NOTE: Click here for copy of Dan Tang's plea agreement
November 20, 2009
THORNTON RESTAURANTEUR DAN TANG PLEADS GUILTY TO MONEY LAUNDERING OF ILLEGAL MARIJUANA PROCEEDS
DENVER – Dan Khau Tang, age 46, of Thornton, Colorado, pled guilty today to one count of money laundering and one count of asset forfeiture, the U.S. Attorney’s Office, the Drug Enforcement Administration (DEA), the IRS Criminal Investigation and the North Metro Task Force announced. The guilty plea was tendered before Chief U.S. District Court Judge Wiley Y. Daniel. Tang, who is free on bond, is scheduled to be sentenced by Chief Judge Daniel on February 11, 2010. Dan Khau Tang was charged by Information on June 18, 2009.
According to the Information and the subsequent plea agreement, between January 1, 2007, and February 16, 2008, Dan Tang and others, did knowingly and intentionally conspire to conduct a series of financial transactions involving the proceeds from a specified unlawful activity, namely the cultivation and distribution of marijuana. The Information states that Tang knew that the financial transactions were designed to conceal and disguise the proceeds of the illegal activity.
Tang’s plea agreement states that upon conviction of the money laundering charge, that he, Tang, shall forfeit to the United States all of his right, title and interest in all property, including over $1.8 million in cash or money from bank accounts seized by the government. As part of the agreement, his wife also forfeited any right she may have had to the money.
The investigation into Tang started in September of 2007, when the DEA and the North Metro Task Force targeted a large-scale Asian indoor marijuana cultivation and distribution organization in Metro Denver. The operation was spearheaded by members of Dan Tang’s immediate family, and employees of Tang’s restaurant, the Heaven Dragon. This investigation ultimately led to the dismantlement of 25 indoor marijuana grows, and the seizure of 24,056 marijuana plants, and the recovery of more than $3,000,000 in U.S. currency. The investigation also showed that Tang provided some of the financial assistance to organization members to purchase homes in the Denver Metro area. Some of the homes were then quickly converted into sophisticated marijuana grow operations. As part of this investigation, Adams County District Attorney Don Quick charged 10 additional people with drug related offenses.
Tang faces a maximum of not more than 20 years in federal prison, and a fine not to exceed $500,000, or twice the value of the property involved in the money laundering transactions. He also faces a term of up to 3 years of supervised release. The actual sentence will be determined by Chief U.S. District Court Judge Wiley Y. Daniel, based in part on advisory U.S. Sentencing Guidelines, which considers a number of factors, including the defendant’s prior criminal history.
The defendant was charged by Information, which means he waived his Constitutional right to be indicted by a federal grand jury.
This investigation was conducted by the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS) Criminal Investigation, the North Metro Drug Task Force, the Adams County District Attorney’s Office, the Denver District Attorney’s Office, the Weld County District Attorney’s Office, the Northglenn Police Department, the Westminster Police Department, the Commerce City Police Department, the Federal Heights Police Department, Brighton Police Department, the Broomfield Police Department, the Adams County Sheriff’s Office, the Thornton Police Department, the Firestone Police Department, the Frederick Police Department, the Denver Police Department, and the Lakewood Police Department.
Tang is being prosecuted by Assistant U.S. Attorney Stephanie Podolak, the Chief of the Drug Task Force Section of the United States Attorney’s Office.
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