https://www.lonestarlive.com/news/2024/12/rich-houston-couple-who-turned-to-crime-will-do-time-in-money-laundering-case.html

A wealthy couple from Houston who decided to become involved in money laundering will now serve time in federal prisons, the U.S. Department of Justice announced.

Vinh Quang Phan, of Houston, and Diana Le Phan, a naturalized U.S. citizen originally from Vietnam, pleaded guilty June 18, according to a news release Thursday.

Authorities say the Phans ran an unlicensed money transmitting business that sent funds received in the form of bulk U.S. currency. They earned at least some of the money, including more than $9 million in bulk cash received from others, from the trafficking, distribution and sale of controlled substances, the U.S. Department of Justice said.

U.S. District Judge Keith Ellison sentenced Vinh Phan and Diana Phan to 10 years in federal prison, and each also will serve three years of supervised release after they are released.

They also were ordered to pay $80,000 in fines, as well as forfeit their Houston home, $16,198 in cash seized when they were arrested and more than $470,000 in seized accounts.

At the sentencing hearing, the judge was told the Phans already were wealthy and had achieved the American dream when they decided to pursue a life of crime.

During sentencing, the judge said, “This is one of the least sympathetic cases of need I have encountered.”

Hamdani said: “Crime flourishes only when it pays, and Vinh and Diana Phan helped it pay, for years, to the tune of more than $33 million. Now their bill is due. These sentences acknowledge the harm that professional money launderers cause when they knowingly circulate dirty money and subvert the integrity of our banking system.”

Authorities detailed the complexities of the case.

“Our special agents reviewed records from more than 20 financial institutions and virtual currency companies, and worked with the task force to execute approximately 40 search warrants and interview dozens of witnesses to unravel the defendants complex scheme to transmit and launder millions in illicit proceeds,” said acting Special Agent in Charge Lucy Tan, of IRS Criminal Investigation’s Houston Field Office.

“When people hear about IRS CI, they often don’t realize the work we do to take down organized crime and criminal financial operations. We are law enforcement officers that specialize in following the money.”

Records state that during the approximately 21-month conspiracy, the Phans’ unlicensed money transmitting business received and transmitted more than $33 million.

They used nine “money mules” to get the bulk cash into the banking system, using the funds to buy virtual currency, which was then sold for cash in California, where the controlled substances originated, authorities said.

The Phans used to drive the cash across the country, but were robbed at gunpoint while on the road in October 2019, authorities said, adding that $440,000 was stolen from their vehicle.

They then turned to virtual currency so they wouldn’t have to transport the money in their vehicle, which was the one way they transmitted cash before January 2020, authorities said.

Officials said the couple did not register their money transmitting business with the Department of the Treasury, adding that the state of Texas didn’t license them to engage in money transmission.

The Phans were allowed to stay out on bond but will voluntarily surrender to U.S. Bureau of Prisons facilities later.

The IRS Criminal Investigation-led South Texas High Intensity Drug Trafficking Areas Financial Crimes Task Force conducted the investigation, with help from the Drug Enforcement Administration, the Houston Police Department and the Organized Crime Drug Enforcement Task Forces.

Assistant U.S. Attorneys Stephanie Bauman and Eun Kate Suh prosecuted the case with help from Deputy Chief Brandon Fyffe of the Asset Recovery Section.