“Invasion of the Homeland: How China is Using Illegal Marijuana to Build a Criminal Network Across America”

1[House Hearing, 119 Congress]2[From the U.S. Government Publishing Office]34                 INVASION OF THE HOMELAND: HOW CHINA IS5                USING ILLEGAL MARIJUANA TO BUILD A CRIMI-6                NAL NETWORK ACROSS AMERICA7=======================================================================89                                HEARING1011                               BEFORE THE1213                            SUBCOMMITTEE ON14                       OVERSIGHT, INVESTIGATIONS,15                           AND ACCOUNTABILITY1617                                 OF THE1819                     COMITTEE ON HOMELAND SECURITY20                        HOUSE OF REPRESENTATIVES2122                    ONE HUNDRED NINETEENTH CONGRESS2324                             FIRST SESSION2526                               __________2728                           SEPTEMBER 18, 20252930                               __________3132                           Serial No. 119-273334                               __________3536       Printed for the use of the Committee on Homeland Security3738[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]3940          Available via the World Wide Web: http://www.govinfo.gov41                               __________4243                   U.S. GOVERNMENT PUBLISHING OFFICE4462-705 PDF                  WASHINGTON : 202645-----------------------------------------------------------------------------------4647                     COMMITTEE ON HOMELAND SECURITY4849                Andrew R. Garbarino, New York, Chairman50Michael T. McCaul, Texas, Vice       Bennie G. Thompson, Mississippi,51    Chair                                Ranking Member52Michael Guest, Mississippi           Eric Swalwell, California53Carlos A. Gimenez, Florida           J. Luis Correa, California54August Pfluger, Texas                Shri Thanedar, Michigan55Marjorie Taylor Greene, Georgia      Seth Magaziner, Rhode Island56Tony Gonzales, Texas                 Daniel S. Goldman, New York57Morgan Luttrell, Texas               Delia C. Ramirez, Illinois58Dale W. Strong, Alabama              Timothy M. Kennedy, New York59Josh Brecheen, Oklahoma              LaMonica McIver, New Jersey60Elijah Crane, Arizona                Julie Johnson, Texas, Vice Ranking61Andrew Ogles, Tennessee                  Member62Sheri Biggs, South Carolina          Pablo Jose Hernandez, Puerto Rico63Gabe Evans, Colorado                 Nellie Pou, New Jersey64Ryan Mackenzie, Pennsylvania         Troy A. Carter, Louisiana65Brad Knott, North Carolina           Al Green, Texas66Vacant                               Vacant67Vacant68                     Keighle Joyce, Staff Director69                  Hope Goins, Minority Staff Director70                       Sean Corcoran, Chief Clerk71                                 ------7273     SUBCOMMITTEE ON OVERSIGHT, INVESTIGATIONS, AND ACCOUNTABILITY7475                   Josh Brecheen, Oklahoma, Chairman76Marjorie Taylor Greene, Georgia      Shri Thanedar, Michigan, Ranking77Dale W. Strong, Alabama                  Member78Andrew Ogles, Tennessee              Delia C. Ramirez, Illinois79Brad Knott, North Carolina           Troy A. Carter, Louisiana80Andrew R. Garbarino, New York, (ex   Al Green, Texas81    officio)                         Bennie G. Thompson, Mississippi82                                         (ex officio)83                  Vacant, Subcommittee Staff Director84           Lisa Canini, Minority Subcommittee Staff Director8586                           C O N T E N T S8788                              ----------89                                                                   Page9091                               Statements9293The Honorable Josh Brecheen, a Representative in Congress From94  the State of Oklahoma, and Chairman, Subcommittee on Oversight,95  Investigations, and Accountability:96  Oral Statement.................................................     197  Prepared Statement.............................................     398The Honorable Shri Thanedar, a Representative in Congress From99  the State of Michigan, and Ranking Member, Subcommittee on100  Oversight, Investigations, and Accountability:101  Oral Statement.................................................     4102  Prepared Statement.............................................     5103The Honorable Bennie G. Thompson, a Representative in Congress104  From the State of Mississippi, and Ranking Member, Committee on105  Homeland Security:106  Prepared Statement.............................................     6107108                               Witnesses109110Mr. Donnie Anderson, Director, Oklahoma Bureau of Narcotics:111  Oral Statement.................................................     7112  Prepared Statement.............................................     9113Mr. Paul J. Larkin, John, Barbara, and Victoria Rumpel Senior114  Legal Research Fellow, Edwin Meese III Center for Legal and115  Judicial Studies, The Heritage Foundation:116  Oral Statement.................................................    10117  Prepared Statement.............................................    12118Mr. Christopher Urben, Managing Director, Nardello & Co.:119  Oral Statement.................................................    20120  Prepared Statement.............................................    21121122                             For the Record123124The Honorable Marjorie Taylor Greene, a Representative in125  Congress From the State of Georgia:126  Article, The Maine Wire, November 8, 2023......................    26127The Honorable Delia C. Ramirez, a Representative in Congress From128  the State of Illinois:129  Article, Chicago Tribune, September 17, 2025...................    34130  Article, Chicago Reader, September 15, 2025....................    35131The Honorable Troy A. Carter, a Representative in Congress From132  the State of Louisiana:133  Letter From the US Cannabis Roundtable.........................    41134The Honorable Andrew Ogles, a Representative in Congress From the135  State of Tennessee:136  Resolution Number 25109, Siskiyou County, California Board of137    Supervisors..................................................    45138The Honorable Brad Knott, a Representative in Congress From the139  State of North Carolina:140  Press Release, U.S. Attorney's Office, District of141    Massachusetts................................................    60142143                               Appendix I144145Supplemental Material Submitted by Donnie Anderson:146  Briefing Report................................................    71147  Photos.........................................................    81148  Article........................................................    90149  Oklahoma Court Records.........................................    99150151                              Appendix II152153The Honorable Josh Brecheen, a Representative in Congress From154  the State of Oklahoma, and Chairman, Subcommittee on Oversight,155  Investigations, and Accountability:156  Statement of Alexander Gray, CEO, American Global Strategies...   117157Supplemental Material Submitted by Steven Robinson, Editor-in-158  Chief, The Maine Wire; Director, ``High Crimes: How Chinese159  Mafia Took Over Rural America''................................   118160161INVASION OF THE HOMELAND: HOW CHINA IS USING ILLEGAL MARIJUANA TO BUILD162                   A CRIMINAL NETWORK ACROSS AMERICA163164                              ----------165166                      Thursday, September 18, 2025167168             U.S. House of Representatives,169                    Committee on Homeland Security,170                Subcommittee on Oversight, Investigations,171                                        and Accountability,172                                                    Washington, DC.173    The subcommittees met, pursuant to notice, at 10:14 a.m.,174in room 310, Cannon House Office Building, Hon. Josh Brecheen175(Chairman of the subcommittee) presiding.176    Present: Representatives Brecheen, Greene, Strong, Ogles,177Knott, Thanedar, Ramirez, Carter, and Green.178    Chairman Brecheen. All right. Good morning. The Committee179on Homeland Security, Oversight, Investigations, Accountability180under the broader Homeland Security Committee will come to181order. The purpose of today's hearing is to examine how China182is using illegal marijuana to build a criminal network across183America. Without objection, the Chair is authorized to declare184the committee in recess at any point.185    I now recognize myself for an opening statement.186    Today the Oversight Investigations Accountability Committee187is holding this hearing on how the use of illegal marijuana has188tied into the criminal network tracing to China is impacting189the United States.190    First, for order of business, an announcement, the191gentleman from Texas, Al Green, will, from this point forward,192be serving on the Oversight, Investigations, and Accountability193Subcommittee for the remainder of the 119th Congress, and we194look forward to working with him.195    We are here today to talk about an important issue,196significant national security implications. This issue has been197prevalent not just in Oklahoma, my home State, but in many198other States, Maine, California, and all across our homeland.199Let's paint the picture together.200    A group of Chinese nationals affiliated with a foreign201criminal organization crosses the Southern Border, makes their202way into rural Oklahoma. With them are workers who have been203lured under the false promise of good jobs in the United204States. Once in Oklahoma, these Chinese nationals approach a205local resident with an offer they cannot refuse. They offer the206resident several hundreds of thousands of dollars purchasing--207using their time, their identity to purchase a nearby tract of208land. In return, the resident gets to keep a share of the money209with no questions asked. The deal is quick and it is simple.210    In a matter of days, this newly-purchased land becomes the211site of a large-scale illegal marijuana grow operation. The212workers find themselves forced to work 14-hour days under the213watch of armed guards, all while being confined to small living214quarters, minimal running water, or air conditioning. The smell215of toxic fumes, fumigation from pesticides that are lit on fire216that we know have caused major health consequences, banned in217this country, are utilized for these grow operations. Hundreds218of pounds of illegal contaminated marijuana is then produced,219ends up in the hands of people all over the United States, from220Oklahoma to New York.221    This is just one example of how Chinese grow operations222come to operation in communities all across the country.223Oklahoma has had thousands of these operations activate at one224time. Sadly, as we learned today, this is only scratching the225surface of what these Chinese-affiliated criminal groups are226doing. Many Chinese illegal operations serve as fronts for a227wider criminal enterprise, including human and drug228trafficking, prostitutions, weapons smuggling, and money229laundering.230    While the example I highlighted takes place in our home231State of Oklahoma, similar patterns are repeated in other232States like Maine, Massachusetts, California. In fact, there233are thousands of these grow operations dispersed through our234entire country, including Tribal lands and national parks.235    We have a really excellent panel of expert witnesses before236us today who are going to walk us through this issue and how it237affects the homeland security posture. Specifically, I would238like to focus our conversation on the serious crimes taking239place inside of these illegal grow sites, as well as how240Chinese transnational criminal organizations, or TCOs, many241with ties to the--directly ties to the Chinese Communist Party,242are setting up these sites all across the United States as they243expand an underground criminal network in our backyard.244    We are holding this hearing today because we have enabled245these foreign organizations with potential links to the CCP, to246build up a sophisticated network throughout the United States,247which facilitates a wide range of other criminal activity and248presents a national security threat. This is a convergence of249organized crime, human and drug trafficking, public health250risks, all operating at scale and sophistication, crossing251State and national lines beyond the normal capabilities of252State and local law enforcement to combat. These agencies need253the help of Federal law enforcement to unravel these criminal254networks. In fact, some of the foreign nationals running these255grow operations are more heavily armed than local law256enforcement.257    One of my field reps in Oklahoma heard from a journeyman258electrician, who was hired to do some work on a rural property.259When he arrived at the site, he found what appeared to be a260large, foreign-run marijuana grow house and he personally261observed an armory of dozens of assault rifles and ammunition262crates. This network must be uncovered and eliminated from our263homeland, and it is really that simple. The potential threat264that comes from having a fully operational criminal network265associated with top foreign adversary on our soil is too great266to ignore. I look forward to an informative and productive267discussion.268    [The statement of Chairman Brecheen follows:]269                  Statement of Chairman Josh Brecheen270                           September 18, 2025271    Good afternoon and welcome to the Subcommittee on Oversight,272Investigations, and Accountability hearing on how China is using273illegal marijuana to build a criminal network across the United States.274    First, I would like to welcome the gentleman from Texas, Mr. Al275Green, who will serve on the Oversight, Investigations, and276Accountability subcommittee for the remainder of the 119th Congress. I277look forward to working with you.278    We are here today to talk about an important issue with potentially279significant national security implications. This issue has been280prevalent not just in my State of Oklahoma, but in many other States281from Maine to California, all across our homeland.282    Let me paint you a picture: A group of Chinese nationals affiliated283with a criminal organization cross the Southern Border and make their284way to rural Oklahoma. With them are workers who have been lured under285false promises of good jobs in the United States.286    When in Oklahoma, some Chinese nationals approach a local resident287with an offer they can't refuse. The Chinese nationals offer the288resident several hundred thousand dollars in cash to purchase a nearby289tract of land under the resident's name. In return, the resident gets290to keep a share of the money with no questions asked. The deal is quick291and simple.292    In a matter of days, the newly-purchased land becomes the site of a293large-scale, illegal marijuana grow operation.294    The workers find themselves forced to work 14-hour days under the295watch of armed guards--all while being confined to small living296quarters with minimal running water or air conditioning.297    The smell of toxic, illegally-smuggled Chinese pesticides used to298grow the marijuana fills the air--causing serious health issues.299    Hundreds of pounds of illegal--and potentially contaminated--300marijuana is produced and eventually ends up in our communities,301anywhere from Oklahoma to New York.302    This is just one hypothetical example of a Chinese grow operation303in my State of Oklahoma--a State that has had up to 12,000 of these304operations on-going at one time.305    Sadly, as we will learn today, this is only scratching the surface306of these Chinese criminal enterprises. Many Chinese-operated illegal307grow operations serve as fronts for a wider criminal enterprise,308including human and drug trafficking, prostitution, weapons smuggling,309and money laundering.310    And while the example I highlighted takes place in my home State of311Oklahoma, similar patterns are repeated in other States like Maine,312Massachusetts, and California. In fact, there are thousands of these313grow operations dispersed throughout our entire country--including in314our national parks and tribal lands.315    We have an excellent panel of expert witnesses before us today who316are going to walk us through how this issue affects the homeland.317Before we get to their testimony, I want to offer an important point of318clarification.319    The goal of today's hearing is not to debate the issue of320decriminalizing or rescheduling marijuana at the Federal level.321Everyone has opinions on that, but I want to focus our conversation on322the serious crimes taking place inside of these illegal grow sites, as323well as how Chinese transnational criminal organizations, many with324ties to the Chinese Communist Party (CCP), are setting up these sites325across the homeland as they expand an underground criminal network326right here in our backyard.327    We are holding this hearing today because we have enabled potential328agents of the Chinese Communist Party to build a sophisticated and329concerted criminal network, under the guise of these marijuana grow330operations, throughout the United States, which enables a wide range of331criminal activity and presents unique threats to our national security.332    This is a convergence of organized crime, human and drug333trafficking, and public health risks, which all operate at a scale and334sophistication that crosses State and national lines and is beyond the335normal capabilities of State and local law enforcement. These agencies336need the help of Federal law enforcement to unravel these criminal337networks.338    This network must be uncovered and eliminated from our homeland.339It's really that simple. The potential threats associated with having a340fully operational criminal network from our No. 1 foreign adversary on341our soil are too great to ignore.342    I look forward to an informative and productive discussion with our343witnesses today, and I now turn it over to the Ranking Member for his344opening remarks.345346    Chairman Brecheen. I now turn it over to Ranking Member347Thanedar for his opening remarks.348    Mr. Thanedar. Good morning and thank you, Chairman. Good349morning to all of our witnesses here. I want to welcome my350colleague Congressman Al Green from Texas on this committee and351look forward to his contribution to our proceedings here.352    Now, if you take a stroll through the District of353Columbia's neighborhoods, you are likely to encounter the354National Guard planting flowers or picking up trash and Federal355agents making traffic stops. This supposed crackdown on crime356has also played out in Los Angeles, is unfolding in Chicago,357soon coming to Memphis, and being threatened by the Vice358President that they are on their way or coming to Detroit if359needed. Trump's occupation of America's largest city is360reducing the Federal Government's ability to pursue serious361complex crimes. HSI agents have paused pursuing human362traffickers, DEA agents are not uncovering drug rings, and FBI363agents stopping investigating financial fraud. Instead, they364issue citations for open containers of alcohol, fare evasion,365and traffic offenses. The same Federal agents who investigate366money laundering and organized crime are also being deployed to367Home Depot parking lots to arrest migrants looking for work.368    Who is investigating the thousands of illegal marijuana369farms that currently exist in this country? I am not talking370about someone who is growing a handful of pot plants consistent371with their State's law and regulations. I am referring to372marijuana that is being grown by organized crime in our Federal373forests, business districts, and suburban neighborhoods,374perhaps even at the house next door. These illegal grow sites375are run by Mexican cartels, Cuban drug traffickers, and,376increasingly, Chinese organized crime.377    Just a few months ago, in my home State of Michigan, local378law enforcement arrested 4 Chinese nationals after discovering379over 5,000 marijuana plants worth around $5 million in a380warehouse. The billions of dollars in proceeds from illegal381marijuana help finance China's Belt and Road Initiatives, a382plan to wrestle global influence away from the United States383through foreign investment in developing nations that the Trump384administration has cut aid to. The illegal marijuana proceeds385also fuel Mexican cartels that traffic deadly fentanyl to the386United States.387    The marijuana black market is riddled with human388trafficking, human smuggling, and forced labor. All too often,389migrants are lured to farm with the promise of decent work.390Once they arrive, their identification is taken away and they391are forced to work 16 hours a day and live in substandard392conditions. Illegal marijuana cultivation sites are also393stealing our scarce resources, such as water and electricity,394while poisoning public lands and banned toxic chemicals and395pesticides. Illegal marijuana farms are a threat to our396national security, human rights, and the environment.397    The Federal Government has had some successes through the398Organized Crime Drug Enforcement Task Force. For example, in399January 2024, a Federal jury found 2 Chinese nationals guilty400of possessing and distributing marijuana. Over a 7-month401period, they shipped 56,000 pounds of marijuana from Oklahoma402to the East Coast. In June 2024, the Justice Department charged403associates of Mexico's Sinaloa drug cartel for conspiring with404groups linked to Chinese underground banking to launder drug405trafficking proceeds.406    Despite these wins and others, the Trump administration has407proposed eliminating funding for the OCDETF. I am leery that408OCDETF is being replaced with Homeland Security Task Force that409will further elevate immigration enforcement at the expense of410other law enforcement missions, including those best suited to411tackle illegal marijuana. The multifaceted threats posed by412illegal marijuana farms run by organized crime require a413coordinated national strategy and the resources to carry out414that strategy.415    I look forward to hearing from today's witnesses about the416resources required of the Federal Government to snuff our417illegal marijuana.418    Thank you all. I yield back, Mr. Chair.419    [The statement of Ranking Member Thanedar follows:]420               Statement of Ranking Member Shri Thanedar421                           September 18, 2025422    If you take a stroll through the District of Columbia's423neighborhoods, you're likely to encounter the National Guard planting424flowers or picking up trash, and Federal agents making traffic stops.425This supposed crackdown on crime has also played out in Los Angeles, is426unfolding in Chicago, and soon coming to Memphis.427    Trump's occupation of America's largest city is reducing the428Federal Government's ability to pursue serious, complex crimes. HSI429agents have paused pursuing human traffickers. DEA agents are not430uncovering drug rings. And FBI agents stopped investigating financial431fraud. Instead, they issue citations for open containers of alcohol,432fare evasion, and traffic offenses. These same Federal agents who433investigate money laundering and organized crime are also being434deployed to Home Depot parking lots to arrest migrants looking for435work.436    Who is investigating the thousands of illegal marijuana farms that437currently exist in this country? And I'm not talking about someone who438is growing a handful of pot plants consistent with their State's laws439and regulations. I'm referring to marijuana that is being grown by440organized crime in our Federal forests, business districts, and441suburban neighborhoods--perhaps even at the house next door.442    These illegal grow sites are run by Mexican cartels, Cuban drug443traffickers, and increasingly, Chinese organized crime. Just a few444months ago, in my home State of Michigan, local law enforcement445arrested 4 Chinese nationals after discovering over 5,000 marijuana446plants, worth around $5 million, in a warehouse.447    The billions of dollars in proceeds from illegal marijuana help448finance China's Belt and Road Initiative--a plan to wrestle global449influence away from the United States through foreign investment in450developing nations that the Trump administration has cut aid to. The451illegal marijuana proceeds also fuel Mexican cartels that traffic452deadly fentanyl to the United States. The marijuana black market is453riddled with human trafficking, human smuggling, and forced labor.454    All too often, migrants are lured to farms with the promise of455decent work. Once they arrive, their identification is taken, and they456are forced to work 16 hours a day and live in substandard conditions.457    Illegal marijuana cultivation sites are also stealing our scarce458resources, such as water and electricity, while poisoning public lands459with banned toxic chemicals and pesticides. Illegal marijuana farms are460a threat to our national security, human rights, and the environment.461The Federal Government has had some successes through the Organized462Crime Drug Enforcement Task Force (OCDETF).463    For example, in January 2024, a Federal jury found 2 Chinese464Nationals guilty of possessing and distributing marijuana. Over a 7-465month period they shipped 56,000 pounds of marijuana from Oklahoma to466the East Coast. In June 2024, the Justice Department charged associates467of Mexico's Sinaloa drug cartel for conspiring with groups linked to468Chinese underground banking to launder drug trafficking proceeds.469Despite these wins and others, the Trump administration has proposed470eliminating funding for OCDETF.471    I am leery that OCDETF is being replaced with Homeland Security472Task Forces that will further elevate immigration enforcement at the473expense of other law enforcement missions, including those best suited474to tackle illegal marijuana. The multi-faceted threats posed by illegal475marijuana farms run by organized crime require a coordinated national476strategy and the resources to carry out that strategy.477    I look forward to hearing from today's witnesses about the478resources required of the Federal Government to snuff out illegal479marijuana.480481    Chairman Brecheen. The Ranking Member yields. Thank you.482    To the other Members of the committee, you are reminded483that opening statements may be submitted for the record.484    [The statement of Ranking Member Thompson follows:]485             Statement of Ranking Member Bennie G. Thompson486                           September 18, 2025487    Despite the extreme title of today's hearing, the topic is a488serious one. Illegal marijuana farms operated by foreign criminal489organizations are a threat to security, human rights, and the490environment. Almost no State has been untouched by illegal marijuana491farms. From Maine to Oklahoma to Colorado and California, authorities492have played a sophisticated game of whack-a-mole with illegal marijuana493farms and the criminal organizations who operate them.494    Mexican cartels, Cuban gangs, Chinese organized crime, and American495locals have established themselves throughout the country to make low-496risk, fast money by growing illicit marijuana. But Chinese organized497crime quietly became the money launderers for Mexican cartels and other498criminal actors, then they invested those proceeds in the illegal499marijuana trade. Today, Chinese organized crime is the dominant player500in a field of illegal marijuana growers. The threat is not just from501the illegally grown and unregulated marijuana that is entering the502black market covered in chemicals and virtually untraceable. The503international criminal organizations that have taken over the illegal504marijuana trade are stealing water from critical sources in drought-505ridden States.506    They are covering marijuana plants and the ground around them with507rodenticide, insecticide, and other poisons that enter water supplies,508destroy farmland, and end up in the final product these gangs sell on509the black market. They rely on human trafficking and forced labor to510grow, cultivate, and tend these illegal marijuana grows. And their ill-511gotten gains are reinvested in criminal activities that undermine512American security at home and abroad. It is clear that illegal513marijuana farms pose a complex threat that requires a coordinated514national strategy to combat.515    Sadly, at a time when the United States needs a coordinated516national strategy to fight back against Chinese criminal organizations,517Mexican cartels, and other illicit marijuana growers, the Trump518administration is eliminating the Organized Crime Drug Enforcement Task519Force (OCDETF). At the same time, the Trump administration is520myopically focusing law enforcement resources on deporting people521rather than investigating the illegal marijuana grows that are522funneling money to international crime and enabling human trafficking.523    I look forward to hearing from today's witnesses about the illegal524marijuana farms that are fueling international criminal organizations525in our communities. I hope my Republican colleagues will take the526lessons we learn to heart and work with Democrats to ensure the Federal527Government has the resources and capability to combat this crime.528529    Chairman Brecheen. I am pleased to have a panel of530witnesses expert in their field before us today to speak to531this very important topic. I ask that our witnesses please532stand and raise their right hand.533    [Witnesses sworn.]534    Chairman Brecheen. Let the record reflect the witnesses535have answered in the affirmative. Thank you and please be536seated.537    I would now like to formally introduce our witnesses. Mr.538Donnie Anderson is director of the Oklahoma Bureau of539Narcotics. A native of Oklahoma, he has served in law540enforcement for nearly 3 decades. Mr. Paul Larkin is a senior541legal research fellow at the Heritage Foundation. He has worked542in Federal Government at the Department of Justice and the543EPA's Criminal Investigative Division, as well as the private544sector as a public policy researcher. Our third witness, Mr.545Chris Urben, is a managing director of Nardello & Company, a546global investigations consulting firm, and previously served as547a special agent senior official at the Drug Enforcement548Administration for 24 years. Thank you to all the witnesses for549being here today.550    I now recognize Director Anderson for 5 minutes for his551opening statement. I think that you traveled the longest from552Oklahoma, Mr. Anderson, to be here. Thank you for being here.553554  STATEMENT OF DONNIE ANDERSON, DIRECTOR, OKLAHOMA BUREAU OF555                           NARCOTICS556557    Mr. Anderson. Thank you, Mr. Chairman, Ranking Members, and558Members of the committee for inviting me to participate in559today's hearings and your interest in Chinese-owned marijuana560farms. This topic is not of only a public safety interest, but561also the interest of America's national security.562    My name is Donnie Anderson. I am the director of the563Oklahoma Bureau of Narcotics. I've dedicated over 34 years of564my life to public safety and drug enforcement in the State of565Oklahoma.566    I can say without hesitation that the impact of black567market marijuana in Oklahoma is unlike anything I've ever568encountered in my career. What is even more alarming is the569growing influence and involvement of the Chinese Communist570Party in this illicit industry. Please understand that what I571share today represents only a fraction of the broader threat we572face. Several investigations remain open and I am unable to573comment on them further without jeopardizing the integrity,574endangering the brave men and women at the Bureau who are575investigating these cases, or violating the laws to prohibit576disclosure of active investigations.577    In 2018, Oklahoma