Federal Jury Convicts Chinese National of Laundering Drug Proceeds on Behalf of Traffickers in Mexico
2020-03-02 · Press release
Summary: Federal Jury Convicts Chinese National of Laundering Drug Proceeds on Behalf of Traffickers in Mexico
CHICAGO — A federal jury in Chicago has convicted a Chinese national of laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.
On three occasions in 2018, XIANBING GAN schemed to have narcotics proceeds totaling approximately $534,206 picked up in Chicago and transferred to various bank accounts in China, in order for the money to ultimately be remitted to drug traffickers in Mexico. Gan is a Chinese national who facilitated the money transfers while residing in Guadalajara, Mexico. Unbeknownst to Gan, a purported money courier who picked up the drug proceeds in Chicago was actually an undercover law enforcement agent.
U.S. authorities arrested Gan in November 2018 at Los Angeles International Airport during a brief layover on a flight from Hong Kong to Mexico. He has remained in U.S. custody since then.
After a nearly two-week trial, a federal jury in Chicago on Thursday convicted Gan, 49, on three counts of money laundering and one count of operating an unlicensed money transmitting business. The jury acquitted Gan on one count of conspiracy to commit money laundering.
Each money laundering count is punishable by up to 20 years in federal prison, while the maximum sentence for the money transmission crime is five years. U.S. District Judge Thomas M. Durkin set sentencing for May 21, 2020.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Richard M. Rothblatt and Sean J.B. Franzblau.
- district_office
- Northern District of Illinois
- usa_name
- John R. Lausch, Jr.
- event_type
- conviction
- judge_name
- Thomas M. Durkin
- judge_title
- U.S. District Judge
- case_number
- max_penalty_text
- up to 20 years in federal prison
- sentence_summary
- money_amounts
- $534,206
- crypto_assets
- statutes_json
- timeline_json
- press_release_url
- https://www.justice.gov/usao-ndil/pr/federal-jury-convicts-chinese-national-laundering-drug-proceeds-behalf-traffickers
- extras_json
| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 2127 | XIANBING GAN | defendant | Guadalajara, Mexico | 49 | Chinese | convicted | ||
| 2128 | John R. Lausch, Jr. | prosecutor | United States Attorney | U.S. Attorney's Office | Northern District of Illinois | |||
| 2129 | James M. Gibbons | law enforcement | Special Agent-in-Charge | U.S. Immigration and Customs Enforcement’s Homeland Security Investigations | Chicago | |||
| 2130 | Kathy A. Enstrom | law enforcement | Special Agent-in-Charge | IRS Criminal Investigation Division | Chicago | |||
| 2131 | Richard M. Rothblatt | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office | Northern District of Illinois | |||
| 2132 | Sean J.B. Franzblau | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office | Northern District of Illinois | |||
| 2133 | Thomas M. Durkin | judge | U.S. District Judge | U.S. District Court | Chicago |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1302 | U.S. Attorney's Office for the Northern District of Illinois | prosecution | Northern District of Illinois | Richard M. Rothblatt, Sean J.B. Franzblau | Prosecuted the case and represented the government | |
| 1303 | U.S. Immigration and Customs Enforcement’s Homeland Security Investigations | HSI | investigation | Chicago | James M. Gibbons | Led the investigation resulting in the arrest and conviction |
| 1304 | Internal Revenue Service Criminal Investigation Division | IRS-CI | investigation | Chicago | Kathy A. Enstrom | Contributed investigative support to the case |
| charge_id | charge_description | statute | severity | max_penalty | fine_amount | defendant | status | participant_id | cl_docket_id | count_num | is_1960 | verified_1960 | source | updated_at |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1098 | Money Laundering | felony | 20 years in federal prison | XIANBING GAN | convicted | 0 | enrichment | |||||||
| 1100 | Conspiracy to Commit Money Laundering | XIANBING GAN | acquitted | 0 | enrichment | |||||||||
| 1099 | Operating an Unlicensed Money Transmitting Business | felony | five years | XIANBING GAN | convicted | 1 | enrichment | 2026-09-16T19:45:58+00:00 | ||||||
| 3004 | operating an unlicensed money transmitting business | 1 | press | 2026-09-16T19:45:58+00:00 | ||||||||||
| 3005 | unlicensed money transmitting business | 1 | press | 2026-09-16T19:45:58+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 674 | seizure | $534,206 | USD | narcotics proceeds | cash | XIANBING GAN | completed |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 303 |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 1743 | null | John R. Lausch, Jr. | United States Attorney | Northern District of Illinois | null | Announcement of the conviction | Identifies the legal authority announcing the conviction |
| 1744 | null | James M. Gibbons | Special Agent-in-Charge | U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago | null | Announcement of the conviction | Identifies a key law enforcement figure involved in the case |
| 1745 | null | Kathy A. Enstrom | Special Agent-in-Charge | IRS Criminal Investigation Division in Chicago | null | Announcement of the conviction | Identifies another key law enforcement figure involved in the case |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 1416 | Money Laundering | Transferring $534,206 in drug proceeds from Chicago to China for Mexican drug traffickers. | Central to the case, forming the basis of the three money laundering convictions. | 18 U.S.C. § 1956, 18 U.S.C. § 1957 | International | Recent development (2018 transactions) | Law enforcement, Financial institutions, Victims |
| 1417 | International Cooperation | Collaboration between U.S., Mexican, and Chinese authorities to disrupt cross-border drug proceeds. | Critical for addressing transnational criminal networks. | International | Recent development (2018 arrest and trial) | U.S. Immigration and Customs Enforcement, IRS Criminal Investigation, Mexican authorities | |
| 1418 | Unlicensed Money Transmitting Business | Operating an unlicensed money transmitting business to facilitate drug proceeds transfers. | Led to a separate conviction with a five-year maximum sentence. | 18 U.S.C. § 1960 | International | Recent development (2018 activities) | Financial regulators, Law enforcement |
| 1419 | Drug Trafficking | Proceeds originated from Mexican drug trafficking operations. | Underpins the source of laundered funds. | 21 U.S.C. § 841, 21 U.S.C. § 846 | International | Historical trend (ongoing trafficking activities) | Drug enforcement agencies, Victims |
| 1420 | Undercover Operations | Use of an undercover agent posing as a money courier in Chicago. | Key investigative tool leading to Gan's arrest. | Local (Chicago) | Recent development (2018) | Law enforcement, Defendant |
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