Arcadia Woman Sentenced to 10 Years for $11.6 Million International Money-Laundering Operation

A federal judge has sentenced an Arcadia woman to more than 10 years in prison for orchestrating an international money-laundering network that processed over $11.6 million in fraud proceeds stolen from hundreds of victims, many of them elderly. The case highlights how sophisticated criminal networks exploit the U.S. financial system to launder proceeds from impersonation and technical-support scams operated from overseas.

Cynthia Song, 43, who also used the aliases "Iris Song" and "Xin Wang," received a 121-month sentence from U.S. District Judge Stanley Blumenfeld Jr. on November 18. The court also ordered her to pay $10,069,518 in restitution to victims. Song pleaded guilty in June to one count of conspiracy to commit money laundering and has been in federal custody since October 2024.

Background and Context

The scheme operated between December 2022 and October 2024, exploiting gaps in international financial oversight to move proceeds from fraud operations based abroad. According to federal prosecutors, the underlying scams involved perpetrators posing as government officials, law enforcement officers, or computer-support technicians who convinced victims to transfer substantial sums—sometimes their entire life savings—to U.S.-based accounts.

Elder financial fraud has become increasingly sophisticated, with criminal networks developing multi-layered laundering operations to obscure the origins of illicit funds. The FBI reports that elderly victims lost over $3 billion to fraud in 2023, with many cases going unreported due to shame or embarrassment.

Key Figures and Entities

Court documents show Song initially laundered funds through her own accounts, including a business entity called SW Prosperity Real Estate Development LLC. In one December 2022 transaction, at least $170,850 from multiple victims was wired to an account she controlled, with nearly all funds quickly withdrawn and forwarded overseas.

As the operation expanded, Song transitioned to a managerial role, recruiting at least 15 additional money launderers and directing them to open dozens of business accounts across the U.S. banking system. According to her plea agreement, Song typically retained a 5% to 10% commission before transferring the remainder to organizers in China and Hong Kong.

The investigation was conducted by IRS Criminal Investigation and Homeland Security Investigations, with prosecution handled by Assistant U.S. Attorney Andrew M. Roach of the General Crimes Section.

Legal and Financial Mechanisms

The laundering operation employed several techniques to evade detection, including providing banks with fabricated cover stories and fraudulent documentation. Prosecutors said Song coached recruits on how to avoid triggering suspicious activity reports by supplying victims' driver's licenses and other documents to justify large transactions.

When financial institutions froze suspicious accounts, the network rapidly shifted operations to new accounts and personnel, demonstrating the challenges banks face in detecting and preventing sophisticated money laundering schemes. The network moved at least $11,692,931 from approximately 180 victims nationwide, though about $2,736,240 was ultimately frozen or recovered by financial institutions.

In her plea agreement, Song acknowledged she knew the funds were criminal in origin and explicitly warned her recruits that the money was not "clean," according to court records.

International Implications and Policy Response

The case illustrates how foreign-based fraud networks exploit the U.S. financial system to launder proceeds from transnational criminal enterprises. The movement of funds to China and Hong Kong highlights ongoing challenges in cross-border law enforcement cooperation and information sharing.

Federal prosecutors emphasized the devastating impact on victims, noting in court filings that "some lost their entire life savings; others continue to experience shame, regret, and depression." Many elderly victims may never financially recover from the losses, underscoring the need for enhanced protective measures.

The Department of Justice's Elder Justice Initiative continues to coordinate with international partners to combat transnational elder fraud schemes, while financial regulators work to strengthen anti-money laundering protocols for detecting patterns associated with impersonation scams.

Sources

This report draws on court filings from the U.S. District Court for the Central District of California, public statements from the U.S. Department of Justice, and reporting from federal law enforcement agencies. Victims of financial fraud age 60 or older can seek assistance through the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), which provides multilingual support and resources.