Quote:Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE Thursday, January 14, 2021

MIT Professor Arrested and Charged with Grant Fraud
Defendant allegedly failed to disclose his work for the People’s Republic of China to U.S. Department of Energy

BOSTON – A professor and researcher at Massachusetts Institute of Technology (MIT) was charged and arrested today in connection with failing to disclose contracts, appointments and awards from various entities in the People’s Republic of China (PRC) to the U.S. Department of Energy.

Gang Chen, 56, was charged by criminal complaint with wire fraud, failing to file a foreign bank account report (FBAR) and making a false statement in a tax return. Chen will make an initial appearance today before Magistrate Judge Donald L. Cabell.

According to charging documents, Chen is a naturalized U.S. citizen who was born in China. He is a professor and researcher at MIT where he serves as Director of the MIT Pappalardo Micro/Nano Engineering Laboratory and Director of the Solid-State Solar Thermal Energy Conversion Center (S3TEC). Since approximately 2013, Chen’s research at MIT has been funded by more than $19 million in grants awarded by various U.S. federal agencies.

Since 2012, Chen has allegedly held various appointments with the PRC designed to promote the PRC’s technological and scientific development by providing advice and expertise – sometimes directly to PRC government officials – and often in exchange for financial compensation. This includes acting as an “overseas expert” for the PRC government at the request of the PRC Consulate Office in New York and serving as a member of at least two PRC Talent Programs. Since 2013, Chen allegedly received approximately $29 million of foreign funding, including $19 million from the PRC’s Southern University of Science and Technology (SUSTech).

It is further alleged that Chen’s efforts to promote the PRC’s scientific and economic development were partially detailed in a February 2016 email that Chen sent himself using his MIT e-mail account. The email read:

1. promote chinese collaboration

2. China places innovation (scientific) as key and core not fashion [sic], but because

we must do it, from historic trend as well from our stage

3. our economy is no. 2, but from technology (structure of economy) and human

resources, we are far from no. 2

4. we are paying big price in environment, not sustainable, as well as from labor cost

5. environment protection and development in same place, environment even higher, clean energy if higher cost, reduce steel, cement. We must count on technology, cannot grow as past

6. communist 18th convention, scientific innovation placed at core. We realize not just independent innovation; but also internationalize to plan for and facilitate. Closed door innovation does not work; innovation as driving force

From at least 2017 to 2019 when Chen was serving in several advisory roles for the PRC and PRC entities, Chen applied for and obtained a U.S. Department of Energy (DOE) grant in order to fund a portion of his research at MIT. In doing so, it is alleged that Chen failed to disclose information about his ongoing affiliations with the PRC as required by DOE.

Chen also allegedly failed to disclose to the IRS in his 2018 tax return that he maintained a bank account in the PRC with more than $10,000 in 2018.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigation, Boston; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jim Breckenridge, Special Agent in Charge of the Department of Energy, Office of Inspector General made the announcement today. Assistant U.S. Attorneys B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Jason Casey and Timothy Kistner also of Lelling’s National Security Unit are prosecuting the case with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.

Quote:"He was working for the Chinese government while securing U.S. research dollars," U.S. Attorney Andrew Lelling said at a press conference Thursday to announce the arrest...

"The problem is not the collaboration itself," Lelling said. "The problem is lying about it."

Chen also allegedly failed to disclose to the IRS in his 2018 tax return that he maintained a bank account in China with more than $10,000 in 2018.

(01-14-2021 05:17 PM)GoodOwl Wrote:  Wonder how many similar have been "working" at South Main?

(01-14-2021 06:40 PM)WRCisforgotten79 Wrote:  

(01-14-2021 05:17 PM)GoodOwl Wrote:  Wonder how many similar have been "working" at South Main?

Yeah. Just look at the numbers of Rice "students" from Communist China, and one does not have to wonder ....

(01-14-2021 06:58 PM)elw4796 Wrote:  

(01-14-2021 06:40 PM)WRCisforgotten79 Wrote:  

(01-14-2021 05:17 PM)GoodOwl Wrote:  Wonder how many similar have been "working" at South Main?

Yeah. Just look at the numbers of Rice "students" from Communist China, and one does not have to wonder ....

