Texas Man Pleads Guilty to Rhino and Ivory Smuggling Conspiracy
Ning Qiu, a resident of Frisco, Texas, and an appraiser of Asian art, pleaded guilty today in federal court to participating in an illegal wildlife smuggling conspiracy in which rhinoceros horns and objects made from rhino horn and elephant ivory worth nearly $1 million were smuggled from the United States to China.
The guilty plea was announced by Sam Hirsch, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, John Malcolm Bales, U.S. Attorney for the Eastern District of Texas, and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).
Qiu, 43, who has worked as an Asian antique appraiser for seven years, pleaded guilty today before U.S. Magistrate Judge Don D. Bush in Plano, Texas, to a one count information charging him with conspiracy to smuggle and violate the Lacey Act.
Qiu was identified as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.
According to documents filed in federal court, Qiu admitted to acting as one of the three antique dealers in the United States paid by Zhifei Li, the admitted “boss” of the conspiracy, to help obtain wildlife items and smuggle them to Li via Hong Kong. Li was sentenced on May 27, 2014, in federal district court in Newark, New Jersey, to serve 70 months in prison for his leadership role in the smuggling conspiracy. Li arranged financing, negotiated the price and paid for rhino horn and elephant ivory. He also gave instructions on how to smuggle the items out of the United States and obtained the assistance of additional collaborators in Hong Kong to receive the smuggled goods and then smuggle them to him in mainland China.
“This is yet another step toward dismantling a sophisticated and global network of criminals whose greed is driving endangered animals to extinction,” said Acting Assistant Attorney General Hirsch. “We will continue to investigate and bring to justice those involved in the illicit trade of the world’s wildlife and will work with our international partners to battle the poaching, corruption, and transnational crime that goes along with it.”
“I am pleased that the Eastern District of Texas could be a part of the ‘Operation Crash’ investigation as well as the guilty plea today, and I congratulate the investigative team for a job well done,” said U.S. Attorney Bales. “The criminal activity undertaken by the defendant in this case is a stark reminder that this matter is not about serving Asian cultural and medicinal practices; it’s about greed, organized crime and the depletion of a species that – without our focused efforts to fight this trade – may not be around for our children to see.”
“This guilty plea by another participant in one of the largest criminal trafficking rings we’ve ever investigated – as well as the unprecedented jail time given to the rings’ leader last month – serves notice to other poachers and smugglers that we are clamping down hard on those who break international wildlife laws,” said U.S. Fish and Wildlife Service Director Ashe. “Working with the Department of Justice and other federal and international law enforcement agencies, we will continue to relentlessly pursue criminals whose greed and indifference to life are fueling the continued slaughter of rhinos and other vulnerable species in the wild.”
The rhinoceros is an herbivorous species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by more than 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
In pleading guilty, Qiu admitted that he worked at an auction house in Dallas as an appraiser of Asian artwork and antiques, specializing in carvings made from rhinoceros horn and elephant ivory. Qiu admitted to meeting Li in 2009 through his work at the auction house, and then entering into a conspiracy with Li whereby Qiu traveled throughout the U.S. to purchase raw and carved rhinoceros horns and elephant ivory for Li, often receiving specific instructions from Li on which items to buy and how much to pay. Upon purchasing the items, Li transferred funds directly into Qiu’s bank accounts in the U.S. and China. After acquiring the items for Li, Qiu arranged for them to be smuggled to a location in Hong Kong, which was provided by Li.
As part of his plea, Li admitted that he sold raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound – to factories in China where the horns are carved into fake antiques known as zuo jiu (which means “to make it as old” in Mandarin). In China, there is a centuries-old tradition of drinking from intricately carved “libation cups” made from rhinoceros horn. Owning or drinking from such a cup is believed by some to bring good health, and true antiques are highly prized by collectors. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including recently carved fake antiques. The leftover pieces from the carving process were sold for alleged “medicinal” purposes even though rhino horn is made of compressed keratin, the same material in human hair and nails and has no proven medical value.
Between 2009 and 2013, Qiu purchased and smuggled to Hong Kong at least five raw rhinoceros horns weighing at least 20 pounds. Qiu smuggled the raw rhino horns by first wrapping them in duct tape, hiding them in porcelain vases and falsely describing them on customs and shipping documents, including by labeling them as porcelain vases or handicrafts.
As part of the plea agreement, having considered Qiu’s cooperation and assistance in securing a conviction for Li, the government agrees to recommend to the sentencing judge that Qiu serve a 25-month prison sentence and pay a $150,000 fine. Sentencing will be before District Court Judge Richard Schell on a date to be determined by the court.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, the U.S. Attorney’s Office for the Eastern District of Texas and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney James Noble of the Eastern District of Texas and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.