Houston couple sentenced for operating unlicensed money transmission business and laundering millions
Houston, Texas – A Houston resident and his naturalized wife from Vietnam, Vinh Quang Phan and Diana Le Phan, have been sentenced to 10 years in federal prison each for their roles in a scheme involving unlicensed money transmitting and laundering illicit proceeds. U.S. Attorney Alamdar S. Hamdani announced the sentencing following their guilty pleas on June 18.
In addition to their prison terms, the Phans will serve three years of supervised release and have been ordered to pay $80,000 in fines. Their Houston home, $16,198 in cash seized during their arrests, and over $470,000 in seized accounts will be forfeited as part of the sentencing. The case highlights the extensive harm caused by money laundering and unlicensed financial activities.
From Wealth to Crime: A Fall from Grace
During the sentencing hearing, U.S. District Judge Keith Ellison noted that the couple was already financially successful before turning to illegal activities. He remarked, “This is one of the least sympathetic cases of need I have encountered,” emphasizing the predictability of the consequences they now face. He added, “I wish people would think about their families before they commit crimes, rather than invoking their families now.”
The scheme, spanning approximately 21 months, saw the couple operating an unlicensed money transmitting business that funneled over $33 million in illicit proceeds, including more than $9 million in bulk cash linked to drug trafficking. The funds were introduced into the banking system through more than nine “money mules” and converted into virtual currency, which was later sold for cash in California, where the controlled substances originated.
A Sophisticated Scheme Unveiled
The Phans’ operation involved intricate layers to evade detection, including the use of virtual currency to avoid the risks associated with physically transporting cash. This shift to digital currency followed a 2019 armed robbery where the couple lost $440,000 while driving cash across the country. Despite the complexity of their scheme, the Phans failed to register their business with the Department of the Treasury and lacked a license from the state of Texas to engage in money transmission.
The couple’s activities drew the attention of federal investigators, who conducted a detailed review of financial records from over 20 institutions and virtual currency companies. This investigation led to the execution of approximately 40 search warrants and numerous witness interviews. Acting Special Agent in Charge Lucy Tan of the IRS Criminal Investigation’s (CI) Houston Field Office remarked, “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.”
A Collaborative Effort to Combat Organized Crime
The case was part of a broader investigation led by the South Texas High Intensity Drug Trafficking Areas (HIDTA) Financial Crimes Task Force, a division of the IRS Criminal Investigation. It was supported by the Drug Enforcement Administration (DEA), Houston Police Department, and the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF uses a prosecutor-led, intelligence-driven approach to identify and dismantle the most significant drug traffickers, money launderers, and criminal networks that threaten the United States.
“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,” said U.S. Attorney Hamdani. He stressed that professional money laundering not only circulates dirty money but also undermines the integrity of the banking system.
A Broader Impact on Financial and Public Safety
The Phans’ activities illustrate the far-reaching implications of financial crimes. By enabling drug trafficking and bypassing regulatory oversight, their scheme contributed to the spread of controlled substances and eroded trust in the financial system. The investigation and subsequent convictions underscore the critical role of multi-agency collaborations in addressing complex criminal enterprises.
The couple has been allowed to remain on bond and will voluntarily surrender to U.S. Bureau of Prisons facilities at a later date. Assistant U.S. Attorneys Stephanie Bauman and Eun Kate Suh, with assistance from Deputy Chief Brandon Fyffe of the Asset Recovery Section, prosecuted the case.