Is this a thing now? On a sports forum we're just gonna take a chunk of the Rice student body and claim they're faking being students because they happen to have been born in a communist country?

Maybe we can find one iota evidence before making wild accusations. As far as I can tell, the closest Rice has come to a spy controversy is when a student painted the word "spy" on a Chinese student's dorm door.

(01-14-2021 07:11 PM)ExcitedOwl18 Wrote:  

(01-14-2021 06:58 PM)elw4796 Wrote:  

(01-14-2021 06:40 PM)WRCisforgotten79 Wrote:  

(01-14-2021 05:17 PM)GoodOwl Wrote:  Wonder how many similar have been "working" at South Main?

Yeah. Just look at the numbers of Rice "students" from Communist China, and one does not have to wonder ....

Is this a thing now? On a sports forum we're just gonna take a chunk of the Rice student body and claim they're faking being students because they happen to have been born in a communist country?

Maybe we can find one iota evidence before making wild accusations. As far as I can tell, the closest Rice has come to a spy controversy is when a student painted the word "spy" on a Chinese student's dorm door.

Not exactly a spy controversy but remember the whole CRISPR thing?

Or a CCP Vice-Premier calling Leebron and Ping "the perfect example of a China-US relationship" in a puff piece from Chinese state media?

https://www.chinadaily.com.cn/world/2015xivisitus/2015-09/23/content_21963972.htm

(01-14-2021 05:49 PM)RiceLad15 Wrote:  Just to be clear, the issue is that the professor hid the ties, not that they existed.

(01-14-2021 06:58 PM)elw4796 Wrote:  

(01-14-2021 06:40 PM)WRCisforgotten79 Wrote:  

(01-14-2021 05:17 PM)GoodOwl Wrote:  Wonder how many similar have been "working" at South Main?

Yeah. Just look at the numbers of Rice "students" from Communist China, and one does not have to wonder ....

Is this a thing now? On a sports forum we're just gonna take a chunk of the Rice student body and claim they're faking being students because they happen to have been born in a communist country?

Maybe we can find one iota evidence before making wild accusations. As far as I can tell, the closest Rice has come to a spy controversy is when a student painted the word "spy" on a Chinese student's dorm door.

(01-14-2021 10:11 PM)georgewebb Wrote:  

(01-14-2021 05:49 PM)RiceLad15 Wrote:  Just to be clear, the issue is that the professor hid the ties, not that they existed.

Whew! Fortunately, in my class, the professor's [bow]ties are right out in the open:
https://engineering.rice.edu/news/rcel-course-allows-students-explore-career-options-industry-leaders

(01-14-2021 08:06 PM)elw4796 Wrote:  

(01-14-2021 07:11 PM)ExcitedOwl18 Wrote:  

(01-14-2021 06:58 PM)elw4796 Wrote:  

(01-14-2021 06:40 PM)WRCisforgotten79 Wrote:  

(01-14-2021 05:17 PM)GoodOwl Wrote:  Wonder how many similar have been "working" at South Main?

Yeah. Just look at the numbers of Rice "students" from Communist China, and one does not have to wonder ....

Is this a thing now? On a sports forum we're just gonna take a chunk of the Rice student body and claim they're faking being students because they happen to have been born in a communist country?

Maybe we can find one iota evidence before making wild accusations. As far as I can tell, the closest Rice has come to a spy controversy is when a student painted the word "spy" on a Chinese student's dorm door.

Not exactly a spy controversy but remember the whole CRISPR thing?

Or a CCP Vice-Premier calling Leebron and Ping "the perfect example of a China-US relationship" in a puff piece from Chinese state media?

https://www.chinadaily.com.cn/world/2015xivisitus/2015-09/23/content_21963972.htm

But I'm talking about accusing *Rice students* of being spies. Regardless of what people feel inside about the Chinese or communism, I'm certain most would agree that we should refrain from making wild accusations unless there's a reason to do so. A student being both at Rice and from China shouldn't automatically make them suspicious.

(01-14-2021 10:11 PM)georgewebb Wrote:  

(01-14-2021 05:49 PM)RiceLad15 Wrote:  Just to be clear, the issue is that the professor hid the ties, not that they existed.

