Nhiem Thi Dan “Sam” Nguyen, a 49-year-old naturalized citizen from Arlington, Texas, has been sentenced to federal prison for her involvement in a massive and illegal money laundering scheme. The conspiracy involved moving over $33 million in cash, much of it earned through the trafficking and sale of illegal drugs.
Nguyen pleaded guilty to charges of unlicensed money transmitting and money laundering in October 2021. Now, U.S. District Judge Keith Ellison has sentenced her to 40 months in federal prison. After her prison term, she will be under supervised release for one year. In addition, she must forfeit $76,848 in cash seized during her arrest and another $17,801.52 from seized accounts.
The court determined that Nguyen was more than just a participant—she managed others involved in the scheme. Judge Ellison noted that her crimes were deliberate and calculated, not accidental. Nguyen acted as a top lieutenant in the operation, working alongside leaders of the illegal enterprise.
How Millions Were Moved in Secret
Nguyen worked closely with Vinh Quang Phan and Diana Le Phan, a married couple from the Houston area who ran the unlicensed money transmitting business. Over a period of 21 months, they helped collect and move more than $33 million in cash, avoiding government oversight and banking regulations.
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The money came from multiple sources, including at least $9 million from Branden Denver Richards, Douglas Paul Michael Davis, and Michael Dean Richards—members of a drug trafficking organization based in the Dallas area. The cash was often delivered in bulk, the kind that drug dealers use to avoid traceable transactions.
Nguyen and the Phans introduced this large amount of cash into the banking system using more than nine “money mules.” These were people who helped funnel the money through different accounts to make it harder to track. Then, the money was converted into virtual currency, such as cryptocurrency. The virtual money was sold for cash in California, the same state where many of the illegal drugs originated.
This method helped them avoid the risk of physically transporting cash across state lines and made the money look legitimate. However, none of them registered their money transmitting business with the Department of the Treasury, nor did they obtain a license from the state of Texas—both of which are required by law.
Sentences Delivered, Operation Dismantled
Nguyen was the last of six individuals to be sentenced in connection with this case. She will voluntarily surrender to a Federal Bureau of Prisons facility at a later date.
The leaders of the conspiracy, Vinh and Diana Phan, received 10-year prison sentences. They were also ordered to pay $80,000 in fines and forfeit their home and more than $486,000 in cash and bank accounts.
Branden Denver Richards of Little Elm, Texas, received a 5-year prison sentence for his role in providing drug proceeds to the operation. Douglas Paul Michael Davis of Keller, and Michael Dean Richards of Frisco, were each sentenced to two years in prison.
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Authorities said this was a sophisticated operation designed to clean dirty money. Acting Special Agent in Charge Lucy Tan of IRS Criminal Investigation’s Houston Field Office explained that criminals must separate their money from the crimes they commit to avoid getting caught. That’s exactly what Nguyen and her associates tried to do. They created a system of lies and deception to hide the origin of millions in drug money.
“This was the criminal business Nguyen and her accomplices ran. They were big players in the deception and lies that allowed drug money and other cash to be moved almost undetected,” Tan said.
The investigation was led by the IRS Criminal Investigation’s South Texas High Intensity Drug Trafficking Areas Financial Crimes Task Force. They received support from the Drug Enforcement Administration (DEA), the Houston Police Department, and the Organized Crime Drug Enforcement Task Forces (OCDETF). This group focuses on bringing down the most dangerous drug traffickers and money launderers in the country through multi-agency cooperation.
Assistant U.S. Attorneys Stephanie Bauman and Eun Kate Suh prosecuted the case with assistance from Deputy Chief Brandon Fyffe of the Asset Recovery Section.
With all six participants now sentenced, including Nguyen, the federal government has effectively shut down one of the more significant underground money-moving networks in recent years.
