Chinese drug trafficking suspect handed to the US by Mexico pleads not guilty in NYC

Federal officials say Zhang ran a vast drug trafficking and money laundering operation that imported thousands of kilograms (pounds) of narcotics into the United States and other countries.

“The defendant stands accused of running a global enterprise that pumped massive quantities of cocaine, fentanyl, and methamphetamine into our communities and laundered millions in narcotics proceeds,” U.S. Deputy Attorney General Todd Blanche said in a statement. “His return to the United States is a major step in dismantling a network that has fueled addiction, violence, and death."

Zhang's criminal organization operated out of Mexico going back at least to 2016 and laundered its drug proceeds through shell companies created in the U.S. using false social security numbers and other fraudulent documents, according to federal prosecutors.

Officials identified more than 100 shell companies tied to Zhang’s organization that were used to launder at least $77 million in narcotics proceeds, they said.

Mexican authorities captured Zhang in Mexico City in October 2024 at the request of the U.S. government, but a judge granted him house arrest and he escaped the home where he was being held under military guard. Prosecutors say in court filings that he was eventually recaptured in Cuba and sent to the U.S. by Mexican authorities on Oct. 23.

Zhang, who has been detained until his next court date in January, also faces a related set of federal charges in Georgia.

Government documents filed in that case describe a cocaine and fentanyl trafficking network with hubs in the Atlanta and Los Angeles metro areas. Millions of dollars from the drug sales were allegedly collected at stash houses in Georgia and California and deposited into accounts that Zhang could then access from Mexico, the documents said.