Chinese National Sentenced to 10 Years for Laundering $62 Million in Drug Money

A federal judge in Illinois has sentenced Haiping Pan, a Chinese national, to 10 years in prison for laundering $62 million in narcotics proceeds on behalf of Mexican drug cartels. The sentencing took place on Dec. 12 in Chicago’s federal court, presided over by U.S. District Judge Sharon Johnson Coleman.

Prosecutors revealed that Pan, 44, orchestrated a sophisticated money-laundering scheme from 2016 to 2018. Using his expertise in international finance, Pan coordinated secretive cash pickups in major U.S. cities, including Chicago, Los Angeles, and New York. The collected funds—ranging from $150,000 to $1 million per pickup—were then laundered through currency swaps between the U.S. dollar, Chinese yuan, and Mexican peso before being remitted to Mexican drug traffickers.

Pan was arrested in Guadalajara, Mexico, and extradited to the United States in 2022. Prosecutors described him as a key player in an emerging network of Chinese money brokers in Mexico who dominate international money laundering markets.

“Pan’s crimes enabled drug cartels to secure proceeds from their trade faster, cheaper, and more securely than before,” prosecutors stated.

Pan pleaded guilty to conspiracy to commit money laundering in 2023. His sentence follows that of his co-conspirators, including Xianbing Gan, who received 14 years in prison in 2021, and Huangxin Long, sentenced to 5 ½ years.

Widening Crackdown on Chinese Money Laundering Networks

The case underscores a broader U.S. crackdown on Chinese entities linked to drug trafficking. The Drug Enforcement Administration (DEA) has reported that Mexican cartels, such as the Sinaloa and Jalisco groups, rely heavily on Chinese companies to supply chemical precursors and pill presses for fentanyl production.

In 2023, federal indictments targeted multiple Chinese firms, including Hubei Aoks Bio-Tech Co., accused of supplying fentanyl-related chemicals to over 100 countries. The Department of Justice also charged eight China-based companies and individuals in October for trafficking fentanyl precursors and using tactics to evade border detection.

Treasury Department sanctions have been imposed on over 65 China-based individuals and entities involved in illicit fentanyl production and money laundering. In July, sanctions were expanded to include individuals in Mexico and China linked to the Sinaloa cartel’s financial operations.

Ongoing Fentanyl Crisis

The fentanyl epidemic continues to devastate American communities, with 74,702 deaths recorded in 2023, according to the Centers for Disease Control and Prevention (CDC). While this is a slight decrease from 76,226 deaths in 2022, the crisis remains a public health emergency.

U.S. officials have reiterated calls for China to take stronger action against the production and export of fentanyl precursors. However, Beijing has denied allegations of state involvement and argues that the U.S. must address domestic demand for narcotics.