Chinese Spy Ring Busted
Chinese Spy Ring Busted
Date: Wednesday, November 09, 2005 3:27 PM
JOB DESTRUCTION NEWSLETTER
November 09, 2005 No. 1364
A Chinese spy ring was recently busted for espionage against Navy warships. This story hasn't been covered much in the American press but as you will see below it's getting a lot of coverage overseas. I believe it's being deliberately downplayed because the corporatists don't want to jeopardize China's "most favored nation" trading status. The news media plays along with the corporatists because most liberal reporters are loathe to write about how our out-of-control immigration system is hurting our national security. The articles that have appeared so far seem to be intentionally vague, but of course that could be because our government is saying much.
I'm just starting to put some of the pieces of this story together from scraps of information I have seen on the internet. If you find out more, please let me know!
***** Let's meet the spies *****
Tai Wang Mak - a Chinese citizen and legal U.S. resident since 2001
Fuk Heung Li - a Chinese citizen and legal U.S. resident since 2001
Chi Mak - became a naturalized U.S. citizen from China in 1985
Rebecca Chiu - became a naturalized U.S. citizen from China in 1985
***** How Did they Get Here? *****
There is a bio of Tai Mak online, and one paragraph gives us an essential piece of information:
http://yuimak.aam130a.tripod.com/us.htm
At that time, my father started to think that migrate
to the United State would be a good idea because he
thought the political environment of Hong Kong may
change after 1997. So he talked to his elder sister,
who has already married to an American and moved to
California. She agreed to help my father to apply
for migrating to the United State.
That information leads me to believe that Tai Mak was sponsored for immigration by a sibling for a refugee visa. Refugee and asylum visas are just one more way to make it easy for aliens to immigrate to the U.S. The refugee status of the aliens is often a lie that is used so that they can get on a fast track for green cards. While waiting for their green card they get welfare and health benefits with no strings attached. The U.S. never says no if a foreign national says: "I'm escaping communism, you've got to take me."
Tai and Fuk probably used the Chinese Student Protection Act (CSPA) to get into the USA. This act has allowed over 80,000 Chinese students to get blanket political asylum and automatic green cards. If you are a little stunned that the U.S. could be so stupid, so am I! To get more information on the CSPA there is no better source than a paper written by Dr. Norman Matloff:
http://heather.cs.ucdavis.edu/pub/Immigration/AsyRef/CSPA.html
This excerpt from Matloff's paper is worth noting:
In 1994. Connie Chung, then Dan Rather's co-anchor for
the CBS Evening News, broadcast an interview with a
former CIA agent who claimed that China was using regular
immigration channels to get spies, especially in the
high-tech fields, into the U.S. Some former IFCSS activists
sprang into action in reaction to Chung's broadcast,
complaining that their members would now have trouble
finding jobs, since employers would fear that they are spies.
In the end, the commission asked CBS to respond, and Chung
issued a "statement of regret."
***** Why Did they Do it? *****
Most espionage is done for reasons of greed, and this case may be just another example of that. The news articles haven't provided much information on the backgrounds of the spies but I'm sure as the story unfolds we will gradually learn more about these four Chinese spies.
While sorting through some information I came across two things that look very suspicious. Tai Mak came to the U.S. as a refugee from the communists, but his ties to China seem to indicate that he may be working for them instead of trying to escape from them.
Item #1 - A new LA Times article said that Tai Mak is a member of the Chinese military. Of course in China most young men have mandatory military service, so I'm not sure this alone would be proof that Tai was deliberately sent here by the Chinese government for the purpose of spying.
Item #2 - Tai Mak was an engineer working for the Phoenix North America Chinese Channel. The Chinese TV station gets funding directly from the Chinese government:
http://en.wikipedia.org/wiki/Phoenix_TV
Phoenix Television is a Hong Kong-based television broadcaster that aims to promote a free flow of information and entertainment within the Greater China region. It has 5 different television channels. Phoenix Television is well-known of providing Infotainment programmes with popular 'Star' Anchors and talk show hosts. Being on good terms with the People's Republic of China government, it is one of the few non-government related television broadcasters in mainland China
CONCLUSION: Tai Mak's ties to the Chinese Communist government are very suspicious. How often would a refugee get on the payroll of the government they were fleeing from? More research needs to be done to see if this is a case where the Chinese have used asylum to place spies into the U.S. I think it's astonishing that this story has received so little press on American TV. Lou Dobbs is one of the few that have reported on the spy ring, and he said that, "some are saying that this is one of the most important spy cases in 15 years."
