Two Chinese nationals were sentenced in federal court in Oakland for acting as agents of the People's Republic of China, the Justice Department announced. Liren "Ryan" Lai, 40, and Yuance Chen, 39, each received 30 months in prison and three years of supervised release.
Prosecutors said the men worked under the direction of China's Ministry of State Security, carrying out clandestine intelligence activities in the U.S. that included secret "dead drop" cash payments. "Lai's and Chen's activities, undertaken at the direction of the PRC, were extensive and brazen," Assistant Attorney General John A. Eisenberg said.
Part of the scheme played out in the Bay Area, SFGATE reported from the indictment. The men flew to San Francisco in June 2015 to test a covert communications tool. In January 2022, Chen directed his spouse to leave a backpack with about $10,000 in a day-use locker at a recreational facility in Livermore. In January 2024, a $20,000 payment was left in a vehicle in San Francisco.
The information gathered included photographs of a Navy base in Bremerton, Washington, and of recruits at a Navy recruiting station in Southern California, SFGATE reported. The men were arrested by the FBI in June 2025. Lai pleaded guilty in December 2025 and Chen in February. U.S. Attorney Craig Missakian said the sentences show a commitment to holding accountable "anyone who poses a similar threat to our nation."