Cash courier pleads guilty to laundering $597,100 from government impersonation scam victims
Binghui Liu pleaded guilty in federal court in California to conspiracy to commit money laundering. According to the U.S. Attorney's Office for the Eastern District of California, he collected about $597,100 in cash from 24 victims of a scam in which callers posed as federal officials.
Binghui Liu, 33, formerly of San Jose, pleaded guilty to one count of conspiracy to commit money laundering, the U.S. Attorney's Office for the Eastern District of California announced on October 5, 2026. According to court documents, Liu and other co-conspirators took part in a scheme between February 2024 and April 2025 to launder the proceeds of a government impersonation scam.
According to the U.S. Attorney's Office, people posing as federal law enforcement officers or employees contacted victims. The callers falsely told victims that criminal charges had been filed against them and that their bank accounts would be frozen. Victims were told to withdraw their savings in cash and hand it over for safekeeping, and that a federal official would come to collect it. The scammers were located inside and outside the United States, including in India.
Liu acted as a money launderer for the scheme. Between March and April 2025, he took approximately $597,100 from 24 victims in California and Nevada, using code words and fake names and victims were told he was a federal employee or law enforcement officer. In one case described by prosecutors, an elderly victim was contacted by someone posing as a U.S. Marshal, was coached on how to withdraw the cash and what to tell the bank, and lost more than $700,000; Liu and other co-conspirators came to collect the cash while impersonating federal officials.
On April 9, 2025, agents set up a sting operation. Liu arrived at a victim's house and took what he believed was $20,000, but the money was fake. The Federal Bureau of Investigation conducted the investigation. Liu is scheduled to be sentenced by U.S. District Judge Kirk E. Sherriff on January 4, 2027. He faces a maximum statutory penalty of 20 years in prison and a $500,000 fine or twice the value of the property involved, whichever is greater.
Why it matters to AML professionals
Government impersonation scams often end with victims withdrawing large amounts of cash at a bank branch, which gives front-line staff and AML professionals a chance to step in before the money is gone. Scammers in this type of scheme coach victims on what to tell the bank, so the explanation a customer gives for a withdrawal may not be the real reason. Cash withdrawals that do not fit a customer's normal pattern, especially by older customers, deserve a closer look and, where suspicion remains, a suspicious activity report (SAR).
Red flags in this case
- A customer, often an older person, makes one or more large cash withdrawals that drain savings and do not match past account activity.
- A customer says a government agency or law enforcement officer has told them to move or withdraw money for safekeeping or to avoid an account freeze.
- A customer appears to be following a script, is on the phone with someone during the transaction, or is reluctant to explain why they need the cash.
- Several withdrawals across short periods, or across different branches, that together add up to most of a customer's balance.
Sources
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