much more than they would normally be paid.
The conspiracy described in the indictment took place between at least August 2023 and June 2024. The plan was to load illegal chemicals, counterfeit goods, and contraband into shipping containers in China.
