Newsletter
International Organization of Asian
Crime Investigators and Specialists
Quarterly Newsletter
October 06, 2025
Welcome to the IOACIS Quarterly Newsletter.
This is the second edition of the IOACIS newsletter, designed to keep you informed
about the latest developments and trends in Asian Organized Crime. Staying informed
about these dynamic and evolving threats is important, both regionally and globally. The
goal is to provide timely updates, analyses, and insights into recent occurrences, shifts
in criminal operations, and efforts to combat this pervasive problem, which impacts
communities globally. Feedback is welcome, and you're encouraged to share your
thoughts, questions, or areas of interest for future issues. You can forward your
submissions and suggestions to Nick Eftimiades at nue35@psu.edu.
Investigations
California. In Sept 2025, three members of a Chinese money laundering organization plead
guilty to laundering tens of millions of dollars in drug proceeds.
Maoxuan Xia and Zhou Yu, of China, and Shao Neng Lin, of Baldwin Park California, were
members of the Chinese money laundering organization that laundered over $92 million in illicit
funds, including proceeds from the importation and distribution of illegal drugs into the United
States, primarily through Mexico. Xia traveled throughout the United States to collect drug
trafficking proceeds from drug traffickers and deposit those illicit funds, using both real and
fake identities, into shell company bank accounts set up by Lin and Yu.
https://www.irs.gov/compliance/criminal-investigation/three-members-of-a-prolific-chinese-money-
laundering-organization-plead-guilty-to-laundering-tens-of-millions-of-dollars-in-drug-proceeds
Massachusetts and Maine. ?In July 2025, seven Chinese nationals were charged in connection
with a multi-million-dollar conspiracy to cultivate and distribute marijuana across the Northeast
that used interconnected grow houses concealed inside single-family properties in
Massachusetts and Maine. ? It is alleged that Chinese nationals were trafficked into the United
States to work in these grow houses?.
https://www.justice.gov/usao-ma/pr/seven-chinese-nationals-charged-alleged-roles-multi-million-dollar-
money-laundering#:~:text=BOSTON%20%E2%80%93%20Seven%20Chinese%20nationals%20were,they%20re
paid%20their%20smuggling%20debts
https://www.boston.com/news/crime/2025/07/12/7-chinese-nationals-charged-in-alleged-multi-million-
dollar-money-laundering-and-trafficking-operation-in-mass/
South Korea. Prosecutors in South Korea say younger gang members are fueling a
resurgence in organized crime, blending violence with online scams that have defrauded
thousands. https://www.occrp.org/en/news/south-korea-targets-young-gangsters-in-major-crackdown
Research and News Reports
Presidential Determination on Major Drug Transit or Major Illicit Drug Producing
Countries for Fiscal Year 2026, Sept 15th
On September 15th, the US President submitted to Congress a Presidential
Determination on Major Drug Transit or Major Illicit Drug Producing Countries. Many
countries are identified, but the People's Republic of China (PRC) is stated as being the
leading global source of precursor chemicals used in illicit fentanyl and other synthetic
drug production. The PRC subsidizes exports and makes no effort to stop Chinese
companies from supplying cartels. In response, the US imposed a 20% tariff and ended
duty-free treatment for low-value PRC imports to curb the flow of illicit substances.
The Business of Exploitation: The economics of cyber scam operations in Southeast
Asia (Aug 2025)
This report breaks new ground by mapping the broader eco-system of financial transfers
that sustain these operations. The report explores payments related to online scams and
fraud, worker exploitation and trafficking for forced criminality, operational expenses and
corruption payments. Money laundering in the cyber scam ecosystem is a professional,
complex and multi-layered process that utilizes a range of diverse financial technologies
and transfer mechanisms. At the heart are so-called ‘gateway companies’, trusted
intermediaries who facilitate, ensure and guarantee complex financial flows. Funds are
moved through layers of mule accounts, decentralized finance applications, and crypto
exchanges, making illicit proceeds difficult to trace. This policy brief focuses on cyber
scam operations in Cambodia, Laos, Myanmar and the Philippines. While the primary
focus is on operations in these countries, evidence is also uncovered of links to the
wider Southeast Asian region.
