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Source: United States Department of Justice Criminal Division

Two Chinese nationals and a New York woman, all members of a prolific Chinese money laundering organization (CMLO), pleaded guilty today to money laundering charges involving drug trafficking proceeds. They are the last of six total defendants charged in the indictment to plead guilty.

According to court documents, Enhua Fang, 38, and Jianfei Lu, 30, both of China, and Shu Jun Zhen, 36, of Staten Island, New York, were members of the CMLO 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.

According to court documents, Fang was an organizer within the CMLO who directed a group of couriers to pick up bulk cash proceeds from unlawful activities, including narcotics trafficking, from individuals throughout the United States. The couriers then deposited these illicit funds, which generally exceeded $10,000, into shell company bank accounts controlled by the CMLO in order to conceal the nature of the illicit funds. Fang used multiple cellphones, changing phone numbers regularly, and several encrypted messaging applications to communicate with the CMLO’s foreign-based operatives and U.S.-based drug traffickers. Pursuant to her plea agreement, Fang admitted that she was personally responsible for laundering at least $90 million of illicit funds in less than two years. Fang further admitted that she knew funds laundered in the conspiracy included drug trafficking proceeds or funds intended to promote drug trafficking.

According to court documents, Lu collected drug trafficking proceeds from U.S.-based drug traffickers and deposited those illicit funds, using both real and fake identities, into shell company bank accounts registered by other members of the CMLO. Lu also served as a manager for the CMLO: he coordinated bulk cash pickups and deposits while Fang was in China and procured fake driver’s licenses for the CMLO’s couriers, which were used to deposit illicit funds at major U.S. banks. Pursuant to his plea agreement, Lu admitted that he had actual knowledge and involvement in the laundering of between $25 million and $65 million in illicit funds. Lu further admitted that he knew funds laundered in the conspiracy included drug trafficking proceeds.

According to court documents, Zhen, at Fang’s and Lu’s direction, picked up and deposited — using both her real and fake identities — nearly $25 million of illicit bulk cash, including drug trafficking proceeds. Pursuant to her plea agreement, Zhen admitted that she knew funds laundered in the conspiracy included drug trafficking proceeds or funds intended to promote drug trafficking.

Fang and Zhen each pleaded guilty to one count of money laundering conspiracy, one count of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and one count of monetary transaction involving criminally derived property greater than $10,000. Lu pleaded guilty to one count of money laundering conspiracy, two counts of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and two counts of monetary transaction involving criminally derived property greater than $10,000.

The defendants face a maximum penalty of 20 years in prison on each of the conspiracy and money laundering counts and a maximum of 10 years in prison on each of the monetary transaction counts. A federal district court judge will determine their respective sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

All members of the CMLO charged to date have pleaded guilty, including the three who pleaded guilty on April 30, 2025; as a result, this particularly prolific cell within the CMLO has been completely dismantled.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Russ Ferguson for the Western District of North Carolina, Acting Special Agent in Charge Jae W. Chung of the Drug Enforcement Administration (DEA) Atlanta Division, and Criminal Investigation Chief Guy Ficco of the IRS Investigation (IRS-CI) Charlotte Field Office made the announcement.

The DEA Charlotte District Office and the IRS-CI Charlotte Field Office are investigating the case.

Acting Assistant Deputy Chief Mingda Hang, Acting Deputy Chief Melanie Alsworth, and Trial Attorney Jayce Born of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Alfredo De La Rosa for the Western District of North Carolina are prosecuting the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhoods.

Source: United States Department of Justice Criminal Division

Stantec Inc. (Stantec) a provider of environmental development and engineering services, with its primary headquarters in Alberta, Canada, along with Cardno Consulting LLC (Cardno), a separate company that Stantec acquired in 2021, have agreed to pay $4 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of applications to the Environmental Protection Agency (EPA) for Brownfields Assessment Grants that falsely certified compliance with federal procurement regulations.

“Applicants for federal grant funds must comply with applicable procurement requirements” said Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of the federal grant process by falsely certifying compliance with regulations that are designed to prevent unfair competitive advantage.”

