Federal prosecutors have revealed a massive smuggling ring allegedly responsible for moving over $200 million worth of counterfeit and illegal goods through the Ports of Los Angeles and Long Beach. The operation, involving nine individuals, reportedly manipulated customs processes to smuggle contraband from China into the United States, authorities said Monday.
A 15-count indictment, unsealed Friday, charges the defendants with conspiracy, smuggling, and breaking customs seals. Seven suspects were arrested on Friday, an eighth on Saturday, while the alleged ringleader, 57-year-old Weijun “Sonic” Zheng, is believed to be in China.
The group is accused of circumventing customs inspections by removing flagged containers from the port, unloading the illegal goods at warehouses, and refilling the containers with benign cargo. They then resealed the containers with counterfeit security tags to deceive Customs and Border Protection (CBP) officials, prosecutors said.
During their investigation, authorities seized more than $130 million in counterfeit items, including $20 million worth of luxury handbags, shoes, perfumes, and watches during a 2024 warehouse raid.
“This operation highlights the importance of securing our ports to protect American businesses and consumers,” said Acting U.S. Attorney Joseph T. McNally. “The arrests demonstrate our commitment to enforcing customs laws and safeguarding lawful trade.”
The elaborate scheme involved several layers of operation. Zheng and two associates, Hexi Wang, and Jim Liu, allegedly managed warehouses in the City of Industry to store and sell contraband. Commercial trucking companies were used to transport flagged containers from the ports to these warehouses, where counterfeit goods were unloaded and swapped with filler cargo.
The indictment lists other individuals accused of playing key roles, including logistics managers, trucking company operators, and drivers. These defendants allegedly coordinated routes, directed truck drivers, and facilitated the smuggling operation:
- Hexi Wang, 32, managed K&P International Logistics LLC, overseeing transportation logistics.
- Jim Liu, 42, handled warehouse finances and operations.
- Dong Lin, 31, operated the contraband warehouses alongside Zheng.
- Marck Anthony Gomez, 49, coordinated container movements through Fannum Trucks LLC.
- Andy Estuardo Castillo Perez, 32, and Jesse James Rosales, 41, were drivers and route coordinators.
- Daniel Acosta Hoffman, 41, and Galvin Biao Liufu, 33, oversaw transportation logistics from the warehouses.
The operation first came to light in 2023 during a routine container inspection by CBP agriculture specialists. Investigators later uncovered the full extent of the smuggling network, ultimately linking it to the nine defendants.
“This case is a testament to the vigilance and professionalism of CBP personnel,” said Cheryl Davies, CBP Director of Field Operations in Los Angeles. “Their dedication to protecting lawful trade is integral to our national security mission.”
If convicted, each defendant faces severe penalties, including up to five years in prison for conspiracy, 10 years for breaking customs seals, and 20 years for smuggling charges.
With investigations ongoing, this case sheds light on the scale and complexity of international smuggling operations and the critical role of law enforcement in protecting trade and consumer safety.
