SANTA ANA, California – Federal authorities have arrested three individuals, including two Chinese nationals, in connection with an alleged money laundering operation that funneled over $13 million through shell companies linked to investment fraud schemes known as “pig butchering.”
The arrests occurred this morning, and the suspects are expected to appear in United States District Court in Santa Ana later today.
Defendants and Charges
The individuals facing charges include:
- Mingzhi Li, 24, also known as Zheng Lin, of Downtown Los Angeles
- Zeyue Jia, 23, also known as Jiao Jiao Liu, also of Downtown Los Angeles
- Jun Shi, 55, of San Gabriel
All three are charged with operating an unlicensed money transmitting business, a federal offense carrying a maximum five-year prison sentence if convicted.
Allegations of Financial Crimes
According to federal court documents, Li and Jia, both Chinese citizens who originally entered the U.S. on expired student visas, are unlawfully residing in the country. They were ordered detained without bail, while Shi was released on a $20,000 bond. Their formal arraignment is set for March 17 in Los Angeles.
Also Read – Motorcyclist Hospitalized After Wrong-Way Hit-and-Run Crash with Minibikers
The complaint alleges that Shi established Magic Location Trading LLC and Stone Water Trading LLC on December 7, 2022, both headquartered in downtown Los Angeles. These entities were allegedly used as unregistered financial service providers, illegally transmitting money without the required licenses from the Financial Crimes Enforcement Network (FinCEN) or the State of California.
Movement of Fraudulent Funds
Authorities say Li and Jia opened multiple U.S.-based bank accounts under these company names, where they received wire transfers from investment fraud victims. Investigators uncovered:
- 242 wire transfers amounting to approximately $7.6 million sent to Stone Water Trading LLC
- 60 wire transfers totaling $5.4 million directed to Magic Location Trading LLC
The funds were then allegedly moved to overseas accounts and used for personal expenses.
The “Pig Butchering” Scam
Victims were lured into fraudulent investment schemes through dating apps and social media, where scammers gained their trust before introducing them to what seemed like legitimate financial opportunities. These often involved commodity trading, gold contracts, or cryptocurrency investments.
Once victims transferred money into scam-controlled accounts, fake investment platforms falsely displayed large gains to encourage further deposits, ultimately leaving victims with huge financial losses.
Federal authorities continue to investigate the scope of the operation and whether additional individuals were involved in the scheme .
- ‘Deeply Unsettling’: Mother Accused of Drowning 7-Year-Old Daughter in California - April 30, 2025
- Manhunt Underway for Inmate Who Escaped Los Angeles County Facility - April 30, 2025
- Deltopia 2025 Sees Dramatic Rise in Arrests, Citations in SoCal - April 28, 2025
