LOS ANGELES, CA — Three individuals, including two Chinese nationals, have been arrested on federal charges related to money laundering through shell companies linked to investment fraud schemes. Federal authorities allege that Mingzhi Li, 24, and Zeyue Jia, 23, both from Los Angeles, along with Jun Shi, 55, of San Gabriel, laundered over $13 million through two companies—Magic Location Trading LLC and Stone Water Trading LLC.
The U.S. Attorney’s Office for the Central District of California stated that Shi founded the companies in December 2022, and both operated as unlicensed money-transmitting businesses, enabling fraudulent “pig butchering” scams. These scams typically involve criminals building trust with victims through dating apps or social media before convincing them to invest in fake platforms. The victims believe they are making legitimate investments, but the funds are transferred into scam-controlled accounts.
One victim, a 72-year-old man from Minnesota, was allegedly defrauded of $325,000, which was wired to the two companies. The companies received a total of $13 million in fraudulent transfers, according to investigators.
Li and Jia, who overstayed their student visas, were ordered to be held without bond. Shi was released on a $20,000 bond. Arraignments for all three suspects are scheduled for March 17.
