FRESNO, CALIF. — Binghui Liu pleaded guilty to one count of conspiracy to commit money laundering for his role in a government-impersonation fraud scheme that stole funds from victims in California and Nevada. Liu is scheduled to be sentenced by U.S. District Judge Kirk E. Sherriff on Jan. 4, 2027.

Liu faces a maximum statutory penalty of 20 years in prison and a $500,000 fine or twice the value of the property involved, whichever is greater. Assistant U.S. Attorneys Cody S. Chapple and Arelis M. Clemente are prosecuting the case.

The Federal Bureau of Investigation conducted the investigation into the scheme, which operated between February 2024 and April 2025. Liu and co-conspirators laundered proceeds from a government-impersonation fraud scheme in which scammers posed as federal law enforcement officers or employees.

Scammers falsely claimed criminal charges had been filed against victims and that their bank accounts would be frozen. Victims were instructed to withdraw savings in cash and surrender the money for safekeeping, with instructions that a federal official would arrive to collect the cash.

The scammers operated both inside and outside the United States, including in India. They used fake names and code words to communicate with victims. Scammers also directed victims to take pictures of themselves and the cash packaged for pickup.

In one case, an elderly victim was contacted by someone posing as a U.S. Marshal who falsely claimed there was an arrest warrant. The scammer instructed the elderly victim to turn money over to supposed Federal Reserve employees to protect funds. Scammers coached the elderly victim on how to withdraw cash, what to tell the bank, and how to package the money.

Liu served as a money launderer for other co-conspirators in the fraud scheme. Liu was not a federal law enforcement officer or federal employee at any point. Liu is a 33-year-old citizen of China who formerly resided in San Jose, California. Liu has a pending asylum application.

Why It Matters

The case illustrates the scale of government-impersonation fraud schemes that target vulnerable populations, particularly the elderly. The loss of hundreds of thousands of dollars from individual victims demonstrates the financial devastation these crimes cause. The involvement of international operatives, including those in India, shows the cross-border nature of such criminal enterprises.

The use of spoofed caller ID technology to mimic legitimate federal agency numbers represents a sophisticated tactic that complicates detection and prevention. The guilty plea and upcoming sentencing are part of the federal government's efforts to prosecute individuals who facilitate these schemes through money laundering.

Timeline

An elderly victim in the case lost $780,000 after scammers convinced her to transfer funds to the Federal Reserve for 'safekeeping,' as detailed in the FBI’s complaint filed on March 31, 2025. On April 9, 2025, agents conducted a sting operation where Liu attempted to collect what he believed was $20,000 in fake money. Liu was arrested on April 14, 2025, and designated for 'Legs Only' restraint by the U.S. District Court for the Eastern District of California, as documented in the PACER case record for USA v. Liu (1:25-cr-00089).

The U.S. Department of Justice indicted Liu on April 24, 2025, in the Eastern District of California, charging him with conspiracy to commit money laundering tied to the government-impersonation scheme. Liu was indicted by a federal grand jury on April 24, 2025, for conspiracy to commit money laundering tied to a government-impersonation fraud scheme. Liu pleaded guilty to one count of conspiracy to commit money laundering.

What's New

Liu (1:25-cr-00089).

The FBI warned in April 2025 that scammers use spoofed caller ID technology to mimic legitimate federal agency numbers, a tactic referenced in the complaint against Liu. An elderly victim in the case lost $780,000 after scammers posing as U.S. Marshals instructed her to liquidate savings, take out home mortgages, and transfer funds to a fake Federal Reserve account.