According to released court records, Weijian Chen, 25, and Wenqiang Lin, 46, were arrested for money laundering between $150,000 and $300,000. The Van Zandt County District Attorney’s Office gave details on the arrests and updates on the investigation during a news conference.
In an arrest document, a Wills Point detective stated he pulled over Chen and Lin after he noticed the vehicle they were driving was following another vehicle too closely. The detective asked the driver, Chen, to follow him to his patrol car so he could speak with him via a translation app. The officer said he “observed multiple factors that led him to believe there was criminal activity afoot.”
The detective then asked to search three bags in the vehicle but was denied by Chen. Later, Lin, who had rented the car, reluctantly gave permission.
The detective’s K-9 searched the vehicle. The detective found a boarding pass for a flight from Los Angeles to Atlanta and uncovered a bag behind the driver’s seat containing multiple gold bars inside. According to the affidavit, the value of that gold totals about $250,000.
The bag was located behind the driver’s seat on the floorboard where officials found multiple pieces of gold bullion bars estimated to value between $200,000 and $250,000:
- Seven 1 ounce packaged 999.9 gold bars
- Three 5 gram packaged 999.9 gold bars
- 1 gram marked with 20 squares 999.9 gold bar
- Eight 10 ounce packaged 999.9 gold bars
Gold Smuggling inside the U.S.
The latest arrest is a symptom of a much larger issue, with gold smuggling operations continuing to plague the U.S. and other countries.
Recently the US Treasury Department also helped expose a massive gold smuggling and tax evasion ring involving one of Guyana’s wealthiest families. According to authorities, there is an enormous drop in gold declarations through the state buying system. The government said it plans to stiffen penalties for those bypassing the Guyana Gold Board and selling to buyers outside the fixed, international market rates.
Just days prior the treasury’s Department of Office of Foreign Assets Control (OFAC) announced sanctions against the wealthy Mohamed Family and former security ministry administrator Mae Thomas. Three people were charged and arrested by authorities at the main international airport, attempting to smuggle 240 ounces of raw gold worth $560,000 to the US.
Federal agencies continue to probe into the dealings of Thomas and Mohamed’s Enterprise, a leading gold miner, buyer and foreign exchange cambio dealer.
Gold’s Use in Money Laundering
Gold has become the currency of money launderers since its origins can be easily masked by melting and refining it. The precious metal is an ideal tool for money laundering and recent investigations revealed a series of gold smuggling gangs in Southern Africa that help criminals launder hundreds of millions of dollars.
The counterfeiters use a complex web of companies, counterfeit identities and fake documents to turn dirty cash into clean, seemingly legitimate money for those with unaccounted wealth.
The United Arab Emirates temporarily suspended activities at 32 gold refineries as part of an effort to curb money laundering.
In a statement from the Ministry of Economy, the government said it is “intensifying inspection campaigns” at plants as it cracks down on financial crimes. The shut-down facilities represent about 5% of the UAE’s gold sector.
In a report released by development organization Swissaid estimated that two-thirds of the gold imported into the UAE from Africa in 2022 was smuggled, then re-exported to other countries.
Gold smuggling is an age-old industry, and record high bullion prices have made the practice even more lucrative. In mid-July, prices peaked at $2,483.73 an ounce mainly supported by surging demand in China, central bank buying, geopolitical tensions and expectations of an easing of the US dollar.