Articles Used for this Newsletter
http://www.latimes.com/news/local/la-me-china8nov08,1,3507875.story
Couple Denied Bail in Spy Investigation
http://transcripts.cnn.com/TRANSCRIPTS/0511/07/ldt.01.html
Lou Dobbs Transcript
http://www.asiamedia.ucla.edu/article.asp?parentid=32940
HONG KONG: How the FBI closed the net on HK engineer in spy probe
http://edition.cnn.com/2005/LAW/11/05/navy.indictments.ap/
U.S. charges 4 China spy suspects
http://www.mercurynews.com/mld/mercurynews/news/breaking_news/13085780.htm
Four charged with scheme to send U.S. Navy tech secrets to China
http://news.bbc.co.uk/2/hi/asia-pacific/4409216.stm
US holds four China spy suspects
http://www.ocregister.com/ocregister/homepage/abox/article_755850.php
Four held for stealing military info
This page has an excellent profile of the spies:
http://www.cicentre.com/Documents/DOC_Chi_Mak.html
Chi Mak, Tai Wang Mak, Rebecca Lai-wah Chiu, Fuk-heung Li
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http://www.latimes.com/news/local/la-me-china8nov08,1,3507875.story
Couple Denied Bail in Spy Investigation
The pair planned to hand-carry sensitive U.S. military data to China, prosecutors say.
By Greg Krikorian
Times Staff Writer
November 8, 2005
A federal judge in Santa Ana denied bail Monday to two recent Chinese immigrants after a prosecutor alleged they were arrested as they were about to leave for China with a compact disc encrypted with highly sensitive U.S. military data.
Tai Wang Mak, a broadcast and engineering director for a Chinese television station in the U.S., and his wife, Fuk Heung Li, were arrested Oct. 28 after counterintelligence officers concluded that the couple planned to hand-carry to China a CD encrypted with information on U.S. Navy submarine technology. Tai Mak's brother, Chi Mak, and his wife, Rebecca Laiwah Chiu, were also arrested.
In the still unfolding case, Assistant U.S. Atty. Deidre Z. Eliot said Monday that Chi Mak told the Naval Criminal Investigative Service that Tai Mak is a member of the Chinese military.
The information concerned an electric-drive propulsion system for U.S. submarines that would quiet noise and therefore enhance stealth for the fleet, authorities have said. The information allegedly was provided by Chi Mak, the lead project engineer at Power Paragon in Anaheim. Providing the technology to certain countries has been banned by the U.S. according to an FBI agent's affidavit.
Chi Mak and Chiu are originally from China and became naturalized U.S. citizens in 1985. Tai Mak and Fuk came to the United States four years ago and are lawful permanent residents. Chi Mak has been held without bond since his arrest. Chiu remains in custody with bond set at $300,000.
Tai Mak's attorney, John Early, said there was no proof the information on the disk recovered by the FBI was classified. Early also argued that the government was making unsubstantiated claims about the significance of the case.
Tai Mak "has not been charged with espionage," Early said. "I didn't hear the word 'classified' - in any of that information."
The FBI agent's affidavit does not identify any of the allegedly stolen information in the case as classified but does describe the defendants as foreign intelligence agents who were collecting and copying a variety of important Navy technologies.
With wiretaps, secret searches and other surveillance tactics, authorities said, they uncovered substantial evidence that the two couples were engaged in a longtime conspiracy whereby Tai Mak collected information that could be passed on to his brother and eventually to China.
During a search of garbage at Chi Mak's home in Downey, authorities said, agents found a number of documents torn into pieces, including a list of military technologies being sought by China such as a space-based electromagnetic intercept system, aircraft carrier electronic systems, defense against nuclear attack technology and data on the next-generation destroyer known as the DDX.
The next court appearance for the defendants is scheduled within two weeks.
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http://transcripts.cnn.com/TRANSCRIPTS/0511/07/ldt.01.html
LOU DOBBS TONIGHT
Aired November 7, 2005 - 17:59 ET
DOBBS: Casey Wian, thank you. At least along a limited stretch of our southern border we're actually getting serious about border security. But unfortunately it's only a small stretch.
This country also faces, of course, another disturbing national security threat tonight: the huge scale of communist China spying operation in this country. American officials say that there are 3,000 front companies designed specifically to spy on American industry and the U.S. government, and those same officials say the latest evidence of China's espionage activity is the arrest of four people in Los Angeles on charges of stealing secret documents on American warships.
Jamie McIntyre reports from the pentagon -- Jamie.
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Lou, according to an affidavit from federal investigators, the accusation is that a Chinese -- a naturalized Chinese-American citizen who has had a secret clearance since 1996 took information from his employer and attempted to transfer it to the Chinese government.
This man, whose name is Chi Pak (ph), worked for a company called Power Paragon. And as that, he was the lead engineer for a program that had access to Navy technology for what's called the quiet electronic drive program, a very sensitive program that the Navy is working on in order to provide very quiet propulsion for Navy ships. And, you know, when it comes to submarines, for instance, quiet is one of the things that makes a submarine effective.
