U.S. Charges Two in Alleged $43 Million Money Laundering Network Tied to Investment Fraud

U.S. authorities have charged two alleged members of a money laundering network accused of processing at least $43 million in proceeds from cyber-enabled investment fraud schemes, targeting what prosecutors described as a key financial infrastructure supporting cross-border scams.

According to an indictment unsealed in the Eastern District of New York, Zhuoying Chen and Haojie Zhang allegedly managed a laundering operation between 2020 and 2022 that used approximately 45 shell companies and 140 corporate bank accounts to receive, transfer, and conceal funds obtained through fraudulent investment schemes.

Prosecutors allege the pair coordinated a network of more than a dozen individuals based in Queens and Brooklyn while working with co-conspirators in China to move victim funds overseas. The laundering structure allegedly enabled scammers to rapidly transfer proceeds through multiple corporate accounts before routing the money abroad.

The underlying fraud followed a pattern commonly seen in investment scams, where victims were approached through messaging platforms or social media before being persuaded to invest in seemingly profitable opportunities. Investigators said victims were shown fabricated investment returns and encouraged to make additional deposits, while the funds were ultimately diverted by the criminal network.

The indictment identifies the two defendants as key participants responsible for managing the banking infrastructure behind the operation rather than directly soliciting victims, reflecting the growing enforcement focus on the financial networks that facilitate large-scale investment fraud.

Both defendants appeared in federal court in Brooklyn following their arrests. They have been charged with conspiracy to commit money laundering, an offense carrying a maximum prison sentence of 20 years if convicted.

The investigation was conducted jointly by the FBI, Homeland Security Investigations, IRS Criminal Investigation, and the U.S. Postal Inspection Service. Authorities indicated the case forms part of ongoing efforts to disrupt transnational laundering networks that enable cyber investment fraud and move illicit proceeds across international jurisdictions.