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April 11, 2025

In a major strike against transnational crime, two members of a sophisticated money laundering network linked to Mexico’s Sinaloa and Jalisco New Generation Cartels (CJNG) were sentenced in late 2024. Li Pei Tan, a Georgia resident, received 78 months in federal prison, while Chaojie Chen, a Chinese national based in Chicago, was sentenced to 90 months. Their convictions, part of the U.S. Department of Justice’s (DOJ) Operation Take Back America, spotlight efforts to dismantle the financial networks fueling America’s opioid crisis. This article examines the Sinaloa and CJNG cartels’ operations, their complex money laundering schemes, and the DOJ’s aggressive strategy to combat transnational organized crime, offering insights into a critical battle against drug trafficking.

Sinaloa and CJNG Cartels: Powerhouses of the Drug Trade

The Sinaloa Cartel and CJNG dominate the global drug trade, flooding the U.S. with fentanyl, cocaine, methamphetamine, and heroin. The Sinaloa Cartel, historically led by Joaquín “El Chapo” Guzmán, maintains a vast network spanning the Americas, Europe, and Asia, using underground tunnels and corrupt officials to smuggle drugs, according to the U.S. Department of Justice. Despite Guzmán’s 2017 extradition, leaders like Ismael “El Mayo” Zambada sustain its influence, though internal rivalries over routes like Tijuana persist, as noted in DEA reports.

CJNG, led by Nemesio “El Mencho” Oseguera Cervantes since the early 2010s, has rapidly expanded, controlling regions like Jalisco and Guanajuato. Known for extreme violence, it distributes drugs across all U.S. states through local gangs, per the DOJ’s Northern District of Ohio. CJNG’s recruitment tactics include fake job postings on social media, offering $600 weekly for “security” roles, often targeting ex-military, according to the Associated Press. Both cartels drive the opioid crisis, with the DEA labeling them the greatest drug threat, linked to thousands of annual overdose deaths (The Washington Times).

Money Laundering: Fueling Cartel Operations

The convictions of Tan and Chen reveal the cartels’ financial ingenuity. They laundered millions in fentanyl and cocaine proceeds through trade-based schemes, such as shipping bulk electronics to China, blending illicit funds into legitimate trade, per DOJ indictments. Law enforcement seized over $197,000 from Tan in South Carolina, highlighting efforts to disrupt these networks (DOJ press release). Recent cases also expose ties to Chinese underground banking, with over $50 million laundered, underscoring the global scope of cartel finances.

Money laundering is the cartels’ lifeline, funding operations, corruption, and expansion. By targeting these networks, law enforcement aims to cripple their ability to operate, making cases like Tan and Chen pivotal in the broader fight against drug trafficking.

Operation Take Back America: DOJ’s Strategic Response

Announced March 6, 2025, by Deputy Attorney General Todd Blanche, Operation Take Back America is a DOJ-led initiative to dismantle cartels and TCOs, as outlined in DOJ memoranda. Under Attorney General Pam Bondi, it prioritizes violent and drug-related crimes, leveraging the Organized Crime Drug Enforcement Task Forces (OCDETF) with DEA and FBI support (Crowell & Moring LLP). Goals include curbing illegal immigration, eliminating TCOs, and prosecuting serious offenses.

Recent actions include over 960 arrests in a week along Southwestern Border Districts and 81 in Kentucky, with 25 facing charges like drug possession (WDRB News). In February 2025, eight cartels, including Sinaloa and CJNG, were designated Foreign Terrorist Organizations (FTOs), enabling sanctions and enhanced enforcement (White & Case LLP). Cooperation with Mexico targets corruption and smuggling routes, per Seguridad Internacional.

Tan and Chen Case: Disrupting Cartel Finances

Li Pei Tan and Chaojie Chen’s sentencing—78 and 90 months, respectively—marks a victory in targeting cartel enablers. Operating within a transnational network, they laundered drug proceeds through complex schemes, unraveled by the DEA’s Special Operations Division and OCDETF (DOJ press release). The seizure of $197,000 from Tan exemplifies efforts to choke cartel finances, a strategy central to Operation Take Back America.

This case highlights interagency collaboration, tracing funds across borders to expose links with Chinese banking systems and Mexican cartels. It’s a critical step in weakening the economic foundations of Sinaloa and CJNG.

Future Challenges and Community Impact

Combatting Sinaloa and CJNG remains complex. Their adaptability—CJNG’s social media recruitment, Sinaloa’s Chinese alliances—demands innovative responses. Corruption in Mexico and fentanyl’s profitability pose hurdles, but Operation Take Back America’s focus on financial disruption and international partnerships offers promise. For communities hit by overdoses, these efforts aim to curb the drug flow, fostering safer neighborhoods.

Ashes on Air invites readers to engage: How can enforcement and prevention balance to dismantle cartel influence? Share your views at ashesonair.org.

Sources:

• U.S. Department of Justice: Sinaloa Cartel Charges
• DEA: Operation Last Mile
• DOJ Northern District of Ohio: Cartel Associates
• Associated Press: CJNG Recruitment
• The Washington Times: Cartel Drug Threat
• DOJ: Operation Take Back America
• WDRB News: Kentucky Arrests
• White & Case LLP: FTO Designation
• Crowell & Moring LLP: DOJ Strategy Shift
• Seguridad Internacional: U.S.-Mexico Cooperation
• DOJ: Money Laundering Indictment