Federal prosecutors have secured a guilty plea from a Chinese national accused of laundering proceeds taken from victims through a government impersonation scam.
Binghui Liu, 33, a citizen of China formerly residing in San Jose while his asylum application was pending, pleaded guilty on October 5th, 2026, to one count of conspiracy to commit money laundering, says the U.S. Attorney’s Office for the Eastern District of California.
The scheme involved scammers posing as federal law enforcement officers or employees who contacted victims and told them criminal charges were pending along with possible account freezes. Victims were directed to withdraw cash and hand it over during supposed pickups by federal personnel “for safekeeping.” One elderly victim lost more than $700,000 after being instructed to turn over funds to supposed Federal Reserve employees.
Liu collected roughly $597,100 from 24 victims across California and Nevada during March and April 2025.
“He used code words, fake names, and victims were told he was either a federal employee or law enforcement officer.”
Authorities caught Liu during an April 2025 sting operation when he accepted what he believed was $20,000 in cash.
Sentencing is set for January 4th, 2027, with a potential maximum of 20 years in prison and a fine up to $500,000 or twice the amount involved.
The FBI led the investigation, and two assistant US attorneys are handling the prosecution.
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