voters approved Medical Marijuana State578Question 788, drafted by marijuana advocates. Unfortunately,579the law imposed no limits on the number of grow operations or580the quantity of plants each could cultivate. This lack of581regulations led to a staggering oversupply. Between March 2024582to March 2025, licensed grow sites reported 87,210,960 plants583in the State of Oklahoma. Yet dispensaries sold just a little584over 1.6 million pounds of marijuana in a dispensary. Given585that one plant typically yields 1 pound of processed marijuana,586over 85 million plants are unaccounted for, representing an587estimated $153 billion in missing product and proceeds. To put588this in perspective, as of September 9, 2025, Oklahoma has589324,850 licensed medical marijuana patients.590    The scale of unreported inventory is deeply troubling,591especially considering the black market producers routinely592underreport their plant count. Oklahoma's medical marijuana593framework has inadvertently opened the door to international594organized crime. Criminal actors exploit the system to produce595high-potency marijuana for black market distribution, fueling596what is now estimated to be $153 billion illicit industry. A597particular concern is a high prevalence of Chinese nationals598involved in these operations. Their presence has a profound599effect on both our State and national security. Consider the600following examples.601    In 2022, 4 Chinese nationals were executed in an illegal602marijuana farm near Hennessey, Oklahoma. A fifth individual was603seriously injured. The operation used a fraudulent license604obtained via a straw ownership. April 2024, law enforcement605arrested multiple suspects in connection with a robbery and606homicide at a grove site in Okfuskee County in Oklahoma. The607victim, 53-year-old Harry Dam, was fatally shot. July 2025, a608Canadian national was found murdered execution-style at a grow609operation near Lake Thunderbird, just east of Norman, Oklahoma.610The death is believed to be the result of a targeted robbery.611The investigation remains on-going currently.612    These incidents are just a few among many. Beyond these613murders, State authorities have documented a sharp rise in614violent crime linked to black market marijuana operations615masquerading as legal enterprises. The Oklahoma Bureau of616Narcotics reports associated crimes, including human and sex617trafficking, money laundering, illegal gambling, extortion,618theft of water and electricity. Our agency currently employs 1619Mandarin-speaking agent. However, this is insufficient when620suspects communicate in Cantonese and Fujianese, languages that621Mandarin speakers cannot reliably translate.622    Compounding this issue is the wide-spread use of WeChat, a623Chinese-owned platform used for both communication and624financial transactions. Because WeChat is based in mainland625China and encrypted, U.S. law enforcement cannot serve legal626process or conduct electronic surveillance as we would with627domestic platforms. These apps fall outside the scope of the628Communication Act of 1996 and Electronic Communications Privacy629Act of 1986, making them a major obstacle in our630investigations.631    Oklahoma law requires marijuana business owners to be State632residents with at least 2 years of residency. Yet nearly all633Chinese-operated grows circumvent this requirement through634fraud and straw ownership. In one instance, a single Oklahoman635was listed as the owner of approximately 300 marijuana farms in636Oklahoma. This wide-spread fraud is facilitated by consulting637firms, real estate agents, and attorneys who help establish638these shell operations.639    Alarmingly, many of these groves are located near critical640infrastructure, including military bases and pipelines. For641example, in an on-going investigation, the Department of642Defense reported suspicious activity at a marijuana grow643operated by an ethnic Chinese group located adjacent to the644McAlester Ammunition Plant. This ammunition plant is the645largest in the United States that is also responsible for646manufacturing the MOAB, Massive Ordnance Air Blast bomb, and647houses close to the third of the Department--it maintains a648third of the Department of Defense's munitions stockpile.649That's where it's at in McAlester, Oklahoma.650    This is no doubt the Chinese government has shown interest651in Oklahoma's marijuana authority. We have documented financial652transfers to the bank of China and connections to businesses653owned by the Chinese government. These concerns have amplified654by recent reports of CCP activity in operations, like Salt655Typhoon, which my agency was directly affected. Regardless of656property ownership, it is my belief that the CCP maintains657access to these sites, particularly through its known practices658of controlling expatriates via so-called police stations.659    Thank you for your time and attention to this critical660issue. I'm available to answer any questions you may have or to661provide additional information as needed.662    [The prepared statement of Mr. Anderson follows:]663                 Prepared Statement of Donnie Anderson664                           September 18, 2025665    Thank you Mr. Chairman, Ranking Members, and Members of the666committee for inviting me to participate in today's hearing and your667interest in Chinese-owned marijuana farms. This topic is of not only a668public safety interest, but also the interest of America's national669security. My name is Donnie Anderson, and I am the director of the670Oklahoma Bureau of Narcotics (OBN). I have dedicated over 34 years to671public safety and narcotics enforcement, and I can say without672hesitation that the impact of black-market marijuana in Oklahoma is673unlike anything I have encountered in my career. What is even more674alarming is the growing influence and involvement of the Chinese675Communist Party (CCP) in this illicit industry.676    Please understand that what I share today represents only a677fraction of the broader threat we face. Several investigations remain678open, and I am unable to comment on them further without jeopardizing679their integrity, endangering the brave men and women working these680cases, or violating laws that prohibit disclosure of active681investigations.682    In 2018, Oklahoma voters approved medical marijuana State Question683788 drafted by marijuana advocates. Unfortunately, the law imposed no684limits on the number of grow operations or the quantity of plants each685could cultivate. This lack of regulation has led to a staggering686oversupply.687    Between 2024 and 2025, licensed grow sites reported 87,210,960688plants. Yet dispensaries sold only 1,689,601 pounds of marijuana. Given689that one plant typically yields 1 pound of processed marijuana, over 85690million plants are unaccounted for--representing an estimated $153691billion in missing product and proceeds.692    To put this in perspective, as of September 9, 2025, Oklahoma has693324,850 licensed medical marijuana patients. The scale of unreported694inventory is deeply troubling, especially considering that black-market695producers routinely underreport their plant counts.696    Oklahoma's medical marijuana framework has inadvertently opened the697door to international organized crime. Criminal actors exploit the698system to produce high-potency marijuana for black-market dtstribution,699fueling what is now estimated to be a $153 billion illicit industry.700    Of particular concern is the high prevalence of Chinese nationals701involved in these operations. Their presence has had a profound effect702on both our State and national security. Consider the following703examples:704   2022.--Four Chinese nationals were executed at an illegal705        marijuana farm near Hennessey, OK. A fifth individual was706        seriously injured. The operation used a fraudulent license707        obtained via a straw owner.708   April 2024.--Law enforcement arrested multiple suspects in709        connection with a robbery and homicide at a grow site in710        Okfuskee County. The victim, 53-year-old Harry Dam, was fatally711        shot.712   July 2025.--A Canadian national was found murdered713        execution-style at a grow operation near Lake Thunderbird. The714        death is believed to be the result of a targeted robbery. The715        investigation remains ongoing.716    These incidents are just a few among many. Beyond these murders,717State authorities have documented a sharp rise in violent crime linked718to black-market marijuana operations masquerading as legal enterprises.719The Oklahoma Bureau of Narcotics (OBN) reports associated crimes720including:721   Human and sex trafficking722   Money laundering723   Illegal gambling724   Extortion725   Theft of water and electricity.726    Our agency currently employs one Mandarin-speaking agent. However,727this is insufficient when suspects communicate in Cantonese or728Fujianese--languages that Mandarin speakers cannot reliably translate.729Compounding this issue is the widespread use of WeChat, a Chinese-owned730platform used for both communication and financial transactions.731    Because WeChat is based in mainland China and encrypted, U.S. law732enforcement cannot serve legal process or conduct electronic733surveillance as we would with domestic platforms. These apps fall734outside the scope of the Communications Act of 1996 and the Electronic735Communications Privacy Act of 1986, making them a major obstacle in our736investigations.737    Oklahoma law requires marijuana business owners to be State738residents with at least 2 years of residency. Yet nearly all Chinese-739operated grows circumvent this requirement through fraud and straw740ownership. In one instance, a single Oklahoman was listed as the owner741of approximately 300 farms.742    This wide-spread fraud is facilitated by consulting firms, real743estate agents, and attorneys who help establish these shell operations.744Alarmingly, many of these grows are located near critical745infrastructure, including military bases and pipelines.746    For example, in an on-going investigation, the Department of747Defense has reported suspicious activity at a marijuana grow operated748by an ethnic Chinese group located adjacent to the McAlester ammunition749plant. This ammunition plant is the largest in the United States that750is also responsible for manufacturing the MOAB (Massive Ordinance Air751Blast) bomb, and houses close to one-third of the Department of752Defense's munitions stockpile.753    There is no doubt that the Chinese government has shown interest in754Oklahoma's marijuana industry. We have documented financial transfers755to the Bank of China and connections to businesses owned by the Chinese756government.757    These concerns are amplified by recent reports of CCP activity in758operations like Salt Typhoon. Regardless of property ownership, it is759my belief that the CCP maintains access to these sites, particularly760through its known practice of controlling expatriates via so-called761``police stations.''762    Thank you for your time and attention to this critical issue. I am763available to answer any questions you may have or to provide additional764information as needed.765766    Chairman Brecheen. Thank you, Mr. Anderson.767    I now recognize Director Larkin for 5 minutes for his768opening statement.769770STATEMENT OF PAUL J. LARKIN, JOHN, BARBARA, AND VICTORIA RUMPEL771SENIOR LEGAL RESEARCH FELLOW, EDWIN MEESE III CENTER FOR LEGAL772         AND JUDICIAL STUDIES, THE HERITAGE FOUNDATION773774    Mr. Larkin. For 60 years, one of the primary arguments made775in favor of the legalization of cannabis is that it will776eliminate the black market. The rationale given was that people777would prefer to avoid criminal prosecution for using cannabis778and they would like to purchase it from a store with a quality779reputation and a quality product. Over the last 5 to 10 years.780We now know that that argument is a fugazi. The black market781has not disappeared even though a majority of States in the782United States now have approved either medical or recreational783use marijuana programs. In fact, the problem that you have784taken up is a matter not just of public health, which is the785way cannabis issues are normally thought of. It's a matter of786domestic or homeland and national security.787    Why? The businesses that we see across the Nation selling788cannabis for medical or recreational purposes are not run by7891950's-era beatniks or 1960's-era hippies. They are run by790Chinese organized crime with a tacit knowledge and acquiescence791by the People's Republic of China and the Chinese Communist792Party, two entities that are sworn enemies of the United793States. That raises a clear homeland and national security794aspect of this problem that has been under-discussed in all the795debates over cannabis legalization.796    This is a serious problem. According to the Whitney797Economics Organization, the cannabis market is a $100 billion798industry, 75 percent of it is the illegal market and two-thirds799of the cannabis sold in the United States is grown800domestically. So we're talking not just about somebody who is801growing 5 plants in a home in connection and as authorized by a802State law. We're talking about people growing massive803quantities who are part of an organization that has nothing but804the worst interests of people in our neighborhoods in mind.805    I mean, the existence of this black market is recognized by806numerous parties. Senator Joni Ernst and 49 other Members of807Congress sent a letter to then-Attorney General Merrick Garland808asking him to look into this. There have been numerous other809organizations and think tanks that have written about it. There810are beaucoup media stories, written, print, or in the TV media811on this. They all agree that this is a serious problem because812it is not simply the illegal distribution of controlled813substances that is at issue. It is all of the associated crimes814that occur. As the Ranking Member pointed out, we will see815money laundering, human trafficking, prostitution, fraud, and816various types of violent crimes, including homicides, as my817colleague has pointed out. All of these damage our local818communities.819    But it's not just that. The money that Chinese organized820crime made from illegal fentanyl sales has helped underwrite821their cannabis business in the United States. The money that822they make in the current operations can be used to spread those823operations into other States and other areas as well as for824other purposes that do not have the best interests of the825United States in mind. Now, if this were just simply a small-826scale matter rather than a coast-to-coast matter, it might not827merit the attention of anything other than the legislatures,828the Executive branch, and law enforcement in those States and829neighborhoods. But it is, in fact, from coast to coast, from830Maine to California. Oklahoma, which is probably halfway831between, has seen a very serious problem as for the reasons my832colleague gave because there is unlimited grows allowed in that833State.834    Now, as I mentioned before, this is not simply a problem of835domestic people that have broke bad. The Chinese organized836crime elements are working with the tacit knowledge and837acquiescence of the PRC and CCP. Now, that does--the law does838not require a formal agreement amongst those parties in order839for them to be held criminally liable. As I have explained in840some of my writings, the conspiracy laws allow someone to put841together a case based on various types of circumstantial842evidence of which there is an ample amount here.843    What we have is a national problem involving a drug that,844unfortunately, is seen as being milder in some ways than others845and, pharmacologically, in many respects it is. But cannabis is846very harmful if you use it on a long-term basis or in very847serious doses. I am glad that you're holding this hearing and848I'm glad to answer your questions.849    [The prepared statement of Mr. Larkin follows:]850                  Prepared Statement of Paul J. Larkin851                           September 18, 2025852    Thank you for the opportunity to submit a written statement and853testify at this hearing.\1\ As the Rumpel Senior Legal Fellow at The854Heritage Foundation, much of my recent scholarship has focused on drug855policy and the involvement of foreign countries, including China, in856the illicit drug trade.\2\ I will draw from them here.857---------------------------------------------------------------------------858    \1\ The Heritage Foundation is a public policy, research, and859educational organization recognized as exempt under section 501(c)(3)860of the Internal Revenue Code. It is privately supported and receives no861funds from any government at any level, nor does it perform any862government or other contract work. The Heritage Foundation is the most863broadly supported think tank in the United States. During 2024, it had864hundreds of thousands of individual, foundation, and corporate865supporters representing every State in the U.S. Its 2024 operating866income came from the following sources: Individuals 81 percent;867Foundations 14 percent; Corporations 2 percent; Program revenue and868other income 3 percent. The top five corporate givers provided The869Heritage Foundation with 1 percent of its 2024 income. The Heritage870Foundation's books are audited annually by the national accounting firm871of RSM US, LLP. Members of The Heritage Foundation staff testify as872individuals discussing their own independent research. The views873expressed are their own and do not reflect an institutional position of874The Heritage Foundation or its board of trustees.875    \2\ For the subcommittee's convenience, I have attached as876appendices two relevant Heritage Foundation publications of mine: (1)877Paul J. Larkin, China and Cannabis, HERITAGE FOUND., Legal Memorandum878No. 380 (2025) [hereafter Larkin, China and Cannabis], and (2) Paul J.879Larkin, Twenty-First Century Illicit Drugs and Their Discontents: The880Failure of Cannabis Legalization to Eliminate an Illicit Market,881HERITAGE FOUND. Legal Memorandum No. 326 (2023).882---------------------------------------------------------------------------883                              introduction884    Most debates over the rescheduling, decriminalization, or885legalization of cannabis, known in the lingo as ``marijuana,'' focus on886the public health question of whether it is a relatively harmless887intoxicant or a medically hazardous drug.\3\ This hearing, by contrast888addresses a homeland security aspect of the controversy over cannabis:889namely, the problem of control by Chinese organized crime elements (or890Triads) of the unlawful medical and recreational cannabis markets in891the United States.\4\892---------------------------------------------------------------------------893    \3\ I have written on that subject. See, e.g., Bertha K. Madras &894Paul J. Larkin, Rescheduling Cannabis--Medicine or Politics?, 82 JAMA895PSYCHIATRY 934 (2025); Paul J. Larkin, Driving While Stoned in896Virginia, 59 AM. CRIM. L. REV. ONLINE 1 (2022); Paul J. Larkin,897Reconsidering Federal Marijuana Regulation, 18 OHIO ST. J. CRIM. L. 99898(2020).899    \4\ Unless the context dictates otherwise, references to ``China,''900``Chinese,'' the ``People's Republic of China (PRC),'' or the ``Chinese901Communist Party (CCP)'' should be read as referring to Chinese902organized crime elements. That is an important subject worth serious903consideration.904---------------------------------------------------------------------------905    It would be troublesome if any foreign nation gained a dominant906position in any criminal market in the United States. But the subject907of this hearing concerns a far, far more severe problem. The People's908Republic of China (PRC) and the Chinese Communist Party (CCP) are909committed enemies of the United States.\5\ They seek to displace the910United States as the world's dominant military and economic power by no911later than 2049, the centennial anniversary of the founding of the PRC.912For that reason, it is a matter of paramount and urgent concern for the913Nation's security that Chinese organized crime elements have914infiltrated the American States that have legalized cannabis for915medical or recreational purposes.916---------------------------------------------------------------------------917    \5\ ``The Chinese government has made no secret of its ambition to918surpass the West both militarily and economically by the regime's 100th919anniversary in 2049 in the hope that the 21st Century will be dominated920by China in the same way that the 20th Century was dominated by the921United States. According to a popular saying in Chinese mythology,922`there is only one sun in the sky.' . . . What is worrisome is how923China achieves and maintains that wealth and power within the924increasingly interdependent global environment and its effects on the925security and well-being of the Western democracies.'' JOHN A. CASSARA,926MONEY LAUNDERING AND ILLICIT FINANCIAL FLOWS: FOLLOWING THE MONEY AND927VALUE TRAILS 193 (2020) (footnote omitted); see also, e.g., Tom Porter,928China Waging New Cold War to Topple U.S. as World's Leading Superpower,929Says CIA Official, NEWSWEEK, July 22, 2018; https://www.newsweek.com/930china-waging-new-cold-war-topple-us-worlds-leading-superpower-says-cia-9311036226 (``Michael Collins, the deputy assistant director of the CIA's932East Asia Mission Center stated in 2018 that Beijing's tactics to933achieve its ambitions fit the definition of a cold war: `I would argue934by definition what they're waging against us is fundamentally a cold935war . . . A country that exploits all avenues of power licit and936illicit, public and private, economic and military, to undermine the937standing of your rival relative to your own standing without resorting938to conflict.' ''); Larkin, China and Cannabis, supra note 2, at 10 n.2939(collecting authorities).940---------------------------------------------------------------------------941i. chinese organized crime's involvement in the u.s. domestic cannabis942                                industry943    According to the U.S. Drug Enforcement Administration (DEA),944``Chinese and other Asian [Transnational Criminal Organizations, or945TCOs] have taken control of the marijuana trade'' in the United946States.\6\ Over 10 years, ``Chinese TCOs have come to dominate the947cultivation and distribution of marijuana across the United States,'' a948development seen from California to Oklahoma to Maine.\7\ Most of the949Chinese TCOs' cannabis cultivation occurs in States that have legalized950cannabis production under State law, although the TCOs often relocate951to other States once they are discovered.\8\ According to a recent952report by the Federal High Intensity Drug Trafficking Areas entitled953Chinese Nationals and Marijuana in the United States, ``[a]n954unprecedented expansion of Chinese-operated marijuana farms has been955tracked across the United States, with operations from California to956Maine,'' meaning that ``Chinese marijuana operations now dominate the957U.S. illegal drug market at levels never seen before.''\9\ Various958other parties--including Federal, State, and local law enforcement959officers, Members of Congress, and investigative journalists--have960reached the same conclusion.\10\961---------------------------------------------------------------------------962    \6\ DRUG ENF'T ADMIN, U.S. DEP'T OF JUST., 2025 National Drug963Threat Assessment, DEA-DCT-DIR-007-25, at 51 (May 2025) [hereafter 2025964DEA Threat Assessment].965    \7\ 2025 DEA Threat Assessment, supra note 6, at 49; id.: The966purchase of real estate for both indoor and outdoor grows, and for the967storage of needed equipment, is often initially funded through family968and community connections, both in China and in the United States, as969many seek to skirt restrictions on the movement of currency from970Chinese banks to foreign countries. Undocumented Chinese immigrants,971many of whom spent years in Mexico and were lured to the United States972with offers of legal employment, staff many of the grow sites alongside973undocumented Mexican immigrants in similar circumstances. The974undocumented migrants are closely monitored by the Chinese TCO members975who own and manage the grows. Most of the grow sites are located in976States where the cannabis industry is ``legal,'' though most do not977follow the established licensure process or have obtained their978licenses through falsified means. They face little prison time, if any,979when caught, and often move to a new location in the same State or to980another ``legal'' State once discovered. The Chinese TCOs are producing981the most potent form of marijuana in the history of drug trafficking,982with a THC content averaging 25 to 30 percent, compared to a national983average of 16 percent. The grow sites use pesticides and fertilizers984shipped from China, including many chemicals banned in the United985States for decades because of adverse health and environmental986consequences. Not only are these chemicals entering the water, soil,987and air around the grow sites, some quantity of these chemicals also988remains on the processed marijuana that is ingested by users.989    Oklahoma seems to have been targeted because there is no effective990limit on the amount of cannabis that can be grown. See NAT'L STRATEGIC991ANALYSIS INITIATIVE, HIGH INTENSITY DRUG TRAFFICKING AREAS, Briefing992Report--Chinese Nationals and Marijuana in the United States 2-3 (2025)993[hereafter HIDTA Report on China and Cannabis] (``Oklahoma became a994hotspot for Chinese marijuana operations after voters said `yes' to995medicinal marijuana in 2018. The State stood out because it did not996limit the number of dispensaries or growing operations . . . In997Oklahoma, the lack of regulations to limit the number of dispensaries998or grow operations created opportunistic conditions for illegal999activities. State investigators found connections between foreign1000criminal networks and over 3,000 illegal grows--more than 80 percent of1001these were Chinese-run. The Oklahoma Bureau of Narcotics (OBN) shut1002down more than 800 farms in 2 years. About 75 percent of these had1003links to Chinese investors and organized crime.'') (footnotes omitted);1004Terry Gross, How the Chinese Mafia Came to Control Much of the Illicit1005Marijuana Trade in the U.S., NPR, Mar. 21, 2024, https://www.npr.org/10062024/03/21/1239854106/how-the-chinese-mafia-came-to-control-much-of-1007the-illicit-marijuana-trade-in-the (last accessed Aug. 1, 2025) (``You1008have remarkable scenes of private planes flying from rural airstrips in1009California to Oklahoma with couriers carrying suitcases full of cash to1010go out and buy farms in Oklahoma, where land is cheap, and setting up1011new operations in the new hotspot where they can make even more money1012because there's really no limits on how big these farms are and how1013much marijuana they can grow . . . GROSS: . . . [W]hy Oklahoma? You1014mentioned that land is cheap there. Is that the main reason why1015Oklahoma has become such a big State for the illicit growth of1016marijuana? [1017] ROTELLA: It's partly because the land is cheap. It's1018also because that medical marijuana law they passed made it1019particularly easy just to move in, set up and grow. In other States,1020there are limits on how much you can grow. In Oklahoma, there are1021basically no limits. So you have these huge operations and thousands of1022farms growing marijuana and, you know, law enforcement kind of1023overwhelmed and trying to keep up with it and prevent what is kind of1024wholesale trafficking to other States.''); id. (``ROTELLA: What has1025happened is there have just been a great deal of--an overwhelming1026number of farms--at one point, there were 10,000 growing operations in1027Oklahoma--and systematic abuse and violation of those laws,1028particularly criminal groups paying, illegally, Oklahoma residents to1029be straw owners and farms that are producing far more marijuana than1030could be consumed in Oklahoma for medical purposes. And most of that1031marijuana is going around the country, particularly the East Coast, to1032be sold illegally. [1033] GROSS: So organized crime gets people to front1034for them and get a license, and then organized crime can move in and1035grow. And it looks legal. [1036] ROTELLA: And it has the facade of1037legality. And what's happening is then taking advantage of the fact1038that you can get a lot more money, say, if you're selling the dope in1039New York or on the East Coast. There's smuggling of, you know, truck-1040loads of marijuana and huge profits--you know, billions of dollars1041being made in this marijuana that's grown in Oklahoma and being1042trafficked and sold elsewhere.'').1043    \8\ See Gross, supra note 7 (``When States started legalizing1044marijuana, one of the hopes was that it would cut down on crime because1045people could buy it legally from licensed sellers. But in some States,1046including Oklahoma, legalization inadvertently helped organized crime,1047especially the Chinese mafia, exploit new opportunities. Chinese1048organized crime has come to dominate much of the illicit marijuana1049trade in the Nation, from California to Maine[.]'').1050    \9\ HIDTA Report on China and Cannabis, supra note 7, at 2; see1051also id. at 1 (``Oklahoma's illegal marijuana production alone ranges1052between $18 billion and $44 billion each year . . . Chinese marijuana1053operations have spread across America in a clear pattern. They started1054in California over a decade ago and have now expanded to States that1055have favorable growing conditions with less oversight. Oklahoma became1056a hotspot for Chinese marijuana operations after voters said `yes' to1057medicinal marijuana in 2018. The State stood out because it did not1058limit the number of dispensaries or growing operations.''); id.1059(``Oklahoma saw its licensed marijuana grows reach almost 10,000 by1060late 2021, which provided perfect cover for illegal operations.'')1061(footnote omitted);.''); id. at 2 (``State investigators found1062connections between foreign criminal networks and over 3,000 illegal1063grows--more than 80 percent of these were Chinese-run. The Oklahoma1064Bureau of Narcotics (OBN) shut down more than 800 farms in 2 years.1065About 75 percent of these had links to Chinese investors and organized1066crime.'') (footnotes omitted).1067    \10\ See, e.g., U.S. DEP'T OF JUST., Press Release, Seven Chinese1068Nationals Charged for Alleged Roles in Multi-Million-Dollar Money1069Laundering, Alien Smuggling and Drug Trafficking Enterprise, July 8,10702025 [hereafter DOJ, Seven Chinese Nationals Charged], https://1071www.justice.gov/usao-ma/pr/seven-chinese-nationals-charged-alleged-1072roles-multi-million-dollar-money-laundering (``Seven Chinese nationals1073were charged today in connection with a multi-million-dollar conspiracy1074to cultivate and distribute marijuana across the Northeast that used1075interconnected grow houses concealed inside single-family properties in1076Massachusetts and Maine. It is alleged that Chinese nationals were1077smuggled into the United States to work in these grow houses without1078access to their passports until they repaid their smuggling debts . . .1079Data extracted from Chen's [Jianxiong Chen, the accused ringleader of1080this organization] cell phone allegedly revealed that he helped smuggle1081Chinese nationals into the United States--putting the aliens to work at1082one of the grow houses he controlled while keeping possession of their1083passports until they repaid him for the cost associated with smuggling1084them into the country.''); Letter from U.S. Senator Jodi Ernst and 491085Other Members of Congress to U.S. Attorney Gen'l Merrick Garland1086Regarding Chinese Nationals and Organized Crime Cultivation of Cannabis1087in the United States 1 (Feb. 2, 2024) [hereafter Ernst Letter], https:/1088/www.ernst.senate.gov/imo/media/doc/ernst_works_to_shut_down_ccp-1089linked_marijuana_farms.pdf (last accessed Sept. 10, 2025) (``We are1090deeply concerned with reports from across the country regarding Chinese1091nationals and organized crime cultivating marijuana on United States1092farmland. In some cases, the grow operators were also engaged in human1093trafficking, forced labor, drug trafficking, and violent crime. These1094farms are most commonly in States with legal marijuana programs where1095illicit growers try to disguise their operations in communities where1096law-abiding Americans live and work. The thousands of illicit Chinese1097marijuana growing operations pose a direct threat to public safety,1098human rights, national security, and the addiction crisis gripping our1099Nation.'') (footnotes omitted); Emily Feng, Marijuana Farms Are1100Increasingly Chinese-Run. Why?, NPR, Mar. 13, 2024, https://1101www.npr.org/2024/03/23/1240510436/marijuana-farms-are-increasingly-1102chinese-run-why (last accessed Aug. 1, 2025) (``37,000 Chinese people .1103. . crossed into the country this way last year alone [i.e., 2023].1104U.S. border authorities say this number is more than the past 10 years1105combined.''); Natalie Fertig, The Growing Chinese Investment in Illegal1106American Weed, POLITICO, Mar. 21, 2023, www.politico.com/news/2023/03/110721/illicit-cannabis-china-00086125 (last accessed Sept. 8, 2025) (``In1108California, the Department of Cannabis Control says Chinese triads have1109been nominally involved in illegal cannabis production for decades, but1110that there's been a recent increase in the number of actors and money1111that may have originated in China. The DCC also said that some--but not1112all--of the Chinese-funded grows they've encountered are operated by1113Chinese triads. `This notion that you now have Chinese actual funding1114for illicit cannabis, it's definitely new, and it cuts directly across1115the interests of Mexican drug trafficking groups,' said [Vanda] Felbab1116Brown. `It's interesting to see whether it continues growing, [and] how1117that's going to affect relations between the Mexicans and the Chinese1118[criminal groups].' ''); id. (``A few days before Christmas, a joint1119law enforcement task force found nearly 9,000 pounds of cannabis worth1120almost $15 million during a raid in a suburban neighborhood in Antioch,1121Calif. . . . The California Department of Cannabis Control believes1122that the 4 houses searched in the bedroom community 45 minutes outside1123San Francisco were linked to China.''); id. (``Law enforcement in1124southern Oregon in 2021 reported as many as 20 different nationalities1125linked to illegal grows. But the increasing amount of Chinese funding--1126and what lawmakers and some experts say is the potential influence of1127the Chinese Communist Party--has caught the attention of legislators1128and law enforcement alike.''); Liyan Qi, How Chinese Marijuana1129Operations Cropped Up in Small-Town America, WALL ST. J., Nov. 30,11302023, https://www.wsj.com/us-news/law/how-chinese-marijuana-operations-1131cropped-up-in-small-town-america-45b7b598?