“The EPA’s Brownfields Grant Program aims to help communities around the country transform contaminated sites into community assets,” said Acting EPA Inspector General Nicole Murley. “Fair competition is critical to the integrity of this program, and the EPA Office of Inspector General will vigorously pursue allegations of false certifications to protect both the program and the taxpayer dollars that fund it.”

The EPA Brownfields Grant Program provides grants and technical assistance to cities, towns, and other municipalities to assess, safely clean up, and sustainably reuse contaminated properties. The settlement relates to Assessment Grants the EPA awarded from 2014 to 2022. Applicants for EPA Brownfields grants must certify compliance with a requirement that “contractors that develop or draft specifications, requirements, statements of work, or invitations for bids must be excluded from competing on those procurements.”

The United States alleged that, from 2014-2022, Stantec, through its subsidiary Stantec Consulting Services Inc., and Cardno drafted or assisted in the drafting of the requests for proposals and statements of work associated with applications for EPA Brownfields Assessment Grants, and then competed for and won the work for which they had drafted the specifications. The United States alleged that this conduct violated the above requirement and that Stantec and Cardno falsely certified, or caused the communities applying for the grants to certify, that they had complied with it.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the EPA’s Office of Inspector General.

The matter was investigated by Trial Attorney Robin Overby of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Special Agent Brian Scriver of the EPA’s Office of Inspector General.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Source: United States Department of Justice Criminal Division

The Justice Department’s Environment and Natural Resources Division (ENRD) today filed in U.S. District Court for the Southern District of Florida to prevent unnecessary construction delays for Florida’s temporary immigration detention center known as “Alligator Alcatraz” in the Everglades.

“The Department of Justice has defended President Trump’s immigration agenda in court since day one and we are proud to protect ‘Alligator Alcatraz’ from baseless, politically motivated legal schemes,” said Attorney General Pamela Bondi.

“Delaying the construction of Florida’s temporary detention center, as plaintiffs request, would imperil critical immigration enforcement efforts and endanger detainees in overcrowded detention facilities,” said Acting Assistant Attorney General Adam Gustafson of ENRD. “We are proud to defend against these unfounded claims and to help the administration fulfill its fundamental obligation to prioritize the safety and security of Americans.” 

On June 27, two political advocacy organizations — Friends of the Everglades Inc. and Center for Biological Diversity — filed a lawsuit to halt the construction and operation of the detention center, alleging failure to analyze the environmental effects of the project as required under the National Environmental Policy Act (NEPA). The plaintiffs asked for a temporary restraining order and preliminary injunction.  

In today’s filing, the Justice Department vigorously opposed the request for emergency and injunctive relief. Among other things, the filing highlights that there is no federal final agency action, that the Administrative Procedure Act does not apply to state agency decisions, that any claims related to potential federal funding are unripe, and that the plaintiffs failed to show irreparable harm.  

Attorneys in ENRD’s Natural Resources Section are handling the case. 

Source: United States Department of Justice Criminal Division

Today, the Justice Department announced that it reached an agreement with a Michigan school district to address the discriminatory use of seclusion and restraint against students with disabilities, in violation of Title II of the Americans with Disabilities Act (ADA). Under the settlement agreement, the Montcalm Area Intermediate School District will end the use of seclusion, reform its restraint practices, and improve special education services for students with disabilities.

During the period covered by the investigation, with which the school district fully cooperated, students with disabilities were secluded and/or restrained on more than 2,400 occasions. The Department’s investigation also revealed that the district used seclusion and restraint improperly, including using emergency crisis responses as punishment for normal classroom discipline issues.

“Students with disabilities should never be discriminated against by experiencing the trauma of seclusion or improper restraint,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Parents have the right to expect that the school systems they entrust with educating their children do not instead punish their children for having a disability.”

“This school district serves the most vulnerable Michigan students, young children with disabilities,” said Acting U.S. Attorney Alexis M. Sanford for the Western District of Michigan. “I commend them for entering into this settlement agreement to provide their students with the care and services they need to get the education they deserve.”   

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the Civil Rights Division’s Educational Opportunities Section’s work to combat disability discrimination including by improper seclusion and restraint is available at www.justice.gov/crt/educational-opportunities-section.

Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.