In a significant enforcement action tied to a multi-state investigation, the FBI announced the arrest of two Chinese nationals allegedly involved in espionage activities against U.S. military facilities.
Yuance Chen, 38, and Liren “Ryan” Lai, 39, were taken into custody last Friday as part of a coordinated effort involving the FBI’s San Francisco, Portland, Houston, and San Diego field offices.
These suspects were charged with various offenses related to espionage purportedly conducted on behalf of China’s Ministry of State Security (MSS).
The FBI reported that at least one search warrant was executed in San Diego, alongside others in cities such as San Francisco, Houston, and Portland. However, details concerning those search actions remain undisclosed.
Chen, a legal permanent resident residing in Happy Valley, Oregon, and Lai, who entered the U.S. on a tourist visa from China in April, were nabbed on a criminal complaint originating from the Northern District of California.
The allegations against them include facilitating covert cash payments for classified information about U.S. national security and trying to recruit American service personnel as potential MSS assets.
The arrests were made in response to allegations outlined in a criminal complaint that alleges the two worked actively for the MSS for several years. FBI Director Kash Patel highlighted the sophistication of the operation, noting that the Chinese Communist Party engaged in clandestine schemes to exploit U.S. vulnerabilities.
The investigation revealed that approximately four years ago, Lai recruited Chen to assist with MSS activities. While in Guangzhou, China, in January 2022, both Chen and Lai purportedly facilitated a cash drop of at least $10,000 via a collaborative effort in the U.S. which involved placing cash in a backpack at a recreational facility’s locker in Livermore.
Post the initial operation, they allegedly continued their espionage activities by identifying potential military personnel for recruitment efforts and other intelligence-gathering missions.
During 2022 and 2023, there are claims that Chen visited naval installations in Washington State and a Navy recruitment center in San Gabriel. Chen reportedly gathered personal information about U.S. Navy recruits that was later transmitted to an MSS officer in China.
The complaint also alleges that Chen received direct instructions from the MSS, including tactics for engaging with and recruiting personnel in the Navy.
Moreover, he was said to have contacted a Navy employee on social media and provided that individual’s details to the MSS.
Both Chen and Lai face charges under a federal statute that prohibits operating as an agent for a foreign government within the U.S. without informing the U.S. attorney general.
If convicted, they each could face a sentence of up to 10 years in prison and fines reaching $250,000.
The FBI has emphasized its commitment to defending national interests against infiltration attempts from foreign adversaries, with this case exemplifying the bureau’s counterintelligence capabilities.
The ongoing investigation, led by the FBI San Francisco Field Office, highlights the collaborative efforts with various federal agencies, underscoring the complexity and breadth of the espionage operations carried out on American soil.
As the situation develops, further details may emerge, shedding light on the depth of the espionage landscape and the strategies employed by foreign intelligence entities targeting the United States.
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