-1132mod=Searchresults_pos2&page=1 (last accessed Aug. 1, 2025) (``Following1133the legalization of marijuana in many States, Chinese-run marijuana1134farms have emerged across the U.S. Some are run by investor groups with1135a commercial growing license. But just as illegal marijuana shops have1136proliferated, so have unlicensed growing operations.''); id. (``In1137California, Chinese networks have seized on the highly lucrative black1138market in marijuana growing, said Lt. Raymond Framstad of the Merced1139County Sheriff's Office, who has investigated more than 20 cases1140involving unlicensed Chinese-run operations.''); Gross, supra note 71141(``Marijuana has been legalized in some States, but ProPublica's1142Sebastian Rotella says there's still a thriving illicit market,1143dominated by criminals connected to China's authoritarian1144government.''); id. (``In California, Chinese networks have seized on1145the highly lucrative black market in marijuana growing, said Lt.1146Raymond Framstad of the Merced County Sheriff's Office, who has1147investigated more than 20 cases involving unlicensed Chinese-run1148operations.''); id. (``Many Chinese networks have enough equipment for1149several large residential operations . . . They find the house that1150they want, equip it to grow marijuana a year or longer before the1151police crackdown, then fix the property up and sell it at a profit . .1152. A residential black-market growing operation can be set up for as1153many as six harvests a year, bringing in an annual profit of several1154million dollars depending on the size, said [Lieutenant] Framstad, who1155oversees the marijuana enforcement team at the sheriff's office.'');1156Sebastian Rotella et al., A Diplomat's Visits to Oklahoma Highlight1157Contacts Between Chinese Officials and Community Leaders Accused of1158Crimes, PROPUBLICA, Mar. 22, 2024, www.propublica.org/article/oklahoma-1159marijuana-china-diplomat-visits (last accessed Sept. 120,[sic] 2025)1160(`` `These diaspora associations are tools of the Chinese state,' said1161Donald Im, a former senior official at the Drug Enforcement1162Administration. `The presence of criminal elements in the leadership1163suggests an alliance, directly or indirectly, between the Chinese state1164and organized crime.' '').1165---------------------------------------------------------------------------1166    Chinese organized crime has been able to move into the American1167cannabis industry because--contrary to what cannabis reform advocates1168have told us for the last 60-plus years--the legalization of cannabis1169has not eliminated a black (or grey) market for that plant.\11\ Since1170the 1960's, cannabis reform proponents have argued that a black market1171will always exist to meet the consumer demand for illegal cannabis, so1172the best way to eliminate that market is to legalize and regulate its1173cultivation, distribution, and sale. The availability of legally sold1174cannabis, we were told, would eliminate the black market for two1175reasons. The average person wants both to avoid arrest, prosecution,1176and imprisonment for purchasing cannabis and also prefers doing so from1177an above-board store with a reputation for selling a safe, reliable,1178and uniform product instead of buying a potentially dangerous substance1179with an unknown effect. Accordingly, the argument concluded, the1180illicit cannabis market would disappear through the ordinary work of1181basic economics and consumer choice in a legitimate market.1182---------------------------------------------------------------------------1183    \11\ In a ``black market,'' any sale of cannabis is illegal. A1184``grey market'' is one where cannabis may be sold but is regulated and1185taxed, and sales occur outside the regulatory and tax regime.1186---------------------------------------------------------------------------1187    That is not what happened. As I explained in my article China and1188Cannabis:11891190``History has proved the reformers wrong; illicit markets are still1191with us today, nearly 30 years after California rolled the first1192cannabis snowball downhill. According to estimates made by Whitney1193Economics, which analyzes the cannabis industry, the illegal markets1194constitute approximately 75 percent of the $100 billion industry, and1195two-thirds of the cannabis sold in these markets is grown domestically.1196Even the Supreme Court of the United States has acknowledged that1197`there is an established, albeit illegal, interstate market' for1198cannabis in the United States. Parties who grow and sell cannabis1199without a license have continued to prosper in States where it may be1200lawfully distributed under State law. The illicit industry in some1201States--California, where the contemporary cannabis revolution began,1202is a prime example--is larger than the lawful one that was supposed to1203drive the former out of business.1204``The reason for the black market's survival is Economics 101 `with a1205dose of convenience thrown in.' Unlicensed growers do not pay the taxes1206that licensed businesses pay, nor do they comply with the environmental1207and labor regulations that increase the operating costs for regulated1208firms. The result is that they can sell cannabis at a lower price than1209State-licensed stores can charge. Additionally, some people will fear1210being `outed' as users because it could cost them their jobs or damage1211their reputation, so they will continue to purchase cannabis on the1212sly. Cannabis grown for medical or personal uses, which are not subject1213to any business taxes and regulations, can be sold locally in1214competition with retail stores. Finally, cannabis has been grown1215illegally in Federal and State parks, which adds to the amount1216available for sale to the public. Illicit sales have become a fixture1217of the cannabis market, and there is no evidence that cannabis's1218thriving black market will disappear, whether soon or ever.''\12\1219---------------------------------------------------------------------------1220    \12\ Larkin, China and Cannabis, supra note 2, at 3 (footnotes1221omitted).1222---------------------------------------------------------------------------1223  ii. the potential symbiotic relationship between chinese organized1224  crime and the government of the people's republic of china and the1225                        chinese communist party1226    There is reason to believe that Chinese Organized Crime is acting1227with the knowledge of, and tacit acceptance by, the government of the1228People's Republic of China (PRC) and the Chinese Community Party (CCP).1229U.S. Senator Joni Ernst and 49 other Members of Congress made that1230point in a February 2, 2024, letter to then-U.S. Attorney General1231Merrick Garland.\13\ According to a 2024 report by ProPublica, ``U.S.1232and foreign national security officials have alleged that the Chinese1233state maintains a tacit alliance with Chinese organized crime in the1234U.S. and across the world.''\14\ Brookings Institution drug policy1235expert Vanda Felbab-Brown concluded that ``[t]he Chinese government has1236a complicated relationship with organized crime.''\15\ The PRC1237ostensibly condemns the Triads, but seems to acquiesce in their global1238fentanyl and methamphetamine drug trafficking networks. In addition,1239Chinese mobsters ``overtly support pro-Beijing causes and covertly1240provide services overseas,'' ProPublica noted, ``engaging in political1241influence work, moving illicit funds offshore for the Chinese elite and1242helping persecute dissidents, according to Western officials, court1243cases and human rights groups,'' and even provide ``extra-legal''1244muscle for the PRC ``to curry favor with the CCP.''\16\ Finally, there1245is evidence that a Chinese diplomat met with members of a suspected1246Chinese criminal network in Oklahoma.\17\1247---------------------------------------------------------------------------1248    \13\ Ernst Letter, supra note 10, at 1 (``Chinese nationals--1249including those with potential ties to the Chinese Communist Party1250(CCP)--are reportedly operating thousands of illicit marijuana farms1251across the country . . . Experts believe there is substantial evidence1252implicating the CCP in directly supporting illicit marijuana grow1253operations across the United States.'') (footnotes omitted).1254    \14\ Rotella et al., supra note 10 (referencing U.S. Senate Comm.1255on Armed Services Hearing on U.S. Southern & Northern Commands (Mar.125616, 2021) (testimony of Admiral Craig Faller, Commander, U.S. Southern1257Command) [hereafter Admiral Faller testimony], https://www.youtube.com/1258watch?v=0lu5Bdxr8QI&t=4765s (last accessed Sept. 10, 2025).1259    \15\ Fertig, supra note 10.1260    \16\ Id.1261    \17\ Rotella et al., supra note 10 (``The photos look like a1262routine encounter between a senior Chinese diplomat and immigrants in1263the American heartland: dutiful smiles, casual clothes, a teapot on a1264table, Chinese and U.S. flags on the wall. [1265] But behind the images,1266there is a potentially concerning story. During two trips to Oklahoma,1267Consul General Zhu Di of the Chinese embassy visited a cultural1268association that has been a target of investigations into Chinese1269mafias that dominate the State's billion-dollar marijuana industry. And1270the community leaders posing with him in the photos? A number of them1271have pleaded guilty or been prosecuted or investigated for drug-related1272crimes, according to court documents, public records, photos and social1273media posts. [1274] `He's meeting with known criminals, said Donnie1275Anderson, the director of the Oklahoma Bureau of Narcotics and1276Dangerous Drugs Control, in an interview.''); id. (``After a mass1277murder at a marijuana farm, a Chinese diplomat visited an organization1278that has been the subject of investigations. The meetings reflect an1279international pattern of contacts between Chinese officials and1280suspected criminal networks. [1281]  . . . During two trips to Oklahoma,1282Consul General Zhu Di of the Chinese embassy visited a cultural1283association that has been a target of investigations into Chinese1284mafias that dominate the State's billion-dollar marijuana industry. And1285the community leaders posing with him in the photos? A number of them1286have pleaded guilty or been prosecuted or investigated for drug-related1287crimes, according to court documents, public records, photos and social1288media posts. [1289] `He's meeting with known criminals,' said Donnie1290Anderson, the director of the Oklahoma Bureau of Narcotics and1291Dangerous Drugs Control, in an interview. [1292] There is no indication of1293wrongdoing by the consul general, who is one of China's top diplomats1294in the United States. Still, the encounters in Oklahoma reflect a1295pattern of contacts around the world between China's authoritarian1296government and diaspora leaders linked to criminal activity--a subject1297of increasing concern among Western national security officials, human1298rights groups and Chinese dissidents.'').1299---------------------------------------------------------------------------1300    It is important to realize that the PRC and CCP cannot escape1301responsibility for the actions of Chinese organized crime by arguing1302that there is no express agreement between the former two entities and1303the latter. In a criminal prosecution, the jury may ``rely on1304inferences drawn from the course of conduct of the alleged1305conspirators.''\18\ As the Supreme Court of the United States has made1306clear, ``[t]he doctrine of willful blindness is well established in1307criminal law.''\19\ as is the principle that the government may1308establish proof of a conspiracy entirely through circumstantial1309evidence,\20\ which appears to be in ample supply on this point.\21\1310---------------------------------------------------------------------------1311    \18\ Ianelli v. United States, 420 U.S. 770, 777 (1975). See1312generally Paul J. Larkin, The Criminal Responsibility of Parties Who1313Traffic in Fentanyl Precursor Chemicals, HERITAGE FOUND. Special Report1314No. 320, at 5 & 26 nn.55-60 (2025).1315    \19\ Global-Tech Appliances, Inc. v. SEB S.A., 563 U.S. 754, 7661316(2011).1317    \20\ See Holland v. United States, 348 U.S. 121, 140 (1954)1318(``Circumstantial evidence in this respect is intrinsically no1319different from testimonial evidence. Admittedly, circumstantial1320evidence may in some cases point to a wholly incorrect result. Yet this1321is equally true of testimonial evidence. In both instances, a jury is1322asked to weigh the chances that the evidence correctly points to guilt1323as against the possibility of inaccuracy or ambiguous inference. In1324both, the jury must use its experience with people and events in1325weighing the probabilities. If the jury is convinced beyond a1326reasonable doubt, we can require no more.'').1327    \21\ For example, evidence that the PRC government is aware of and1328might be complicit in money laundering was found on encrypted cell1329phones seized in a DEA investigation. See Sebastian Rotella & Kirsten1330Berg, How a Chinese American Gangster Transformed Money Laundering for1331Drug Cartels, PROPUBLICA, Oct. 11, 2022, https://www.propublica.org/1332article/china-cartels-xizhi-li-money-laundering (last accessed Aug. 3,13332025) (`` `There is no question there is interconnectivity between1334Chinese organized crime and the Chinese state, said [former senior FBI1335Official Frank] Montoya[, Jr.]. `The party operates in organized crime-1336type fashion. There are parallels to Russia, where organized crime has1337been co-opted by the Russian government and Putin's security services.'1338''); id. (``Looking at Chen's smartphones, the agents were able for the1339first time to read the suspects' most sensitive conversations on1340WeChat, an application for messaging and commerce. WeChat is ubiquitous1341in China and the Chinese diaspora and impenetrable to U.S. law1342enforcement. Because it uses a form of partial encryption allowing the1343company access to content, WeChat is closely monitored by the Chinese1344state, according to U.S. national security veterans. [1345] U.S. officials1346view the brazen use of WeChat for money laundering as another1347suggestive piece of evidence that authorities in Beijing know what is1348going on. [1349] `It is all happening on WeChat,' Cindric said. `The1350Chinese government is clearly aware of it. The launderers are not1351concealing themselves on WeChat.' '').1352---------------------------------------------------------------------------1353iii. steps that the federal government may take to arrest and claw back1354the infiltration of chinese organized crime in the state-legal cannabis1355                                industry1356A. Actions that the States and Federal Executive Branch Can Take1357        Without the Need for New Substantive Federal Legislation1358    There are various steps that the States and the Executive Branch1359can take to address this problem.\22\ For example, if a State has not1360yet adopted a medical- or recreational use cannabis regime, the State1361should not do so. In addition, States can take various actions to1362protect the Nation against the PRC's interest in acquiring real estate1363for spying or illegal drug activity, such as requiring real estate1364purchasers and lessees to identify all foreign individuals and foreign-1365owned or foreign-controlled companies with a legal or financial1366interest in their purchases or rentals. That would help to prevent the1367PRC from using third parties or sham corporations to obtain property1368for use as an indoor cultivation or production site for cannabis.1369---------------------------------------------------------------------------1370    \22\ See Larkin, China and Cannabis, supra note 2, at 6-7.1371---------------------------------------------------------------------------1372    The U.S. Department of Justice also should undertake aggressive1373criminal investigations into, and prosecution of, the actions of1374Chinese organized crime elements for violations of one or more of1375several Federal criminal laws. The most obvious place to start is with1376the Controlled Substances Act of 1970. Cannabis is a Schedule I drug,1377the category for drugs that lack a current medical use, have a high1378potential for abuse, and are dangerous even when used under a1379physician's supervision.\23\ The cultivation and distribution of1380cannabis is a felony under Federal law punishable by a lengthy term of1381imprisonment \24\ that depends on the weight of a ``mixture or1382substance'' containing a detectable amount of delta-9-1383tetrahydrocannabinol (THC).\25\ The Department charged the parties in1384Maine and Massachusetts cases noted above with such drug offenses, for1385example.\26\1386---------------------------------------------------------------------------1387    \23\ 21 U.S.C.  801, 802, 841(6), (10)-(12), (15)-(16), (22),1388812(a), (b) & Schedule I (West 2025).1389    \24\ A term that can include life imprisonment without the1390possibility of parole if an offender is convicted for violating the1391Continuing Criminal Enterprise Act, 21 U.S.C.  848 (West 2025).1392    \25\ 21 U.S.C.  841; see Chapman v. United States, 500 U.S. 453,1393456-64 (1991).1394    \26\ DOJ, Seven Chinese Nationals Charged, supra note 10.1395---------------------------------------------------------------------------1396    But that is not all. From media reports and elsewhere, there1397appears to be evidence worth pursuing regarding the commission of other1398Federal crimes that are ancillary to Chinese organized crime's cannabis1399trafficking.\27\ Those offenses might include money laundering,1400involuntary servitude, human trafficking, prostitution, fraud, and1401other Federal offenses, such as violent crimes.\28\ Those offenses1402might already be under investigation by the Federal Government. If not,1403they should be.1404---------------------------------------------------------------------------1405    \27\ HIDTA Report on China and Cannabis, supra note 7, at 4 (``One1406tactic discovered to be utilized by a New Mexico-based criminal1407organization was to target Chinese immigrants who lost work during the1408COVID-19 pandemic. Their sophisticated recruitment strategy included:1409Social media advertisements promising $200 daily wages; False job1410descriptions of legitimate agricultural work, i.e. `gardening' and1411`flower cutting'; Guaranteed housing and meals[.] . . . The reality1412these workers face stands in stark contrast to the promises made. It1413was documented in New Mexico that workers were being forced to endure141414-hour workdays, while living in deplorable conditions. In another1415operation in Oklahoma, 20-30 people were found crammed into a single1416room with just one bathroom and no air conditioning. Workers often1417sleep in various makeshift accommodations: Wooden sheds with dirt1418floors; Trailers without basic utilities; Greenhouse floors; Fields and1419ditches, exposed to the elements[.]'') (punctuation omitted); id. at 51420(``The New Mexico and Oklahoma investigations have revealed severe1421human rights violations, and the similarities between the operations1422have identified a suspected pattern of activity. Upon arrival, workers1423often have their phones and car keys confiscated. Cases have been1424documented where armed guards with guns and machetes patrol the1425premises, and workers face constant surveillance through cameras and1426security personnel. The exploitation extends beyond confinement.1427Workers report receiving no payment for their labor, with some owed up1428to $12,000 in promised wages. Numerous cases were encountered where1429workers were exposed to dangerous chemicals, resulting in visible burns1430on their hands and arms. Many appeared malnourished and showed signs of1431physical abuse. [1432] Perhaps most disturbing is the discovery of human1433trafficking elements. Evidence has been found of workers being smuggled1434directly to farms through Mexican border crossings, with farm owners1435paying approximately $20,000 per worker to trafficking networks. These1436workers are then forced to work for 2 years to pay off their ``debt.''1437When workers attempt to demand their wages, they can face violent1438retaliation. In one instance, a worker who requested payment found1439himself being threatened by a guard armed with an AK-47 semi-automatic1440rifle. The presence of drugs, cash, and weapons has created an1441environment where violence is commonplace, and workers live in constant1442fear of retaliation if they speak out or attempt to escape.'')1443(footnotes omitted).1444    \28\ See, e.g., id. at 4 (``One tactic discovered to be utilized by1445a New Mexico-based criminal organization was to target Chinese1446immigrants who lost work during the COVID-19 pandemic. Their1447sophisticated recruitment strategy included: Social media1448advertisements promising $200 daily; wages; False job descriptions of1449legitimate agricultural work, i.e. `gardening' and `flower cutting';1450Guaranteed housing and meals[.] . . . The reality these workers face1451stands in stark contrast to the promises made. It was documented in New1452Mexico that workers were being forced to endure 14-hour workdays, while1453living in deplorable conditions. In another operation in Oklahoma, 20-145430 people were found crammed into a single room with just one bathroom1455and no air conditioning. Workers often sleep in various makeshift1456accommodations: Wooden sheds with dirt floors; Trailers without basic1457utilities; Greenhouse floors; Fields and ditches, exposed to the1458elements[.]'') (footnotes and punctuation omitted); Ernst Letter, supra1459note 10 (``In some cases, the grow operators were also engaged in human1460trafficking, forced labor, drug trafficking, and violent crime.'');1461Admiral Faller Testimony, supra note 11, at 63 (``The money-laundering1462connection is the most significant, where Chinese money laundering1463underwrites TCOs [to] a significant proportion, and that is something1464that we are tracking as part of all interagency effort here in the1465United States.'') JOHN A. CASSARA, CHINA-SPECIFIED UNLAWFUL ACTIVITIES:1466CCP INC., TRANSNATIONAL CRIME AND MONEY LAUNDERING 34 (2023)1467(``According to the FBI, Chinese criminal enterprises conduct1468traditional racketeering activities normally associated with organized1469crime including extortion, murder, kidnapping, illegal gambling,1470prostitution, and loansharking. They engage in human trafficking,1471traffic heroin and methamphetamine, commit financial frauds, engage in1472auto theft, deal in illicit tobacco products, trade in counterfeit1473goods, and other criminal activities. They launder the proceeds of the1474crime.''); id. (noting that a ``defining characteristic'' of Chinese1475criminal enterprises is violence); Nolan Clay, He Ran a Brothel for1476Oklahoma Marijuana Farms. Now He's Going to Prison, THE OKLAHOMAN, July147715, 2025, www.oklahoman.com/story/news/crime/2025/07/11/a-pimp-for-1478oklahomas-medical-marijuana-farms-sentenced-to-prison/84620520007/1479(``The boss of a brothel for Oklahoma's pot farms has been sentenced to148020 years in prison for sex trafficking.''); Feng, supra note 10 (``Last1481summer, New Mexico State special agents inspecting a farm found1482thousands more cannabis plants than State laws allow. Then on1483subsequent visits, they made another unexpected discovery: dozens of1484underfed, shell-shocked Chinese workers. The workers said they had been1485trafficked to the farm in Torrance County, N.M., were prevented from1486leaving and never got paid.''); Tom James, The Failed Promise of Legal1487Pot, ATLANTIC, May 9, 2016, https://www.theatlantic.com/politics/1488archive/2016/05/legal-pot-and-the-black-market/481506/ (quoting1489Oklahoma Assistant Attorney General Emily Grossnicklaus: `These women1490are treated as property rather than human beings.' ''); Qi, supra note149110 (``According to a social-media post by the Oklahoma Narcotics1492Bureau, the State indicted two Chinese men on human-trafficking1493charges, alleging that they operated an Oklahoma City brothel where1494between late last year and early this year, approximately a dozen women1495were trafficked. [1496] `Evidence from the investigation shows many of the1497clients of the brothel were managers and administrators of commercial1498marijuana farms,' the post said. The men couldn't be reached for1499comment.''); Nicole Sganga et al., Black Market Marijuana Tied to1500Chinese Criminal Networks Infiltrates Maine, CBS NEWS, Apr. 26, 2024,1501https://www.cbsnews.com/news/black-market-marijuana-tied-to-chinese-1502criminal-networks-infiltrates-maine/ (``Donovan told CBS News that some1503of the people working in marijuana grow operations around the country1504are Chinese nationals who are victims of labor trafficking. [1505]1506`[They're] brought here under the auspices that they're working under a1507legit business,' he said. `And they're often kept unwillingly in these1508locations and told what to do to oversee the cultivation of these1509marijuana plants.' '') (last accessed Aug. 1, 2025).1510---------------------------------------------------------------------------1511B. Actions that Congress Can Take1512    Congress should consider whether Federal legislation is necessary1513to protect uniquely national interests. The Federal Government has a1514surpassing interest in preventing any foreign power or nationals from1515purchasing or renting property that enables it or them to spy on1516sensitive Federal locations (such as military bases), to commit Federal1517offenses, or to generate illegal funds that can be used to undermine1518American interests in other ways. States cannot adopt domestic laws1519that interfere with the Nation's foreign policy, which is a uniquely1520Federal interest, as the Supreme Court recognized in Zschernig v.1521Miller.\29\ As the Supreme Court explained in Haig v. Agee, ``[i]t is1522`obvious and unarguable' that no governmental interest is more1523compelling than the security of the Nation.'' Accordingly,1524Congressional actions would be entirely appropriate.1525---------------------------------------------------------------------------1526    \29\ 389 U.S. 429 (1968); see Larkin, China and Cannabis, supra1527note 2, at 8 (discussing the Zschernig case).1528---------------------------------------------------------------------------1529            1. Congress could establish a uniform property acquisition1530                    rule across the States.1531    Zschernig makes it clear that the President and Congress have broad1532power to define the Nation's foreign policy and protect its residents1533against harms resulting from foreign powers. Cannabis use, particularly1534by military age men and women, can weaken our national security by1535reducing, perhaps greatly, the number of potential soldiers, sailors,1536airmen, and Marines who are qualified and fit to serve. Congress1537therefore could regulate the acquisition of property, whether by1538purchase or leasehold, by anyone who is acting on behalf of, at the1539instigation of, or for the benefit of a foreign party, particularly the1540PRC or CCP. At a minimum, Congress could require that property owners1541notify the U.S. Department of Homeland Security whenever a Chinese1542national buys or leases real property.\30\1543---------------------------------------------------------------------------1544    \30\ Other nations potentially subject to the same treatment would1545be Iran, North Korea, and Russia.1546---------------------------------------------------------------------------1547            2. Congress could expand the authority of the Committee on1548                    Foreign Investment in the United States.1549    Established by President Gerald Ford pursuant to the Defense1550Production Act (DPA) of 1950, the Committee on Foreign Investment in1551the United States (CFIUS) is an interagency committee authorized to1552review certain transactions involving domestic foreign investment,1553including certain real estate transactions by foreign parties.\31\ The1554committee has the authority to review such deals and advise the1555President as to whether to prohibit the transaction or allow it to go1556forward under whatever conditions he deems appropriate if he finds1557``credible evidence'' that the transaction ``threatens to impair the1558national security of the United States.''