Cousins' Shortcut to Wealth Leads to Legal Trouble

Deep News
12/16

Three young individuals turned to selling counterfeit e-cigarettes nationwide via courier services through social media platforms, earning substantial profits with just a few taps on their phones.

In May 2024, Chen Moujie, a high school senior who dropped out due to poor academic performance, stumbled upon e-cigarette ads promoting "diverse flavors" and "trendy designs" while browsing short videos. Noticing comments asking for suppliers and purchasing methods, Chen saw an opportunity to "get rich quick." He began sourcing and selling e-cigarettes online as a trial.

To his surprise, these uniquely flavored and stylish e-cigarettes sold rapidly at high margins. Encouraged by easy profits, Chen envisioned scaling up—no longer as a small-time vendor but as a full-fledged entrepreneur.

He approached his cousin, Chen Moujian (handled in a separate case), who had some savings. The two agreed to partner: Chen Moujian funded rental spaces, provided payment accounts, and managed finances, while Chen Moujie handled sourcing counterfeit products and finding buyers online.

As operations expanded, Chen Moujie realized holding inventory was costly and risky. He devised an "intermediary agent" model—connecting buyers directly with manufacturers for drop-shipping, skimming profits without physical stock. This asset-light approach accelerated business growth.

With surging orders, logistics and client management became overwhelming. Chen Moujie recruited friend Xu Mouli, who assisted in finding agents, retail customers, and handling packaging and shipments.

The trio operated across multiple cities in Fujian Province, frequently relocating residences and warehouses while discreetly trading counterfeit e-cigarettes via Kuaishou, Douyin, and WeChat.

On August 20, 2024, the Yangxin County Tobacco Monopoly Bureau discovered illegal e-cigarettes purchased online by Yin Moumou (separate case) and referred the lead to local police. Investigations traced the products to Chen Moujie and Xu Mouli in Fujian.

On August 30, authorities arrested the duo in a Fuzhou apartment, seizing 1,400 counterfeit e-cigarettes. By December 30, the case was forwarded to the county prosecutor’s office.

Prosecutors found that from June to August 2024, the group—without tobacco licenses—sourced counterfeit e-cigarettes via social platforms, either reselling stock or brokering deals for commissions, totaling ¥380,000 (including 140 USDT stablecoins). The seized 1,431 e-cigarettes were valued at ¥17,172.

Chen Moujie, identified as the mastermind, received a five-and-a-half-year prison term plus a ¥20,000 fine, while Xu Mouli, deemed an accessory, was sentenced to three years and fined ¥10,000 on September 28.

In November, Yangxin County’s prosecutor’s office collaborated with tobacco regulators to discuss industry compliance, leveraging the case to promote lawful practices.

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