Asian art dealer pleads guilty to trafficking in Rhinoceros horns

Rhino horn, often sold as shavings, is highly prized in some traditional Asian medicinal practices.

A RESIDENT of Syosset, New York, and the owner of a business that specialized in Asian works of art, pleaded guilty Tuesday, Nov. 29, to illegally trafficking horns from endangered black rhinoceros. 

“These horns are the remains of a dead animal, and one of the world’s most iconic species that will certainly go extinct in our lifetimes if we do not stop this illegal trafficking,” said Assistant Attorney General Cruden. “We expect those in the arts and auction trade to understand and obey the law, and those that do not will be investigated and prosecuted for these crimes.” 

The guilty plea by Fengyi Zhou was announced by Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS). 

FeZhou, 49, who has worked as an Asian art dealer for years, pleaded guilty before U.S. District Judge William F. Kuntz II for the Eastern District of New York in Brooklyn, New York, to a one count information charging him with wildlife trafficking in violation of the Lacey Act. 

Zhou 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.

In papers filed in federal court, Zhou admitted to purchasing as many as five uncarved rhinoceros horns from another Asian arts dealer in New York. Along with the horns, Zhou was given an “Endangered Species Bill of Sale,” from which Zhou was made aware that four of the horns were purchased in Texas and unlawfully transported to New York. Immediately after purchasing the rhinoceros horns, Zhou offered to sell and later sold the horns, to an associate who was a Chinese national residing in the People’s Republic of China for more than $130,000. 

RELATED: Smuggler of rhino horn cups sentenced

Rhino horn is highly valued and used in the traditional medicine systems of many Asian countries, from Malaysia and South Korea to India and China, to cure a variety of ailments. In Traditional Chinese Medicine, the horn, which is shaved or ground into a powder and dissolved in boiling water, is used to treat fever, rheumatism, gout, and other disorders. According to the 16th century Chinese pharmacist Li Shi Chen, the horn could also cure snakebites, hallucinations, typhoid, headaches, carbuncles, vomiting, food poisoning, and “devil possession.” (However, it is not, as commonly believed, prescribed as an aphrodisiac).

“Because of the scourge of wildlife trafficking and those like Mr. Zhou who practice it, there is now a very real possibility that the rhinoceros could disappear from Africa,” said Director Ashe. “We are determined that this never happen and that we don’t leave behind for our children a world without this magnificent wild creature."

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International smuggler of rhino horn cups sentenced

Rhinoceros horn is cut off the animal by smugglers.

AN ACTIVITY usually conducted in clandestine meetings among art collectors came to light with the sentencing of Linxun Liao, 35, a citizen of Canada. 

Liao was sentenced Nov. 12 in Manhattan federal court to two years in prison for his role in a wildlife trafficking scheme in which he purchased and smuggled 16 “libation cups” carved from rhinoceros horns and worth more than $1 million from the United States to China, announced Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division of the Department of Justice, U.S. Attorney Preet Bharara of the Southern District of New York and Director Dan Ashe of the U.S. Fish and Wildlife Service. 

Liao pleaded guilty on June 30, 2015, to a two-count information, admitting to illegally smuggling rhinoceros horn objects from the United States.

“Each of the ceremonial cups that Liao trafficked represents one step closer to extinction for the rhinoceros, which are steadily being wiped out by poachers for the illegal rhino horn market,” said Director Ashe. 

Examples of cups made of rhino horn

According to the information, other documents filed in federal court in Manhattan and statements made at various proceedings in this c“This prosecution is the result of a vigorous and ongoing investigation into traffickers profiting from endangered and precious wildlife species,” said Cruden. “We must ensure that the market for antiques and alleged antiques does not also contribute to the extinction of these iconic animals, which could disappear in our lifetimes if we do not act now to stop this illegal trade.”

“This defendant flouted the laws established to protect endangered wildlife,” said U.S. Attorney Bharara. “Willfully failing to declare the nature of the shipments or obtain required permits, Liao broke laws that protect rhinoceros and other magnificent species threatened with extinction. He has learned the cost of his illegal conduct.”

ase, including today’s sentencing:

Liao was arrested in February 2015 as part of “Operation Crash,” a nationwide crackdown on illegal trafficking in rhinoceros horns. Liao was a partner in an Asian art and antiques business located in China. 

Liao’s role was to purchase items, including wildlife items, in the U.S. and arrange for their export to China. Between in or about March 2012 and May 2013, Liao made online purchases of 16 rhinoceros horn products, more specifically libation cups, from auction houses in the United States, including in Manhattan, which he then smuggled to China without the required declarations and permits. 

Liao closely coordinated his efforts with co-conspirators who sold the items for a profit at their antique business in China. The market value of the rhinoceros libation cups in this case is more than $1 million.

The rhinoceros is a 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 CITES, a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Rhinoceros are also protected under the U.S. Endangered Species Act, which further regulates trade and transport.

In addition to his prison term, Liao was also ordered two years of supervised release, to forfeit $1 million and 304 pieces of carved ivory found during a search of the New Jersey location. Liao was also banned from future involvement in the wildlife trade.

Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. 

In addition to his prison term, Liao was also ordered  to two years of supervised release, to forfeit $1 million and 304 pieces of carved ivory found during a search of the New Jersey location. Liao was also banned from future involvement in the wildlife trade.

Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.