\32\1559---------------------------------------------------------------------------1560    \31\ Larkin, China and Cannabis, supra note 2, at 9; see also Bryan1561Burack, China's Land Grab: The Sale of U.S. Real Estate to Foreign1562Adversaries Threatens National Security, HERITAGE FOUND. Backgrounder1563No. 3825 (2024).1564    \32\ 50 U.S.C. ch. 55,  4501-4518.1565---------------------------------------------------------------------------1566    Nevertheless, the CFIUS screen is not impermeable. Not every type1567of real estate transaction must be reported. CFIUS has decided that it1568lacks jurisdiction over so-called greenfield or start-up investments,1569and some parties have not made the necessary disclosures even for a1570``covered transaction,'' which deprives CFIUS and the President of the1571information needed to decide whether to allow a particular transaction1572to go forward. Accordingly, Congress could revise the DPA to make it1573clear that there is no greenfield exception to CFIUS's jurisdiction.1574                               conclusion1575    The High Intensity Drug Task Forces recently concluded that the1576problem discussed above ``represent[s] a critical national security1577threat requiring coordinated Federal response, specialized1578investigative units, and comprehensive legislative action to close1579regulatory loopholes that enable these criminal enterprises to1580operate.''\33\ There are steps that Congress can take to expose those1581enterprises and their illegal activities. The Homeland Security1582Committee and its Subcommittee on Oversight, Investigations, and1583Accountability has done the public a great service by exposing what is1584happening today. With luck, Congress will move forward to stem these1585problems.1586---------------------------------------------------------------------------1587    \33\ HIDTA Report on China and Cannabis, supra note 7, at 9.1588---------------------------------------------------------------------------15891590                                APPENDIX15911592    [The supplemental documents referred to may be found at https://1593www.heritage.org/china/report/china-and-cannabis and https://1594www.heritage.org/crime-and-justice/report/twenty-first-century-illicit-1595drugs-and-their-discontents-the-failure.]15961597    Chairman Brecheen. Thank you, Mr. Larkin.1598    Mr. Urben, you are now recognized for your 5 minutes.15991600 STATEMENT OF CHRISTOPHER URBEN, MANAGING DIRECTOR, NARDELLO &1601                              CO.16021603    Mr. Urben. Committee Chairman Garbarino, Committee Ranking1604Member Thompson, Ranking Member Thanedar, and distinguished1605Members of this subcommittee, thank you for the opportunity1606today to address you on the growth of Chinese organized crime1607in the United States and the role of marijuana cultivation and1608distribution in facilitating that growth.1609    During my 24-year career with the DEA as an agent and1610executive, I saw first-hand the damage done by transnational1611criminal organizations, TCOs and the increasingly significant1612operations of Chinese transnational criminal organizations.1613Over the last 5 years of my career, I led a team at DEA's1614Special Operations Division, SOD, dedicated to an operation1615called Project Sleeping Giant, which sought to understand,1616identify, target Chinese organized crime operating in the1617United States and abroad. We were particularly concerned about1618the rise of Chinese money-laundering networks which have1619transformed narcotics trafficking by offering dramatically1620lower rates, lower risk, and quicker return of funds than the1621networks that had previously laundered those funds.1622    Project Sleeping Giant's objectives included understanding1623the Chinese organized crime threat, developing intelligence on1624it, and designing enforcement operations to mitigate it. As a1625result of the investigative and intelligence-gathering1626operation, we learned that Chinese organized crime was involved1627in a wide range of criminal activity globally, including being1628the Chinese suppliers of precursor chemicals used in fentanyl1629production in Mexico, becoming the primary money launderers for1630the Mexican cartels which have been recently designated as1631FTOs, human trafficking networks, global operations that1632corrupt government authorities, wildlife trafficking networks,1633and, of course, Chinese-controlled marijuana cultivation within1634the United States.1635    So what have the Chinese money launderers done with the1636proceeds of their criminal activity? Starting in 2017, when a1637wave of marijuana legalization was sweeping through the United1638States, we started seeing the profits of the laundering of1639Mexican cartel proceeds get invested into marijuana cultivation1640and distribution operations by Chinese money launderers. The1641speed and organization in which the Chinese-controlled1642marijuana grows were established was nothing short of1643remarkable.1644    As the Chinese money launderers provided the funding for1645the grows, trafficked Chinese citizens into the United States1646to live at the grow locations, tending to the plants on a 24/71647basis, they then trafficked the marijuana to cities for sale.1648All of this happened seamlessly. It was extremely well-1649organized because it was being managed by Chinese organized1650crime and Chinese money launderers at the leadership and1651command-and-control level.1652    What is the best way to combat the threat? First, there is1653a critical need for local, State, and Federal officials to1654recognize that activities, including Chinese marijuana grows1655and distribution operations, are not just weed cases. They are1656harmful in and of themselves and they also help fuel Chinese1657money launderers and organize crime-linked activity, such as1658human trafficking, fentanyl distribution, and other dangerous1659harmful activities. These cases should be prioritized as they1660are linked to the larger criminal networks.1661    State and local governments individually do not have the1662necessary resources and authorities to attack and dismantle1663Chinese marijuana trafficking networks. State and local1664governments typically lack the subject-matter experts, language1665skills, data scientists, confidential sources, and other law1666enforcement capabilities that are needed to address the threat.1667Federal funding, coordination, and authority, combined with1668State and local resources, intelligence, and their authorities,1669is desperately needed. It is essential to use the Federal1670racketeering, money laundering, continuing criminal enterprise1671prosecutions to target the leadership and command-and-control1672levels of these operations, similar to what we did in the late16731980's and 1990's against Italian organized crime for organized1674crime leaders.1675    Chinese organized crime leaders need to understand that the1676Federal Government will aggressively target them with severe1677consequences. Using other Federal authorities to target the1678related crimes such as human trafficking, money laundering, tax1679evasion, mortgage fraud, as well as State and local laws and1680regulations governing the cultivation operations themselves and1681those governing land, power use, and water violations will have1682a material impact.1683    Last, even at the Federal level, specialized task forces1684are needed to effectively target Chinese money launderers and1685Chinese organized crime engaged in marijuana trafficking1686activity. A fully-funded intergovernmental platform will allow1687for law enforcement to better identify the criminal networks1688and dismantle them State by State. Congress can play a vital1689role in providing resources, incentives, and authority to the1690Federal Government.1691    Thank you for the opportunity today to engage in this1692conversation.1693    [The prepared statement of Mr. Urben follows:]1694                Prepared Statement of Christopher Urben1695                           September 18, 20251696    Committee Chairman Garbarino, Subcommittee Chairman Brecheen,1697Committee Ranking Member Thompson, Subcommittee Ranking Member1698Thanedar, and distinguished Members of this subcommittee, thank you for1699the opportunity to address you today on the growth of Chinese organized1700crime in the United States, and the role of marijuana cultivation and1701distribution in facilitating that growth.1702    During my 24-year career as an agent and executive with the DEA, I1703saw first-hand the damage done by transnational criminal organizations1704(``TCOs'') and the increasingly significant operations of Chinese1705transnational criminal organizations. Over the last 5 years of my1706career, I led a team at DEA's Special Operations Division dedicated to1707Project Sleeping Giant, which sought to understand, identify, and1708target Chinese TCOs operating in the United States. We were1709particularly concerned about the rise of Chinese money-laundering1710networks (``CMLNs''), which have transformed narcotics trafficking by1711offering dramatically lower rates, lower risk, and quicker return of1712funds than the networks that had laundered money for TCOs previously.1713Project Sleeping Giant's objectives included understanding the Chinese1714organized crime threat, developing intelligence on it, and designing1715enforcement operations to mitigate it.1716    As a result of this investigative and intelligence-gathering1717operation, we learned that CMLNs launder money for a wide range of1718criminal organizations, including Chinese suppliers of precursor1719chemicals used in fentanyl production in Mexico; Mexican cartels that1720manufacture fentanyl and other narcotics for U.S. consumption; human1721trafficking networks; global operations that corrupt government1722authorities; wildlife traffickers; and Mexican and other growers and1723distributors of black-market marijuana within the United States.1724    I have been privileged to testify previously before Congress about1725the growth of CMLNs and why they have been so effective in laundering1726crime proceeds. Just weeks ago, on August 28, 2025, the U.S. Department1727of Treasury's Financial Crimes Enforcement Network (``FinCEN'')1728officially raised the alarm on the growth of CMLNs in the United States1729and the threat they pose to the U.S. financial system.\1\ In connection1730with that announcement, FinCEN issued an Advisory to U.S. financial1731institutions and a Financial Trend Analysis highlighting the scope and1732breadth of CMLN activity in the United States. The statistics cited by1733FinCEN are eye-opening: in the past 5 years, over $312 billion in1734transactions flagged as potentially tied to CMLN activity moved through1735U.S. financial institutions. This statistic does not include funds1736moved through the informal economy or through other means, including1737cryptocurrency, which have not been subject to formal FinCEN oversight.1738---------------------------------------------------------------------------1739    \1\ https://www.fincen.gov/news/news-releases/fincen-issues-1740advisory-and-financial-trend-analysis-chinese-money-laundering.1741---------------------------------------------------------------------------1742    So, what have CMLNs done with the proceeds of their criminal1743activity? Starting in 2017, when a wave of marijuana legalization was1744sweeping the country, we started seeing the proceeds get invested into1745marijuana cultivation and distribution operations. The CMLNs (i)1746established grow operations (``grows'') in suburban homes they1747purchased and outfitted for indoor cultivation of high-end marijuana;1748(ii) grew marijuana outdoors in rural, agricultural settings; and (iii)1749distributed the marijuana and laundering the proceeds through existing1750networks.1751    The speed and organization in which the Chinese-controlled1752marijuana grows were established was remarkable, as the CMLNs provided1753the funding for the grows, trafficked Chinese citizens into the United1754States to live at the grow locations, tending to the plants on a 24/71755basis. They then trafficked the marijuana to cities for sale. All of1756this happened seamlessly. It was extremely well-organized because it1757was being managed by Chinese organized crime and Chinese money1758launderers at the leadership and command/control level. In fact,1759Chinese OC began to establish ``legitimate'' supply stores to sell the1760equipment needed to grow marijuana on an industrial scale.1761    Since leaving the DEA and joining the global investigative firm of1762Nardello & Co., I have seen CMLNs, and marijuana grows linked to CMLNs1763or other TCOs, grow significantly larger. Fueled by the increased power1764and scale of CMLNs, these grow operations have taken advantage of1765additional legalization efforts around the country and the increased1766demand for marijuana. They earn billions of dollars in revenue that in1767turn feeds the other criminal activities that CMLNs support.1768    Legalization by States has been tied to the growth of illicit1769Chinese-linked grow and distribution operations for several reasons.1770First, legalization efforts have imposed high taxes and strict growing,1771testing, and licensing requirements on government-approved growers and1772sellers of marijuana. This has allowed the black market for the drug to1773persist, as it offers a less expensive product--untaxed marijuana grown1774without regulation--delivered more conveniently, via street1775transactions or unlicensed channels, and quickly than government-1776approved alternatives. Second, legalization reduced penalties for1777unlawful possession and distribution of the drug at the same time it1778created a lawful channel for it to be possessed and distributed. This1779reduced the risks to criminal actors, including CMLNs, of severe1780criminal sanctions as a result of their unlawful operations, freeing1781them to invest their illicit proceeds in marijuana grow and1782distribution operations. As a result, illicit marijuana production and1783distribution, especially when run by TCOs, will always have a1784competitive advantage over any licensed marijuana businesses.1785    Third, legalization increased marketplace demand by making it more1786acceptable for consumers to use marijuana. This helps support the legal1787market for the drug, but it also increases the supply of potential1788customers for black-market marijuana that is distributed by CMLNs and1789other TCOs.1790    The effects of Chinese TCOs' involvement in marijuana cultivation1791and distribution have been extensive. Demand for land and structures1792suitable for marijuana cultivation and distribution are affecting real1793estate values in many locations in the country. The growth techniques1794used in marijuana cultivation are harming the environment. The proceeds1795are undermining banking laws and regulations while supplying income to1796some of the most violent gangs.1797    My work in the DEA and subsequent investigative efforts, have1798confirmed the existence of Chinese-controlled marijuana growing1799operations in numerous States, including Arizona, California, Colorado,1800Maine, Massachusetts, New Hampshire, New Mexico, Oklahoma, Oregon,1801Rhode Island, and Washington. In the many other States that likely host1802similar operations, State and local law enforcement have yet been1803detected their existence or understand their links to national and1804TCOs.1805    What is the best way to combat this threat? First, there is a1806critical need for local, State, and Federal officials to recognize that1807activities involving Chinese TCO-linked marijuana grow and distribution1808operations are not ``just weed cases.'' They are harmful in and of1809themselves, and they also help fuel CMLNs and other Chinese TCO-linked1810activity such as human trafficking, fentanyl distribution, and other1811dangerous and harmful activities. These cases should be prioritized as1812they are linked to larger criminal networks and activities, including1813prosecutable money-laundering schemes.1814    My time at DEA's Special Operations Division and my work at1815Nardello & Co. have led me to conclude that the U.S. law enforcement1816community and the U.S. financial system needs significant new1817authority, guidance, and resources to understand and combat the threat1818posed by Chinese organized crime and CMLOs. Recently, Congress and the1819Executive branch designated the Mexican Cartels as foreign terrorist1820organizations, and it is clear that--as recognized by FinCEN in its1821recent guidance--CMLNs are key facilitators for the Mexican cartels.1822While Congress has passed legislation like the FEND OFF Fentanyl Act1823and the HALT Act and provided funding and authority to restrict cross-1824border smuggling activity that facilitates the movement of marijuana1825and crime proceeds, and FinCEN's recent guidance will help financial1826institutions understand the scale and operations of CMLNs, more help is1827needed.1828    State and local governments individually do not have the necessary1829resources and authorities to attack and dismantle Chinese marijuana1830trafficking networks. State and local governments typically lack the1831subject-matter experts, language skills, data scientists, confidential1832sources, and other law enforcement capabilities that are needed to1833address this threat. Federal funding, coordination, and authority,1834combined with State and local resources and authorities, are1835desperately needed. It is essential to use Federal racketeering, money1836laundering, and continuing criminal enterprise prosecutions to target1837the leadership and command-and-control levels of these operations so1838that their leaders understand the Federal Government will not be1839lenient with them merely because they are selling drugs that have been1840legalized in places, and under circumstances, that do not apply to1841them. Using other Federal authorities to target related crimes such as1842human smuggling, money laundering, tax evasion, and mortgage fraud, as1843well as State and local laws and regulations governing cultivation1844operations, including those governing land use and power and water1845violations, will have a material impact on these criminal1846organizations.1847    Even at the Federal level, more subject-matter experts, data1848scientists, translators of Mandarin and other Chinese dialects, and1849specialized task forces are needed to effectively target CMLNs and1850other Chinese TCOs engaged in marijuana trafficking activity. A fully-1851funded intergovernmental platform would allow law enforcement to better1852identify criminal networks and dismantle them--State by State. Congress1853can play a vital role by providing resources, incentives and authority1854for the Federal Government to engage in intensive enforcement1855operations to combat this threat.1856    Thank you for the opportunity to engage in this discussion today.18571858    Chairman Brecheen. Thank you, Mr. Urben.1859    Members will be recognized by seniority for 5 minutes of1860questioning. Additional rounds of questioning may be called1861after all Members had the opportunity.1862    I now recognize myself for 5 minutes of questioning.1863    Director Anderson, can you describe how Oklahoma has become1864a hotbed for illegal marijuana grow operations and can you put1865that in the context as it is compared against the other 491866States?1867    Mr. Anderson. Well, what happened with Oklahoma was, No. 1,1868Oklahoma is a very rural State, has a very--has a lack of1869resources when it comes to public safety. We also have very1870cheap farmland. So we also have the most liberal marijuana laws1871in the Union. So whenever Oklahoma enacted the medical1872marijuana statute that we passed, it opened up Pandora's box1873for Oklahoma. So what you had, you had a very organized group1874of Chinese nationals who actually--this isn't just in the1875United States, they're global with what they're doing, but they1876own the market of marijuana. They actually took a market that1877was the No. 1 cash drug crop for the cartel and they own that1878and they've owned that for a few several years now.1879    They moved those operations because of crackdowns that were1880going on in New Mexico and California to Oklahoma. No. 1,1881because it is rural to, No. 2, the land is very, very cheap.1882What you can buy 80 acres in Oklahoma, what you can buy a block1883for in California. Commonly, with our laxed laws, that is1884exactly what happened in Oklahoma.1885    Chairman Brecheen. Mr. Urben, you mentioned a minute ago,1886if I remember hearing you correctly, 300 billion is what you1887all have seen is the 2025 number of illicit marijuana being1888moved across the United States. Did I understand that stat1889correctly, 300 billion?1890    Mr. Urben. I believe that's correct. It was in my written1891statements. In the time period, it's a massive amount of money.1892    Chairman Brecheen. In tandem with what Mr. Anderson is1893talking about, when they are looking at the amount of plants in1894Oklahoma compared--that they have registration on, compared to1895what they know they are able to produce and what has been1896unreported, Oklahoma alone believes they have $150 billion per1897year illicit marijuana industry. To put that in context, the1898State budget of Oklahoma to run all areas of governance from1899the State level in Oklahoma is 13 billion. Ten times the State1900budget is the illegal activity of marijuana. It is why it has1901sadly become, and I hate this for my State, a leading exporter1902of marijuana in this Nation, illegal marijuana export. It is1903almost half of the number that I think the DEA is looking at.1904That is just astounding.1905    Director Anderson, what kind of response are we getting in1906Oklahoma in terms of knowing that--what has opened this thing1907up? What do you think that it is going to take for the average1908person in Oklahoma to realize this is such a problem and that1909this is not something that we can--as you cite the homicides in1910Hennessey, we have got McAlester Ammunition Plant that there is1911some activity adjacent to it, where one-third of all munitions1912for this country come for in McAlester, Oklahoma, the1913Congressional district that I represent, munitions for our1914national defense and Chinese nationalists adjacent to it, that1915there is some concern about illicit activity. What is it going1916to take for Oklahoma, for the grassroots that ultimately1917drives--manifest itself where the legislature then makes some1918changes? What does the law enforcement have to do to get the1919attention of Oklahoma officials?1920    Mr. Anderson. Thank you for the question. I wish I knew the1921answer to that because I've been trying for 5 years. I will say1922we are starting to gain traction now as far as global--or1923nationwide what's going on in Oklahoma. Because literally,1924what's going on in Oklahoma, whenever I talk about the 851925million pounds that's unaccounted for, that's going across the1926United States. Understand that's what we know is there. There's1927no telling how much that really is. Because if we know there's192885 million unaccounted for, is there another 85 million or 1001929billion that we don't know about? Because typically, when we go1930into these operations, they don't have metric tags on them.1931They tag a few. You may have 30,000 plants, they may have a1932thousand of those tagged. So there's a lot more that's not1933tagged in there then there is tagged. But I do think we're1934making some headway as far as letting people know what's going1935on.1936    For me, this isn't about--I want to be very clear, this1937isn't just about marijuana. I'm not talking about mom-and-pop1938operations or even about people who utilize marijuana for1939whatever medical purpose they use it for. I'm talking about1940real organized transnational criminals who do not have our best1941interests at heart. When I say our best interests, I'm talking1942about the American people as a whole. So that is my biggest1943concern with what's going on with this whole catastrophe in1944Oklahoma.1945    Chairman Brecheen. I now recognize Mr. Thanedar for his 51946minutes of questions.1947    Mr. Thanedar. Thank you, Chairman. Look, drug cartels and1948criminal organizations, including those from Mexico, Cuba, and1949China, are illegally cultivating marijuana across the United1950States. They often disguise their illegal operations by hiding1951in States where law-abiding growers operate. But these illegal1952marijuana grows are dangerous. They rely on human trafficking1953for cheap labor and sexual exploitation. They steal water and1954energy from surrounding communities. They sow the grounds with1955pesticides and chemicals that seep or run off into our water.1956They spray the marijuana with chemicals that end up being1957consumed by people here in the United States.1958    Mr. Urben, how should the Federal Government respond to1959illegal marijuana cultivation, especially when it comes to1960combating international criminal organization that are1961operating across the United States? What does a whole-of-1962Government approach look like from your experience?1963    Mr. Urben. So from my experience, sir, I mean, you laid out1964all the variety of crimes and activity that was taking place in1965these cultivation areas. I think it's very simply we need to1966mandate a solution from the Federal Government. We need to1967provide the funding, for example, Mr. Anderson, in Oklahoma.1968What I would suggest is we need to target the network and1969defeat the whole network. So you can use Chinese organized1970crime as an example, but you could also lay, you know, other1971organized crime elements in this, but we'll stick with Chinese1972organized crime right now.1973    Federal funding a task force that would target that entire1974network operating in the United States abroad. The funding is1975expensive for personnel and overtime, as Mr. Anderson would1976probably attest to. There's air and land assets that you need,1977but we need a Federal task force comprised of DEA, HSI, FBI to1978include their counterintelligence side because there is a1979counterintelligence component to this IRS, Fish and Wildlife,1980and then, again, successes that we've had in the past,1981partnering with State and locals who have the expertise and1982intelligence and know-how on the ground and using their1983authorities.1984    It's a national security issue. The task force funding1985would employ essentially a platform of these Federal agencies1986combined with subject-matter experts, translators of various1987Chinese dialects in this example, data scientists and1988targeters, funding to recruit confidential sources, and also1989coordination with State and local prosecutors. The mandated1990task force would target them with Federal prosecutors as well.1991    Mr. Thanedar. Thank you. Thank you, Mr. Urben.1992    The Chinese have become the dominant players in illegal1993marijuana cultivation, but they are not the only players. How1994do we make sure the Federal Government is able to help State,1995local, Tribal, and territorial law enforcement combat the big1996guys, the Chinese criminal organizations as well as the smaller1997players?1998    Look, in Michigan, earlier this week, a 50-year-old man was1999arraigned on charges of tax evasion related to an illegal2000marijuana grow operation that he ran for 2 years. When his home2001was searched, police found more than 1,000 marijuana plants and200250 pounds of processed marijuana. Just 2 months ago, Michigan2003State Police seized more than 10 million worth of marijuana at2004an illegal marijuana grow operation. That grow operation was in2005a 17,000-square-foot warehouse situated on 19 acres. In June, 42006Chinese nationals were arrested in Michigan for growing $52007million worth of illegal marijuana.2008    Mr. Urben, clearly illegal marijuana grow operations are2009profitable business and they are hidden in plain sight. What2010obstacles do Federal, State, and local law enforcement face2011when trying to combat illegal marijuana grows? What can2012Congress do to help find, prosecute these farms and those who2013operate them?2014    Mr. Urben. It's great question. Continuing on from the2015first question, the establishment of this task force would be2016paralleled by Federal and State prosecutors that would utilize,2017like I mentioned earlier, the racketeering, continuing criminal2018enterprise, and money-laundering laws to target command-and-2019control leadership at the highest levels in terms of the2020organized crime groups, the Chinese operating in this area. The2021task force would also have tactical ability to move from State2022to State and enforce the law.2023    Mr. Thanedar. Thank you Mr. Urben. My time is up. Chairman,2024I yield back.2025    Chairman Brecheen. The gentleman yields.2026    I now recognize Ms. Greene from Georgia for her 5 minutes2027of questioning.2028    Ms. Greene. Before my 5 minutes, Mr. Chairman, ask2029unanimous consent to enter for the record this article, ``Triad2030Weed: How Chinese Marijuana Grows Took Over Rural Maine.'' This2031is an article that highlights how Chinese TCOs are basically2032taking over Maine via these illegal grow farms.2033    Chairman Brecheen. Without objection, so ordered.2034     triad weed: how chinese marijuana grows took over rural maine2035By Steve Robinson, November 8, 20232036Updated: January 24, 20242037            https://www.themainewire.com/2023/11/triad-weed-illegal-2038                    chinese-marijuana-grows-are-all-over-maine/2039    Illegal Chinese marijuana grows have taken over much of rural2040Maine.2041    The government is either incapable--or unwilling--to do anything2042about it.2043    The Maine Wire has identified more than 100 properties that are2044part of a sprawling network of Chinese-owned sites operating as2045unlicensed, illicit cannabis growing operations in rural Maine.2046    According to an unclassified memo from the U.S. Department of2047Homeland Security (DHS) obtained by the Maine Wire, the illicit grows2048are operated by Asian Transnational Criminal Organizations (TCOs).2049    The properties cover Somerset County, Penobscot County, Kennebec2050County, Franklin County, Androscoggin County, and Oxford County.2051    The sites were purchased over the past 3 years by single adults,2052primarily from New York and Massachusetts, using cash or financing2053arranged through a handful of mortgage companies.2054    The Maine Wire investigation began following the leak of a separate2055DHS memo that revealed the existence of more than 270 such sites in2056Maine.2057    That memo, first reported by Jennie Taer of the Daily Caller News2058Foundation, offered the first public confirmation of what law2059enforcement officials have long known, but what neighbors to these2060properties and legal marijuana entrepreneurs have only suspected.2061    Namely, that Chinese foreign nationals are exploiting Maine's lax2062marijuana laws, the Biden Administration's immigration policies, and2063cheap real estate in rural Maine to grow a fortune using exploited2064illegal alien laborers.2065    Nationwide, there are approximately 749 properties that DHS has2066linked to Asian TCOs.2067    The leaked memo included a spreadsheet, which has not been made2068public, that identified ``270 properties within [Maine] that are2069actively used by the Chinese in relation to their operations.''2070    Local, State, county, and Federal officials, speaking mostly on the2071condition of anonymity, have confirmed to the Maine Wire that various2072law enforcement agencies have known about this foreign network of2073illicit drug manufacturing and distribution for more than two years.2074    On Sept. 15, DHS sent the following memo to Maine law enforcement2075asking for help gathering intel on the properties:2076    We are requesting a response by State, county, and/or local law2077enforcement officials with any information regarding illegal marijuana2078grows being operated in their areas by suspected Asian Transnational2079Criminal Organizations (TCO). This collection effort is supporting a2080national intelligence gathering initiative to identify a comprehensive2081picture of the threat posed to national security by Asian TCOs2082operating illegally in the United States.2083    A typical response may include:2084   confirmation that this activity is occurring2085   the number of suspected grows in your area of responsibility2086   reports by concerned citizens or local officials relating to2087        illegal grow operations by Asian TCOs or any other information2088        respondents may deem of value.2089    ``There are hundreds of these operations occurring throughout the2090State. It's upsetting to those who live near these operations, and even2091those who are following Maine laws