Feds Charge Two In $43-Million 'Pig Butchering' Money Laundering Scheme
By CU Today Staff —
NEW YORK—Federal prosecutors have charged two Chinese nationals with operating a sophisticated money laundering network that allegedly funneled at least $43 million in proceeds from "pig butchering" investment scams through dozens of shell companies and bank accounts before transferring the money overseas, the Department of Justice reported.
According to an indictment unsealed in federal court in Brooklyn, Zhuoying Chen, 27, of Brooklyn, and Haojie Zhang, 38, of Queens, allegedly managed a network of more than a dozen associates who opened approximately 140 bank accounts for roughly 45 shell companies between 2020 and 2022. Prosecutors allege the accounts were used to conceal and move fraud proceeds before the funds were transferred to co-conspirators in China. Both defendants are charged with conspiracy to commit money laundering and each faces up to 20 years in prison if convicted.
Prosecutors said the criminal proceeds came from so-called "pig butchering" scams, in which fraudsters contact victims through social media or messaging platforms, build trust over time and persuade them to invest in fraudulent opportunities by displaying fabricated profits before stealing the victims' money. The Justice Department said the case is part of its broader effort to dismantle the financial infrastructure supporting transnational cyber-enabled investment fraud.
The investigation was led by Homeland Security Investigations, the FBI and the Justice Department's Money Laundering and Asset Recovery Section. Officials said the prosecution also falls under the Homeland Security Task Force initiative targeting transnational criminal organizations.
Originally reported by CU Today.