Cryptocurrency and Offshore Connections Cited as Flight Risks for Accused Money Launderer Enhua Fang

News | May 3, 2024 By:

On Thursday, April 18, 2024, the United States Department of Justice (DoJ) filed a motion for pretrial detention against Enhua Fang in the United States District Court for the District of Oregon.

Fang was recently indicted on charges of money laundering conspiracy, concealment money laundering, and engaging in and attempting to engage in monetary transactions involving criminally derived property. According to the DoJ motion written by Acting Assistant Deputy Chief Melanie Alsworth, Fang played a critical role in an international money laundering organization that laundered over $92 million in drug trafficking proceeds over a two-year period.

The organization, which operated cells throughout the United States, functioned by having drug trafficking organizations (DTOs) contact Fang to arrange pickups of bulk cash from drug sales. Fang would then dispatch couriers to collect bags filled with hundreds of thousands of dollars in cash from meetup locations across the country. These couriers deposited the drug proceeds into shell company bank accounts controlled by the organization.

Financial records cited in the motion show staggering amounts of money laundered through this scheme, with over 1,100 individual cash deposits made totaling more than $92 million. One shell company under Fang’s direction, Kowloon Holding Inc., saw $17 million in laundered funds pass through its accounts in just five months. Much of the dirty money was quickly transferred out of the initial deposit accounts and through other financial institutions.

In arguing for detention, the motion emphasizes the seriousness of Fang’s alleged crimes and the substantial prison time faced if convicted. As a Chinese national with strong overseas connections, the motion states Fang has both the means and motivation to flee prosecution, especially given the US lacks an extradition treaty with China.

Additionally, the motion notes Fang had access to a cryptocurrency account holding $880,000 which could easily facilitate flight. The ongoing threat to financial institutions and the ability to direct laundering activities from anywhere were also cited as dangers posed.

If convicted on all charges, Fang faces up to 30 years in federal prison. A detention hearing has been scheduled to determine if she will remain in custody pending trial.

Please contact BlockTribune for access to a copy of this filing.