and procedures,'' Penobscot County2092Sheriff Troy Morton told the DCNF.2093    Maine's congressional delegation has called upon the Department of2094Justice to shutter the operation, but Attorney General Merrick Garland2095has yet to respond in writing.2096    Most of the properties were acquired after Maine legalized the sale2097of recreational pot in 2020.2098    According to the DHS memos, the sites are operated by Chinese2099foreign nationals, some who are in the U.S. illegally. DHS believes the2100network earns an estimated total income of $4.37 billion per year, some2101of which is returned to entities in the People's Republic of China.2102    The locations of the sites--and the names of their owners--have not2103been publicly released.2104Triad Weed in Rural Maine2105    Marijuana grown at these sites is notorious in Maine's legal2106cannabis industry as ``Triad weed.''2107    ``When I say they function like a mafia, it is absolutely true,''2108one longtime veteran of Maine's medicinal and recreational pot industry2109told the Maine Wire. ``They have a very intricate network.''2110    Scrupulous dispensaries avoid purchasing or selling marijuana from2111the illicit grows because it has a reputation for containing2112pesticides, fungicides, and other banned or harmful contaminants.2113    But legal growers all agree that at least some Triad weed is2114entering Maine markets.2115    ``I would say most of their product ends up skipping across the2116border,'' the industry veteran said. ``But the shit that stays in Maine2117is what is helping to contribute to the collapse of flower prices.''2118    The operators of these foreign-owned sites are also notorious2119around grow supply shops in Maine, where they are often found buying2120thousands of dollars in cultivation supplies.2121    Speaking little to no English, the operators acquire supplies by2122pointing at images on their phones or by having someone out-of-state2123translate over the phone.2124    According to DHS, the Asian TCOs use the proceeds of the marijuana2125grows to fund other illegal activities, including narcotics trafficking2126and human trafficking.2127    The DCNF reported, based on Maine and Federal sources, that many of2128the participants in the operation are either in the U.S. illegally or2129have applied for asylum status or permanent residency.2130    Morton, the sheriff of Penobscot County, told DCNF most individuals2131under investigation for being involved in illegal marijuana grows2132aren't U.S. citizens.2133    ``Regardless of where the individuals are from, the true problem2134involves conflicting State and Federal laws. We also have little to no2135oversight, allowing for criminal activity to occur at a high degree,''2136Morton said.2137    Morton declined to elaborate on those comments, instead referring2138the Maine Wire to the U.S. Attorney of Maine.2139    A spokesperson for the U.S. Attorney of Maine declined to comment2140for this story.2141    A spokesperson for U.S. Customs and Border Patrol, the agency that2142published the original leaked memo, declined to comment on the memo.2143    ``The US Border Patrol coordinates closely with our interagency2144partners when conducting investigations and when taking enforcement2145actions,'' the spokesperson said. ``It would not be appropriate for the2146USBP to comment on behalf of other agencies.''2147    ``Furthermore, Border Patrol does not publicly disclose sources of2148information, investigative methods, or other information that may2149jeopardize the safety of witnesses orotherwise compromise any2150investigation,'' said the spokesperson.2151    The Maine Wire offered to provide the U.S. Attorney of Maine and2152the Maine State Police with a list of illicit foreign-owned marijuana2153grows in Maine prior to the publication of this story, but both2154declined.2155    The Federal Bureau of Investigation, which has been investigating2156illegal Chinese marijuana grows in Maine for at least 2 years, declined2157to comment for this story.2158Finding Maine's Illegal Grow Sites--and Their Owners2159    A review of real estate records, physical site inspections, and2160interviews with hundreds of Mainers has identified more than 1002161Chinese-owned properties in Maine--all purchased by single men and2162women from out-of-state, primarily Brooklyn and Staten Island, over the2163past 3 years.2164    The buyers often pay cash, but dozens of the properties carry2165mortgages from just a few finance companies.2166    The sites are almost all in rural Maine and show evidence of active2167or recently active marijuana grow operations, including grow supplies2168and the obvious smell of marijuana even at a considerable distance.2169    Almost all of the sites have had extensive modifications to houses,2170garages, and outbuildings to support marijuana growing, including the2171installation of 300- or 400-amp commercial grade electricity service,2172consumer-owned utility poles, and multiple heat pumps.2173    Neighbors confirm that the houses frequently smell of marijuana and2174several times a year, a white van with New York or Massachusetts plates2175will arrive and depart. Neighbors also reported, in some cases, seeing2176tractor-trailer trucks delivering grow supplies.2177    The properties the Maine Wire has identified account for thousands2178of acres of land in rural Maine and tens of millions of dollars worth2179of real estate. Marijuana industry experts said a standard 2,500-2180square-foot house in Maine could, if properly renovated into a2181marijuana grow, generate $1 million to $3 million in marijuana per2182year.2183    Although most of the properties are owned under the names of2184Chinese men and women from New York or Massachusetts, some of them are2185owned through LLCs.2186    The Maine Wire was not able to independently confirm the2187immigration or citizenship status of the owners of these properties;2188however, nothing in U.S. or Maine law would prevent a Chinese national2189from purchasing a property in Maine, even if they were in the country2190illegally.2191    The Maine Wire has also discovered records tying multiple sites2192together, including car registrations, municipal waste permits, real2193estate records, and other public records, which, taken together,2194support the determination that the grow sites are connected and2195centrally controlled under an umbrella organization.2196    At a grow site in Fairfield, for example, there was a Toyota2197Corolla registered to the owner of a separate site in Garland. That2198same vehicle was later observed at the site in Garland.2199    At a different Fairfield site, there was a truck with Mass. plates2200that had a dump permit sticker for Dexter (40 miles East) and a dump2201sticker for Wilton (40 miles West).2202    Law enforcement sources confirmed that they are aware of the2203existence of multiple sites in both Dexter and Wilton.2204    Several of the properties that show obvious signs of active or2205recently active marijuana growing operations have been purchased by2206Chinese individuals from New York or Massachusetts only to be resold2207shortly after to other Chinese individuals from New York or Brooklyn.2208            Indoor Marijuana Cultivation 1012209    Before we get to the sites the Maine Wire identified, it will be2210helpful to go over some basics of growing marijuana indoors.2211    The chief necessity is abundant electricity. That electricity is2212used to power the grow lights, which consume substantially more energy2213than your average LED lighting.2214    But because those lights also generate a tremendous amount of heat,2215the grow rooms require cooling and ventilation equipment.2216    The ideal temperature for growing marijuana is 75-80 degrees2217Fahrenheit. Without significant air conditioning, the lighting would2218make a grow room too hot.2219    The primary way the sites in Maine cool their grow rooms and2220control humidity is through heat pumps.2221    The combined electricity consumption of the lighting and the heat2222pumps requires robust upgrades to electrical infrastructure at a2223typical residential property.2224    Most of the sites identified by the Maine Wire show evidence of2225recent electrical upgrades and the addition of multiple heat pumps.2226    Linesmen from Central Maine Power and local electricians both2227shared, on the condition of anonymity, stories about being asked to2228upgrade residential buildings with the power capacity typically only2229needed by energy-intensive businesses.2230    ``Usually it's like a 10 KVA transformer that they overload out of2231a, like a regular house. You won't even be able to tell,'' said a CMP2232Linesman. ``And so we gotta go upgrade and usually one person will come2233out and stare at us the whole time. They usually don't know any2234English.''2235    One electrician in central Maine was asked to install commercial2236grade service to a mobile home--a job he refused because he found the2237customers, who did not speak English, too sketchy.2238    ``I met with them one time a couple years back but didn't like what2239I was seeing,'' the electrician said.2240    The two most common electrical upgrades encountered at these sites2241are new 300- or 400-amp breaker boxes and consumer-owned utility poles.2242    Without such upgrades, running a grow operation on common2243residential wiring risks starting a fire, as has happened at sites in2244Canaan, Winterport, and Vassalboro.2245    In addition to electricity, the indoor grow rooms need to seal out2246ambient light, which is why all of the windows are boarded up at these2247locations.2248    Ambient light during a dark-cycle can cause young marijuana plants2249to turn into hermaphrodites, which decreases the potency of the flower.2250    Here are some more in-depth looks at sites the Maine Wire has2251identified based on real estate records, photographs provided by2252sources, public records, and interviews with law enforcement and2253residents of the towns.2254            629 Norridgewock Road, Fairfield2255    This 4-bed, 2-bath house was purchased by 32-year-old Juan Lin on2256July 30, 2021, according to Somerset Registry of Deeds records.2257    The windows are obscured, not with curtains or blinds, but with a2258type of foil foam board used to keep out ambient light.2259    On the back of the house, there are three active heat pumps, two on2260the main house and one on the semi-detached garage.2261    The home also boasts an electrical entrance that far exceeds the2262standard residential electrical equipment.2263    In 2021, prior to Lin's purchase, the home did not have any heat2264pumps or commercial grade electricity.2265    A master electrician licensed to work in Maine said the electrical2266equipment on the side of the home appeared to be a 400-amp service with2267two 200-amp manual disconnects--an expensive arrangement that is rare2268to install on a residential property.2269    In layman's terms, the house is consuming far more energy than your2270average Maine home.2271    It also reeks of pot, according to neighbors.2272    Inside the home, photos show clear evidence of a marijuana growing2273operation. (Note: these were provided by a source who asked to remain2274anonymous.)2275    Legal Maine cultivators consulted by the Maine Wire assessed that2276this is what a standard grow operation looks like, noting the chemical2277containers, the newly installed benching on either side of the room,2278and and wiring.2279    This picture shows the same room prior to 2021.2280    At the time the more recent photos were taken, there were two2281vehicles on the property. A charcoal gray truck with Massachusetts2282license plates and a large white cargo van, also with Mass. plates.2283    According to public records, the only other address associated with2284Lin is in Quincy, Mass., where he appears to live with several family2285members.2286    Though Lin owns the property, there is no evidence that he has2287himself participated in the cultivation or trafficking of marijuana.2288    The Maine Wire has identified more than 100 similar sites in Maine2289that all fit many elements of the same pattern: (1) purchased in the2290past 3 years by a single Chinese men or women from New York or2291Massachusetts; (2) strong odor of marijuana even from a distance of2292100's of feet; (3) rubbish from commercial grow products; (4) massive2293upgrades to the electrical capacity of the property; (5) property has2294large garage, outbuilding, or barn; (6) all windows are completely2295blacked out; (7) multiple security cameras; and (8) multiple heat pumps2296running constantly.2297            4 Smith Road & 43 Cape Cod Hill Road, New Sharon2298    In New Sharon (population: 1,500), the Maine Wire identified two2299obvious marijuana grows purchased within the last 3 years.2300    A property at 4 Smith Road was purchased in July 2021 by Wen Bin2301Zhao, 34, of Brooklyn.2302    The house bears the tell-tale signs: all the windows boarded up,2303electrical upgrades, and, most tellingly, an overpowering odor of2304marijuana that could be easily detected from hundreds of feet away.2305    Similarly, this massive property at 43 Cape Cod Hill Road was2306purchased in June 2021 by Muhua Chen, 38, of Staten Island, N.Y.2307    During a visit in October, windows visible from the public road and2308the neighbors driveway appeared completely boarded up and the odor of2309marijuana was powerful (though that could have been because the site is2310about 200 yards from 5 Smith Road).2311    Although Chen and Zhao's names appear on the deeds of these2312properties, there is no evidence that they have themselves cultivated2313or trafficked illicit marijuana.2314            Madison: Golf Course Road and Lakewood Road2315    Madison is host to at least three active indoor marijuana growing2316operations. The operations are at 383 Lakewood Road, 288 Golf Course2317Road, and 21 Golf Course Road.2318    When the Maine Wire visited these three properties attempting to2319interview the occupants, we observed the tell-tale signs of marijuana2320grows--blacked out windows, electrical upgrades, multiple heat pumps,2321and the obvious odor of marijuana.2322    The 21 Golf Course Road is owned by Changju Wu and was previously2323owned by Joe Hao Liang, who also owns 383 Lakewood Road.2324    The house at 288 Golf Course Road was owned by Yanyi Wu, 30.2325    Wu, who previously lived in Brooklyn, purchased the property in2326Oct. 2020 and sold it this September to Jamie Yajing Chen, also2327previously from Brooklyn.2328    Wu is also the owner of a house in Embden. Although Wu obtained2329financing for the Embden location, the two Madison properties were2330purchased in cash.2331    Like the Fairfield location, the property at 383 Lakewood Rd. has2332undergone significant renovations since it was purchased.2333    Photos available on Zillow from before Wu acquired the property2334show it had no heat pumps installed on the front of the building.2335    While attempting to contact Wu at the house for an interview, the2336Maine Wire observed three heat pumps on the front of the building and2337one on the back. Comparing the before and after pictures also shows2338that the garage has had new power service installed within the past 32339years.2340    When the Maine Wire visited, every window was blacked out with2341sheet rock and blankets, and the smell of marijuana was apparent.2342    A roughly 5 minute drive from the Lakewood Road properties brings2343you to Golf Course Road.2344    At 288 Golf Course Road, the house smelled strongly marijuana when2345the Maine Wire attempted to contact the owner.2346    A vent on the side of the garage was pumping hot air that smelled2347strongly of marijuana.2348    Although a woman came out of the house to talk, conducting an2349interview was impossible because she only spoke Mandarin.2350    The occupant, a middle-aged Chinese woman, called an unidentified2351person who attempted to translate and conveyed that they were2352uninterested in talking.2353    The windows on the house and the garage were all boarded up with2354either foam insulation or sheetrock, and the home had commercial grade2355electrical service. The home also had multiple security cameras.2356    Like with other properties, before and after pictures show2357significant changes to the electrical equipment on the house following2358its purchase.2359    On the same road is another site that a neighbor described as a2360Chinese-owned marijuana growing operation.2361    The neighbor, who asked not to be named, said it was common2362knowledge on the road that the house was being used to grow marijuana.2363The aroma left little reason to doubt his opinion.2364    Comparing older pictures of the property to how it appears now2365shows significant modifications to the five car garage, including2366window covers to exclude ambient light.2367            169 Baker Road, Winterport2368    Fires are not uncommon at these sites.2369    This house in Winterport was purchased in August 2021 by Wanzhen2370Huang, 50, of Brooklyn, N.Y. The purchase price was $182,000, and2371Zillow currently estimates it at $348,900, but Zillow might not know2372about the unrepaired fire damage. This is how the home looks now.2373    A neighbor took this picture shortly after the Winterport house2374caught fire.2375    When the Maine Wire visited the home seeking an interview with the2376occupants, it appeared abandoned.2377            346 Ohio Hill Road Rt 23, Fairfield2378    This dilapidated Ohio Hill Road house was purchased by Yifeng Yu,237938, of El Monte, Calif., in February 2020. Images provided to the Maine2380Wire by a source who asked to remain anonymous show marijuana growing2381equipment littering the property, including plant pots, fertilizer2382containers, and soil supplements.2383            195 West Road, Chesterville2384    In Chesterville, the Maine Wire observed the strong odor of2385marijuana at this property.2386    A source, who asked to remain anonymous, said CBP has visited this2387property and even used a hidden camera to photograph it over a period2388of months.2389    A CBP agent declined to comment when asked about this property.2390Harming Legal Growers2391    Legal marijuana cultivators told the Maine Wire that licensed2392operators have long believed that at least some weed grown illegally at2393sites controlled by Chinese organized crime is making into Maine's2394legal marijuana market.2395    The influx of cheap Chinese weed--which cannabis aficionados have2396dubbed ``Triad Weed''--is, they believe, depressing prices.2397    ``[Marijuana prices] went from $2,800 during COVID and right before2398COVID,'' said one medicinal grower. ``Now, for a good pound of flower,2399it's like $1,250. So your profit on that after your CMP bill, your2400profit on that is like, you know, $600.''2401    ``All these little guys and all these caregivers that are doing the2402right thing are getting shut out and shutting down,'' they said.2403    The plummeting price for legal cannabis in Maine coincides well2404with when Chinese buyers began scooping up rural Maine properties and2405converting them into grow operations.2406How Much Money Are These Sites Making?2407    First off: How much marijuana could each site produce?2408    According to industry experts the Maine Wire consulted, the amount2409of marijuana produced at a given spot would depend on the skill of the2410growers, the resources at their disposal, and how much of the home and2411garage has been dedicated to grow rooms.2412    Assuming maximum efficiency, a 2,500 square-foot house could2413accommodate 50 grow lights, which would produce 100 pounds of processed2414marijuana per harvest. Such an operation could expect four to 122415harvests per year, or 400 to 1,200 pounds of marijuana flower.2416    How much is that in U.S. dollars? That depends on where the flower2417is ultimately sold. If the flower is sold into Maine's barely regulated2418medicinal market, it's almost certainly being sold for less than $8002419per pound. However, if the flower is being trafficked back to NYC, the2420black market price is closer to $3,000 per pound.2421    Although there are a considerable range of factors, multiple2422individuals told the Maine Wire that it was realistic to conclude that2423an operation of this type could fetch $1.2M to $3.6M, not including the2424considerable costs of electricity, fertilizers, pesticides, fungicides,2425and, in some cases, mortgage payments.2426    This will be the first in a series of stories from the Maine Wire2427concerning Chinese organized crime in Maine.2428    Future articles in this series will focus on the financial2429arrangements that have allowed Chinese buyers to purchase so much real2430estate in Maine, the political response to this problem from Augusta,2431how the Office of Cannabis Policy understands the problem, and what2432steps law enforcement is taking.2433    Edward Tomic and Graham Pollard contributed to this report.24342435    Ms. Greene. Thank you, Mr. Chairman.2436    According to--I apologize. CBP encountered record numbers2437of Chinese nationals crossing the border under the previous2438Democrat administration. During the last 4 years there were2439over 170,000 Chinese nationals who were encountered nationwide,2440most of whom were caught crossing between the ports of entry.2441This does not include the potential Chinese nationals that are2442among the 2 million gotaways who completely evaded U.S.2443authorities are now--and now are roaming American communities.2444Open-border policies have consequences and America is paying2445the price.2446    In 2024 alone there were nearly 79,000 Chinese nationals2447encountered at the border. This is up from an average of only24481,500 a year over the previous decade. The majority of Chinese2449illegally entering the United States were single military-age2450men. One hundred seventy thousand people, Chinese nationals, is2451equivalent to more than 176 U.S. Army battalions. Or put it2452another way, they total more than 35 Army brigades or nearly 122453divisions or nearly 4 corps or 3 field armies. That is how we2454can translate that just for people's understanding.2455    According to the DEA, Chinese TCOs have become dominant in2456the U.S. illicit marijuana market, establishing highly2457sophisticated multi-State operations. In New Mexico, a recent2458Federal indictment exposed a 25-acre farm, 400-acre cultivation2459scheme on Navajo Nation lands tied to Chinese investors in2460recruited labor resulting in the seizure of more than 260,0002461plants, 60,000 pounds of marijuana. The networks integrate2462profits from cannabis into fentanyl trafficking, human2463smuggling, and global money-laundering schemes creating2464significant national security challenges just as our witnesses2465have stated today.2466    The American people don't know about this. This is, you2467know, largely believed, especially in younger generations, that2468marijuana is a good thing, that it helps relieve stress, helps2469them sleep at night. Then there is also people that use it for2470PTSD and have success with it. There is medical uses of2471marijuana. But the American people have no idea that Chinese2472transnational criminal organizations are involved and that it2473is leading to other extremely terrible and dangerous crimes and2474fentanyl, honestly.2475    Director Anderson, how do these Chinese-backed illegal2476marijuana operations run? For the regular American, they are2477going, well, how is a crime organization from China able to run2478a marijuana farm?2479    Mr. Anderson. These are very, very sophisticated. When I2480say sophisticated, this is at a level that law enforcement2481across the Nation has never seen before because they are that2482sophisticated and that complex. They're layered and they're2483hidden under many, many layers of LLCs and ownerships. When you2484begin to--for example, in Oklahoma, you may have a John Smith2485who is the owner, the 75 percent owner of the marijuana grove.2486As you dig through that thing, you'll find out that John Smith2487has never even been to the marijuana grove. John Smith was paid2488$3,500 to put his name on a license because the Chinese2489national can't do that in the State of Oklahoma. That's how2490that happened in Oklahoma.2491    But these--you have people in Flushing, New York, and in2492California that run a lot of stuff across the whole United2493States that may not ever step foot in the State of Oklahoma2494other than to make a visit every once in a while. But these are2495very well organized, very sophisticated. It's not--whenever I2496talk about this, this is really a global thing that's going on2497with the Chinese nationals. If you look at what's going on down2498in Latin America, what the Chinese are doing down in Latin2499America, even to the Caribbean, they're building roads. I mean,2500they're really investing in stuff. But there's a reason why2501this is going on. Once again, this comes right back to the2502United States, to the national security and what's going on2503in--as well as to Oklahoma.2504    But you're right, I don't think the majority of the people2505in the United States realize what's going on. People in the2506marijuana industry really hate on me. They think I'm just2507against marijuana.2508    Ms. Greene. Right.2509    Mr. Anderson. I'm not--it hasn't--for me it has nothing to2510with do with marijuana. If someone wants to ingest marijuana,2511that's their business. For me, it has everything to do with the2512transnational criminal organizations who are doing things such2513as trafficking in very large amounts of marijuana. They are2514laundering billions, not millions. Oklahoma is probably over2515100--well over $100 billion just for Oklahoma. The murders, the2516sex trafficking, which is probably one of the most deplorable2517things that we have to deal with. How we treat other humans2518like this, I just don't get it. But the rest of the United2519States probably don't know really what's going on.2520    It's not just Oklahoma. Yes, Oklahoma is kind-of the2521epicenter of kind-of what's going on right now because we do2522have such a liberal marijuana law. But the sex trafficking, the2523violent crimes, the underground casinos, the underground2524banking is going on all across the United States.2525    Ms. Greene. Wow. Thank you. I am sorry, I am out of time.2526Mr. Chairman, we need to explore how we can help some State and2527Federal work together to trace the money and track this down.2528Thank you.2529    Chairman Brecheen. The gentlelady yields.2530    I now recognize Mrs. Ramirez for her 5 minutes of2531questioning.2532    Mrs. Ramirez. Thank you, Chair and Ranking Member. Before2533we get started, Chairman, I want to ask unanimous consent to2534include into the record, ``Children of Couple Taken by ICE in2535Cicero Road Stop Speak out,'' and, ``What Happened to Silverio2536Villegas Gonzalez.''2537    Chairman Brecheen. So sorry.2538    Mrs. Ramirez. I can do it again.2539    Chairman Brecheen. Without objection, so ordered.2540              Articles Submitted by Hon. Delia C. Ramirez2541`heartbroken and devastated,' children of cicero couple arrested by ice2542                 in traffic stop ask for their release2543By Adriana Perez/adperez@chicagotribune.com/Chicago Tribune2544PUBLISHED: September 17, 2025 at 10:53 AM CDT2545            https://www.chicagotribune.com/2025/09/17/heartbroken-and-2546                    devastated-children-of-couple-arrested-by-ice-in-2547                    cicero-traffic-stop-ask-for-their-release/2548    On their youngest son's 10th birthday, Federal immigration agents2549detained a couple who immigrated from Mexico and have lived in Cicero2550for 18 years, family and lawyers said Tuesday.2551    U.S. Immigration and Customs Enforcement agents arrested Moises2552Enciso Trejo, 41, and Constantina Ramirez Meraz, 43, during a traffic2553stop Sunday at Cicero Avenue and Pershing Road on the Chicago-Cicero2554border. They had been driving with one of their four children, their2555eldest son, to his university to drop off school materials and later2556meet the rest of the family in church.2557    ``The children are heartbroken and devastated by these arrests,''2558said Shelby Vcelka, managing partner at Victory Law Office, which is2559representing the Enciso-Ramirez family. ``They are deeply concerned2560about the well-being of their parents and want them to come home.''2561    The son, 22, was also detained but released 2 hours later,2562according to Vcelka. Citizenship requests for the eldest son and a2563daughter, 19, under the Deferred Action for Childhood Arrivals program2564are currently pending approval, the family said.2565    A spokesperson for ICE did not confirm when the couple would be2566deported, citing ``operational security.''2567    ``What we can tell you though is that both are in the country2568illegally, in violation of Federal immigration law and are expected to2569remain in ICE custody, pending immigration proceedings,'' the2570spokesperson said Wednesday.2571    Viral videos shared on social media showed the daughter and two2572underage siblings--both U.S. citizens, according to the family--on the2573scene as well. Lawyers later clarified that the three of them had not2574been in the vehicle at the time of the traffic stop, but rather showed2575up shortly afterward when they received a call with ``the unthinkable2576news'' about the arrests, Vcelka said.2577    According to a family statement, the ICE agents pressured the2578younger siblings, 12 and 10, with questions and, without verifying her2579age, they handed the car keys to the older sister, leaving her and the2580children with two abandoned vehicles on the side of the road.2581    ``Their 10-year-old son watched helplessly as his parents were2582taken away on his birthday--a day meant for joy, not fear,'' the2583statement reads. ``Moises Enciso and Constantina Ramirez do not have a2584criminal background. They are beloved parents and valuable members of2585the community.''2586    A search of court records for Cook and collar counties did not turn2587up any criminal history for anyone with matching birthdays named Enciso2588Trejo and Ramirez Meraz.2589    Family said that Ramirez, the mother, works at a local restaurant,2590and that Enciso, the father, is a construction worker known to be2591friendly and outgoing among neighbors. He was anxiously waiting to2592reunite with his mother, who was going to visit from Mexico for the2593first time in two decades, this coming Sunday--plans that, like his2594son's birthday celebration, were also put on hold when Enciso was taken2595into custody.2596    ``The uncertainty and fear of not knowing when their parents will2597be released has been agonizing,'' the family statement said.2598    According to lawyers, the children are currently under the care of2599relatives.2600    ``Our office will pursue every available option to fight for Moises2601and Constantina's release and to protect their rights under the law,''2602Vcelka said.2603Chicago Tribune's Caroline Kubzansky contributed.2604                                 ______26052606              what happened to silverio villegas gonzalez2607            An immigration agent shot and killed an unarmed 38-year-old2608                    father outside Chicago on Friday--and their initial2609                    narrative of events was quickly disproven by videos2610                    captured by witnesses.2611by Steve Held, Raven Geary, Dave Byrnes, and Shawn Mulcahy2612September 15, 20252613            https://chicagoreader.com/news/ice-shooting-silverio-2614                    villegas-gonzalez-franklin-park/2615    Less than 1 week into President Donald Trump's surge of deportation2616arrests in Chicago, an immigration agent shot and killed a man during a2617traffic stop on a near suburban street Friday morning.2618    The Department of Homeland Security (DHS) identified the man as2619Silverio Villegas Gonzalez, confirmed by the Mexican consulate as a 38-2620year-old Mexican citizen from the state of Michoacan. An unidentified2621Immigration and Customs Enforcement (ICE) agent fatally shot him in the2622heavily Latine Chicago suburb of Franklin Park