The owner of a Chinese antique business has pleaded guilty to rhino and tusk smuggling in connection with a US Fish and Wildlife Service investigation. Here are the details:
Ringleader Of International RhinoSmugglingConspiracy PleadsGuilty To Wildlife Trafficking Crimes
Dec. 19, 2013
WASHINGTON – Zhifei Li, the owner of an antique business inChina, pleaded to organizing an illegal wildlife smuggling conspiracy in which 30 rhinoceros horns and numerous objects made from rhino hornand elephant ivory worth more than $4.5 million were smuggled from the United States to China.
Li, 29, of Shandong, China,the owner of Overseas Treasure Finding in Shandong, pleaded to a total of 11 counts: one countof conspiracy to smuggle and violate the Lacey Act; seven counts of smuggling; one count of illegal wildlife trafficking in violation of the Lacey Act;and two countsof making false wildlife documents.
Li was arrested in FloridainJanuary2013on federalchargesbroughtunder seal in New Jersey and shortly after arrivinginthe country. Before he was arrested, he purchased two endangeredblackrhinoceros horns froman undercover US Fish and Wildlife Service agent in a Miami Beach hotel room for $59,000 while attending an antique show. Li wasarrestedaspart of “Operation Crash” – a nationwide effortledby the USFWSand the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and otherprotected species.
In papers filed in Newarkfederalcourt, Li admitted that he wasthe “boss” of three antique dealers in the United States whom he paid to help obtain wildlife items and smuggle them to him via Hong Kong. One of those individuals was Qiang Wang,aka “JeffreyWang,” who was sentencedto 37 months in prison on Dec. 5, 2013, inNew York. Li arranged for financingto pay for the wildlife, purchased and negotiated the price, directedhow to smuggle the items out of the United States, and obtainedthe assistance of additional collaborators in Hong Kong to receive the smuggled goods and then smuggle them to him in mainland China.
In pleading guilty, Li admitted that he sold 30 smuggled, raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound –to factories in China where rawrhinoceros horns are carved into fake antiques known as Zuo Jiu (which means “to make it as old” in Mandarin). In China, there is a centuries old tradition of drinkingfromanintricately carved “libation cup” made from a rhinoceros horn. Owning or drinking from such a cup is believed by some to bringgood health, and true antiques are highly prized by collectors. The escalatingvalue of such items has resulted in an increased demand for rhinoceros hornthat hashelped fuela thriving black market, including recently carvedfake antiques.
According to the charges, plea agreement and a detailed joint factual statement filed in in Newarkfederalcourt:
The investigation of Li began in November 2011, after a confidential informant sold two raw rhino horns to a middleman at the Vince Lombardi rest stop on the New Jersey Turnpike in an OperationCrashundercover sale. These government-supplied rhino horns were, in turn,sold to a Long Island City antiques dealer who wasworkingfor Li.
At Li’s direction, raw rhino horns were hidden by wrappingtheminduct tape, hiding them in porcelain vases and falsely describing them on customs and shipping documents, including by labeling them as porcelain vasesor handicrafts.
Li purchased 25 raw rhino horns, including 13 endangeredblackrhinoceros horns weighing approximately 151 pounds, through connections in New York and New Jersey, and another five rawrhino horns weighing at least 20 pounds through an accomplice in Dallas, Texas.
Li sold whole rhino horns to factories where they would be carved into fake antiques. The leftover pieces from the carvingprocesswere sold for alleged “medicinal” purposes even though rhino horn is made of compressed keratin, the same material inhumanhairand nailsand hasno proven medical efficacy.
Between 2011 and 2013, Li purchasedapproximately60carvedivory items from U.S. auction houses with an approximate marketvalue of $500,000,all of which were smuggled to China at Li’s direction.
Before arriving in Miami, Li sent a text message to the LongIsland City antiques dealer saying that he had as much as $500,000to spendinthe U.S. on antiques and rhino horn. When purchasingtwo rhino horns froman undercover USFWS agent at a Miami Beach hotel, Li told the covert agent that he was interested in buyingmore rhino horns regardlessof quality, as much as the agent could find, and inquired if the horns couldbe shipped directly to Hong Kong.
In April 2012, after a Dallas-based accomplice purchaseda large,eight-pound raw rhino horn for Li in Florida worth more than $140,000,Li sent the dealer an email directing himto cutthe hornintotwo pieces,wrap them in electrical tape, and send them to Hong Kong in separate packages. The email included a photo of the rhino horn with a red line drawnthoughit indicating where the lengthy horn should be cut.
After Li’s conspirator in Long Island City purchasedtwo rawelephant tusks for Li weighing more than 100 pounds, Li sent instructions by emailthat the shipper should declare the contents as “automobile parts”and notuse the word “tusk” on the shipping documents.
Li smuggled libation cups carvedfrom rhinoceros horns fromthe U.S. to Hong Kong. Rhino carvings valued as much as $242,500 were sold to Li’s customers in China. In early 2013, one of those customers,ShusenWei, pleaded guilty in the Southern District of Florida to knowingly buying a smuggled rhino carving from Li.
The plea agreement requiresLi to forfeit $3.5 million in proceeds of his criminal activity as well as several Asian artifacts. Also, variousivory objects seized by the USFWS as part of the investigation willbe surrendered. The maximum potentialpenalty is10years for eachof the smuggling counts and five years for eachof the otheroffenses,aswellasa $250,000 fine per count, or twice the gross gain or loss from the offense.
Below: A covert photo of Li getting horny in a Miami hotel after making a purchase from an undercover USFWS agent. Photo courtesy USFWS.