In brief
The U.S. Department of Justice sentenced Chinese nationals Lai and Chen to 30 months in prison for arranging "dead drop" cash transfers and recruiting U.S. military members for China’s Ministry of State Security. The pair engaged in a long‑running espionage scheme that included acquiring photographs of naval facilities and detailed biographical data on service members. Their activities are deemed a direct threat to U.S. national security.
The U.S. Department of Justice announced on Friday that two Chinese nationals were sentenced to 30 months in prison for attempting to recruit U.S. military personnel to spy for Beijing. The men, Liren ‘Ryan’ Lai, 40, a tourist visa holder, and Yuance Chen, 39, a permanent resident, were found guilty of arranging “dead drop” cash payments and gathering information for China’s Ministry of State Security.
According to the DOJ statement, the pair operated a “long‑running,” “extensive,” and “brazen” espionage scheme aimed at undermining U.S. national security. Assistant Attorney General for National Security John A. Eisenberg said the men had worked as agents of China’s foreign intelligence arm no later than May 2021.
In May 2022, Lai and Chen orchestrated a $10,000 secret cash transfer from Chinese intelligence, instructing U.S. individuals to drop the money at a pre‑designated location for collection by an intermediary. They later facilitated a $20,000 payment using the same dead‑drop method.
"The pair recruited U.S. military personnel and gathered a wide range of personal details, including photographs of naval facilities and biographical data on potential intelligence targets," the DOJ statement read.
In addition to cash operations, the men obtained photographs of a naval facility, surveyed military recruits, and gathered personal information about a U.S. Navy employee. The DOJ did not disclose how many times the pair carried out payments or how many recruits were successfully activated.
The sentences also include three years of supervised release. The case highlights growing concerns over foreign espionage targeting U.S. defense assets and personnel.
