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wire fraud

Published: 15th January 2021     

MIT professor charged for failing to disclose ties with Chinese government

Gang Chen 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

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A professor and researcher at the Massachusetts Institute of Technology (MIT) has been charged for failing to disclose contracts, appointments and awards from entities in China to the US Department of Energy.

According to an official statement by the Department of Justice, "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 is a naturalised US citizen born in China. "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," the Department said. "Since 2013, Chen allegedly received approximately USD 29 million of foreign funding, including USD 19 million from the PRC's Southern University of Science and Technology (SUSTech)," the department further said.

It added that Chen's efforts to promote China's scientific and economic development were partially detailed in a February 2016 email that Chen sent himself using his MIT e-mail account. 

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