US Attorney: Binghui Liu Pleads Guilty to $600,000 Impersonation Scam
A 33-year-old Chinese citizen living in San Jose, California, pleaded guilty on Monday, October 5, to a conspiracy money laundering charge involving a scheme that impersonated federal law enforcement officers to steal nearly $600,000 from victims, the U.S. Attorney’s Office for the Eastern District of California announced.
Binghui Liu pleads guilty to federal conspiracy money laundering
Binghui Liu entered his guilty plea before the federal court, admitting to his role in a transnational fraud ring operating within the United States and abroad, including India. According to court documents cited by the U.S. Attorney’s Office for the Eastern District of California, the operation ran from February 2024 through April 2025. Liu and his co-conspirators contacted victims by phone to falsely claim they faced criminal charges and that their bank accounts were subject to freezing orders.
The fraudsters instructed victims to withdraw cash from their financial institutions and hand it over for “safekeeping.” Conspirators used fake names and specific passwords, routinely requiring victims to photograph themselves alongside the packaged cash prior to pickup. In one documented instance, an elderly victim received a call from an individual claiming to be a U.S. Marshal. The caller asserted an active arrest warrant existed and directed the victim to surrender funds to a supposed Federal Reserve employee to protect the money. Liu and his associates subsequently collected the cash in person.
Liu laundered money from victims in California and Nevada
Federal prosecutors stated that Liu operated as a money launderer for the criminal enterprise. Between March and April 2025, Liu collected approximately $597,100 from 24 victims located across California and Nevada. The operation culminated on April 9, 2025, when federal investigators orchestrated a sting operation directing Liu to a victim’s residence. Liu collected a $20,000 cash delivery, unaware that the funds consisted entirely of counterfeit currency. Investigators confirmed that Liu never held employment as a federal law enforcement officer or government employee.
Daren Li sentencing context and sentencing date for Liu
Liu’s sentencing hearing is scheduled for January 4. He faces a statutory maximum penalty of 20 years in federal prison and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater.
The prosecution follows a separate federal case concluded earlier in the year within the Central District of California. In February, another Chinese citizen, Daren Li, was sentenced to 20 years in prison for his role in an international cryptocurrency investment scam and money laundering conspiracy. Li and his associates funneled victim funds exceeding $73.6 million into virtual currencies to obscure their origin. Court records indicate that Li cut his electronic monitoring bracelet and fled in December 2025, prompting the U.S. District Court for the Central District of California to coordinate with international law enforcement agencies to secure his apprehension.