Connect with us
[the_ad id="89560"]

Crime

Operation Take Back America Strikes Chinese Money Launderers in Charlotte Cartel Case

Published

6 minute read

Sam Cooper's avatar Sam Cooper

CHARLOTTE, N.C. — Striking a cell capable of washing $100 million within what U.S. counter-narcotics officials describe as a half-trillion-dollar global enterprise, federal prosecutors have secured convictions against three men tied to a China-based transnational laundering syndicate, exposing how Mexican cartel drug proceeds flowed quietly through Charlotte banks as overdose deaths surged across the Carolinas.

The case, centered in Charlotte, North Carolina, reveals the concealed infrastructure enabling Mexican cartels to convert fentanyl profits into clean capital, aided by sophisticated Chinese professional launderers operating like underwriters and rogue accountants—embedding illicit funds in regional banks using fake identities and a dense lattice of shell companies.

Prosecutors say Maoxuan Xia, 29, of China; Shao Neng Lin, 58, of Baldwin Park, California; and Zhou Yu, 42, of China, laundered more than $92 million in drug proceeds through this underground system. Court records show the trio used false documentation and coordinated deposits to move over $700,000 through Charlotte-area financial institutions alone.

Donald Im, a former top DEA illicit finance expert, said the system is designed so that all roads ultimately lead to Beijing’s treasury—with narcotics proceeds flowing back to China through laundering networks, while cartels handle the production and distribution of synthetic opioids sourced from Chinese factories.

The Charlotte case offers a rare, granular view into how that system functions on the ground. Xia served as a primary collector, retrieving cash from cartel-linked operatives across the United States. In less than two years, he laundered over $30 million. Lin and Yu operated back-end accounts, managing shell firms that each moved approximately $20 million. All three men entered guilty pleas this spring.

Investigators describe the laundering structure as part of a wider financial ecosystem anchored in Chinese underground banking hubs—active in cities such as Vancouver, Toronto, Mexico City, New York and Los Angeles. These operations pair U.S. drug money with Chinese nationals looking to move renminbi out of the mainland, exploiting capital flight demand to create an opaque, dollar-based network of cash flow. Funds are then reinvested in electronics exports, real estate, and layered wire transfers—largely beyond the reach of Western regulators.

The Charlotte convictions come amid a regional overdose emergency. In 2023, South Carolina reported 44.7 overdose deaths per 100,000 residents, far exceeding the U.S. average of 31.3. Georgia recorded 2,687 overdose deaths in 2022, a 300 percent increase since 2010. In North Carolina, more than 36,000 people have died from drug overdoses since 2000, with over 4,000 deaths recorded in 2021 alone. Fentanyl now accounts for nearly 80 percent of opioid fatalities in the Carolinas.

Taken together, South Carolina, North Carolina, and Georgia form one of the most intensely affected overdose corridors in North America. Only British Columbia—where Vancouver’s urban fentanyl crisis remains in declared emergency—and West Virginia report comparably higher death rates. British Columbia recorded 48.5 overdose deaths per 100,000 residents in 2024; West Virginia reached 80.9 per 100,000 in 2022.

A parallel indictment in South Carolina, unsealed in April, further illustrates China’s financial blueprint. Prosecutors charged Nasir Ullah, 28, and Naim Ullah, 32, of Sumter, along with Puquan Huang, 49, of Buford, Georgia, with laundering millions in cartel-linked proceeds. According to court filings, the men concealed cash in Sumter-area properties before converting it into overseas electronics shipments to Hong Kong and Dubai. Investigators allege the group was linked to broader laundering cells stretching into Asia and the Middle East.

While no financial institutions were charged in the Charlotte case, the use of fraudulent documents and synthetic identities to move large sums underscores continuing vulnerabilities in U.S. bank compliance systems—particularly in regional markets where oversight mechanisms may lag behind the sophistication of illicit finance networks.

The case was prosecuted under Operation Take Back America, a multi-agency U.S. initiative focused on dismantling the financial backbone of transnational fentanyl trafficking. Officials involved say targeting launderers may yield more strategic disruption than intercepting drug shipments alone—striking directly at the revenue pipelines keeping the trade alive.

Im, who led transnational threat targeting units within DEA’s Special Operations Division, has long studied the convergence of criminal enterprise and state-sanctioned economic leverage. In his assessment, Chinese laundering brokers serve both cartel clients and parallel financial objectives of the state—helping the proceeds of Western fentanyl sales find their way into Belt and Road infrastructure loans, real estate portfolios, and capital-export schemes tied to China’s global influence-building.

The Bureau is a reader-supported publication.

To receive new posts and support my work, consider becoming a free or paid subscriber.

Invite your friends and earn rewards

If you enjoy The Bureau, share it with your friends and earn rewards when they subscribe.

Invite Friends

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Alberta

Bonnyville RCMP targeted by suspect driving a trackhoe

Published on

From Bonnyville RCMP

On May 3, 2025, at approximately 6:55 p.m., a male suspect drove a stolen trackhoe into the parking lot of the Bonnyville RCMP. The suspect dumped several boulders in front of the prisoner bay and then proceeded to damage 5 police vehicles, which were parked in the lot. The suspect then fled on foot.

