A Georgia man has been sentenced to 6.5 years in prison after laundering millions in cartel drug money through an elaborate scheme involving Chinese bank accounts and electronics shipments.
At a Glance
- Georgia man laundered over $3.5 million for cartels
- Co-conspirator in Chicago sentenced for $14 million operation
- Cartels used electronics shipments to hide drug money
International Drug Cash Ring Busted
Li Pei Tan, 47, of Buford, Georgia, has been sentenced to 78 months in federal prison for laundering more than $3.5 million in drug profits for Mexico’s Sinaloa Cartel and Jalisco New Generation Cartel (CJNG). According to the U.S. Department of Justice, Tan played a central role in a criminal enterprise that funneled cartel earnings through Chinese bank accounts disguised as legitimate trade operations.
Chaojie Chen, 41, a Chinese national living in Chicago, was sentenced to 90 months in prison for laundering over $14 million in cartel money. As detailed in court documents, the duo coordinated cash pickups and transfers using encrypted apps like WeChat and regularly transported money across state lines.
Watch Fox 5 Atlanta’s report on the incident at Attorney General Bondi announces major federal case updates in Atlanta.
Hiding Cash in Plain Sight
The scheme involved a hybrid approach to laundering: physical cash handoffs and trade-based schemes. Tan and his partners purchased large quantities of electronics—phones, tablets, and computers—then exported them to co-conspirators in China. These transactions masked the illicit origin of the funds and allowed the cartels to receive their profits overseas while skimming a commission.
Tan was arrested in South Carolina in March 2024 during a traffic stop where police found nearly $197,700 in cash, believed to be drug proceeds. Prosecutors sought a nine-year sentence, stating that a significant penalty was needed to deter similar financial facilitation for cartel activity. As reported by Atlanta News First, Tan’s attorney said his client expressed remorse and intends to refocus on family life.
DEA officials emphasized that the laundering operation was deliberately structured to stay under financial reporting thresholds, avoiding detection by the IRS. According to Fox 5 Atlanta, the organization used multiple couriers and staggered cash deposits to avoid triggering mandatory reports.
Cartels Turn to China for Financial Cover
This case underscores a growing pattern: Mexican drug cartels increasingly rely on Chinese money laundering organizations to clean U.S.-based drug proceeds. The DEA’s 2024 National Drug Threat Assessment identifies the Sinaloa and CJNG cartels as key drivers of the fentanyl epidemic and highlights their use of Chinese intermediaries to repatriate profits to Mexico.
“These men were directing the movement of heroin, cocaine, methamphetamine and fentanyl into the United States, while coordinating how drug proceeds would make their way back to Mexico,” said Steven Schrank, Homeland Security Investigations Special Agent in Charge, as quoted by Fox 5 Atlanta.
In a related prosecution, Haiping Pan, another Chinese national, was sentenced to 10 years for laundering $62 million on behalf of Mexican drug traffickers. The Department of Justice continues to intensify efforts to dismantle the financial infrastructure that supports transnational organized crime.
Watch Fox 5 Atlanta’s report on the incident at Attorney General Bondi announces major federal case updates in Atlanta.
