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“At no time in the history of organized crime is there an example where a revenue stream has been taken over like this, and without a shot being fired,” said retired DEA agent Thomas Cindric, a veteran of the elite Special Operations Division.“This has enriched the Mexican cartels beyond their wildest dreams.”Īs they investigated Li's tangled financial dealings, US agents came across evidence indicating that his money laundering schemes involved Chinese government officials and the Communist Party elite. Li and his fellow Chinese money launderers married market forces: drug lords wanting to get rid of dollars and a Chinese elite desperate to acquire dollars. His powerful international connections made his service cheap, fast and efficient he even guaranteed free replacement of cartel cash lost in transit. Li then executed a chain of transactions through China, the United States and Latin America to launder the dollars.
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Neither side spoke much English, so they used a prearranged signal: a photo of a serial number on a dollar bill.Īfter the handoff, the couriers alerted their Chinese bosses in Mexico, who quickly sent pesos to the bank accounts or safe houses of Mexican drug lords. The couriers didn't have criminal records or carry guns they were students, waiters, drivers. Furtive exchanges took place in motels and parking lots.
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Photo: Enjoy Illinois / FacebookĪgents on stakeout watched as cartel operatives delivered suitcases full of cash to Chinese couriers directed by Li. They trailed cartel operatives transporting drug cash to a new destination: Chinatown, an immigrant enclave in the flatlands about two miles south of the city's rampart of lakefront skyscrapers.Ĭhicago's Chinatown. About six years ago, federal anti-drug agents in Chicago saw early signs of what would become a tectonic change. Those methods were costly, took weeks or even months to complete and exposed the stockpiled cash to risks - damage, robbery, confiscation.Įnter Li. And they also hired middlemen - often Colombian or specialists who charged as much as 18 cents on the dollar - to launder their billions.
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Li hit on a better way to address a problem that has long bedeviled the world's drug lords: how to turn the mountains of grimy twenties and hundreds amassed on US streets into legitimate fortunes they can spend on yachts, mansions, weapons, technology – and bribes to police and politicians.įor years, the Mexican cartels that supply the US market with cocaine, heroin and fentanyl smuggled truckloads of bulk cash to Mexico, where they and exchange houses to move the money into the financial system. Operating with the acumen of a financier and the tradecraft of a spy, he had helped devise an innovative system that revolutionized the drug underworld and fortified the cartels. In 2017, US Drug Enforcement Administration agents following the money from cocaine deals in Memphis, Tennessee, identified a mysterious figure in Mexico entrusted by drug lords with their millions: a Chinese American gangster named Xizhi Li.Īs the agents tracked Li's activity across the Americas and Asia, they realized he wasn't just another money launderer. This story was first published by, a Pulitzer Prize-winning investigative newsroom.
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