Washington DC [US], December 26 : Haiping Pan, a 44-year-old Chinese national, was sentenced to 10 years in prison by a federal judge in Chicago on December 20 for laundering $62 million in drug proceeds on behalf of Mexican drug cartels. This sentencing comes after a thorough investigation by Homeland Security Investigations (HSI) Chicago.
From 2016 to 2018, Pan masterminded a complex money laundering operation that transferred illicit drug money across international borders. Working with co-conspirators, he arranged for up to $3 million to be laundered every month, conducting secretive money pickups in cities like Chicago, New York, and Los Angeles. The process involved currency swaps between the US, China, and Mexico, the HSI reported.
Using his international financial connections and expertise, Pan worked closely with members of Mexican drug cartels to ensure smooth transfers of funds through various businesses and banks, ultimately delivering the money to traffickers in Mexico. The laundering process involved frequent pickups ranging from $150,000 to $1 million per transaction, with Pan and his associates completing one or two pickups each week. Over the course of the scheme, Pan was involved in laundering and attempting to launder approximately $62 million.
HSI Chicago Special Agent in Charge Sean Fitzgerald hailed the sentencing as a major success in combating transnational criminal organizations. “Pan’s criminal activities posed a serious threat to financial systems and public safety worldwide,” Fitzgerald said. “This case highlights the importance of international collaboration in tackling illicit operations.”
Pan was arrested in Mexico and extradited to the US in 2022. He was sentenced by US District Judge Sharon Johnson Coleman in a December 12 hearing in Chicago. The investigation also resulted in the convictions of Pan’s co-conspirators, including Xianbing Gan, who received a 14-year sentence, and Huanxin Long, who was sentenced to five and a half years.
Prosecutors emphasized that Pan played a central role in the rise of Chinese money brokers, particularly in Mexico, who have become key players in global money laundering markets. His operations allowed drug traffickers to move illicit profits more quickly, securely, and at a lower cost than ever before.
The case underscores ongoing law enforcement efforts to dismantle complex money laundering networks that support global criminal enterprises.