The two defendants allegedly implemented a “cargo swapping” scheme through the ports in Los Angeles and Long Beach.
Zhongliang Wang, 39, and Chenyu Zhao, 31, of Hacienda Heights, were arrested on February 6th, when prosecutors allegedly carried out what they called a cargo-surgery scheme through the ports in Los Angeles and Long Beach. .
Under this scheme, the defendant received a freight shipping container selected for inspection from the port to the warehouse by U.S. Customs and Border Protection (CBP). They then broke the security seal on the container, removed the contraband, stuffed the container with filler cargo, and replaced the counterfeit seal with the broken seal, according to the prosecutors.
Wang and Zhao then directed the conspirators to transport the containers to a location where CBP has been approved for testing, prosecutors said. The conspirators are said to have paid higher shipping costs than the usual shipping fees.
According to criminal charges, Wang and Zhao paid $15,000 for each cargo container that was repurposed from the November and December 2024 inspections.
One of the warehouses, believed to be managed by Zhao, was located in an industrial city in California. According to the complaint, law enforcement officials executed a search warrant in the warehouse in June 2024, finding fake gorgeous handbags, counterfeit shoes, sunglasses and illegal steroids, a 43-pound enovotherm.
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The photo of the complaint showed a fake gorgeous handbag containing the brand name Christian Dior, while another showed several boxes with the word Prada.
According to the complaints, Wang and Zhao allegedly began their plans in July 2023.
Zhao, a Chinese citizen and a legal US resident, was arrested on January 30th at Los Angeles International Airport.
According to the complaint, Zhao told airport law enforcement officials that some individuals were found to be charged with similar smuggling activities through the ports in Los Angeles and Long Beach.
As of February 6, prosecutors said local law enforcement officials had seized more than $1.3 billion in contraband in connection with a freight swapping scheme, including the King and Zhao.
The report also found that counterfeit goods from China and Hong Kong account for around 90% of the total seized amount.
The top five products seized in 2024 were drugs, sunglasses, home appliances, perfumes and personal care items, according to the report.
I don’t know if Wang and Zhao have lawyers.