US Department of Justice (May 2025)
In a memo dated 12 May 2025, Matthew R. Galeotti, Head of the Criminal Division of the
US Department of Justice established new priorities and policies for confronting
organized crime. One of the top ten DoJ priorities is " Complex money laundering,
including Chinese Money Laundering Organizations, and other organizations involved in
laundering funds used in the manufacturing of illegal drugs".
International Organization of Asian Crime Investigators and Specialists
Quarterly Newsletter
August 06, 2025
Welcome to the IOACIS Quarterly Newsletter.
This is the (re-booted) inaugural edition of the IOACIS newsletter, designed to keep you informed about the latest developments and trends in Asian Organized Crime. Staying informed about these dynamic and evolving threats is important, both regionally and globally. The goal is to provide timely updates, analyses, and insights into recent occurrences, shifts in criminal operations, and efforts to combat this pervasive problem, which impacts communities globally. Feedback is welcome, and you're encouraged to share your thoughts, questions, or areas of interest for future issues. You can forward your submissions and suggestions to Nick Eftimiades at nue35@psu.edu.
Investigations
Japanese Yakuza Leader – Takeshi Ebisawa, 2022
? Arrested in 2022 in New York for an alleged drug-for-missiles conspiracy—selling methamphetamine and heroin in the U.S. to purchase surface-to-air missiles for Myanmar rebel groups.
? Status: Guilty in 2025, Department of Justice
Chinese organized crime networks operating in Maine, 2024
? In 2024, police agencies conducted a series of raids targeting illicit marijuana cultivation sites throughout rural communities in the state.
? Arrests were made. The DoJ seized four properties.
? An internal DHS memo identified 270 sites.
? Status: Investigation is ongoing.
Chinese organized crime war in Italy 2025. Recent killings between Chinese organized crime groups are seen as part of the escalating "war of the hangers", a turf conflict originating in Prato’s textile district over control of logistics for the booming fast fashion industry. Rivalries between Chinese organized crime groups in Italy has been rising since 2010.
Philippines. The Philippines Presidential Anti-Organized Crime Commission recently arrested Tony Yang, accusing him of leading a network of Chinese organized crime groups that established themselves in online gambling and online fraud businesses in the Philippines. In June, The Philippine government deported 100 Chinese nationals involved in Philippine Offshore Gaming Operations (POGO) to Shanghai. Despite the deportations, the Organized Crime Commission stated in June that over 9,000 POGO workers are believed to still be in the Philippines.
Research and News Reports
The United Nations Office on Drugs and Crime’ annual report (May 2025) noted significant growth throughout 2024 in the production of methamphetamines in Southeast Asia.
Transnational Organized Crime groups in East and Southeast Asia are spreading their online scam operations across the globe in response to increased crackdowns by authorities. These online scam operations target U.S. residents and other countries via romance/investment “pig butchering”[1] schemes, exploiting AI/deepfakes and crypto tools.
Shift from Yakuza to decentralized “Tokury?” (April 2025). Japan’s notorious Yakuza mobsters appear be falling out of fashion. Their numbers are dwindling as young freelancers prefer to perform tasks independent of a structured organization.
Canadian Banks Tied to Chinese Fentanyl Laundering Risk U.S. Treasury Sanctions (March 2025) New US designations of terrorist organizations risk sanctions against Canadian banks not policing money laundering activities of the Sinaloa cartel. Canadian media reports state that the financiers and money launderers tied to Chinese triads in Canada can be directly linked to fentanyl-trafficking Mexican cartels. If Canadian banks are shown to be facilitating these funds, even passively, they may be subject to U.S. regulations—including terrorism finance sanctions.
[1] A "pig butchering" scam is a type of investment fraud that combines elements of confidence schemes and, often, romance scams. It's called "pig butchering" because the scammers "fatten up" their victims by gaining their trust over an extended period before financially exploiting them, much like how a pig is fattened before slaughter, according to the Federal Deposit Insurance Corporation OIG.