during what DHS2623described as a ``vehicle stop,'' according to an official statement.2624    The statement, which was immediately quoted by media outlets,2625places much of the blame on Villegas Gonzalez for his own death. The2626agency also claimed Villegas Gonzalez drove his car at ICE agents2627conducting the vehicle stop, resulting in serious injuries.2628    ``He refused to follow law enforcements [sic] commands and drove2629his car at law enforcement officers,'' the statement reads. ``One of2630the ICE officers was hit by the car and dragged a significant distance.2631Fearing for his own life, the officer fired his weapon.''2632    Bystander videos and eyewitness accounts, however, tell a different2633story.2634    Security footage near the scene in Franklin Park, as reported by2635CBS News, shows two plainclothes agents approaching a silver sedan that2636had been blocked from moving by an unmarked SUV. The sedan eventually2637reverses away from the two agents, and the officer on the passenger2638side points his firearm at the vehicle.2639    As Villegas Gonzalez drives away from the agents--not toward them,2640as DHS claimed--the agent on the passenger side aims his weapon at the2641back of Villegas Gonzalez's car. Two gunshots can be heard in a2642separate security video. The second agent is not visible during the2643shooting, and it remains unclear which agent fired their weapon.2644    Other footage that circulated on social media following the2645shooting, recorded by on-scene witnesses, shows two men in body armor2646pulling Villegas Gonzalez out of his vehicle after it crashed into the2647undercarriage of a semi truck about 100 feet away from the initial2648traffic stop.2649    The pair of agents, who appear to be operating alone, are then seen2650laying Villegas Gonzalez's bloodied body on the ground and providing2651first aid. One can be heard yelling for bystanders to call 9-1-1.2652Neither appears seriously injured.2653    ``He got blood . . . all over his neck and his head,'' said a local2654witness, who asked not to be identified, of Villegas Gonzalez's2655condition when an ambulance arrived. The witness emerged from her2656apartment building to see plainclothes agents in body armor with no2657agency lettering wrapping Villegas Gonzalez's gunshot wounds in gauze.2658    Villegas Gonzalez was pronounced dead after being taken to the2659nearby Loyola University Medical Center, according to a Friday evening2660statement from the Village of Franklin Park.2661    DHS reports the allegedly injured officer is in stable condition.2662    Witness video obtained by Unraveled appears to show no other agents2663present in the immediate aftermath of the shooting.2664    A search of Cook County court records shows the beloved father and2665community member was cited for four minor vehicle violations between26662010 and 2019. Just one involved a moving violation--speeding--more2667than 12 years ago in May 2013.2668    Verified ICE sightings around the greater Chicago area in the last2669week already show a pattern of traffic stops that have led to2670immigration enforcement arrests. A mix of plainclothes agents and2671members of the Chicago field office's special response team (SRT), in2672fully militarized gear, have been spotted pulling over drivers.2673    This so-called ``jump out'' maneuver has been used for years by the2674Chicago Police Department's tactical teams. Police departments in urban2675areas will often use an unmarked SUV to quickly cut off a target2676vehicle in traffic, as plainclothes officers jump out and bark orders2677at the vehicle's occupants. The tactic is predominantly used to stop2678Black and Latine drivers, and the stops cause confusion and panic for2679drivers boxed in their cars, frequently leading to violent police2680encounters.2681    A similar maneuver led to the death of Dexter Reed in Chicago in2682March 2024. Officers involved in Reed's death have since received2683suspensions for violating multiple department policies in how they2684conducted traffic stops.2685    ICE agents are rarely seen wearing body cameras, and municipal2686police department policies do not apply to any of their law enforcement2687activities. Likewise, Federal agencies are not mandated to identify2688agents who fire their service weapon. There is no set time frame in2689which they have to release relevant records via the Freedom of2690Information Act, and no policy Unraveled is aware of mandates time off-2691duty for Federal agents involved in a shooting.2692    Agents with the Federal Bureau of Investigation (FBI) were seen2693processing the crime scene. As of press time, it remains unclear if the2694Illinois State Police or any other local law enforcement will be2695involved in the investigation into the incident.2696    There is a short history of State police investigating fatal2697shootings by Federal agents--in 2024, the Arkansas State Police2698investigated the shooting death of a local official by agents with the2699Bureau of Alcohol, Tobacco, Firearms, and Explosives, and in 2021, the2700Connecticut State Police investigated a shooting involving an FBI2701agent. Prosecutors declined to prosecute either case.2702    The incident has sparked uproar in the community amid the Trump2703administration's targeting of Chicago for heightened immigration2704enforcement.2705    ``This blood that was spilled today will be a stain on the history2706of our Nation,'' said Illinois State senator Karina Villa of Villegas2707Gonzalez's killing at a press conference on Friday afternoon.2708Community remains defiant2709    Also on Friday, only a few miles south of where Villegas Gonzalez2710was killed, protesters demonstrated for more than 12 hours outside an2711ICE processing facility in the suburb of Broadview.2712    The demonstration overlapped with a long-running weekly prayer2713service for migrants detained inside the facility.2714    Protesters, armed with handmade signs and sidewalk chalk,2715repeatedly confronted heavily armored Federal agents in face coverings2716as the agents moved vehicles in and out of the facility over the course2717of the day. These included a transit van with captives banging from the2718inside.2719    According to a September 2 statement from Broadview mayor Katrina2720Thompson, ICE will continue operating out of the Broadview facility as2721part of a ``large-scale enforcement campaign''--part of the Trump2722administration's so-called Operation Midway Blitz--until at least mid-2723October.2724    Immigration rights organizations are unable to provide an accurate2725estimate of the number of people snatched by Federal agents over the2726last several days, surely in part due to the chaotic and dispersed2727nature of the ICE operation.2728    ``I don't have a sense of a number except to say that it is2729certainly higher than what ICE is reporting publicly,'' said a2730spokesperson for the Illinois Coalition for Immigrant and Refugee2731Rights in a statement. ``We know ICE's history of exploiting personal2732tragedies to conduct broad and unnecessary operations with increasingly2733aggressive, and now fatal, tactics. We also know that our partners have2734conducted legal intake for individuals who are not among those on DHS's2735press release from earlier this week, and that abductions are still2736happening into the weekend.''2737    Before dawn, protesters blocked the main vehicle entrance to the2738ICE facility. Agents shifted to using a separate garage attached to the2739building after sunrise, repeatedly sending out teams to guard vehicle2740transfers. Local police from Broadview and Maywood, who were also on2741scene, joined with the agents' line on at least one occasion, and at2742other times formed a loose line in front of the facility itself.2743    At multiple points over the course of the day, agents took to the2744facility's roof, some armed with long guns and others seemingly2745recording the crowd with smartphones. One agent also appeared to be2746piloting a drone over the crowd around 10:30 AM.2747    Video captured by witnesses shows the agents becoming more2748aggressive as the day wore on and the crowd thinned.2749    Hours after an ICE agent fatally shot Villegas Gonzalez in Franklin2750Park, SRT agents deployed projectile chemical munitions on the crowd.2751These included chemical gas, as well as pepper balls fired at a2752protester who was using a mobility aid.2753    ``They are hurting families, and they need to stop,'' said one2754protester at the Broadview facility, who asked not to be named, of the2755immigration agents' activity in the Chicago area. ``We don't want them2756in Chicago. We don't want them here in the United States.''2757Editor's note (9/16/25, 3:30 PM): Official communications immediately2758following Silverio Villegas Gonzalez's killing incorrectly identified2759him as Silverio Villegas-Gonzalez. This story has been updated to2760reflect the correct spelling.27612762    Mrs. Ramirez. Thank you, Chairman.2763    This is our oversight committee, and I think it is2764important to use every opportunity here to do the oversight2765work. I want to thank the panelists that are here, but I need2766to talk about what is happening here, right now, all over the2767country. I want to start by saying that the Department of2768Homeland Security is a national security threat. I call it a2769force terrorizing communities with good reason. Men in masks,2770unmarked cars, no badges, no body cameras, and arrests without2771valid warrants all result in fear, chaos, and harm.2772    Given that this is a subcommittee on oversight, I want to2773show 2 clips today. One clip shows DHS agents engaging children2774whose family members were just abducted. The second clip you2775are going to see today shows the murder of Silverio Villegas2776Gonzalez by DHS agents. Let's watch the footage.2777    [Videos shown.]2778    Mrs. Ramirez. Shot. Let's break it down. In the first2779video, ICE says the lie. ICE encountered a mother and her 22780children who weren't detained and then kept asking, are they2781citizens? If you have a warrant, if you know that they are not2782citizens, why are you asking if they are citizens? Here is the2783facts: ICE detained a mother, a father, and their son, a2784college student, that is a dreamer. They encountered the2785couple's 3 other children and aggressively questioned a 12- and278610-year-old. Given that we know that the parents had no public2787criminal record, how did DHS agents know to pull them over? We2788know. It is because they are Brown.2789    I cannot imagine a parent in this room who would accept2790their children being questioned without an adult. If any of my2791colleagues are at peace with watching that little girl cry, you2792know what? Miss me with your family values.2793    In the second video, the lie? That ICE statement, he2794dragged an ICE officer. The footage, the fact? No one was2795dragged. The lie? He drove at agents. The fact? He drove away2796from agents. The lie? Used appropriate force. The fact? The2797agent shot Silverio dead. The lie? Silverio had a history of2798reckless driving. Are the cameras not on? The camera should be2799on. I mean, I know we are filming. The fact is, he had just one2800moving violation in May 2023. A traffic violation should never2801amount to a death sentence. We need a full and thorough2802investigation into what happened.2803    One moment. Is the public seeing this, Chairman? Chairman,2804is the public seeing this? Are the cameras on? OK. If you can2805go ahead and return my time. I think I was at about 30 seconds2806when I asked about the camera. I will wait. If it is OK,2807Chairman, I'll finish my 30 seconds in here.2808    Chairman Brecheen. The gentlelady will hurry.2809    Mrs. Ramirez. I want you to look at that face. Silverio was2810shot. He was the father with full custody of these 2 children.2811He was shot after he was followed dropping off his child at2812daycare. We need a full, thorough investigation and every2813single death and separation, every orphan created is Kristi2814Noem's responsibility. It is why, Mr. Chair, pursuant to clause28152(k)(6) of rule XI(1), I move that the committee subpoena2816Secretary Kristi Noem.2817    Chairman Brecheen. I now recognize Representative Strong2818for his----2819    Mrs. Ramirez. Mr. Chairman, I----2820    Mr. Strong. Thank you, Chairman Brecheen, for holding these2821hearings today. I have already seen how this----2822    Mrs. Ramirez. Mr. Chairman, I need a response to my request2823of a subpoena. I didn't get a response.2824    Chairman Brecheen. The gentlelady will state her motion2825again.2826    Mrs. Ramirez. Mr. Chair, pursuant to clause 2(k)(6) of rule2827XI, I move that the committee subpoena Secretary Kristi Noem.2828    Chairman Brecheen. All right. The committee will stand in2829recess.2830    [Recess.]2831    Chairman Brecheen. All right. The committee will be in2832order resuming.2833    The gentlelady had a motion on the table.2834    Mr. Strong. Mr. Chairman, motion to table.2835    Chairman Brecheen. The gentleman has now indicated his2836desire to table that motion.2837    Ms. Greene. I second.2838    Chairman Brecheen. The gentlelady has seconded.2839    All those in favor of tabling the motion, signify by saying2840aye.2841    All opposed?2842    The ayes have it.2843    Mrs. Ramirez. Mr. Chairman, I request a recorded vote.2844    Chairman Brecheen. A recorded vote is requested. The Clerk2845will call the roll.2846    The Clerk. Ms. Greene.2847    Ms. Greene. Aye.2848    The Clerk. Ms. Greene votes aye.2849    Mr. Strong.2850    Mr. Strong. Aye.2851    The Clerk. Mr. Strong votes aye.2852    Mr. Ogles.2853    Mr. Ogles. Aye.2854    The Clerk. Mr. Ogles votes aye.2855    Mr. Knott.2856    Mr. Knott. Aye.2857    The Clerk. Mr. Knott votes aye.2858    Mr. Garbarino.2859    [No response.]2860    The Clerk. Mr. Thanedar.2861    Mr. Thanedar. No.2862    The Clerk. Mr. Thanedar votes no.2863    Mrs. Ramirez.2864    Mrs. Ramirez. No.2865    The Clerk. Mrs. Ramirez votes no.2866    Mr. Carter.2867    [No response.]2868    Chairman Brecheen. How is the Chairman recorded?2869    The Clerk. The Chairman has not yet been recorded.2870    Chairman Brecheen. The Chairman votes aye.2871    The Clerk. Chairman Brecheen votes aye.2872    Mr. Carter. Mr. Chair, how am I recorded?2873    The Clerk. Mr. Carter is not recorded.2874    Mr. Carter. Mr. Carter votes no.2875    The Clerk. Mr. Carter votes no.2876    Mr. Green of Texas.2877    [No response.]2878    The Clerk. Ranking Member Thompson.2879    [No response.]2880    Chairman Brecheen. Any other Members not voted?2881    The Clerk will report.2882    The Clerk. Mr. Chairman, on that vote, there were 5 ayes2883and 3 noes.2884    Chairman Brecheen. The ayes have it. The motion to table is2885adopted.2886    All right. We are back on the agenda. I now recognize the2887gentleman from Alabama for his 5 minutes of questioning.2888    Mr. Strong. Thank you, Chairman Brecheen, for holding this2889hearing today.2890    We have already seen how the CCP took advantage of the2891open-border policies of the previous administration to provide2892precursors to fentanyl that have wreaked havoc all over this2893Nation and all over the world in an effort to kill a generation2894of Americans, not Republicans, not Democrats, but Americans.2895The Mexican cartel cannot make fentanyl without the precursor2896from China. These illegal marijuana farms are another example2897of how brazen the CCP will be. Earlier this week, we talked2898about how foreign adversaries see U.S. agriculture not only as2899an economic target, but also a homeland security vulnerability.2900    Mr. Larkin, how significant is land acquisition to the2901broader strategy of Chinese criminal groups operating in2902America?2903    Mr. Larkin. It's helpful to them in 2 very different ways.2904First, it allows them to use the property to grow illicit2905drugs, to process them, and then use that site as a2906distribution point. But it's also possible to do that in places2907that would allow them to try to use that area for spying on2908nearby facilities. For example, if you had an indoor rather2909than an outdoor grow, you could not only use that as a basis2910for developing marijuana that you can then ship elsewhere in2911the State or across the Nation, you can also use that as a2912place perhaps for spying on nearby Americans or American bases2913or other sensitive targets. So it's a very dangerous sort of2914circumstance we have.2915    Mr. Strong. I think you are exactly right. You start2916thinking about it, I asked the State Department, how many acres2917does China own or lease in America sometime back, might have2918been a year or 2. I remember they said, we will get back with2919you. Then all of a sudden we found out 380,000 acres are either2920owned or leased by China of American soil.2921    Then we peeled the onion back a little further. What did it2922say? We found out that where is this property located? It is2923around our largest military installations in America. What is2924unbelievable, we actually got a bipartisan bill, had Democrats2925that crossed over because they know that this is a threat to2926America.2927    When your agents do uncover these foreign back-grow2928operations, what obstacles do you face in proving the criminal2929ties and actually shutting them down?2930    Mr. Larkin. Is that still to me?2931    Mr. Strong. Yes, sir.2932    Mr. Larkin. The problem is Federal law doesn't require in2933detail identification of all the different organizations,2934entities, companies, or people that have an interest in2935particular property. You can obscure it in that way. One way2936this Congress could address this problem is by making clear2937that you have to identify any and all foreign nationals,2938particularly Chinese foreign nationals, who are potentially2939associated with the PRC or the CCP as being real parties of2940interest in either acquisitions of property by purchase or by2941leasing. So that you can then with the onus on the people who2942are the property owners as well as the real estate people to2943make them help the Federal Government identify when the PRC and2944the CCP is involved.2945    Mr. Thanedar. Thank you, Mr. Larkin.2946    Our national security strategy says China is the only2947country with both the intent and the ability to reshape the2948international order. It also calls China the Pentagon's top2949challenge. While our military has been focused on China for2950some time, do you think other departments like DHS need to2951increase their focus on China's influence here at home?2952    Mr. Larkin. I do. I think one of the problems is the2953American public doesn't understand the role that China plays in2954the illicit drug trafficking and other activities that are2955damaging to the Nation.2956    Mr. Strong. Thank you.2957    Mr. Urben, you have spent years investigating transnational2958money-laundering networks. How significant a threat are Chinese2959networks to our financial system compared to other global2960actors?2961    Mr. Urben. Chinese money launderers, their networks over2962the last 7 years, they've become the dominant money launderers2963for transnational organized crime around the world. They are2964the primary launderers for the Mexican drug cartels. For2965example, when they became the dominant money launderers 2017,29662018, or 2019, they increased the net profits of the Mexican2967cartels, the designated terrorist organizations, by our2968estimation of 3 to 5 percent of their bottom line.2969    The way to attack those networks is with high-level2970prosecutions against command and control. FinCEN several weeks2971ago came out with additional guidance on compliance, AML, red2972flag, in terms of Chinese money laundering within the United2973States. We need to attack it with significant authorities and2974funding.2975    Mr. Strong. If you could recommend one Federal action that2976would immediately disrupt Chinese TCO operations in the United2977States, what would that be and why?2978    Chairman Brecheen. Quickly.2979    Mr. Urben. Proper funding and authority and mandate for the2980Federal Government through a task force to go after those2981networks aggressively in the next year with racketeering-type2982charges.2983    Mr. Strong. Thank you. Mr. Chairman, I yield back.2984    Chairman Brecheen. The gentleman yields.2985    I now recognize Representative Carter for his 5 minutes of2986question.2987    Mr. Carter. Thank you, Mr. Chairman. Thank you to our2988witnesses for being here.2989    For decades, the Federal Government's decision to2990criminalize marijuana has been nothing short of disastrous for2991our communities, for our economy, and for justice in America.2992The failed war against cannabis has especially devastated Black2993and Brown communities. Arrest and incarceration rates for2994marijuana offenses have been wildly disproportionate, with2995people of color far more likely to be targeted despite using2996marijuana at similar rates as white Americans. These policies2997have fueled mass incarceration, separating families, stripping2998people of opportunities, and saddling them with criminal2999records that create life-long barriers to housing, education,3000and employment. This has entrenched cycles of poverty and3001inequality, all in the name of a policy that the American3002people increasingly reject.3003    Beyond the human costs, prohibition has created a lucrative3004illicit market. By outlawing marijuana, rather than regulating3005it, the Federal Government allowed billions of dollars to flow3006through the underground economy. That money could have gone3007toward tax revenue, community investments, and public health,3008but instead it has enriched criminal enterprise and fueled3009violence.3010    Today, with most Americans supporting legalization, it is3011past time that we acknowledge the truth: marijuana prohibition3012has failed. The regulated cannabis industry is not the same as3013what we were discussing today. The state of legal cannabis3014industry employs over 425,000 people and operate in 40 States,3015including my home State of Louisiana. State-regulated cannabis3016programs require rigorous product testing for contaminants,3017pesticides and alterants, and potency, sometimes entirely3018absent from the illicit marketplace.3019    Mr. Chairman, I would like to enter into the record this3020letter from the United States Cannabis Roundtable, the advocacy3021organization for the regulated State-licensed cannabis3022industry. This letter includes more details about how3023legalization can combat foreign criminal cartels.3024    Chairman Brecheen. Without objection, so ordered.3025                 Letter From the US Cannabis Roundtable3026                                September 18, 2025.3027The Honorable Josh Brecheen,3028Homeland Security Committee, Subcommittee on Oversight, Investigations,3029        and Accountability, 310 Cannon House Office Building,3030        Washington, DC 20510.3031The Honorable Shri Thanedar,3032Homeland Security Committee, Subcommittee on Oversight, Investigations,3033        and Accountability, 310 Cannon House Office Building,3034        Washington, DC 20510.30353036Re: Statement for the Record on the Subcommittee on Oversight,3037Investigations, and Accountability will hold a hearing titled,3038``Invasion of the Homeland: How China is Using Illegal Marijuana to3039Build a Criminal Network Across America.30403041    Dear Chairman Brecheen and Ranking Member Thanedar: The United3042States Cannabis Roundtable (``USCR'') appreciates the opportunity to3043submit this statement for the record for the hearing entitled3044``Invasion of the Homeland: How China is Using Illegal Marijuana to3045Build a Criminal Network Across America.'' USCR is the voice of3046America's regulated and State-licensed cannabis industry. Our members3047include the nation's leading cannabis operators and ancillary3048businesses and operate in all 40 States where cannabis is legal for3049medical use, and the 24 States where cannabis is legal for adults over3050the age of 21 without medical supervision. USCR strongly supports3051efforts to combat the illicit cultivation of and diversion of3052marijuana, and we are grateful to the committee for holding a hearing3053on this important issue.3054    Over the past several years, we have seen that foreign criminal3055enterprises have infiltrated States like California, Maine and3056Oklahoma,\1\ diverting products to where cannabis remains illegal and3057subverting strict State regulations on public health and safety.3058According to the DEA's 2025 National Drug Threat Assessment, Chinese3059and Mexican transnational criminal organizations are associated with3060violence, have committed serious immigration and labor violations and3061have engaged in human-trafficking in addition to failing to comply with3062State regulations.\2\ There is no doubt that additional enforcement is3063needed.3064---------------------------------------------------------------------------3065    \1\ https://www.newsnationnow.com/us-news/immigration/border-3066coverage/chinese-mexican-crime-rinqs-marijuana/.3067    \2\ https://www.dea.gov/sites/default/files/2025_05/30682025%20National%20Drug%20Threat- %20Assessment_Web%205-12-2025.pdf.3069---------------------------------------------------------------------------3070    The State-licensed cannabis industry takes regulation, product3071track and trace, age-gating and public safety seriously, and our3072members follow State laws and work well with our regulators to provide3073medical and adult-use products safely within the framework of State-3074regulated programs.3075    Our industry employs 425,000 full-time equivalent individuals and3076has paid over $24.7 billion dollars in State taxes.\3\ \4\ Because of3077strict age-gating and our adherence to State marketing restrictions,3078States that have legalized cannabis have actually seen a decrease in3079adolescent use.\5\3080---------------------------------------------------------------------------3081    \3\ https://www.nsc.org/cannabis-3082regulations?srsltid=AfmBOopbc5LiBKBHiRcrW4-Yh8Gik-3083GYGP2pNss00sZLTCIJtYhRd0Y2.3084    \4\ https://www.forbes.com/sites/javierhasse/2025/06/22/legal-weed-3085is-working-data-suggests-24-7-billion-in-taxes-teen-use-down-in-most-3086states/#.3087    \5\ https://www.mpp.org/issues/legalization/adult-use-legalization-3088corresponds-with-drop-in-teen-marijuana-use.3089---------------------------------------------------------------------------3090    In each State that our member companies operate, strict regulations3091dictate permissible conduct for cannabis businesses. This includes the3092seed to sale tracking, which creates a detailed record of the regulated3093cannabis supply chain,\6\ age-gating and ID checks, plain package that3094does not appeal to children, and product testing to ensure that3095cannabis products are free from contaminants, mold, pesticides, and3096other adulterants that could be harmful to consumer health and3097safety.\7\ Of course, cartels and criminal organizations by their very3098nature adhere to none of these safeguards, and they undermine State-3099legal markets, and State tax revenue, while selling dangerous,3100oftentimes tainted products.3101---------------------------------------------------------------------------3102    \6\ https://reason.org/commentary/batch-trackinq-the-next-wave-of-3103marijuana-tracking-systems/.3104    \7\ https://www.nsc.org/cannabis-3105regulations?srsltid=AfmBOopbc5LiBKBHiRcrW4-Yh8Gik-3106GYGP2pNss00sZLTCIJtYhRd0Y2.3107---------------------------------------------------------------------------3108    Currently, the Trump administration is considering reclassifying3109cannabis from a Schedule I to a Schedule III drug. USCR strongly3110supports this decision as it will further help combat against the3111influence of cartels and criminal enterprises. Rescheduling cannabis3112could reduce cartel revenue by $1 to $2 billion dollars annually.\8\3113Rescheduling cannabis also creates greater financial transparency, and3114allows for better prioritization of Federal enforcement dollars.3115Rescheduling, however, would not hinder law enforcement's ability to3116prosecute illegal actors, nor does it change the legal status of State-3117licensed businesses.3118---------------------------------------------------------------------------3119    \8\ https://www.rand.org/pubs/occasional_papers/OP325.html.3120---------------------------------------------------------------------------3121    During President Trump's first term, he recognized the role the3122illicit market plays in fulfilling demand for substances by saying,3123``If you don't give it to them, it's going to come here illegally.''\9\3124Since States have begun to legalize cannabis, seizures of the plant at3125our Nation's Southern Border have greatly decreased. Border Patrol3126confiscated 78 percent less cannabis in 2018 than they did in 20133127largely because of wider availability of cannabis in the U.S. from3128legal sources.\10\ In 2019, former Mexican President Vincente Fox3129acknowledged that the best way to combat the presence of cartels in3130Mexico was to legalize cannabis.