Houston Couple Sentenced to 10 Years for Laundering $33 Million in Drug Proceeds
A Houston man and his wife, a naturalized U.S. citizen from Vietnam, have been sentenced to federal prison for operating an unlicensed money transmitting business and laundering millions in illicit drug proceeds, U.S. Attorney Alamdar S. Hamdani announced.
Vinh Quang Phan and Diana Le Phan pleaded guilty on June 18 and were sentenced by U.S. District Judge Keith Ellison to 120 months in prison, followed by three years of supervised release. The couple was also ordered to pay $80,000 in fines, forfeit their Houston home, $16,198 in cash seized during their arrests, and more than $470,000 in seized accounts.
The couple operated an unlicensed business that transmitted over $33 million in illicit funds between January 2020 and September 2021, much of which was connected to the trafficking and sale of controlled substances. They introduced $9 million in bulk cash into the banking system through intermediaries, or “money mules,” and converted the funds into virtual currency, which was then sold in California—where the drugs originated.
The Phans initially transported cash across the country but shifted to virtual currency transactions after an October 2019 armed robbery, during which $440,000 was stolen from their vehicle. The couple failed to register their business with the Department of the Treasury or obtain a Texas license to conduct money transmission.
Judge Ellison described the case as “one of the least sympathetic” he had encountered, noting the couple’s wealth prior to their criminal activity. “This was entirely foreseeable. I wish people would think about their families before they commit crimes, rather than invoking their families now,” he said.
“This case highlights the extensive harm caused by professional money launderers who circulate dirty money and undermine the integrity of our banking system,” Hamdani stated. Acting Special Agent in Charge Lucy Tan of the IRS Criminal Investigation’s Houston Field Office added, “Our agents worked tirelessly to follow the money and unravel this complex scheme. This is the type of work IRS CI does to dismantle organized crime.”
The investigation was led by the IRS Criminal Investigation South Texas High Intensity Drug Trafficking Areas (HIDTA) Financial Crimes Task Force with assistance from the DEA, Houston Police Department, and the Organized Crime Drug Enforcement Task Forces (OCDETF).
The Phans remain out on bond and will voluntarily surrender to the U.S. Bureau of Prisons at a later date. The case was prosecuted by Assistant U.S. Attorneys Stephanie Bauman and Eun Kate Suh, with asset recovery assistance from Deputy Chief Brandon Fyffe.
