Federal prosecutors say two New York residents helped move more than $43 million stolen from victims of online investment scams through a sophisticated money laundering network tied to China.
A federal indictment unsealed Thursday charges Zhuoying Chen, 27 and Haojie Zhang, 38, with conspiracy to commit money laundering. Prosecutors allege the pair managed a network of more than a dozen people who opened 140 bank accounts under roughly 45 shell companies between 2020 and 2022.
Authorities say the accounts were used to collect money from victims before transferring the funds to co-conspirators in China.
According to the indictment, the fraud followed a familiar pattern. Scammers allegedly contacted victims through social media and messaging apps, spent weeks or months building trust, and convinced them to invest in what appeared to be highly profitable opportunities. Victims were shown fake account balances and fabricated returns, encouraging them to invest even more money before the scammers disappeared with the funds.
Chen and Zhang made their initial appearances Thursday in federal court in Brooklyn. If convicted, they face up to 20 years in prison on the money laundering conspiracy charge.
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