According to a criminal complaint, the two suspects were allegedly involved in a wide-ranging operation that included identifying and attempting to recruit U.S. Navy service members, gathering information about military facilities, and coordinating secretive financial exchanges.

Details of the Alleged Operation

Investigators allege the operation began in 2021, when Lai recruited Chen to cooperate with the MSS. In January 2022, both traveled to Guangzhou, China, where they reportedly coordinated a covert $10,000 cash payment from the MSS, placing it in a locker in Livermore, California — a method referred to as a “dead drop.”

Afterward, the duo allegedly continued efforts to identify individuals within the Navy who might be susceptible to recruitment. The DOJ says they visited several