Federal Agents Crack $200 Million China-Connected Smuggling Ring Using Fake Customs Seals

A sprawling smuggling operation that allowed counterfeit goods and illegal imports to flood into the U.S. has been exposed, leading to the arrest of nine individuals accused of orchestrating the scheme. The network allegedly used fraudulent customs seals and manipulated transport routes to bring at least $200 million worth of contraband through the busy Los Angeles-Long Beach port complex.

Authorities say the operation relied on insiders with access to shipping details. The suspects allegedly obtained advance knowledge of container security codes, which were then used to create counterfeit customs seals in China. These seals were shipped to the U.S. and used to mask the illegal movement of goods.

Rather than delivering flagged shipments to secondary inspection sites as required, truck drivers working with the ring diverted them to off-site storage facilities. There, the contraband—including counterfeit designer products, hazardous chemicals, and unauthorized food items—was unloaded, and the containers were refilled with filler cargo. Fake seals were then applied to make the containers appear untouched before they were sent back for customs clearance.

During the investigation, authorities seized more than $130 million in smuggled merchandise, including a major raid that uncovered $20 million in counterfeit luxury items last summer. The indictment names several individuals accused of playing key roles in the smuggling ring, including Weijun Zheng, a fugitive logistics company owner, and others involved in trucking and warehouse operations.

Eight suspects have been taken into custody, while Zheng remains at large. Officials warn that additional arrests could follow as investigators work to identify all involved in the operation.