By Matthew Russell Lee, Patreon
SDNY COURTHOUSE, March 10 – Chaoyue Zhao and Brian Kung were charged with money laundering.
On September 20 U.S. District Court for the Southern District of New York Judge Lewis J. Liman held a proceeding. Inner City Press covered it.
Earlier in the year the US Attorney's Office said "this is a case in which the DEA obtained what is called Attorney General exempt authorization to actually conduct certain money-laundering transactions to develop evidence... Many of the bank accounts were located in New York."
Judge Liman set the case down for trial in April 2022.
On July 8, the US Attorney's Office wrote in to say Zhao will plead guilty on July 19, and Kung is in negotiations.
Zhao did in fact plead guilty on July 19, with sentencing set for November. And when it happened, he got 48 months: "JUDGMENT IN A CRIMINAL CASE as to Chaoyue Zhao (1). THE DEFENDANT: pleaded guilty to count 1 of the Indictment. All remaining open counts are dismissed on the motion of the United States. IMPRISONMENT: Forty-Eight (48) months imprisonment. The court makes the following recommendations to the Bureau of Prisons: That the defendant be housed at a facility in or as close as possible to New York City. The defendant shall surrender for service of sentence at the institution designated by the Bureau of Prisons: before 2 p.m. on 3/6/2023. SUPERVISED RELEASE: Three (3) years Supervised Release. ASSESSMENT: $100.00 due immediately. (Signed by Judge Lewis J. Liman on 11/2/2022)."
Jump cut to March 10, 2023, Judge Liman ordered Zhao's remand: "Minute Entry for proceedings held before Judge Lewis J. Liman: Preliminary Revocation Hearing re: Supervised Release as to Chaoyue Zhao held on 3/10/2023. Defendant's attorney Giacchino Russo present. AUSA Aline Flodr present. US Pretrial Services Officer Courtney DeFeo present by telephone. Court reporter present. Defendant, Chaoyue Zhao, failed to appear at the hearing. An arrest warrant has previously been issued by the Magistrate Judge. The Court revokes Mr. Zhao's bail and he is ordered to be remanded to the BOP. The defendant is found to be in violation of his conditions of release."
Back on January 31, 2022 Inner City Press was covering the SDNY Magistrates Court when co-defendant Brian Kung was brought in. He was wearing an MSA Spartans sweatshirt and was assigned the CJA lawyer on duty, who had just consented to a man on methadone's detention.
On August 11, the trial was pushed back into 2023: "MEMO ENDORSEMENT as to Brian Kung (2) granting [61] LETTER MOTION addressed to Judge Lewis J. Liman from USA dated August 10, 2022 re: Adjournment of Trial Date and Motions Schedule. ENDORSEMENT: REQUEST GRANTED. The Jury Trial previously set for September 12, 2022 is RESCHEDULED to January 30, 2023 at 9:00AM in Courtroom 15C."
On January 31, 2023, Kung appeared before Judge Liman to plead guilty. Inner City Press was there. Kung had gotten a plea deal with a stipulated guildelines range of 27 to 33 months. He described cash from North Carolina, narcotics proceeds. Sentencing is set for May 16 at 11 am.
It is US v. Zhao, et al., 20-cr-129 (Liman)
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