Whew! Fortunately, in my class, the professor's [bow]ties are right out in the open:
https://engineering.rice.edu/news/rcel-course-allows-students-explore-career-options-industry-leaders

(01-14-2021 05:17 PM)GoodOwl Wrote:  Wonder how many similar have been "working" at South Main?

linky: https://www.justice.gov/usao-ma/pr/mit-professor-arrested-and-charged-grant-fraud

Quote:Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE Thursday, January 14, 2021

MIT Professor Arrested and Charged with Grant Fraud
Defendant allegedly failed to disclose his work for the People’s Republic of China to U.S. Department of Energy

BOSTON – A professor and researcher at Massachusetts Institute of Technology (MIT) was charged and arrested today in connection with failing to disclose contracts, appointments and awards from various entities in the People’s Republic of China (PRC) to the U.S. Department of Energy.

Gang Chen, 56, was charged by criminal complaint with wire fraud, failing to file a foreign bank account report (FBAR) and making a false statement in a tax return. Chen will make an initial appearance today before Magistrate Judge Donald L. Cabell.

According to charging documents, Chen is a naturalized U.S. citizen who was born in China. He is a professor and researcher at MIT where he serves as Director of the MIT Pappalardo Micro/Nano Engineering Laboratory and Director of the Solid-State Solar Thermal Energy Conversion Center (S3TEC). Since approximately 2013, Chen’s research at MIT has been funded by more than $19 million in grants awarded by various U.S. federal agencies.

Since 2012, Chen has allegedly held various appointments with the PRC designed to promote the PRC’s technological and scientific development by providing advice and expertise – sometimes directly to PRC government officials – and often in exchange for financial compensation. This includes acting as an “overseas expert” for the PRC government at the request of the PRC Consulate Office in New York and serving as a member of at least two PRC Talent Programs. Since 2013, Chen allegedly received approximately $29 million of foreign funding, including $19 million from the PRC’s Southern University of Science and Technology (SUSTech).

It is further alleged that Chen’s efforts to promote the PRC’s scientific and economic development were partially detailed in a February 2016 email that Chen sent himself using his MIT e-mail account. The email read:

1. promote chinese collaboration

2. China places innovation (scientific) as key and core not fashion [sic], but because

we must do it, from historic trend as well from our stage

3. our economy is no. 2, but from technology (structure of economy) and human

resources, we are far from no. 2

4. we are paying big price in environment, not sustainable, as well as from labor cost

5. environment protection and development in same place, environment even higher, clean energy if higher cost, reduce steel, cement. We must count on technology, cannot grow as past

6. communist 18th convention, scientific innovation placed at core. We realize not just independent innovation; but also internationalize to plan for and facilitate. Closed door innovation does not work; innovation as driving force

From at least 2017 to 2019 when Chen was serving in several advisory roles for the PRC and PRC entities, Chen applied for and obtained a U.S. Department of Energy (DOE) grant in order to fund a portion of his research at MIT. In doing so, it is alleged that Chen failed to disclose information about his ongoing affiliations with the PRC as required by DOE.

Chen also allegedly failed to disclose to the IRS in his 2018 tax return that he maintained a bank account in the PRC with more than $10,000 in 2018.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigation, Boston; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jim Breckenridge, Special Agent in Charge of the Department of Energy, Office of Inspector General made the announcement today. Assistant U.S. Attorneys B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Jason Casey and Timothy Kistner also of Lelling’s National Security Unit are prosecuting the case with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.

second linky (because 2 seems to be the new magic number) : https://www.nbcboston.com/news/local/mit-professor-charged-with-fraud-for-failing-to-disclose-his-work-for-chinese-govt/2280638/

(01-14-2021 05:17 PM)GoodOwl Wrote:  Wonder how many similar have been "working" at South Main?

linky: https://www.justice.gov/usao-ma/pr/mit-professor-arrested-and-charged-grant-fraud

Quote:Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE Thursday, January 14, 2021

MIT Professor Arrested and Charged with Grant Fraud
Defendant allegedly failed to disclose his work for the People’s Republic of China to U.S. Department of Energy

BOSTON – A professor and researcher at Massachusetts Institute of Technology (MIT) was charged and arrested today in connection with failing to disclose contracts, appointments and awards from various entities in the People’s Republic of China (PRC) to the U.S. Department of Energy.

