L.A. NOW

Southern California -- this just in

« Previous Post | L.A. NOW Home | Next Post »

Toy firm owners get 3 years in money laundering case

The owners of a Los Angeles toy company that made teddy bears were sentenced to federal prison terms Tuesday for their roles in helping launder drug money for Colombian and Mexican traffickers.

Meichun Cheng Huang and Ling Yu, owners of Angel Toy Company, were immediately taken into custody after being sentenced to three years in prison and ordered to pay a $20,000 fine.

The U.S. attorney's office said the company had twin reputations – as a manufacturer of plush toys and as an international leader in laundering dirty money.

The toy company, federal prosecutors said in a statement, was part of the so-called “Black Market Peso Exchange,” which trades drug money in the United States for "clean" Colombian pesos through the international purchase and shipment of goods.

Huang, 58, of Irvine and Yu, 53, of Arcadia pleaded guilty in March to conspiracy to structure currency transactions after Colombian and Mexican clients dropped cash off at the company's downtown headquarters or deposited it directly into the company's bank accounts.

The cash enters the legitimate financial system through numerous deposits into accounts held by a legitimate business in the United States. The money is returned to drug traffickers when actual goods, like teddy bears, are exported to the foreign countries and sold to generate local “clean" money, the release explained.

During one four-year period, the investigation tracked more than $8 million in cash deposit into the toy company’s accounts, and not a single transaction was for more than $10,000, according to court documents.

The case involving Angel Toys was the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations division and the California attorney general’s Bureau of Narcotics Enforcement.

ALSO:

WWII-era Montford Point Marines sought for recognition

L.A. Councilman Eric Garcetti being tweaked by fake tweets

DNA key in case against L.A. teacher accused of classroom abuse

-- Dalina Castellanos

 
Comments () | Archives (0)

Connect

Recommended on Facebook


Advertisement

In Case You Missed It...

Video

About L.A. Now
L.A. Now is the Los Angeles Times’ breaking news section for Southern California. It is produced by more than 80 reporters and editors in The Times’ Metro section, reporting from the paper’s downtown Los Angeles headquarters as well as bureaus in Costa Mesa, Long Beach, San Diego, San Francisco, Sacramento, Riverside, Ventura and West Los Angeles.
Have a story tip for L.A. Now?
Please send to newstips@latimes.com
Can I call someone with news?
Yes. The city desk number is (213) 237-7847.

Categories




Get Alerts on Your Mobile Phone

Sign me up for the following lists: