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An indictment returned Monday by a federal grand jury in Newark charges Ma Xiaohong; her company, Dandong Hongxiang Industrial Development Co. Ltd.; and three of its top executives – general manager Zhou Jianshu, deputy general manager Hong Jinhua and financial manager Luo Chuanxu – with violating U.S. law, conspiracy and of defrauding the United States. They also face charges of conspiracy to launder monetary instruments.
“Ma, her company, and her employees tried to defraud the United States by evading sanctions restrictions and doing business with proliferators of weapons of mass destruction,” Carpenito said in a statement. “We will continue to work closely with our partners in the National Security and Criminal Divisions in order to identify and prosecute defendants like these, in order to preserve a safer and more fair environment for all.”
“Through the use of more than 20 front companies, the defendants are alleged to have sought to obscure illicit financial dealings on behalf of sanctioned North Korean entities that were involved in the proliferation of weapons of mass destruction,” said Assistant Attorney General John Demers. “But through the tireless efforts of federal law enforcement, we were able to shine a light on their lawless conduct and take the first step in bringing them to justice.”
The intricate scheme also involved unwitting U.S. businesses, authorities said, including a bank processing center in Newark.
Ma, Zhou, Hong and Luo face up to decades in prison and more than $1 million in fines if convicted.
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