Meichun Cheng Huang of Irvine and Ling Yu were sentenced to three years each Tuesday. Both were also fined $20,000.
Their company, Angel Toy Corporation, was ordered to forfeit $1 million.
Attorneys for Huang and Yu maintained their clients weren't aware the cartels were funneling money through their company, which sells things like cuddly teddy bears and Topo Gigio mouse dolls.
The judge, however, was not convinced.
"They knew exactly what they were doing," he told the court Tuesday.
The City News Service contributed to this report.