Two Members of Wausau Methamphetamine Conspiracy Sentenced

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that two members of a Wausau, Wisconsin methamphetamine conspiracy were sentenced by Chief U.S. District Judge James D. Peterson.  Lisa Xiong, 33, Wausau, was sentenced on Thursday, December 17 to 13 years in federal prison for her role as the leader of the conspiracy. Xiong pleaded guilty to this charge on September 29, 2020.  John Gates, 51, Hewitt, Wisconsin, pleaded guilty and was sentenced today to 5 years in federal prison.

Throughout the course of the conspiracy, from November 2018 through June 2019, Lisa Xiong made numerous trips to Minnesota to pick up pound quantities of almost pure methamphetamine from several sources. She oversaw at least 10 people in the Wausau area who distributed the methamphetamine on her behalf. Law enforcement agents seized almost 5 pounds of methamphetamine in connection with the investigation, though agents believe the conspiracy was responsible for well over 10 pounds flowing into the Wausau area. 

Xiong has a significant criminal history and was on supervision in two Marathon County cases while overseeing her drug-trafficking operation. Judge Peterson remarked on her increasing leadership role while taking advantage of people devastated by methamphetamine. Xiong used multiple methamphetamine addicts to insulate her from police detection by dealing for her and collecting money.  

Gates promised Lisa Xiong thousands of dollars to contribute towards pounds of methamphetamine during his role in the conspiracy and Xiong considered him a trusted source of money. Gates’s relevant conduct consisted of over two pounds of methamphetamine that he was distributing in his community while on supervision in a Wood County case for possessing methamphetamine. Judge Peterson acknowledged that though Gates is an addict, he was a fairly sophisticated dealer who was a step-up from a street-level dealer.

Ten individuals were charged in an indictment returned by a federal grand jury in September 2019 for their roles in this methamphetamine distribution conspiracy.  Lisa Xiong and John Gates are the fourth and fifth defendants to plead guilty and be sentenced.  The others are:

1.         Meng Xiong, Wausau, was sentenced to 5 years on June 12, 2020;

2.         Chou Xiong, Wausau, was sentenced to 78 months on December 8, 2020; and

3.         Soua Khang, Wisconsin Rapids, Wisconsin, was sentenced to 7 years on December 9, 2020.

The charges against these defendants were the result of an investigation conducted by the Federal Bureau of Investigation; Central Wisconsin Narcotics Task Force; Marathon County Sheriff’s Office; Wisconsin Department of Justice Division of Criminal Investigation; Lincoln County Sheriff’s Office; Wausau Police Department; Everest Metro Police Department; and Wisconsin State Patrol.  The prosecution of the cases has been handled by Assistant U.S. Attorney Diane Schlipper.