HORRY COUNTY, S.C. (WPDE) -- The Horry County Sheriff's Office (HCSO) announced that its deputies assisted in a multi-million-dollar seizure of five properties in Carolina Forest this week.
The homes were reportedly connected to a money laundering scheme involving a Chinese chemical company and a known Mexican drug cartel, according to a lawsuit filed by the United States.
The seizure was facilitated by the "FBI and the U.S. Attorney's Office and related to money laundering by foreign terrorist organizations," HCSO said on Facebook. "We take pride in being able to assist local and federal agencies in any capacity."
According to the lawsuit filed by the United States, the residential properties were purchased with proceeds derived from an international money laundering and chemical trafficking operation connected to the Sinaloa Cartel of Mexico.
The suit alleged that New Star Holdings LLC, a Myrtle Beach-based chemical importer/exporter formed in August 2023, was established as a shell company by a Chinese woman named Ruiqi Zeng.
"New Star began operations at some point in the latter half of 2023. Their office was located inside a commercial office building at 2411 N Oak Street, Myrtle Beach, SC, and occupied at least two office spaces. New Star hired fraudulent employees to appear like a legitimate company. New Star took additional steps to appear legitimate, including outfitting the office space with signage, furniture, and computer equipment in the event a customer or potential customer visited the location," it explained.
Authorities said Zeng was in the U.S. on a student visa studying at Johns Hopkins in Arlington, Virginia. It added that she is reportedly the daughter of Xiaoli Liu, the general manager of Sundia Chemical, a China-based supplier of industrial and dual-use chemicals and the listed parent company of New Star.
"Law enforcement interviews revealed that Liu was the owner of Sundia Chemical. Liu's daughter, Zeng was in the United States and studying at Johns Hopkins University. Liu wanted to start multiple businesses inside the United States and to use immigration benefits related to those businesses to get her family members and Sundia Chemical proceeds out of China and into the United States. Zeng opened multiple bank accounts in the United States while she was there, including accounts for New Star," the suit said.
The FBI claimed that Zeng used the money gained through New Star's business to purchase the homes in Carolina Forest.
"New Star, located in Myrtle Beach, SC, is used to supply chemical precursors of methamphetamine to the Cártel de Sinaloa or ("Sinaloa Cartel"), a designated Foreign Terrorist Organization ("FTO"), launder the proceeds from the sale of those chemical precursors back into the United States, and conceal those proceeds in the form of assets -- the Defendant Properties," the suit said. "Liu's goal was to open multiple businesses inside the United States to launder proceeds for Sundia Chemical and Sundia HK and to get immigration benefits for her family members."
The suit further claimed that New Star had no real customers or inventory in the office and that"no known vendors or legitimate businesses have been associated."
New Star Holdings, LLC, reportedly closed its doors in Myrtle Beach "around the end of 2024."
The lawsuit said that Nortpacif, "a front company and importer of chemicals for and on behalf of the Sinaloa Cartel," sent multiple wire transfers to Sundia Chemical, New Star's parent company in China, between March 2020 and October 2023.
On Feb. 20, 2025, the U.S. Secretary of State designated the Sinaloa Cartel as a Foreign Terrorist Organization ("FTO") under Section 219 of the Immigration and Nationality Act.
"Nortpacif sent ninety-nine (99) wire transfers to Sundia HK, totaling $14,200,000.00," according to the FBI.
FBI investigators reviewed the funds, sent to Subject Account 1, and determined that they were used by Zeng to buy the homes in Carolina Forest and "launder the proceeds."
"From August 16, 2022, to August 30, 2024, total credits to Subject Account 1, excluding the beginning balance, equaled $3,171,170.86," the lawsuit said.
It claims that Sundia Chemical was the largest contributor to the Subject Account 1 funds.
"They sent 22 wire transfers to Subject Account 1, totaling $2,484,125.00, which agents believe are funds generated from Sundia HK's sale of methamphetamine precursor chemicals," it explained.
The lawsuit said investigators also verified with the South Carolina Department of Employment and Workforce that Zeng had no reported income history or unemployment claims while living in South Carolina.
The suit concluded, "that New Star was merely a shell company operated by Zeng for the sole purpose of laundering the illegal proceeds of the SUBJECT COMPANIES."
Investigators further reviewed Subject Account 1 between Aug. 16, 2022, and Aug. 30, 2024, and reported $3,239,254.68 leaving the account. After which, the account was left with zero dollars.
The suit said that two notable withdrawals were made in September of 2023, including one for $1,273,605.24 on Sept. 7 and one for $10,000 on Sept. 11.
Horry County Land Records show Zeng purchased three properties on Fort Hill Way and Calhoun Falls Drive in Myrtle Beach on Sept. 12, 2023, for a total cost of $1,279,865.
"The sum of the purchase's prices matches, almost exactly, the amount of money Zeng withdrew from Subject Account 1 on September 7 and 11, 2023, as explained above, totaling $1,283,605.24," the lawsuit explained.
A second account under the name "NEW STAR HOLDING LLC" was also reviewed in the investigation.
"The account was opened on September 13, 2023, and the review period covered through June 11, 2025. The sole signatory for this account was "Ruiqi Zeng," and the mailing address for New Star, as indicated on the monthly statements," the suit said.
Records of the second account between Sept. 13, 2023, and June 11, 2025, can be seen below.
The suit went on to claim that Horry County Land Records show Zeng sending money from the second account to a law firm in order to purchase two additional properties on Fort Hill Way and Calhoun Falls Drive in 2024.
"Zeng sent funds from Subject Account 2 to the law firm of Wilcox, Buyck, and Williams that were used to purchase the remaining two Defendant Properties during 2024," it said.
Disbursements from the account resulted in the funds equaling zero by June 11, 2025.
In May 2025, a shipment of over 50,500 kilograms of dicumyl peroxide -- a known methamphetamine precursor -- was seized at the Port of Long Beach, California, preventing delivery to Sinaloa, Mexico.
"In May 2025, DEA Chemical Express (CHEMEX) agents became aware of a shipment being sent by New Star, from China, destined for Nortpacif, in Sinaloa, Mexico," the suit explained.
Publicly accessible records showed that the "shipper" address for New Star was one of the homes purchased by Zeng in Carolina Forest.
Law enforcement in Long Beach seized the chemicals before they reached Mexico May 30, 2025.
United States Customs and Border Protection (US CBP) then sent a notice to New Star's parent company in China, Sundia Chemical, informing it of the seizure.
That same notification was also sent to the Chinese equivalent of the US CBP.
The lawsuit said that the Chinese Government allegedly told Liu, the general manager of Sundia Chemical, that "although the chemicals she was selling were not prohibited for export in China, Liu should avoid shipping those chemicals outside of China."
Following the seizure and notification to Liu, three of the properties purchased by Zeng were listed for sale throughout June and July of 2025.
"Listing the Defendant Properties for sale, the closure of New Star's office space, and the closure of New Star's financial accounts illustrates Liu's knowledge that the Defendant Properties were purchased with illegal proceeds. Liu may be attempting to recover the laundered proceeds by liquidating New Star's assets, including the Defendant Properties," the suit claimed.
The suit from the DOJ listed the five residential properties purchased by Zeng as the defendants.
It claimed that based on the information in the suit, the U.S. government will be able to prove the funds used to purchase the five properties are traceable to:
The suit also explained that the properties were "forfeited to the United States of America" in the seizure.
The case remains under investigation by the DEA, U.S. Customs and Border Protection (CBP), and other federal partners.