Matthew Cox

They're making their money on the back end with the Chinese.

They're charging them 30%.

So if you want to buy a million dollars in US dollars in Los Angeles, the businessman in China has got to pay 1.3 million.

And so what's interesting is because in China, there's no currency restrictions within the country.

So they can just transfer 1.3 million.

There's no suspicious transaction reports for 10,000.

That's here.

Over there, they can move money within the country.

The government is not even following that.

So you've got this free flow of currency moving back and forth that doesn't leave China.

Meanwhile, the Chinese national has his representative in Los Angeles get a duffel bag of cash.

Or if he wants to pay a little bit more, he can pay for the Chinese broker in L.A.

to arrange for a structuring operation.

to go ahead and do all these little $9,500 deposits and build it up.

And then just wire the money from one bank to another bank.

Well, yes, and then they use it primarily to, you know, they want to make investments in our financial system.

They want to buy property.

You know how many kids are Chinese nationals that are going to UC Berkeley or going to Stanford?

Well, you're going to need a lot more than $50,000 a year to go to Stanford.

So they're paying for college tuition.