
US Charges Two Chinese Nationals with Attempting to Recruit US Service Members
The suspects facilitated a 'dead-drop payment' of at least $10,000 in a locker at a recreational facility in Northern California in 2022 in exchange for U.S. national security information that had already been passed to Chinese intelligence, the Justice Department said.
Yuance Chen, 38, a legal permanent resident living in Happy Valley, Oregon, and Liren 'Ryan' Lai, 39, who arrived in Houston from China in April on a tourist visa, were arrested on Friday, the department said in a statement.
The pair worked on behalf of China's Ministry of State Security and made their initial appearances in federal court in Houston and Portland, Oregon on Monday, it said.
The Justice Department gave no details on who provided the national security information or the military members targeted for recruitment.
After the 2022 incident, the pair 'continued to work on behalf of the MSS, including to help identify potential assets for MSS recruitment within the ranks of the U.S. Navy,' the Justice Department said.
'The Chinese Communist Party thought they were getting away with their scheme to operate on U.S. soil, utilizing spy craft, like dead drops, to pay their sources,' FBI Director Kash Patel said in a statement.
In a statement to Reuters, Chinese Embassy spokesperson Liu Pengyu said he was not aware of the specific case but said the allegations were 'assumptions and speculations,' accusing the U.S. of hypocrisy in its global intelligence operations.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
Japan's Nikkei Stock Average Meanders on US Trade Deal Uncertainty; Steelmakers Jump
TOKYO, July 3 (Reuters) – Japan's Nikkei share gauge swung between gains and losses on Thursday as uncertainty over a trade deal with the United States and the threat of heavy tariffs prompted investor caution. The Nikkei 225 Index edged 0.1% lower as of the morning break while the broader Topix was down 0.3%. Prolonged trade negotiations with the U.S. have yet to produce a deal, with President Donald Trump recently threatening even higher tariffs on Japan. Prime Minister Shigeru Ishiba said on Wednesday he was determined to protect Japan's national interests, while chief trade negotiator Ryosei Akazawa was reported to be organizing his eighth visit to the U.S. as early as this weekend. 'If the negotiations do not produce results, it will be a major blow to the Japanese economy,' said Nomura strategist Fumika Shimizu. There were 112 advancers on the Nikkei index against 110 decliners. The biggest percentage losers on the gauge were Muji-brand retailer Ryohin Keikaku, down 6%, followed by NH Foods, which slid 4.9%. JFE Holdings surged 4.9%, leading an advance among iron and steel makers, which were the biggest gainers among the Tokyo Stock Exchange's 33 industry sub-indexes.


Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
Sean ‘Diddy' Combs Cleared of Most Serious Charges, to Remain Jailed for Now
NEW YORK, July 2 (Reuters) – Sean 'Diddy' Combs' will remain behind bars for now, a judge ruled on Wednesday, after the music mogul was cleared of sex trafficking and racketeering charges that could have put him behind bars for life but found guilty of lesser prostitution-related offenses. In rejecting the defense's request for bail, U.S. District Judge Arun Subramanian said prosecutors had presented ample evidence at Combs' trial that he had committed violent acts and should remain in jail until his sentencing on two counts of transportation to engage in prostitution. 'It is impossible for the defendant to demonstrate by clear and convincing evidence that he poses no danger,' Subramanian said during a hearing in Manhattan federal court hours after the verdict. The seven-week trial focused on allegations that Combs forced two of his former girlfriends to partake in drug-fueled, days-long sexual performances sometimes known as 'Freak Offs' with male sex workers in hotel rooms while Combs watched, masturbated and occasionally filmed. Both women – the rhythm and blues singer Casandra 'Cassie' Ventura, and a woman known in court by the pseudonym Jane – testified that he beat them and threatened to withhold financial support or leak sexually explicit images of them. As Subramanian denied bail, Combs stared straight ahead and one of his family members in the courtroom gallery hung their head. It was a far cry from the jubilant reaction after the verdict. 'I'm gonna be home soon,' Combs said, prompting applause and cheers from his family and supporters. 'Thank you, I love you.' The 12-member jury unanimously acquitted Combs of racketeering conspiracy and two counts of sex trafficking Ventura and Jane. The Bad Boy Records founder could have faced life in prison if convicted on those counts. Combs, once famed for hosting lavish parties for the cultural elite in luxurious locales like the Hamptons and Saint-Tropez, had pleaded not guilty to all five counts. The verdict was overall a win for Combs, a former billionaire known for elevating hip-hop in American culture. 'It's a great victory for Sean Combs, it's a great victory for the jury system,' defense lawyer Marc Agnifilo told reporters. Under federal law, Combs faces up to 10 years in prison on each of the two prostitution counts. But prosecutors acknowledged in a court filing that federal sentencing guidelines appeared to recommend a sentence of at most 5-1/4 years total, well below the statutory maximum. Combs' lawyers argued that two years would be the outer limit. The judge suggested sentencing Combs on October 3, but will consider a defense request for an earlier date. Prosecutors argued Combs should remain in jail because he remained a danger, pointing to Jane's trial testimony that he assaulted her in June 2024 while aware he was under investigation. 'He's an extremely violent man with an extraordinarily dangerous temper who has shown no remorse,' prosecutor Maurene Comey said in court. ACQUITTAL ON THREE CHARGES The jury's acquittal on the most serious charges signaled that the prosecution failed to draw a direct line between Combs' abuse of Ventura and Jane and their participation in the sexual performances. The defense acknowledged that Combs engaged in domestic violence, but argued that Ventura and Jane were strong, independent women who consensually took part in the sexual performances because they wanted to please Combs. Sarah Krissoff, a former federal prosecutor in Manhattan, said the jury may have viewed Combs' conduct as evidence of toxic romantic relationships, but not sex trafficking. In a statement after the verdict, Manhattan U.S. Attorney Jay Clayton and Homeland Security Investigations Special Agent in Charge Ricky Patel said sex crimes were 'all too present' across society and that Americans wanted it to stop. Combs still faces dozens of civil lawsuits accusing him of abuse. Ventura sued him in November 2023 for sex trafficking, and they settled a day later for $20 million. Combs, once feted for turning artists like Notorious B.I.G. and Usher into stars, has denied all wrongdoing. After the verdict, Ventura's lawyer Douglas Wigdor said in a tatement that she had 'paved the way' for Combs' conviction on the prostitution counts.


Nikkei Asia
2 hours ago
- Nikkei Asia
South Korea's Lee says deadline deal on US tariffs will be 'difficult'
South Korean President Lee Jae Myung delivers a speech on the second supplementary budget proposal for 2025 at the National Assembly in Seoul on June 26. © Reuters STEVEN BOROWIEC SEOUL -- South Korean President Lee Jae Myung said Thursday that it will likely be "difficult" to reach an agreement with the U.S. on looming tariffs by next week's deadline but added that he is pursuing a "win-win outcome" as he endeavors to restore economic vigor to his country threatened by trade tensions and a downturn in consumption. South Korean officials are seeking an extension before U.S. tariffs take full effect on July 9 and Seoul has sent high-level delegations to Washington seeking a reprieve from the levies that stand to hit key exports such as autos and steel. Both sides have pledged to work toward a mutually satisfactory deal but neither has indicated that a breakthrough is imminent.