\11\3131---------------------------------------------------------------------------3132    \9\ https://trumpwhitehouse.archives.gov/briefings-statements/3133remarks-president-trump-listening-session-youth-vaping-electronic-3134cigarette-epidemic.3135    \10\ https://www.cato.org/sites/cato.org/files/pubs/pdf/pa-860-3136revised.pdf.3137    \11\ https://www.cnbc.com/2019/10/22/vicente-fox-legalizing-drugs-3138is-the-way-to-combat-cartels.html.3139---------------------------------------------------------------------------3140    Thank you again for organizing this hearing, and USCR stands ready3141to be a cooperative partner in the effort to eradicate illicit cannabis3142cultivation across the country. Please do not hesitate to reach out3143with any questions you may have via our website at www.uscr.org.3144            Sincerely,3145                     The United States Cannabis Roundtable.31463147    Mr. Carter. The real choice isn't cannabis or no cannabis?3148It is whether we let foreign criminal networks run the show or3149rather we empower regulated American businesses that test,3150track, and play by the rules. If we want to dismantle foreign3151criminal networks and protect American communities, then we3152need to strengthen, not weaken, regulated markets. That means3153financial transparency, clear rules, and a Federal framework3154that allows law enforcement to focus on fentanyl and other real3155threats to our community.3156    Mr. Larkin, in a recent report from the Heritage3157Foundation, you have recommended against rescheduling cannabis,3158but even President Trump has expressed support for3159rescheduling. Like President Trump, I believe we should end3160endless arrests for cannabis conduct and focus on the real bad3161guys, those who are pushing fentanyl and other deadly forms of3162drugs. Why do you oppose President Trump's support for3163rescheduling, especially since that means we can both recognize3164medical uses and better-aligned law enforcement priorities?3165    Mr. Larkin. It would be a mistake legally, medically, and3166from a policy perspective to reschedule cannabis from 1 to 3.3167It would also be a mistake, even more so, to legalize it. I3168wrote in an article in the Journal of the American Medical3169Association Psychiatry multiple reasons why legally, medically,3170and policy-wise, the rescheduling would be a mistake.3171    Mr. Carter. Mr. Larkin, have you expressed----3172    Mr. Larkin. I can give you one in particular.3173    Mr. Carter. Just a second. Have you expressed your concern3174with the Trump administration?3175    Mr. Larkin. I published it in the Journal of the American3176Medical Association. That's the way think tanks do things. I3177haven't talked to anybody in the Trump administration. But I3178can tell you one thing that is absolutely true. For 80-plus3179years, the United States has trusted the Food and Drug3180Administration with the responsibility to decide what is a drug3181and what whether it's safe and effective.3182    Mr. Carter. I am going to reclaim my time because I only3183got 25 seconds. You argue in your testimony that State3184legalization has not eliminated the illicit black market. But3185isn't it true that we have legalized cannabis in most of our3186States? It remains illegal at the Federal level, which is why,3187despite paying millions of dollars in taxpayer dollars,3188licensed operators are often shut out of traditional banking3189services and are forced to operate in cash. When a legitimate3190operator is shut out of banking, it makes it harder for law3191enforcement to trace transactions, determine who is compliant3192and who is not. Wouldn't law enforcement and public safety be3193better served by a Federally-regulated system to track the flow3194of marijuana businesses' processing and distribution, thus3195making it clear who the real operators are versus the Chinese,3196who are inundating our communities with marijuana that may, in3197fact, be tainted?3198    Mr. Larkin. No. The Chinese will also take advantage of any3199legally sellable cannabis product. They make money not only3200from illicit sales, but from lawful sales. They actually try to3201focus on States that have medical or recreational programs so3202that they can have lawful sales, big outdoor grows and the3203like. Ask my colleague from Oklahoma.3204    Mr. Carter. The Chairman has been very generous. My time is3205up, but I will ask you a final question as I part. Is it your3206assertion that all marijuana should be illegal?3207    Chairman Brecheen. Hurry, please.3208    Mr. Carter. Is it your assertion that all cannabis should3209be illegal, medicinal, and/or recreational?3210    Mr. Larkin. Yes, because the Food and Drug Administration--3211--3212    Mr. Carter. Just yes or no.3213    Mr. Larkin. No, the Food and Drug Administration----3214    Mr. Carter. No, I reclaim my time, sir.3215    Chairman Brecheen. The gentleman's time has expired.3216    I now recognize Representative Ogles for his 5 minutes of3217questioning.3218    Mr. Ogles. Thank you, Mr. Chairman. I ask unanimous consent3219to submit for the record Resolution Number 25109 from Siskiyou3220County, California Board of Supervisors, requesting that3221Governor Newsom of California proclaim a state of emergency3222regarding illegal pesticides and illicit cannabis operations.3223    Chairman Brecheen. So ordered.32243225    Mr. Ogles. Now, I want to be clear, the CCP is the3226existential threat to the United States of America. CCP has set3227up operations to leverage cannabis operations, both illegal3228and, as you say, Mr. Larkin, legal operations in this country.3229They work hand-in-hand with the cartels in Mexico to undermine3230this country. So what is, in fact, a threat to the United3231States is not Homeland Security, but it is China and the3232Mexican cartels.3233    Unfortunately, instead of having a hearing on the CCP and3234illicit activities in our country, some of my colleagues on the3235other side of the aisle are more interested in protecting their3236suppliers for their personal use than they are of fulfilling3237their duty and protecting this country. I for one have had3238enough of this nonsense.3239    We need to recognize the truth that the CCP is setting up3240operations in this country. They want to destroy this country.3241They want to see us on bended knee. I say hell no. So whether3242it is 1, 3 on the schedule, whether it is legal or illegal, we3243have to recognize the fact that the CCP is within our borders,3244they are buying our farmland, and they are growing whatever3245they can grow that they can make money off of. My colleagues3246need to wake up and have an honest conversation about those3247facts instead of grandstanding and, again, protecting their own3248suppliers.3249    Mr. Urben, are Chinese TCOs laundering money in connection3250to these illicit marijuana grow operations? To what extent are3251they relying on preexisting China money-laundering networks in3252the United States?3253    Mr. Urben. So the preexisting Chinese money-laundering3254networks, those networks funded this substantial increase in3255Chinese organized crime cultivation marijuana operations.3256They're the ones that funded it and stood this up on a massive3257basis. For example, I never focused on marijuana trafficking3258during my career in DEA prior to this. What got my attention is3259when Chinese money launderers took over money laundering for3260the Mexican cartels in approximately 2018.3261    As we stood up this intelligence-gathering effort to3262understand Chinese organized crime, we were shocked at the3263marijuana grows that were in Northern California, exploiting3264the land, exploiting our money--our banking laws, our mortgage3265laws, taking water, taking electricity, the theft of it was3266just unbelievable. So we recognized that not only do we have to3267attack the Chinese money-laundering network, but we also had an3268opportunity, right, and a need to attack the Chinese3269cultivation grows that were happening throughout the United3270States: Colorado, Oklahoma, California, Maine, and elsewhere.3271The Chinese money launderers are the ones that funded this and3272set this up. That's why you saw so much money and the scale3273happen so quickly.3274    Mr. Ogles. Mr. Urben, just a few weeks ago, the Department3275of Treasury's Financial Crimes Enforcement Network, FinCEN, I3276am on Financial Services with which regulates that3277organization, highlighted the role of Chinese money-laundering3278networks in partnering with the Mexican drug cartels to launder3279drug profits. How does the earned money from illegal marijuana3280trafficking facilitate their money-laundering activities? Quite3281frankly, when you look at the supply chain that they are3282setting up, what other illicit goods may also be, such as human3283trafficking, are part of that supply chain?3284    Mr. Urben. So one component of the organized crime revenue3285feeds the other. So, for example, the money launderers and the3286ability to purchase land and goods throughout the United States3287for cultivation assist the money launderers, the human3288trafficking component.3289    Getting back to the national security component to this,3290all of these revenue streams that is benefiting Chinese3291organized crime promotes and provides access points throughout3292our U.S. Government, promotes access to different places that3293they can corrupt, financial institutions that they can3294undermine.3295    Mr. Ogles. FinCEN recently warned the Chinese money-3296laundering networks pushed over 300 billion through U.S.3297financial institutions in just 5 years. How much of that volume3298do you believe is linked directly or indirectly to illicit3299marijuana operations?3300    Mr. Urben. The majority or the significant component to3301that was the proceeds of Mexican cartel drug trafficking. A3302significant material component to that, I'm not going to put a3303percentage on it, but you're talking billions of dollars, was3304the illicit marijuana trade. It essentially put on steroids3305Chinese organized crime within the United States, the money3306they made off marijuana cultivation.3307    Mr. Ogles. I want to thank the witnesses. I apologize, I3308didn't have questions for you, and I thank you to the Chairman.3309    Chairman Brecheen. The gentleman yields.3310    I now recognize Representative Knott for his 5 minutes of3311questioning.3312    Mr. Knott. Thank you, Mr. Chairman.3313    Mr. Urben, I want to talk to you quickly about some of the3314misconceptions out there, but criminal organizations, the best3315ones, are the hardest to catch. They have a proficiency of3316layering in camouflage, making it very difficult to apprehend,3317to investigate. In my time with law enforcement, there is some3318easy pickings. The guys that are walking around the sidewalk3319with an AK-47, that is easy. But it is the folks who are moving3320the currency, who are masking illegal with legal activities, so3321on, and so forth.3322    I want you to talk to us a little bit about how the Chinese3323criminals have successfully hidden in polite society. Because3324when I investigated marijuana cultivation that was illegal,3325they had a very intricate network of legal front businesses3326that enabled them to move millions of dollars that looked3327legitimate. But when you started to peel the onion back, it was3328a pretty harrowing viewpoint. So talk to us about how they are3329successful in betting in polite society.3330    Mr. Urben. So they become so successful as to exactly what3331you said because they're being controlled by the top echelon of3332Chinese organized crime, some of the most sophisticated3333operators in the world. They're very sophisticated and3334disciplined in the sense that they engage in what we would view3335as low-risk criminal activities. the money laundering. The3336violent component to what Mr. Anderson stated, that's only more3337recently. They try to stay away from violence or what would,3338you know, have Federal prosecutors become interested in3339prosecuting them, hence marijuana trafficking, money3340laundering, human smuggling. They also rely on this network in3341the Chinese underground banking system that's been around for3342years. Last, we touched upon on this, it's very difficult to3343recruit confidential sources to engage these networks and3344wiretap these networks on WeChat is impossible.3345    Mr. Knott. Yep. In terms of the State structures, the State3346legalities, we were promised, if you legalize it, you will see3347less illegal marijuana. If you legalize it, there won't be3348nearly as many incidents with toxicities and so forth. In my3349experience prosecuting these cases, they used a sloppy3350legalization effort to almost balloon the amount of marijuana3351they were able to traffic. It was illegal in many instances,3352but the sloppy legal structures has brought about a greater3353problem in many respects.3354    Mr. Urben. So we don't have the regulatory component to3355this in place that would negate subsidizing or allowing3356organized crime on a national basis to exploit the marijuana3357market.3358    Mr. Knott. In your--one of the things that is often3359misstated, it is framed as though you have a marijuana dealer3360and then every other type of criminal. In my experience,3361organized crime touches the full spectrum when they get to a3362certain level: methamphetamine, heroin, fentanyl. Marijuana is3363just one component of it. So to splice it out is often an3364inaccurate assumption. Is that your experience?3365    Mr. Urben. Absolutely.3366    Mr. Knott. Mr. Larkin, briefly, you mentioned, I will give3367you a chance to answer the question that Mr. Carter asked,3368would it be wise, yes or no, to legalize marijuana in the3369country, in your opinion?3370    Mr. Larkin. No, it would not.3371    Mr. Knott. Why?3372    Mr. Larkin. It is a problematic drug when you use it3373heavily or on a long-term basis. What I was going to say in3374response to the answer is we have not only the Controlled3375Substances Act at work here, we also have the Food, Drug, and3376Cosmetic Act. For 80 years we've trusted the FDA with deciding3377what is a drug and whether it is safe, effective, and uniformly3378made. The FDA could not say the cannabis plant is safe,3379effective, and uniformly made because it's not.3380    Mr. Knott. Well, one of the mistruths that proponents say3381is that there really isn't any problematic effects to3382marijuana. It was interesting because when I was prosecuting3383organized crime, I only had a few cases, but they were really3384big cases in terms of quantity, in terms of sophistication,3385dealing with marijuana, but they targeted young people. Please3386describe the effects that young people suffer when they are3387exposed to high levels of marijuana on a continued basis.3388    Mr. Larkin. The juvenile brain is in a labile state,3389particularly in men. It doesn't come fully formed until early3390in the 20's. The problem is the THC content of cannabis today3391is not what it was back in the days of Woodstock. Back then it3392was 3 to 6 percent THC. Now in the plants it can be up to 403393percent and in processed forms it can be 90 percent.3394    Mr. Knott. Has there been a successful State system that3395controls the supply of marijuana to deliver only safe product3396to the consumer?3397    Mr. Larkin. Not to my knowledge. The problem is there is3398too great an amount of disuniformity in the product that's3399being sold. A few years ago, Nora Volkow, the director of the3400National Institute on Drug Abuse, said, we don't have in place3401the mechanisms to make sure that what is being sold lacks the3402pesticides that we know are coming from China and that are3403creating problems and will create even bigger problems 10 to 203404years down the road when we start seeing spikes in areas where3405there is a greater incidence of cancer because of it.3406    Well, thank you witnesses for your testimony. I am sorry I3407am out of time. Mr. Anderson, I had a lot of questions for you3408lined up, but maybe we will get a second round if we are3409fortunate. If not, I hope to have you back.3410    Mr. Chairman, I do have a UC request. I have got an example3411here. It is a Department of Justice press release detailing 73412Chinese nationals and their roles in money laundering millions3413of dollars and smuggling kilograms of illegal marijuana.3414    Chairman Brecheen. The gentlemen asked it be put in the3415record. Without objection----3416    Mr. Knott. Thank you.3417    Chairman Brecheen [continuing]. So ordered. The gentleman3418yields.3419    [The information follows:]3420    Press Release, U.S. Attorney's Office, District of Massachusetts3421                         Tuesday, July 8, 20253422  seven chinese nationals charged for alleged roles in multi-million-3423     dollar money laundering, alien smuggling and drug trafficking3424                               enterprise3425Defendants allegedly smuggled Chinese nationals into the United States3426        to work at grow houses in suburban neighborhoods, cultivating3427        and distributing kilogram-sized quantities of marijuana3428    BOSTON.--Seven Chinese nationals were charged today in connection3429with a multi-million-dollar conspiracy to cultivate and distribute3430marijuana across the Northeast that used interconnected grow houses3431concealed inside single-family properties in Massachusetts and Maine.3432It is alleged that Chinese nationals were smuggled into the United3433States to work in these grow houses without access to their passports3434until they repaid their smuggling debts.3435    The following individuals have been indicted on one count each of3436conspiracy to manufacture, distribute and possess with intent to3437distribute marijuana, as well as additional charges listed3438respectively:3439    1. Jianxiong Chen, 39, of Braintree, Mass. also indicted on one3440        count of money laundering conspiracy, 11 counts of money3441        laundering and one count of bringing aliens into the United3442        States;3443    2. Yuxiong Wu, 36, of Weymouth, Mass. also indicted on one count of3444        money laundering conspiracy and four counts of money3445        laundering;3446    3. Dinghui Li, 38, of Braintree, Mass. also indicted on one count3447        of money laundering conspiracy and two counts of money3448        laundering;3449    4. Dechao Ma, 35, of Braintree, Mass. also indicted on one count of3450        money laundering conspiracy and two counts of money laundering;3451    5. Peng Lian Zhu, 35, of Melrose, Mass. also indicted on one count3452        of money laundering conspiracy;3453    6. Hongbin Wu, 35, of Quincy, Mass.; and3454    7. Yanrong Zhu, 47, of Greenfield, Mass. and Brooklyn, N.Y.3455    Six defendants were arrested this morning. Yanrong Zhu remains a3456fugitive.3457``This case pulls back the curtain on a sprawling criminal enterprise3458that exploited our immigration system and our communities for personal3459gain. These defendants allegedly turned quiet homes across the3460Northeast into hubs for a criminal enterprise--building a multi-3461million-dollar black-market operation off the backs of an illegal3462workforce and using our neighborhoods as cover. That ends today,'' said3463United States Attorney Leah B. Foley.34643465    ``Today, we arrested members of an alleged Chinese-run drug3466trafficking organization who are accused of running a massive marijuana3467cultivation and distribution scheme that has raked in millions and3468contributed widely to the illegal drug trade here in the Northeast,''3469said Ted E. Docks, Special Agent in Charge of the FBI's Boston3470Division. ``Equally disturbing is that Jianxiong Chen--the accused3471ringleader of this organization--is charged with paying to smuggle a3472Chinese national across the Mexican border to work at his grow houses.3473This takedown highlights the need for a sustained law enforcement3474effort, across all levels, to shut down and thoroughly investigate the3475organized criminal enterprises behind these unlicensed and illegal3476operations.''3477    ``The Massachusetts State Police share the resolve of our Federal3478and local partners to support safer communities across the3479Commonwealth,'' said Colonel Geoffrey D. Noble, Superintendent of the3480Massachusetts State Police. ``Troopers assigned to our Special Services3481Section used their training and skill in this Operation to respond to3482the concerns of our neighbors, disrupt these illicit growing3483activities, and improve the quality of life across Massachusetts. Each3484of these properties can now return to their intended purpose as homes3485which our communities desperately need.''3486    According to the charging documents, from in or about January 2020,3487the defendants allegedly owned, operated or partnered with a network of3488interconnected grow houses in Massachusetts and Maine to cultivate and3489distribute kilogram-sized quantities of marijuana in bulk.3490Specifically,the enterprise allegedly operated grow houses in3491Braintree, Mass.; Melrose, Mass.; and Greenfield, Mass., among other3492locations in Massachusetts, Maine and elsewhere. It is alleged that the3493grow house operators maintained contact with each other through a list3494of marijuana cultivators and distributors from or with ties to China in3495the region called the ``East Coast Contact List.''34963497    It is alleged that Chen controlled several grow houses in Maine as3498well as a home in Braintree, Mass., which served as a base of3499operations for the enterprise. Marijuana manufactured by the3500interconnected grow house network, as well as bulk cash from dealers,3501was allegedly delivered to and redistributed by Chen at this Braintree3502residence. It is further alleged that co-conspirators concealed the3503marijuana and cash they were delivering to Chen inside the engine3504compartments of their vehicles. During a search of the home in October35052024, over $270,000 in cash was allegedly recovered from the house and3506from a Porsche in the driveway, as well as several Chinese passports3507and other identification documents inside a safe.3508    An alleged grow house located in Braintree, Mass., where Dechao Ma3509resided. It is alleged that during an October 2024 search of the3510residence, approximately 30 kilograms of marijuana and almost $30,0003511in cash were seized.35123513    Data extracted from Chen's cell phone allegedly revealed that he3514helped smuggle Chinese nationals into the United States--putting the3515aliens to work at one of the grow houses he controlled while keeping3516possession of their passports until they repaid him for the cost3517associated with smuggling them into the country.3518    It is alleged that profits from the marijuana sales, which totaled3519in the millions of dollars, were used to purchase luxury homes,3520automobiles, jewelry and other items in Massachusetts including to3521expand the enterprise through the purchase of real estate.3522    Additional October 2024 searches of grow houses located in3523Braintree and Melrose where Maand Zhu resided, respectively, allegedly3524resulted in the seizure of over 109 kilograms of marijuana, nearly3525$200,000 in cash and numerous luxury items including a gold Rolex watch3526with a $65,000 price tag still on it.35273528    It is further alleged that the enterprise conducted bulk cash3529transactions with operators located in the Eastern District of New3530York. According to court documents, in June 2023, Hongbin Wu and3531Yanrong Zhu were stopped by law enforcement after leaving a grow house3532in Greenfield, Mass., during which $36,900 in cash was seized from the3533defendants.35343535    The charge of conspiracy to manufacture, distribute and possess3536with intent to distribute marijuana provides for a sentence of up to 53537years in prison, at least 2 years of supervised release and a fine of3538up to $250,000. The charge of money laundering conspiracy provides for3539a sentence of up to 20 years in prison, up to 3 years of supervised3540release and a fine of up to $500,000, or twice the amount involved,3541whichever is greater. The charges of money laundering each provide for3542a sentence of up to 10 years in prison, up to 3 years of supervised3543release and a fine of up to $500,000, or twice the amount involved,3544whichever is greater. The charge of bringing aliens into the United3545States provides for a mandatory minimum sentence of 3 years and up to354610 years in prison, 3 years of supervised release and a fine of up to3547$250,000. Sentences are imposed by a Federal district court judge based3548upon the U.S. Sentencing Guidelines and statutes which govern the3549determination of a sentence in a criminal case.3550    U.S. Attorney Foley, FBI SAC Docks and MSP Superintendent Colonel3551Noble made the announcement today. Valuable assistance was provided by3552the Drug Enforcement Administration; New York State Police; Maine State3553Police; and the Braintree, Westchester County and New York Police3554Departments. Assistant U.S. Attorney Christopher J. Pohl of the3555Narcotics & Money Laundering Unit is prosecuting the case.3556    This case is part of Operation Take Back America, a nationwide3557initiative that marshals the full resources of the Department of3558Justice to repel the invasion of illegal immigration, achieve the total3559elimination of cartels and transnational criminal organizations and3560protect our communities from the perpetrators of violent crime.3561Operation Take Back America streamlines efforts and resources from the3562Department's Organized Crime Drug Enforcement Task Forces (OCDETF) and3563Project Safe Neighborhood (PSN).3564    The details contained in the charging documents are allegations.3565The defendants are presumed innocent unless and until proven guilty3566beyond a reasonable doubt in a court of law.3567Updated July 9, 2025.35683569    Chairman Brecheen. I now recognize Mr. Green for his 53570minutes of questioning.3571    Mr. Green. Thank you, Mr. Chairman. I thank the Ranking3572Member as well.3573    The Chinese money laundering that is taking place, why is3574it so difficult for us to understand how it is being done and3575to prevent it from being done?3576    Mr. Urben. Thank you, sir. They came to dominate the3577industry for several reasons. No. 1, in the past, there was3578always a certain cost to money laundering. It was 7 to 103579percent certainly to get those funds back to the Mexican3580cartel. The Chinese money launderers changed the game in that,3581No. 1, they absorbed all the risk of laundering those funds;3582No. 2, they did it for 1 to 2 percent; No. 3, the funds that3583are collected, the bulk cash from sales of narcotics in this3584country that they take ownership or custody of, they began to3585sell to Chinese nationals that wanted to invest in the United3586States. They do this globally with a trusted network with3587what's called the Chinese underground banking system.3588    Last but certainly not least, they utilize the encrypted3589app called WeChat, which is controlled and monitored in3590mainland China that U.S. law enforcement cannot have any3591judicial process, we can't wiretap it. So what it allows for is3592that organized crime network globally to communicate with trust3593and speed. No other organized crime group in the world has ever3594had a communication system similar to this.3595    Mr. Green. Are they using cryptocurrency? Explain, please.3596    Mr. Urben. Yes. So certainly in the last 2 years, the3597crypto component of the money-laundering cycle has taken on a3598much more substantial role. As crypto is being used more and3599more globally, it's actually taken on more of a role in the3600money laundering process because the Mexican cartels would like3601to receive those funds in crypto. So it's part of the process3602now.3603    Mr. Green. How do you recommend we deal with this, given3604that we now have these electronic transfers? It makes it rather3605difficult to--I want to stop it. I am just trying to get a3606sense from you as experts as to how we can do it.3607    Mr. Urben. So the networks that exist right here within the3608United States, those Chinese money launderers on a daily basis3609pick up that bulk cash. So when we were talking about earlier3610of this interagency task force that was designed to go after3611Chinese organized crime with severe penalties such as the3612racketeering laws, it should be stood up and funded. That's the3613first thing.3614    The second thing is in terms of what we saw last couple3615weeks ago from FinCEN, that directive to the banking industry3616to enhance compliance, red flag reporting on the money-3617laundering transactions.3618    Last, WeChat itself needs to be impacted. It cannot be3619utilized by Chinese money launderers on an on-going basis,3620again, in this trusted network where they can communicate and3621move money.3622    Mr. Green. The suspicious activity reports are not enough3623for this large sum of money?3624    Mr. Urben. It's not enough in the sense that financial3625institutions, crypto companies, wire emitters, need to enhance3626and increase the suspicious activity reporting and their AML3627compliance to focus on Chinese money-laundering networks.3628    Mr. Green. Well, let me just close with this. I am new to3629this money laundering and I am trying to make sure that I get a3630better understanding of it. I believe that my understanding of3631what is happening in financial services can help me with what3632is happening here in Homeland Security. Is there any piece of3633legislation that you would call to my attention that might be3634helpful? Is there anything that you would have us do in terms3635of legislation?3636    Mr. Urben. Over the last 18 months, the FEND Off Act and3637the HALT Act were good examples of successes in terms of legal3638legislative process. What I would suggest is this interagency3639task force that needs to be stood up nationally with the3640mandate to go after Chinese organized crime, fully funded, data3641scientists, Mandarin translators, everything that's needed on3642that task force to attack the network.3643    The second part is the racketeering laws need to be imposed3644on Chinese organized crime. There needs to be a legislative or3645some sort of Executive branch solution with the Chinese3646government when it comes to WeChat, so it's not utilized on a3647global basis by Chinese organized crime. Again, through3648legislative process that allows law enforcement to wiretap it3649or some negotiated strategy with the Chinese government where3650they negate the ability of WeChat to be utilized.3651    Mr. Green. Yes, sir. If the Chair would permit.3652    Chairman Brecheen. Go ahead.3653    Mr. Larkin. It's also worth looking into the problem that3654people are obscuring, as your colleague said, through a lot of3655different layers of dummy corporations, who the real parties3656and interests are. We need to start requiring that the real3657parties and interests be identified before whenever they are3658part of Chinese organized crime or a foreign government that is3659adverse to our interests. Because the easier you make it for3660law enforcement to try to see who really is owning this3661property and, therefore, what's going on at it, the easier it3662might be for law enforcement to take steps to stop the money3663laundering and the ultimate activity itself.3664    Mr. Green. Thank you, Mr. Chairman.3665    Chairman Brecheen. The gentleman yields.3666    If our panel of experts would be willing, you know, given3667the inability to dive a little deeper, I wish we had gotten to3668in the middle of this, there is going to be a few of us that3669stick around and ask a few more questions. If the panel, if you3670have got time to expedite this, for your sake and ours, I am3671going to ask the committee Members limit their time to 33672minutes.3673    So with that, I am going to go out of order here. I am3674going to let Representative Ogles go first. I will follow3675through with anybody on the Democrat side and then--Democratic3676side. If, Mr. Knott, you want to follow him and then I will go3677last and I will watch my time because I have got a time3678constraint.3679    All right. So with that said, Representative Ogles, you are3680recognized for 3 minutes.3681    Mr. Ogles. Again, thank you, Mr. Chairman, and to the3682witnesses.3683    Director Anderson, it seems like these illegal grow3684operations are run by a core criminal element that oversee low-3685level workers who are often victims of trafficking. Is this an3686accurate description based on your experience?3687    Mr. Anderson. Yes, sir, you absolutely hit the nail on the3688head, it is. You have upper management, very well-organized3689transnational criminal organizations. But with that comes every3690other crime with it, which is the human trafficking, the labor3691trafficking, the sex trafficking, and the violent crime and3692every other crime that follows underneath it.3693    Mr. Ogles. Now, is there, from your experience, a3694difference that you have seen between the immigration status of3695the low-level workers versus the higher-level criminals that3696are actually operating these networks?3697    Mr. Anderson. Well, there's a definite difference between3698the two. So your high-level transnational criminal3699organization, your person who's running operations, they look3700different, they dress different, they drive different vehicles.3701Then your migrant worker comes in, you know, once again, they3702look different, they dress different, they--how they dress, how3703they speak to, to even how they address you, meaning me in law3704enforcement, is totally different. But there is a big3705significant difference between the two. Yes, sir.3706    Mr. Ogles. So is it fair to say when you look at the3707complexity of this problem, that the high-level organizers, the3708traffickers, the low-level individuals that they are using in3709these illicit activities, they are literally throwaways; that3710if they get caught, they get incarcerated, they will just3711replace them with someone else?3712    Mr. Anderson. Those are basically what we call victims.3713True.3714    Mr. Ogles. Mr. Larkin, to what extent is the CCP tied to3715these Chinese TCOs operating in the United States? Do you3716believe that the CCP is aware of the Chinese nationals who3717leave China to establish criminal operations in the United3718States?3719    Mr. Larkin. China is the most heavily surveilled nation in3720the world. It's difficult to believe that the CCP is unaware of3721people who are engaged in criminal activities in other nations,3722like what's happening here with Chinese organized crime. Keep3723in mind, you don't have to prove an affirmative agreement3724between them. All you have to do is show through circumstantial3725evidence that the CCP is aware of and is helping out the3726organized crime measures.3727    If you look at the statements the three of us have3728submitted, you'll see there are various types of evidence that3729points to knowledge by the CCP and the PRC of what is going on3730in Chinese organized crime. That's the sort of evidence that3731the Supreme Court has said would