Gang Chen, 56, was charged by criminal complaint with wire fraud, failing to file a foreign bank account report (FBAR) and making a false statement in a tax return. Chen will make an initial appearance today before Magistrate Judge Donald L. Cabell.

According to charging documents, Chen is a naturalized U.S. citizen who was born in China. He is a professor and researcher at MIT where he serves as Director of the MIT Pappalardo Micro/Nano Engineering Laboratory and Director of the Solid-State Solar Thermal Energy Conversion Center (S3TEC). Since approximately 2013, Chen’s research at MIT has been funded by more than $19 million in grants awarded by various U.S. federal agencies.

Since 2012, Chen has allegedly held various appointments with the PRC designed to promote the PRC’s technological and scientific development by providing advice and expertise – sometimes directly to PRC government officials – and often in exchange for financial compensation. This includes acting as an “overseas expert” for the PRC government at the request of the PRC Consulate Office in New York and serving as a member of at least two PRC Talent Programs. Since 2013, Chen allegedly received approximately $29 million of foreign funding, including $19 million from the PRC’s Southern University of Science and Technology (SUSTech).

It is further alleged that Chen’s efforts to promote the PRC’s scientific and economic development were partially detailed in a February 2016 email that Chen sent himself using his MIT e-mail account. The email read:

1. promote chinese collaboration

2. China places innovation (scientific) as key and core not fashion [sic], but because

we must do it, from historic trend as well from our stage

3. our economy is no. 2, but from technology (structure of economy) and human

resources, we are far from no. 2

4. we are paying big price in environment, not sustainable, as well as from labor cost

5. environment protection and development in same place, environment even higher, clean energy if higher cost, reduce steel, cement. We must count on technology, cannot grow as past

6. communist 18th convention, scientific innovation placed at core. We realize not just independent innovation; but also internationalize to plan for and facilitate. Closed door innovation does not work; innovation as driving force

From at least 2017 to 2019 when Chen was serving in several advisory roles for the PRC and PRC entities, Chen applied for and obtained a U.S. Department of Energy (DOE) grant in order to fund a portion of his research at MIT. In doing so, it is alleged that Chen failed to disclose information about his ongoing affiliations with the PRC as required by DOE.

Chen also allegedly failed to disclose to the IRS in his 2018 tax return that he maintained a bank account in the PRC with more than $10,000 in 2018.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigation, Boston; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jim Breckenridge, Special Agent in Charge of the Department of Energy, Office of Inspector General made the announcement today. Assistant U.S. Attorneys B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Jason Casey and Timothy Kistner also of Lelling’s National Security Unit are prosecuting the case with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.

second linky (because 2 seems to be the new magic number) : https://www.nbcboston.com/news/local/mit-professor-charged-with-fraud-for-failing-to-disclose-his-work-for-chinese-govt/2280638/

(01-15-2021 11:10 AM)Texasowl Wrote:  Very interesting class. Hope she is a big donor and member of the Owl Club. (:

(01-14-2021 10:11 PM)georgewebb Wrote:  

(01-14-2021 05:49 PM)RiceLad15 Wrote:  Just to be clear, the issue is that the professor hid the ties, not that they existed.

Whew! Fortunately, in my class, the professor's [bow]ties are right out in the open:
https://engineering.rice.edu/news/rcel-course-allows-students-explore-career-options-industry-leaders

(01-16-2021 12:15 AM)georgewebb Wrote:  

(01-15-2021 11:10 AM)Texasowl Wrote:  Very interesting class. Hope she is a big donor and member of the Owl Club. (:

(01-14-2021 10:11 PM)georgewebb Wrote:  

(01-14-2021 05:49 PM)RiceLad15 Wrote:  Just to be clear, the issue is that the professor hid the ties, not that they existed.

Whew! Fortunately, in my class, the professor's [bow]ties are right out in the open:
https://engineering.rice.edu/news/rcel-course-allows-students-explore-career-options-industry-leaders

Lynn, a former Rice basketball player and former Rice Trustee, has been a staunch supporter of Rice athletics for many years. In fact, that's how I got to know her: as a fellow Rice fan.