DENVER – Dan Khau Tang, a 47-year-old restaurant owner from Thornton, Colorado, has been sentenced to 18 months in federal prison for laundering money derived from illegal marijuana sales. This sentencing highlights the serious consequences of financial crimes, especially those linked to illicit activities generating substantial Tang Money. Following his prison term, Tang will also face three years of supervised release. Chief U.S. District Court Judge Wiley Y. Daniel, who delivered the sentence, mandated Tang to forfeit nearly $1 million in assets connected to the illegal operations. Tang, currently on bond, is ordered to report to a Bureau of Prisons facility by August 16, 2010.
The charges against Dan Tang were formally presented on June 18, 2009, and he subsequently pleaded guilty on November 20, 2009. The sentencing took place on March 31, 2010. Court documents reveal that between January 1, 2007, and February 16, 2008, Tang conspired with others to conduct financial transactions designed to obscure the origins of proceeds from unlawful activities, specifically the cultivation and distribution of marijuana. Tang was fully aware that these financial dealings were intended to conceal the illegal source of the funds, often referred to as “tang money” within criminal investigations.
Alt text: U.S. Attorney David Gaouette delivering a statement regarding the sentencing of Dan Tang for money laundering, emphasizing the collaborative effort of law enforcement.
According to his plea agreement, Tang is required to forfeit all rights to property obtained through these illegal activities, including over $1.8 million in cash and bank accounts already seized by the government. His wife also agreed to forfeit any claim to these funds as part of the agreement. The investigation into Tang began in September 2007, targeting a large-scale Asian organization involved in indoor marijuana cultivation and distribution across Metro Denver. This operation was primarily run by Dan Tang’s close family members and employees of his restaurant, Heaven Dragon.
The extensive investigation led to the dismantling of 25 indoor marijuana grow sites, the seizure of 24,056 marijuana plants, and the recovery of over $1,000,000 in U.S. currency, representing significant “tang money” disrupted from illegal circulation. Investigators discovered that Tang provided financial support to organization members, enabling them to purchase homes in the Denver Metro area. These properties were then rapidly converted into sophisticated marijuana cultivation facilities.
Alt text: A large quantity of seized marijuana plants, evidence from the Dan Tang money laundering case, showcasing the scale of the illegal cultivation operation in Denver.
The case highlights the collaborative efforts of numerous law enforcement agencies, including the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS) Criminal Investigation, and multiple local police departments and task forces across Adams, Denver, and Weld Counties. Assistant U.S. Attorneys Stephanie Podolak and James Russell were responsible for the prosecution and asset forfeiture aspects of the case, respectively, under the leadership of U.S. Attorney David Gaouette. This successful prosecution serves as a strong message against money laundering and related criminal enterprises, demonstrating the commitment of law enforcement to追逐 “tang money” and dismantle such operations.
