Carlos A. Grijalva, a 59-year-old resident of Simi Valley, California, has pleaded guilty to one count of conspiracy to launder monetary instruments amounting to approximately $46.4 million. The plea was entered before United States District Judge Jennifer P. Wilson in the Middle District of Pennsylvania.
Grijalva’s guilty plea follows that of Bruce Jin, who admitted guilt in January 2025. Both were charged along with Brian R. Cleland in a superseding indictment issued in April 2025 after initial charges were filed against them in August 2023.
Acting United States Attorney John C. Gurganus stated that Grijalva confessed to laundering state unemployment compensation funds fraudulently obtained from 2021 to early 2022. Alongside Cleland and Jin, he participated in creating false business operations purportedly selling COVID-19 personal protective equipment to mask their activities.
Grijalva acknowledged involvement in accessing bank accounts of identity theft victims across the United States and processing fraudulent unemployment compensation claims paid into these accounts by various state treasuries, including Pennsylvania’s.
The scheme involved transferring over $30 million through different bank accounts to companies managed by Jin and other parties identified as “COCONSPIRATOR 1” and “COCONSPIRATOR 2,” the latter based in China. Grijalva admitted making an estimated personal profit of $2.2 million from this operation.
As part of his plea agreement, Grijalva consented to forfeit property worth approximately $46.4 million, including several bank accounts and real estate assets purchased with illicit funds.
Bruce Jin remains detained since his arrest in August 2023 while awaiting sentencing. Meanwhile, Brian R. Cleland has pleaded not guilty and is awaiting trial.
The Federal Bureau of Investigation and the U.S. Department of Labor’s Office of Inspector General conducted the investigation, with Assistant U.S. Attorneys Ravi Romel Sharma and K. Wesley Mishoe alongside Trial Attorney Patrick B. Gushue prosecuting the case.
The maximum penalty for conspiracy to launder monetary instruments includes up to 20 years imprisonment, supervised release post-imprisonment, and fines.
Sentencing will follow federal guidelines upon a finding of guilt by the Judge; all defendants are presumed innocent until proven otherwise.
For more information on efforts against pandemic-related frauds led by the COVID-19 Fraud Enforcement Task Force established by the U.S Attorney General, visit https://www.justice.gov/coronavirus.
