Two Chinese nationals have been sentenced to 30 months in prison for acting as illegal agents of the People’s Republic of China after conducting surveillance operations targeting U.S. Navy personnel and military facilities.
Their charges are conspiring to act as agents of the PRC government and acting as agents of a foreign government without prior notification to the Attorney General.
One of the convicted criminals, Liren “Ryan” Lai, was arrested in Houston last year.
According to court documents, Lai and co-defendant Yuance Chen of Oregon began acting as agents under a Chinese intelligence officer with PRC’s Ministry of State Security in 2021.
Authorities alleged that the pair photographed U.S. military personnel and facilities, Navy recruiting offices, and naval installations in Washington and California.
They also reportedly attempted to recruit other potential MSS members from the U.S. military.
“Chen and Lai operated as illegal agents for the Chinese government on U.S. soil, carrying out clandestine intelligence work that included making covert payments, collecting sensitive military information, and attempting to recruit American service members,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence and Espionage Division.
Their activities included secret “dead drop” cash payments in exchange for intelligence related to the national security of the U.S.
A dead drop of $10,000 was reportedly sent to Chen. The MSS also directed Lai to travel to Phoenix in 2025 to facilitate a cash payment of $20,000.
An unsealed federal affidavit cited an incident that involved Chen surveilling the Naval Special Warfare Command in San Diego, which oversees Navy SEALs.
The pair were arrested on June 27, 2025, in a coordinated FBI counterintelligence and law enforcement operation.
A federal grand jury in the Northern District of California returned an indictment charging both defendants with conspiracy to act as agents of a foreign government without prior notification to the attorney general and acting as agents of a foreign government without prior notification.
Both pleaded guilty and received sentences of 30 months in prison and three years of supervised release.
“Lai’s and Chen’s activities, undertaken at the direction of the PRC, were extensive and brazen. The National Security Division is committed to holding accountable anyone who aids or abets such espionage efforts,” said Assistant Attorney General for National Security John A. Eisenberg.
Rozhavsky noted that while “The Chinese government’s efforts to infiltrate our armed forces demonstrate just how far it will go to threaten U.S. national security,” the country has “underestimated the FBI’s commitment to thwarting its illegal activity and holding its agents accountable.”
“Let this sentencing serve as a clear warning: If you attempt to jeopardize the safety and security of our service members, our citizens, or our nation, justice will find you,” added Rozhavsky.
