Cranston Man 1 Of 11 Charged In International Drug Trafficking Scheme

CRANSTON, RI — A Cranston man was one of 11 people charged in connection to an international money laundering and drug trafficking ring involving cocaine and MDMA, federal prosecutors said Thursday.

On Thursday morning, five people were arrested in Massachusetts and Rhode Island, including Augustin Villa, 59, of Cranston. Another three were arrested in Brooklyn, New York. Three other defendants remain at large.

"We allege that this group of individuals conspired to sell deadly narcotics in Massachusetts communities, then laundered millions of dollars’ worth of their drug proceeds through a global network to conceal their illegal activity," U.S. Attorney Rachael Rollins said. "Thanks to the incredible collaboration between federal, state and local law enforcement, this alleged large-scale criminal enterprise has been stopped in its tracks. Money is the lifeblood to drug trafficking activity, and those who launder directly contribute to the ongoing drug crisis. Dirty money always leaves a trace, and no amount of laundering – whether through financial institutions or digital currency exchanges – will allow perpetrators to evade detection by law enforcement. That is a promise."

According to the charging documents, following a months-long undercover FBI operation, investigators identified Jin Hua Zhang, 35, of Staten Island, New York, as the ring leader. Prosecutors said the group laundered millions of dollars, conspired to distribute multiple kilograms of cocaine in Massachusetts and operated throughout the United States, including the greater Boston area, as well as overseas.

According to prosecutors, Zhang directed his co-defendants and others to deliver hundreds of thousands of dollars in cash and millions of dollars in wire transfers and bank deposits to undercover agents in exchange for cryptocurrency. The funds were proceeds of drug trafficking and various fraud schemes that were based in the United States and abroad, authorities said.

Prosecutors said Zhang believed cryptocurrency would enable his organization to transfer illicit funds without detection by banks' security teams or law enforcement. In total, Zhang and his co-conspirators laundered more than $25 million, prosecutors said.

According to court documents, funds have been traced from the drug ring to Hong Kong, China, India, Cambodia, Brazil and other countries.

Additionally, authorities say the investigation also revealed that Zhang and members of his organization conspired to distribute kilogram-sized quantities of cocaine and MDMA to undercover agents and cooperating witnesses.

For example, on May 25, Zhang directed a co-defendant to deliver more than one kilogram of cocaine to an undercover agent in New Jersey, prosecutors said. On Aug. 12, Zhang and co-defendant Yanbing Chen, 28, of Staten Island, worked together to deliver more than three kilograms of cocaine to an undercover agent in Boston, according to authorities.

The charge of conspiracy to distribute five kilograms or more of cocaine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of conspiracy to distribute 500 grams or more of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million.

Money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater.

The following defendants were charged:

• Jin Hua Zhang, 35, of Staten Island, N.Y.;
• Licheng Huang, 39, of Braintree, Massachusetts
• Feng Chen, 38, of Canton, Mass.
• Roger Luo, 35, of Winthrop, Mass.
• Thong Nguyen, 28, of Saugus, Mass.
• Augustin Villa, 59, of Cranston
• FUGITIVE
• Rongjian Li, 35, of Staten Island, N.Y.
• FUGITIVE
• (Yanbing Chen, 28, of Staten Island, N.Y.
• FUGITIVE.