be sufficient to justify a3732guilty verdict for conspiracy to engage in this activity.3733    Mr. Ogles. Well, thank you to the witnesses. Thank you to3734the Chairman. I yield back.3735    Chairman Brecheen. The gentleman yields.3736    I now recognize Representative Thanedar for 3 minutes for3737his questions.3738    Mr. Thanedar. Thank you, Chairman.3739    Illegal marijuana grows are a threat. Marijuana grown3740illegally can be saturated with chemicals that are dangerous to3741humans. The money generated by selling illegal marijuana on the3742black market funds criminal organizations and the illegal grows3743bring all sorts of crime and destruction into American3744communities. The Federal Government needs a coordinated3745strategy to do all it can to shut down these illegal marijuana3746grows. I think we can all agree on that.3747    Nevertheless, the Trump administration is eliminating the3748Organized Crime Drug Enforcement Task Force, which is the3749largest anti-crime task force in the country. For 40 years,3750OCDETF has helped disrupt and dismantle criminal networks with3751a drug-centric focus until Donald Trump. First Trump wrongly3752expanded OCDETF's mission to focus on illegal immigration. Now3753President Trump has a budget request that eliminates OCDETF3754entirely.3755    Mr. Urben, in your experience at the DEA, how would you3756describe the role of OCDETF plays in combating illegal drug3757trafficking? Do you think that eliminating OCDETF will help3758combat illegal marijuana cultivation, particularly by the3759Chinese criminal organizations?3760    Mr. Urben. So during my career, I called it ``OCDEF,'' So3761I'll refer it as OCDEF, sorry. There was a tremendous benefit3762for OCDETF. No. 1, it synchronized manpower and the agencies to3763work together. It designated the targets, the top levels of3764organized crime that we were going to target collectively, and3765then it also funded that. So it was a mechanism to synchronize3766Federal law enforcement. It was very successful. I would3767suggest, A, you either utilize OCDETF or you bring the3768equivalent and successes of OCDETF that are necessary to go3769after Chinese organized crime, the Mexican cartels, et cetera.3770    Mr. Knott. Will the gentleman yield?3771    Mr. Thanedar. Yes, sure.3772    Mr. Knott. What does that acronym stand for? Do you know?3773    Mr. Thanedar. Organized Crime Drug Enforcement Task Force.3774    Mr. Knott. Thank you, sir.3775    Mr. Thanedar. Chairman, I yield back.3776    Mr. Ogles [presiding]. Thank you.3777    Recognize the gentleman, Mr. Knott, for 3 minutes.3778    Mr. Knott. Mr. Anderson, I have got a question for you. In3779terms of your experience in local law enforcement, what effect3780over the last 20 years-plus of your career has international3781criminal activity had on the local law enforcement community?3782You, yep.3783    Mr. Anderson. I'm sorry. Well, the international crime has3784had a huge impact on our local law enforcement community. So3785understand almost every precursor used to manufacture3786methamphetamine, fentanyl, or any other illicit manufactured3787drug like that comes from China to the cartels to across the3788rest of the United States----3789    Mr. Knott. Yes.3790    Mr. Anderson [continuing]. Which that's a fact in every3791community across the United States.3792    Mr. Knott. Yes.3793    Mr. Anderson. But also with that is the underlying crime,3794such as the homicides, the sex trafficking, all the other3795crimes that come along--right along with it, which it affects3796every community in the United States.3797    Mr. Knott. Right.3798    Mr. Anderson. So it affects absolutely everyone. No one's3799immune from it. Oklahoma is a very rural State of 4 million3800people and we're devastated by transnational criminal3801organizations.3802    Mr. Knott. In terms of the open border of the last 4 years,3803how did that affect organized crime in your local communities?3804    Mr. Anderson. So I understand, and I got to say this, first3805off, I'm not a politician. I'm not even a political appointee.3806    Mr. Knott. I'm not asking. I was in law enforcement before3807I ran here.3808    Mr. Anderson. But I have to say that because it's going to3809sound like I am.3810    Mr. Knott. Nope, I'm asking you that--your perspective.3811    Mr. Anderson. I'm telling you, and I've seen it both ways--3812--3813    Mr. Knott. Yep.3814    Mr. Anderson [continuing]. I've seen when we couldn't get3815anything. I mean, we--as matter of fact, we were on a T3 and we3816was purchasing kilos of methamphetamine. Trump closed the3817border down during COVID, nothing.3818    Mr. Knott. Yes.3819    Mr. Anderson. I mean, it was 6 months.3820    Mr. Knott. Cocaine----3821    Mr. Anderson. Anything.3822    Mr. Knott [continuing]. And heroin----3823    Mr. Anderson. Anything.3824    Mr. Knott [continuing]. And crack, all of it. Yes.3825    Mr. Anderson. Then we leave, we change administrations,3826we're flooded, we're inundated with controlled dangerous3827substances. Once again, I'm not making a political statement.3828I'm telling you what I've seen.3829    Mr. Knott. What effect does that have on law enforcement?3830Can you successfully fight crime with an open border?3831    Mr. Anderson. With an open border?3832    Mr. Knott. Yes.3833    Mr. Anderson. No.3834    Mr. Knott. Yes.3835    Mr. Anderson. Absolutely not.3836    Mr. Knott. In regards to the task force model linking3837Federal and State law enforcement, have you had any kind of3838experiences with that in your career?3839    Mr. Anderson. I have. I'm actually a task force guy. I3840operated a task force for many years. On that task force was3841including Federal agents and local agents.3842    Mr. Knott. Yes.3843    Mr. Anderson. We still currently operate with our Federal3844partners on task forces.3845    Mr. Knott. In terms of force multiplication, on the good3846side of the ledger, in my opinion, there is no greater way than3847task forcing Federal and local jurisdictions together. Do you3848agree with that?3849    Mr. Anderson. I absolutely agree with it, and we do it3850every day. Whenever I came into the bureau, 6 years ago, we3851were down to approximately 50 agents. We're up to around 1303852now. That's primarily because we TFO, task forcing.3853    Mr. Knott. Yep. I have long been an advocate, sir, that3854every Federal law enforcement agency should utilize and grow3855their task force program because international crime affects3856every community large and small across the country. Isn't that3857true?3858    Mr. Anderson. That is absolutely correct.3859    Mr. Knott. Well, Mr. Anderson, thank you. I am glad I got a3860second round to ask you questions. To all the witnesses, please3861come back and talk to us about this important topic.3862    Mr. Chairman, I yield back.3863    Mr. Ogles. The gentleman yields.3864    We're concluding here. Last thoughts, we have 3 minutes, so3865essentially a minute each. Mr. Urben, final thought.3866    Mr. Urben. We've demonstrated what the effect is on the3867communities. We have the intelligence. I would ask that you3868fully fund a task force to attack these networks.3869    This is not that hard. It's tough work. It's difficult.3870It's challenging. But fund a task force and give them the3871mandate to attack these networks with individuals like Mr.3872Anderson, please.3873    Mr. Ogles. Mr. Larkin.3874    Mr. Larkin. In the short run, the most important thing to3875do is educate the people in your communities about these3876problems. I think when people think of drug problems, they3877think of Mexico. They don't think of China. They have some idea3878that China is involved in selling fentanyl precursors, but they3879don't realize the full extent of the tentacles that China has3880extended into the United States. The public needs to know this.3881    Holding this hearing is important, but it is also important3882that you tell the people in your communities about what is3883happening. Remember, the Chinese are playing the long game.3884They can do this for decades, for centuries. They don't care.3885But we can't do that. We have to act now.3886    Mr. Ogles. Mr. Anderson.3887    Mr. Anderson. I think it is imperative that we educate the3888public on what's going on in the Nation, especially when it3889comes to the CCP and the rest of the world, and the movement3890that we know that we are seeing that is going on and3891transpiring. When you're talking about the long game, they're3892in the long game. They've been doing this for many, many years.3893When you talk about what's going on with the money laundering3894between--and the precursors, since we can go all the way back3895to 2007, that's what we know for sure. Whenever the cartels3896started reaching out to the people in China and making these3897deals, that's when--that's how far back it's been. So we're3898already into the long game.3899    One thing I would ask legislation to do and to seriously3900look at, I do think we're better whenever we bring all of our3901resources together and we combat a problem, because you're3902talking about a really huge global network. We have to bring3903our people together. We have to bring our experts together, and3904we have to fight this within.3905    I would also ask that this legislation looks at the3906Communication Act of 1996. If you look at, and you've been a3907Federal prosecutor, you look at how we've dismantled criminal3908organizations across the United States, we've done it through3909that act. That act is outdated. The criminal element has3910surpassed us. We can't do the cases like we used to because of3911all these encrypted apps that are floating around on everyone's3912phones. So I would ask that you look at that as well.3913    Thank you for your time. I really appreciate you inviting3914us to be here today.3915    Mr. Ogles. It's clear from this hearing that the CCP is in3916a coordinated attack against the United States of America.3917Whether it is through their trafficking network, the cyber3918attacks, or facilitation of the Mexican cartels, they have3919declared an asymmetric war on this country, and it is time that3920we fight back with all the tools and resources that we have at3921our disposal.3922    I thank the witnesses for their valuable testimony and the3923Members for their questions. The Members of the subcommittee3924may have additional questions for the witnesses, and we ask the3925witnesses to respond to these in writing. Pursuant to committee3926rule VII(E), the hearing record will be open for 10 days.3927    Without objection, we are adjourned.3928    [Whereupon, at 12:12 p.m., the subcommittee was adjourned.]39293930                           A P P E N D I X  I39313932                              ----------39333934           Supplemental Material Submitted by Donnie Anderson3935[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]3936                                 ______39373938Article--``Gangsters, Money and Murder: How Chinese Organized Crime Is3939            Dominating America's Illegal Marijuana Market''3940    [The article has been retained in committee files and is available3941at https://www.propublica.org/article/chinese-organized-crime-us-3942marijuana-market.]3943                                 ______39443945 Article--``A Diplomat's Visits to Oklahoma Highlight Contacts Between3946      Chinese Officials and Community Leaders Accused of Crimes''3947    [The article has been retained in committee files and is available3948at https://www.propublica.org/article/oklahoma-marijuana-china-3949diplomat-visits.]3950                                 ______39513952Article--``A Marijuana Boom Led Her to Oklahoma. Then Anti-Drug Agents3953                 Seized Her Money and Raided Her Home''3954    [The article has been retained in committee files and is available3955at https://www.propublica.org/article/marijuana-oklahoma-chinese-3956immigrant-arrests-asset-seizure-2.]3957                                 ______39583959  Article--``Inside Our Investigation of China's Influence Campaigns''3960    [The article has been retained in committee files and is available3961at https://www.nytimes.com/2025/08/25/insider/investigating-3962china.html.]3963                                 ______39643965                  Photos Submitted by Donnie Anderson3966[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]39673968                  Article Submitted by Donnie Anderson3969[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]39703971          Oklahoma Court Records Submitted by Donnie Anderson3972[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]39733974                          A P P E N D I X  I I39753976                              ----------39773978   Statement of Alexander B. Gray, CEO, American Global Strategies,3979                  Submitted by Chairman Josh Brecheen3980    Chairman Brecheen, Ranking Member Thanedar, and Members of the3981committee, thank you for allowing me to submit remarks for the record3982on a topic of such exceptional importance to American national and3983economic security.3984    I have spent the majority of my professional career focused on3985issues of national security and foreign policy, primarily at the3986Federal level. Most recently, I served as deputy assistant to the3987President and chief of staff of the White House National Security3988Council (NSC) from 2019 to 2021. Earlier, I served as special assistant3989to the President for the defense industrial base at the White House3990National Economic Council (NEC) and as director for Oceania & Indo-3991Pacific security at the NSC. I am also a fourth-generation Oklahoman,3992who cares deeply about the safety of my home State.3993    During my tenure at the White House, I had a front-row seat to the3994efforts the CCP is undertaking, in the United States and around the3995world, to subvert governments and societies and seek to gain economic,3996political, and military advantage. Unfortunately, in just the time3997since I left public service in January 2021, the threat posed by the3998CCP to the United States has only grown. The CCP threat is no longer3999only a distant military and cyber threat in the Indo-Pacific but is now4000one that involves substantial personal and economic risks to American4001citizens, at home.4002    As Americans ponder their response to the CCP's predations, it is4003essential to understand the reality that no company or entity in China4004is truly private, in the sense that Americans would understand it.4005Beijing exerts top-down control over all Chinese companies and4006commercial enterprises, regardless of whether the State officially owns4007a stake in the company or not. In fact, this is enshrined in China's4008legal system. China has numerous national security laws that require4009all businesses and individuals to use their resources to support the4010CCP if called upon to do so in support of China's security apparatus4011and strategic objectives. In essence, if a Chinese citizen or company4012fails to assist the CCP, they are actually violating the law.4013    Given the implications of this top-down authoritarian business4014environment, we must recognize that when it comes to Chinese-owned4015businesses, all roads lead to Beijing. Recently, we have seen an uptick4016in agricultural land purchases in the United States by Chinese-linked4017entities. This represents a grave threat to rural communities and to4018the whole country who depend on American agriculture. Already, hundreds4019of thousands of acres of American farmland have been bought up by4020Chinese entities, often through a maze of shell companies and LLCs. If4021we even just take one step back from the immediate national security4022risk, we can also see the immense risk to State economies and to4023America's economic security if the land our food is grown and raised on4024is controlled by a foreign adversary. Though restrictions on foreign4025land purchases exist at the Federal level, they have proven incredibly4026difficult to enforce, as shell companies and difficult-to-trace4027entities continually pop up to aid in these transactions. Additional4028measures are needed, including greater collaboration between the4029Federal Government and State governments, to ensure that American4030farmland stays in the hands of American farmers, protecting both our4031national and economic security.4032    CCP leaders are constantly prodding to identify opportunities to4033bring a potential conflict to the U.S. homeland. In 1999, two senior4034Chinese colonels wrote ``Unrestricted Warfare,'' which took stock of4035perceived American weaknesses in a potential conflict between China and4036the United States. They described a new kind of conflict in which ``all4037the boundaries lying between the two worlds of war and non-war, of4038military and non-military, will be totally destroyed, and it also means4039that many of the current principles of combat will be modified, and4040even that the rules of war may need to be rewritten.'' They note the4041vulnerability of the U.S. homeland, specifically to economic coercion4042and even biological attacks and lay out a series of spheres in which4043the United States has failed to focus sufficient attention. Twenty-five4044years and voluminous examples later, the United States should take the4045CCP at its word and understand that a potential conflict with China4046would indeed be ``unrestricted'' and the U.S. homeland would not be4047off-limits.4048    In wartime, CCP depredations facing the homeland could include4049cyber attacks on critical infrastructure, producing significant damage4050to civilian populations. These attacks could also include disruption of4051the food supply facilitated by CCP control of key pieces of4052agricultural land across the United States, and traditional sabotage4053operations. With the Federal Government focused on a conventional4054conflict in the Indo-Pacific of unprecedented scale and scope, States4055and localities will be forced to address these challenges at home with4056limited Federal resources. It is incumbent upon policy makers, in4057Washington, including Congress, to begin the hard work of educating4058their constituents and hardening their jurisdictions against the CCP's4059unrestricted warfare.4060    We are currently giving our chief geopolitical adversary and4061economic rival critical leverage over our country and its citizens. As4062tensions rise so do the risks. If a war, or even a low-intensity4063conflict were to break out between China and the United States in the4064far-away seas and islands of the Pacific, very quickly, Americans would4065realize this conflict is not so far away at all. Beijing would no doubt4066use every available tool they can, including their ``private''4067companies in the United States to harm our economy and our citizens. It4068has become apparent that our country needs a national strategy and4069response to sufficiently protect American citizens and keep our economy4070secure.4071                                 ______40724073 Supplemental Material Submitted by Steven Robinson, Editor-in-Chief,4074 The Maine Wire; Director, ``High Crimes: How Chinese Mafia Took Over4075                            Rural America''4076Re: PRC-linked illicit cannabis and trafficking networks in Maine and4077        New England4078    Chairman Brecheen: Chinese human-trafficking and drug-trafficking4079networks have exploited cannabis laws and lax enforcement in New4080England to grow and distribute vast quantities of marijuana nationwide.4081The foreign drug trafficking organizations have imposed heavy costs on4082law-abiding Americans forced to live beside ruthless organized crime.4083In Maine we have documented murder,\1\ human and sex trafficking,\2\4084dangerous neurotoxic chemicals at grow sites,\3\ and fraud/financial4085crimes tied to black-market Chinese drug gangs.\4\ We have also4086identified clear, concrete connections between Chinese cartels4087operating in Maine and Chinese Communist Party (CCP) United Front-4088aligned associations--including at drug properties within walking4089distance of a U.S. military facility.\5\ \6\4090---------------------------------------------------------------------------4091    \1\ Steve Robinson, ``Suspect Arrested in Connection with Homicide4092Tied to Chinese Gang's Marijuana Grow in Turner,'' The Maine Wire,4093January 7, 2025.4094    \2\ Edward Tomic, ``Numerous Chinese Massage Parlors in Maine, Some4095Run by Illegal Aliens, Busted for Sex Trafficking,'' The Maine Wire,4096April 18, 2025.4097    \3\ Steve Robinson, ``Illicit Chinese Toxins Discovered at Somerset4098County Triad Cannabis Operation,'' The Maine Wire, March 4, 2025.4099    \4\ Steve Robinson, ``New York Men Strike Plea Deals Over Bank4100Fraud Conspiracy Tied to Chinese Cannabis Cartels in Maine,'' The Maine4101Wire, September 3, 2025.4102    \5\ Steve Robinson, ``Illicit Marijuana Grow Near U.S. Army Base in4103Maine Tied to Chinese Communist Party's NYC Consulate,'' The Maine4104Wire, May 15, 2024.4105    \6\ Philip Lenczycki, ``DCNF EXCLUSIVE: Web Of Illegal Marijuana4106Grows Tied To Chinese Communist Party Front Group,'' The Maine Wire4107(repub.), May 1, 2025.4108---------------------------------------------------------------------------4109    These conclusions arise from 2 years of reporting at4110TheMaineWire.com and my documentary High Crimes: How Chinese Mafia Took4111Over Rural America. Across Maine and New England we identified a4112sprawling, inter-State network of illicit cultivation and trafficking4113infrastructure. Subsequent county and Federal actions now corroborate 54114core truths: (1) these are interconnected networks, not isolated4115houses; (2) the networks are run by Chinese drug organizations with4116ties to PRC-aligned associations; (3) they rely on human trafficking4117and sophisticated money laundering coordinated using WeChat and front4118organizations; (4) most illicit cannabis grown in Maine is shipped out4119of State into eastern U.S. markets exploiting the so-called ``Hemp4120Loophole;'' and (5) the phenomenon is wrecking housing stock, poisoning4121markets and consumers with illicit pesticides, undermining small4122businesses that try to operate legally, and creating a culture of4123lawlessness that is forcing Mainers to either go bankrupt or embrace4124the same illegal behavior.\7\ \8\4125---------------------------------------------------------------------------4126    \7\ U.S. Attorney's Office, District of Massachusetts, ``Seven4127Chinese Nationals Charged for Alleged Roles in Multi-Million-Dollar4128Money Laundering, Alien Smuggling and Drug Trafficking Enterprise,''4129press release, July 9, 2025.4130    \8\ Steve Robinson, ``Maine Pot Czar Admits State Is Licensing4131Foreign Criminal Orgs to Grow Cannabis, Says Hands Tied,'' The Maine4132Wire, January 15, 2025.4133---------------------------------------------------------------------------4134    Our investigation began when a leaked Department of Homeland4135Security (DHS) assessment identified approximately 270 Maine properties4136tied to Asian transnational criminal organizations, many along the I-954137corridor used for cash, narcotics, and the movement of illegal aliens4138from China. That July 2023 memo drastically underestimated the foothold4139Chinese organized crime has since established in Maine. Our4140investigation mapped these properties and probed the common ownership,4141financing, and operational links among them.\9\ Our investigation had4142found more than 350 Maine properties connected to the Chinese drug4143cartels, including residential and commercial facilities converted to4144marijuana growing, boarding houses for illegal alien workers, cash4145stash houses and seemingly legitimate business fronts. These include a4146former church in Wynn, a former middle school in Mattawamkeag, a4147doctor's office in Fayette, a shoe factory in Wilton, a sardine cannery4148in Eastport, and hundreds of houses that no longer belong to middle-4149class Maine families or business owners.4150---------------------------------------------------------------------------4151    \9\ Jennie Taer, ``EXCLUSIVE: Illegal Chinese Marijuana Grow4152Operations Are Taking Over Blue State, Leaked Memo Says,'' Daily Caller4153News Foundation, August 16, 2023; and Steve Robinson, ``Triad Weed: How4154Chinese Marijuana Grows Took Over Rural Maine,'' The Maine Wire,4155November 8, 2023.4156---------------------------------------------------------------------------4157    Operationally, the same electricians, lenders, straw owners, and4158``helpers'' appear repeatedly at different sites; WeChat functions as4159the nervous system for procurement, logistics, payments, and the4160distribution of illicit fumigant chemicals; and restaurants, seafood4161ventures, massage parlors, and other cash-intensive businesses serve as4162fronts to commingle funds and provide camouflage.\10\ \11\ \12\ \13\4163---------------------------------------------------------------------------4164    \10\ Steve Robinson, ``The Triad's Electrician: Meet the 87-Year-4165Old `Frontman' for Chinese Marijuana Grows in Maine,'' The Maine Wire,4166April 16, 2024.4167    \11\ Steve Robinson, ``The Restaurateur: Bangor Business Owner4168Linked to Illicit Marijuana Grows,'' The Maine Wire, May 16, 2024.4169    \12\ Steve Robinson, ``Welcomed to Maine by LePage, Eastport4170Seafood Biz Devolved Into Illicit Marijuana Trafficking Operation with4171Ties to Hong Kong,'' The Maine Wire, May 8, 2024.4172    \13\ Steve Robinson, ``Illegal Chinese Neurotoxins Are Coming to4173Maine's Black-Market Cannabis Grows: Maine Threat Brief,'' The Maine4174Wire, August 29, 2024 (on WeChat-based logistics and payments).4175---------------------------------------------------------------------------4176    The networks also exhibit demonstrable ties to PRC-aligned4177organizations. At a Dexter, Maine, site less than a mile from a U.S.4178Army Reserve facility, we found apparel linking the location to the4179Sijiu Association of New York, an overseas-Chinese civic group4180documented as working with the PRC consulate and United Front entities.4181Subsequent reporting identified Sijiu officials--one a senior leader--4182as among Chinese traffickers arrested in Maine.\5\ \6\4183    Human trafficking and money laundering are integral to the model.4184In July 2025, the U.S. Attorney for the District of Massachusetts4185charged 7 Chinese nationals in a multi-million-dollar cultivation,4186distribution, laundering, and alien-smuggling enterprise spanning4187Massachusetts and Maine--alleging smuggled Chinese laborers whose4188passports were withheld until smuggling debts were repaid, bulk cash4189logistics, and laundering into real estate and luxury goods.\7\4190According to the indictment, these ringleaders were reading our4191reporting from the very first article we published exposing Chinese4192organized crime in Maine. Parallel to labor trafficking, Maine police4193have exposed sex- and labor-trafficking at Chinese-run massage parlors4194in Rockland, Lewiston, Portland, and Ellsworth, including cases4195involving illegal aliens, forced labor, recording equipment, cash4196hoards, coercion, and deceptive recruitment via Chinese-language job4197boards.\2\4198    Most illicit cannabis grown in Maine leaves the State. Maine Office4199of Cannabis Policy (OCP) Director John Hudak told lawmakers that4200individuals tied to these networks seek State medical licenses as4201``Get-Out-of-Jail-Free'' cards to shield ongoing illegal operations--4202``by and large, directing product out-of-State.''\8\ As with cannabis4203cultivation in California and Oklahoma, the sheer volume alone is4204enough to infer that the cannabis is being sold and consumed mostly4205out-of-State, with evidence mounting in prohibition States that black-4206market cannabis is being sold as ``hemp'' at tobacco shops and head4207shops throughout the United States.4208    The social, cultural, and economic toll is acute. Chinese-4209controlled conversions destroy housing stock: once purchased,4210properties are removed from the market and frequently ruined by black4211mold, neurotoxic chemicals, and heavy abuse. We documented a Maine4212family who developed respiratory symptoms after touring a Monmouth4213property used as a shipping node for Chinese-made pesticides; the4214listing was quietly pulled after our reporting. Many converted4215properties present serious risks of electrical fires, chemical4216exposure, and carbon-monoxide or propane poisoning due to uninspected4217equipment and bypassed meters.\14\ \15\ \16\4218---------------------------------------------------------------------------4219    \14\ Steve Robinson, ``Maine Family Sickened After Exposure to4220Illicit Cannabis House Linked to Chinese-Made Toxins,'' The Maine Wire,4221December 5, 2024.4222    \15\ Steve Robinson, ``At Rural Maine Marijuana Grow, Cops Find4223Asian Passports, Plane Tickets from China, and Stolen Electricity,''4224The Maine Wire, January 8, 2024.4225    \16\ Dylan Tusinski, ``How Cheap Weed from `Gray Market' Growers4226Ends Up on Maine Dispensary Shelves,'' Portland Press Herald, August422717, 2025 (market harms and undercutting).4228---------------------------------------------------------------------------4229    Illicit Chinese fumigants and pesticides (including4230organophosphates and novel blends) are being imported and applied in4231unregulated grows. Most cannabis testing panels in Maine do not screen4232for many of these agents, meaning contaminated product can pass4233``safety'' screens; meanwhile, warrant executions frequently occur4234without hazmat protocols, exposing officers to unknown chemical4235threats. The result is adulterated cannabis moving along this4236interstate pipeline to end-users throughout the eastern United4237States.\3\4238    Maine's legal cannabis businesses are being undercut by foreign4239criminal organizations that flood supply, evade taxes and compliance4240costs, pay illegal wages, and launder profits into more properties--4241collapsing legitimate margins and pushing local operators toward4242insolvency.\17\ The enterprise also leverages illegal border crossings,4243asylum claims, and permissive identity regimes to move both workers and4244money; in February 2024, 3 Chinese nationals were caught illegally4245entering Maine from Canada, and our records work has documented Chinese4246nationals obtaining out-of-State driver's licenses and surfacing4247repeatedly in Maine property records tied to grows.\18\ \19\4248---------------------------------------------------------------------------4249    \17\ Steve Robinson, ``Three Chinese Nationals Caught Sneaking Into4250Maine from Canada Amid Asian Organized Crime Epidemic,'' The Maine4251Wire, February 28, 2024.4252    \18\ Steve Robinson, ``Sheriff Docs Show Chinese Illegal Aliens Got4253NY Drivers Licenses Before Carbon Monoxide Poisoning in Freedom,'' The4254Maine Wire, July 22, 2025; and Steve Robinson, ``Maine Cops Warn BMV4255Issuing Driver's Licenses to Individuals with Bogus Social Security4256Numbers,'' The Maine Wire, May 30, 2024; and Steve Robinson, ``Chinese4257Impostor Points Up Mortgage Scheme Leveraged by Cannabis Cartels in4258Maine,'' The Maine Wire, August 27, 2025.4259    \19\ [Sic]4260---------------------------------------------------------------------------4261    Maine's experience is now a case study in how PRC-linked criminal4262networks exploit U.S. real estate, financial blind spots, and4263regulatory seams; convert homes into industrial drug sites; export the4264product to neighboring States; and leave Mainers with gutted houses,4265fires, toxic residues, and collapsing lawful markets. The record is no4266longer anecdotal; it is documented, cross-corroborated, and charged in4267Federal court.\7\4268    Thank you for your leadership and for the opportunity to place this4269record before the subcommittee. I am available to brief staff, provide4270property-level datasets, and connect you with Maine's long-suffering4271cannabis entrepreneurs. I am also submitting, for the record, copies of4272our investigative work detailing the individuals, businesses, and4273financial institutions implicated in this conspiracy.42744275                                 [all]