{"id":1193,"date":"2019-10-10T10:48:27","date_gmt":"2019-10-10T14:48:27","guid":{"rendered":"http:\/\/ielrblog.com\/?p=1193"},"modified":"2019-10-10T10:57:39","modified_gmt":"2019-10-10T14:57:39","slug":"u-s-citizen-arrested-for-espionage-on-behalf-of-chinas-ministry-of-state-security","status":"publish","type":"post","link":"https:\/\/ielrblog.com\/index.php\/2019\/10\/10\/u-s-citizen-arrested-for-espionage-on-behalf-of-chinas-ministry-of-state-security\/","title":{"rendered":"U.S. Citizen Arrested for Spying on Behalf of China\u2019s Ministry of State Security"},"content":{"rendered":"

On Friday September 27, 2019, U.S. citizen Xuehua \u201cEdward\u201d Peng was arrested in Hayward, California for providing classified U.S. security information to the Chinese government.\u00a0 Peng allegedly conferred at least four secure digital cards (SD) to China\u2019s Ministry of State Security (MSS) in Beijing.<\/p>\n

The Department of Justice filed the complaint against Peng on September 24, following a lengthy FBI investigation of Peng\u2019s activities.\u00a0 A statement by the Department of Justice (DOJ) claimed Peng made at least six \u201cdead drops\u201d between June 2015 and June 2018.<\/p>\n

While Peng received<\/a> an empty package in the first dead drop, he retrieved a package with an SD card from the front desk of a hotel in Newark, California in the second.\u00a0 In the following four dead drops, Peng retrieved SD cards from hotel rooms he had booked in advance. In each of these drops, he left envelopes of cash in the hotel room, in exchange for an SD card left by his source.\u00a0 Two of the six dead drops took place in Newark, California, one in Oakland, California, and three in Columbus, Georgia. Four of the six dead drops resulted in Peng transporting the SD cards to the MSS in Beijing.<\/p>\n

\u201cThe conduct charged in this case alleges a combination of age-old spy craft and modern technology,\u201d said U.S. Attorney David L. Anderson for the Northern District of California.<\/p>\n

The FBI employed<\/a> a \u201cdouble agent operation\u201d in their investigation of Peng.\u00a0 An informant for the FBI exchanged an SD card for payment in at least one of the dead drops conducted by Peng.<\/p>\n

Assistant Director John Brown of the FBI\u2019s Counterintelligence Division said<\/a>, \u201cThis case should serve as a warning to the government of China as well as any other foreign adversary looking to replicate this activity. The FBI, and our intelligence and law enforcement partners, will not waiver.\u00a0 We will bring all of our resources to bear to defeat hostile foreign intelligence services and protect our nation’s security.”<\/p>\n

What\u2019s Next for Peng<\/em><\/p>\n

Peng, 56, is<\/a> a resident of Hayward, California.\u00a0 Peng entered<\/a> the U.S. on a temporary business visitor visa in 2001 and become a lawful permanent resident in 2006 upon marrying his then-wife.\u00a0 Peng was fully naturalized in 2012.<\/p>\n

During Peng\u2019s first court appearance on September 27, U.S. Magistrate Judge Joseph C. Spero declined<\/a> to release Peng on bail, stating Peng was a flight risk.\u00a0 On October 2, Peng appeared before U.S. Magistrate Judge Jacqueline Corley for a detention hearing and identification of counsel.\u00a0 Judge Corley ordered Peng to hire a personal attorney, saying Peng\u2019s significant financial assets disqualified him from being assigned a public defender.<\/p>\n

The Special Prosecutions Section of the United States Attorney\u2019s Office for the Northern District of California, as well as the Counterintelligence and Export Control Section of the DOJ, National Security Division, are<\/a> prosecutors for the case.<\/p>\n

Peng is accused of violating 18 U.S. Code \u00a7 951.\u00a0 This code states<\/a>, \u201cWhoever, other than a diplomatic or consular officer or attache\u0301, acts in the\u00a0United States<\/a>\u00a0as an\u00a0agent of a foreign government<\/a>\u00a0without prior notification to the\u00a0Attorney General\u00a0<\/a>if required in subsection (b), shall be fined under this title or imprisoned not more than ten years, or both.\u201d\u00a0 The maximum punishment Peng faces is 10 years imprisonment with a $250,000 fine.<\/p>\n

The Larger Threat of Espionage<\/em><\/p>\n

There have been at least six incidences in the past three years in which the Department of Justice has prosecuted<\/a> a U.S. citizen for Chinese espionage.\u00a0 Three former U.S. intelligence officers, and one other, have been convicted on these charges.<\/p>\n

Assistant Attorney General of National Security John C. Demers said<\/a> of Peng\u2019s arrest,\u00a0 \u201cComing on top of our many recent Chinese espionage cases\u2014involving both national defense and intellectual property information\u2014this case illustrates the seriousness of Chinese espionage efforts and the determination of the United States to thwart them.\u201d<\/p>\n

The charges against Peng confirm the concerns of many U.S. officials that China poses a growing threat to the West.\u00a0 U.S. Attorney Anderson said, \u201cThe charges announced today provide a rare glimpse into the secret efforts of the People\u2019s Republic of China to obtain classified national security information from the United States and the battle being waged by our intelligence and law-enforcement communities to protect our people, our ideas, and our national defense.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

On Friday September 27, 2019, U.S. citizen Xuehua \u201cEdward\u201d Peng was arrested in Hayward, California for providing classified U.S. security information to the Chinese government.\u00a0 Peng allegedly conferred at least four secure digital cards (SD) to China\u2019s Ministry of State Security (MSS) in Beijing. The Department of Justice filed the complaint against Peng on September […]<\/p>\n","protected":false},"author":23,"featured_media":414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[16],"tags":[],"class_list":{"0":"post-1193","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-foreign-intelligence-and-surveillance","8":"entry"},"yoast_head":"\nU.S. Citizen Arrested for Spying on Behalf of China\u2019s Ministry of State Security | IELR Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ielrblog.com\/index.php\/2019\/10\/10\/u-s-citizen-arrested-for-espionage-on-behalf-of-chinas-ministry-of-state-security\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. Citizen Arrested for Spying on Behalf of China\u2019s Ministry of State Security | IELR Blog\" \/>\n<meta property=\"og:description\" content=\"On Friday September 27, 2019, U.S. citizen Xuehua \u201cEdward\u201d Peng was arrested in Hayward, California for providing classified U.S. security information to the Chinese government.\u00a0 Peng allegedly conferred at least four secure digital cards (SD) to China\u2019s Ministry of State Security (MSS) in Beijing. 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