Seized in crackdown against global drug ring, Sacramento man facing 60 years in prison

A Sacramento man who prosecutors believe is part of a Chinese drug ring was charged with 10 counts of money laundering and the conspiracy to manufacture marijuana Friday after law enforcement officials found around 300 marijuana plants in properties he owned, according to the U.S. Department of Justice.

Daniel Zhu owned three properties across Amador and Sacramento counties, according to a news release from federal prosecutors. Court documents say Zhu, 38, transferred almost $400,000 from overseas bank accounts in order to make down payments on the properties he later turned into indoor marijuana grow houses.

Zhu’s indictment is the second stemming from a project called Operation Lights Out, which was formed after authorities noticed a rise in the amount of marijuana growing operations occurring in residential neighborhoods in the Sacramento area, which officials say they suspected was part of a Chinese organized crime syndicate.

Around 75 homes were targeted by federal law enforcement early April after agents analyzed utility bills and other financial data to track millions of dollars coming from China into the United States for the purchase of the homes.

The raids in April resulted in the seizure of more than 61,050 marijuana plants, 200 kilos of processed marijuana valued at up to $100 million and about $100,000 in cash, as well as 15 firearms, officials said.

Zhu has been charged with 10 counts of international money laundering and manufacturing marijuana, along with related conspiracy charges. He is facing a maximum sentence of 40 years in prison and a fine of $5 million for the marijuana counts along as many as 20 years in prison and a $500,000 fine for the money laundering charges.

This story was originally published October 5, 2018 at 4:09 PM.