Bonnyville RCMP, Police Dog Services and RPAS (drone), searched for the suspect and he was quickly located in a tree line just north west of the detachment. He was arrested and is currently in custody pending a Judicial
Interim Release Hearing.  

The suspect cannot be named at this point as the charges have not been sworn before the courts. An updated media release is expected in the coming days.

Continue Reading

Crime

Mexican Cartels smuggling crude oil in Texas, Southwest border

Published on

From The Center Square

By

The U.S. Treasury Department is cracking down on Mexican cartel crude oil smuggling in Texas and along the southwest border.

The department’s Office of Foreign Assets Control on Thursday (OFAC) sanctioned multiple Mexican nationals and Mexico-based entities involved in a drug trafficking and fuel theft network connected to the Mexican cartel, Cartel Jalisco Nueva Generacion (CJNG).

In February, the Trump administration designated CJNG and other Mexican cartels and transnational criminal organizations as Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorist (SDGT).

Crude oil smuggling, “huachicol,” is interconnected with “a slew of criminal activities, including fentanyl trafficking,” and a range of violent crimes. It’s considered “the most significant non-drug revenue source for Mexican cartels and other illicit actors,” OFAC said. The thieves, “huachicoleros,” use a variety of means to steal fuel and crude oil from Mexico’s state-owned energy company, Petróleos Mexicanos (Pemex), including bribing and threatening Pemex employees, illegally drilling taps into pipelines, stealing from refineries and hijacking tanker trucks.

Their operations are facilitating “rampant violence and corruption across Mexico, and undercutting legitimate oil and natural gas companies in the United States,” OFAC states.

Stolen fuel is sold on the black market in Mexico and Central America through unregulated roadside fuel stops and cartel-controlled gas stations.

It’s also smuggled into the U.S. by brokers who label it as “waste oil” or hazardous material to evade detection. Stolen crude oil is then sold and shipped to oil and natural gas companies and refineries in Texas and nationwide, as well as to Japan, India, Africa and other countries, investigators found. It’s sold at a significant discount and the illicit proceeds are sent back to the FTOs and SDGTs.

According to law enforcement estimates, the U.S.-based importers earn roughly $5 million for each oil tanker shipment of crude oil to foreign jurisdictions, with multiple tankers leaving Texas ports every month. Most purchasing the shipments are likely unaware they’ve been stolen, OFAC states.

Those sanctioned this week include CJNG leader Mexican national Cesar Morfin Morfin (a.k.a. Primito) of Tamaulipas, for his alleged role in transporting, importing and distributing narcotics, including fentanyl, heroin, methamphetamine, cocaine, and marijuana, and fentanyl and methamphetamine precursor chemicals sourced from China into the U.S.

Primito’s older brother, Alvaro Noe Morfin, was also sanctioned for his alleged role in CJNG narcotics trafficking. Both Primito brothers are on a 10 Most Wanted list in Texas and Tamaulipas, published by U.S. Customs and Border Protection and the Mexican government.

Their younger brother, Remigio Morfin, was also sanctioned for alleged drug trafficking, operating out of Hidalgo, Mexico.

Mexican national Cesar Morfin was also sanctioned for his role in CJNG drug trafficking, as were two of his family members and business associates, who are linked to CJNG fuel theft, OFAC said. However, he’s allegedly now focused primarily on stealing crude oil, OFAC said.

As Trump administration border security efforts shut down illegal entries, Primito’s network refocused their efforts to smuggle crude oil into the U.S., OFAC said. “Given his control over port of entry bridges between the Tamaulipas and Texas border regions, Primito also charges fees to any trucks moving crude into the United States via these routes.” He and his subordinates also allegedly falsify official customs documents to facilitate cross-border smuggling of stolen crude oil, investigators allege.

In addition to the sanctions, OFAC and several federal agencies issued an alert to U.S. financial institutions urging them to vigilantly detect, identify and report suspicious activity that might be connected to stolen crude oil smuggled by FTOs and SDGTs.

“In recent years, fuel theft in Mexico, including crude oil smuggling, has become the most significant non-drug illicit revenue source for the Cartels and enables them to sustain their global criminal enterprises and drug trafficking operations into the United States,” the alert states.

The alert provides an overview of methodologies and financial typologies associated with cartel crude oil smuggling, includes red flag indicators and reminds financial institutions of Bank Secrecy Act reporting requirements.

Since the Trump administration designated Mexican cartels and transnational criminal organizations as FTOs and SDGTs in February, the Treasury Department has sanctioned 11 individuals and six entities affiliated with the Sinaloa Cartel, La Nueva Familia Michoacana, and the Beltran Leyva Organization.

Last September, OFAC also sanctioned nine Mexican nationals and 26 Mexico-based entities linked to CJNG fuel theft activities, including senior CJNG member Ivan Cazarin Molina (a.k.a. El Tanque).

Continue Reading

Trending

X