Inside the Long River money laundering syndicate as leader is set to fight charges
Sources close to those allegedly involved in the Long River money laundering syndicate have spoken after they were arrested. The accused have vowed to fight charges against them.
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An alleged money laundering syndicate leader owned a $400,000 Mercedes Benz because they “couldn’t be seen driving a Toyota”.
The Long River money laundering syndicate, which allegedly laundered $200 million of criminals’ cash, have vowed to fight charges against them.
Seven people were accused of being part of the group, which was accused of making fake invoices for organised crime groups to help them wash their dirty cash.
Zhou Chen, 37, was accused of being the controller of the Chang Jiang Currency Exchange, which turned over more than $10 billion in foreign exchange transactions in just two years.
Mr Chen was released on bail to his home in Balwyn in November, on the condition that he wear an ankle bracelet.
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He was also ordered to stay in his palatial $10 million home, which police allege was purchased with the proceeds of crime.
Chen only earned $49,400 in 2022, according to details of his tax return cited in court documents.
A source close to the syndicate told the Cocaine Inc. podcast a joint investigation between True Crime Australia and the UK’s Times and Sunday Times, that Chen would fight the charges.
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“There’s no Rolls Royce driving around, they’re just legitimate business people driving a Mercedes Benz,” a source said.
“If you’re dealing with multi-millionaires, you can’t drive a Toyota or a Hyundai around.”
The source claimed they had been misrepresented.
“It is a legitimate business set up by Australians. Australian Chinese and a lot of the clients are Chinese but it’s not an international bloody syndicate or what they claim it to be.”
Australian Federal Police raided the Changjiang Currency Exchange in October last year.
The company had 12 shopfronts across the country, including one branch set up in the same Sydney street as the AFP’s headquarters.
A source close to the group claimed that it was a bargain property deal.
“Usually corners are really hard to come by, you need to pay $1 million to pay off the lease. It was a once in a lifetime opportunity to get on one of those corners (George St and Goulburn Street),” the source said.
“If you were going to launder money you would go low profile, you wouldn’t need the corner store, you wouldn’t put your name on it.
“If you wanted to break the law, what’s the point of setting up an outlet so near to the AFP’s office? No-one’s that stupid, not people who can build a $10 billion business.”
Court documents claim that the syndicate moved $100 million which was the proceeds of a “pig butchering” scam in the United States.
The group allegedly received a $10 million commission, according to the AFP’s executive summary of the case.
The AFP alleged Chen also discussed how to deal with police.
“In case our company needs to provide documentation, we can meet up again to get our story straight,” he said, according to court documents.
The AFP alleged that Chen received $6.7 million in cash from the Chiang Jiang Currency Exchange.
The group was also accused of using private jets, but a source close to the group said it was a good business decision.
“The allegations of the private jet, the guys had done a deal with the private jet company,” a source said.
He said there was an empty leg for private jets when they would return to their destination empty.
“For that it’s $800 per person per ride, which is cheaper than a Qantas business class or even economy class fare on a busy day,” the source said.
“So that was purely for business purposes and for empty jet legs only.”
The Chang Jiang Currency Exchange was closed following the raids last year, with 150 people losing their jobs.
The business has started as a courier company in a $5000 van delivering spare parts.
But it grew as they diversified into sending products overseas.
In 2015, the Chang Jiang International Express was sending six tonnes of products to China.
Much of that was Australian milk powder, which soared in demand in China following the deaths of babies who had consumed milk powder produced there.
A source confirmed the companies were directly linked.
“So they grew the business, accumulating experience and wisdom over time to build multiple businesses and now because of the currency business everything has been wrecked.
Of the four Australians arrested, a source said: “It’s not been easy mate, we’re talking about boys who went to school locally, Camberwell Grammar, Balwyn High School, McKinnon College.
“They came from nothing, one of the families were fish and chip shop owners. The family had that fish and chip shop for 20 years.
“The company’s brand is the pride and joy of the Chinese community in Australia because it’s pretty high profile, everyone knows about it.”
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Originally published as Inside the Long River money laundering syndicate as leader is set to fight charges
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