Last week, the Drug Enforcement Administration (DEA) made headlines by announcing the dismantling of a large-scale interstate drug money laundering operation, resulting in the arrest of nine individuals, including six Chinese-Americans. Many of those arrested resided in Staten Island. This extensive network spanned several states—Maryland, New York, New Jersey, and Washington—where operatives trafficked vast amounts of marijuana and laundered millions in drug profits ultimately sent back to China.
According to the DEA, the traffickers were active in Staten Island’s Travis area and had a presence in Manhattan. In a coordinated effort with city police, agents executed search warrants early on the morning of September 24 at two residential properties in Staten Island’s Eltingville and New Springville neighborhoods. This operation led to multiple arrests and the seizure of nearly 300 pounds of marijuana valued at over $3 million, alongside additional arrests across other states.
The six Chinese-American suspects arrested in connection with this case are Can Quan Xu, Huayi Zhong, Zebin Liu, Chunbing Qin, Qihai Tao, and Peng Huang. The other three suspects—Michael Micklos, Praveen Morgan, and Isaac Huynh—are not of Chinese descent. All nine now face serious charges, including conspiracy to distribute controlled substances and conspiracy to commit money laundering, potentially leading to life imprisonment and a 20-year sentence, respectively.
Notably, two shootings in Baltimore earlier this year linked directly to this drug money laundering network. In February 2023, police found five pounds of marijuana and over $100,000 in cash in the car of suspect Michael Micklos following a drug-related shooting. A week later, officers discovered more cash and marijuana while investigating another shooting tied to Micklos.
In the wake of these incidents, Baltimore police began tracking Micklos and other dealers via their Instagram accounts. Micklos prominently showcased large amounts of marijuana and cash, boasting that he offered the lowest prices on the East Coast and that he could ship marijuana worldwide.
A deeper investigation revealed Micklos had emerged as the leader of a highly organized national drug trafficking organization. Through a variety of methods, including undercover purchases, surveillance, searches, GPS tracking, and communication intercepts, authorities uncovered connections to Chinese-American suspects Can Quan Xu and Huayi Zhong in New York.
Xu, known as Shawn, quickly became a pivotal figure in both marijuana distribution and money laundering, managing millions of dollars worth of marijuana. He employed associates to repackage and covertly distribute marijuana to East Coast customers, concealing the origins and financial flow of drug profits. Xu then redirected these funds to suppliers or sent them to bank accounts in China, using his earnings for rent, employee salaries, and to acquire properties and vehicles.
Zhong, referred to as Daniel, handled the reception, repackaging, and sale of marijuana, collecting payments in cash. Zebin Liu, also known as Ben, had similar responsibilities as Zhong. Chunbing Qin, nicknamed “President Qin,” based in Portland, Oregon, was both a supplier for the network and a close collaborator of Xu, coordinating marijuana shipments to New York.
Isaac Huynh, affectionately dubbed “Brother Hua,” was part of Xu’s money laundering operations, responsible for gathering significant drug revenues and transferring cash to Xu’s suppliers via FedEx. Investigators intercepted multiple FedEx packages sent by Huynh, which contained a staggering total of $650,000 in cash.
After a brief court appearance in New York, the arrested suspects have now been transferred to federal court in Maryland.
