Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Yuance Chen and Liren Lai accused of conducting intelligence operations for China's Ministry of State Security.
Two Chinese nationals, Yuance Chen and Liren Lai, were arrested following allegations of espionage related to U.S. military personnel and operations.
The arrests were made on June 27, with Chen apprehended in Happy Valley, Oregon, and Lai detained in Houston, Texas.
Both men are accused of acting as agents for the People's Republic of China's Ministry of State Security (MSS), engaging in activities aimed at gathering intelligence on U.S. Navy service members and military installations.
The Department of Justice (DOJ) stated that the duo is charged with orchestrating clandestine operations that included the recruitment of potential assets for the MSS and conducting financial transactions to facilitate these efforts.
One notable element of their operations was a so-called "dead drop" scheme, which involved leaving cash in a designated location for MSS operatives.
According to the DOJ, Lai allegedly recruited Chen for MSS activities in 2021.
Reports indicate that both were involved in a financial operation that involved facilitating a payment of at least $10,000 to an MSS officer via a dead-drop arrangement in Livermore, California, in January 2022.
Following this incident, the pair continued their involvement with the MSS, identifying U.S. Navy individuals who might be susceptible to recruitment.
Further allegations detail their visits to a U.S. Naval installation in Washington State and a Navy recruitment center in San Gabriel, California, in 2022 and 2023.
Chen is reported to have taken photographs of a bulletin board at the recruitment center that displayed information about Navy recruits, which reportedly included names and hometowns that were predominantly Chinese.
The DOJ claims these images were conveyed to an MSS intelligence officer in China.
The complaint also indicates that the MSS provided Chen with directives on how to communicate with potential recruits and strategies to avoid detection.
Chen allegedly used social media to connect with a Navy member and arranged a tour of the USS Abraham Lincoln, after which he transmitted details about the individual to the MSS.
Lai traveled to Houston on a tourist visa in April 2025, initially stating the purpose was related to his online retail business.
However, subsequent movements suggested coordination with Chen, including travel from Houston to California and Junction, Texas.
Both men have been charged under U.S. law for operating as foreign agents without notifying the U.S. Attorney General.
If convicted, they face fines of up to $250,000 and potential prison sentences of up to ten years.
The Justice Department and the FBI emphasized their commitment to safeguarding U.S. national security against espionage activities, particularly in relation to foreign intelligence operations targeting military personnel.
The arrests were made on June 27, with Chen apprehended in Happy Valley, Oregon, and Lai detained in Houston, Texas.
Both men are accused of acting as agents for the People's Republic of China's Ministry of State Security (MSS), engaging in activities aimed at gathering intelligence on U.S. Navy service members and military installations.
The Department of Justice (DOJ) stated that the duo is charged with orchestrating clandestine operations that included the recruitment of potential assets for the MSS and conducting financial transactions to facilitate these efforts.
One notable element of their operations was a so-called "dead drop" scheme, which involved leaving cash in a designated location for MSS operatives.
According to the DOJ, Lai allegedly recruited Chen for MSS activities in 2021.
Reports indicate that both were involved in a financial operation that involved facilitating a payment of at least $10,000 to an MSS officer via a dead-drop arrangement in Livermore, California, in January 2022.
Following this incident, the pair continued their involvement with the MSS, identifying U.S. Navy individuals who might be susceptible to recruitment.
Further allegations detail their visits to a U.S. Naval installation in Washington State and a Navy recruitment center in San Gabriel, California, in 2022 and 2023.
Chen is reported to have taken photographs of a bulletin board at the recruitment center that displayed information about Navy recruits, which reportedly included names and hometowns that were predominantly Chinese.
The DOJ claims these images were conveyed to an MSS intelligence officer in China.
The complaint also indicates that the MSS provided Chen with directives on how to communicate with potential recruits and strategies to avoid detection.
Chen allegedly used social media to connect with a Navy member and arranged a tour of the USS Abraham Lincoln, after which he transmitted details about the individual to the MSS.
Lai traveled to Houston on a tourist visa in April 2025, initially stating the purpose was related to his online retail business.
However, subsequent movements suggested coordination with Chen, including travel from Houston to California and Junction, Texas.
Both men have been charged under U.S. law for operating as foreign agents without notifying the U.S. Attorney General.
If convicted, they face fines of up to $250,000 and potential prison sentences of up to ten years.
The Justice Department and the FBI emphasized their commitment to safeguarding U.S. national security against espionage activities, particularly in relation to foreign intelligence operations targeting military personnel.
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