According to the affidavit, if I could read you here, "The investigation has shown that Chi transferred information concerning the quiet electronic drive from his workplace to his home. He copied the information on to CDs, delivering them to his brother, who encrypted the information and made arrangements to travel to the People's Republic of China."
Arrested were Chi, his brother and their two wives, all, according to federal investigators, before they were actually able to take those encrypted CDs to China. The information was not technically classified, but it was classified in what's called no foreign -- or no distribution to any countries listed in the State Department. Of course, China is one of the countries that the U.S. is trying to keep that technology from going to -- Lou.
DOBBS: And some are saying that this is one of the most important spy cases in 15 years. Thank you very much, Jamie McIntyre, from the Pentagon.
Later in this hour, we'll be taking a closer look at communist China's massive spy operation in the United States. I'll be talking with one of the leading experts on China's military and intelligence operation.
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http://www.asiamedia.ucla.edu/article.asp?parentid=32940
HONG KONG: How the FBI closed the net on HK engineer in spy probe
Former Phoenix Television, TVB engineer was wiretapped by FBI
South China Morning Post
Sunday, November 6, 2005
By Charles Snyder
Washington --- Mak Chi was looking forward to retiring to Hong Kong next March, and his plans appeared to have been well advanced.
The 56-year-old senior electronics engineer for one of America's top defence contractors, Power Paragon, was just months away from moving with his wife, Rebecca Chiu Lai-wah, from their home in the Los Angeles suburb of Downey.
He recently placed a call to Hong Kong to inquire about property prices, saying he wanted to buy a house or apartment, according to an FBI affidavit.
What he did not know was that the FBI was wiretapping the conversation. The agency had been watching him since at least February, rummaging though his rubbish, monitoring his phone calls, tailing him as he drove to work and secretly searching his house.
Guangzhou-born Mak, who emigrated to Hong Kong in 1978 before moving to the US, was also unaware that the FBI had eavesdropped on another conversation with his older sister, which indicated he and his brother also owned property on the mainland.
The FBI alleges that Mak, his wife, his brother Mak Tai-wang -- a former TVB engineer -- and his brother's wife, Li Fuk-heung, were involved in a conspiracy to steal highly sensitive US military technology and smuggle it into the mainland via Hong Kong. This included research material on silent propulsion systems for US warships - technology the US bans for export to the mainland.
He was arrested at his home nine days ago and held in custody without bail.
Mak Chi is no ordinary engineer. He heads an engineering team developing quiet propulsion systems for navy warships for a subsidiary of L-3 Communications, a US$6.9 billion a year corporation described as the top seller of defence electronics to the US military.
According to the FBI, he had been granted secret clearance, giving him access to classified navy technology. He was the lead project engineer for an L-3 subsidiary, Power Paragon, developing Quiet Electric Drive (QED) propulsion systems, which the Pentagon considers top secret.
But he was also presumably privy to other military secrets, according to an affidavit the US Department of Justice filed with a federal court to support its warrants that led to the arrest of the four defendants.
Mak apparently took part in the activities of a number of professional organisations through which sensitive military information was routinely exchanged.
The FBI said Beijing had urged Mak to participate in as many of these organisations as possible to try to glean US military secrets leaked during their conferences.
One of the most productive sources was the American Society of Naval Engineers, which staged conferences at which top military specialists and academics freely exchanged information.
In addition to the QED technology, Mak also has access to technical records, schematics and other secret material, which Beijing wanted him to hand over. Throughout October, the FBI monitored a number of telephone conversations between the Mak brothers and Chiu regarding their alleged plans to steal, encode and transport the QED information.
HK spy case 'most damaging' in 20 years
The four Hong Kong-linked people arrested for stealing US military secrets for Beijing are part of a Chinese intelligence-gathering ring responsible for "serious compromises" to US weapons systems over 15 years, says a newspaper report.
The Washington Times quoted US intelligence officials warning that the investigation -- revealed in Friday's South China Morning Post -- could prove the most damaging spy case in two decades.
Mak Chi, the electrical engineer at the centre of the probe into his secret work for a US defence contractor, had access to US aircraft carriers, including time aboard the USS John C. Stennis, the newspaper reported. The ring had also obtained data on the Aegis battle management system that links US naval vessels.
Mak wanted to retire to Hong Kong as he "nervously" planned to ferry CDs with military secrets back to Guangzhou, according to FBI documents obtained by the Sunday Morning Post.
All four remain in custody.
In Los Angeles, US federal court judge Marc Goldman put off until tomorrow a decision on whether to grant bail to Mak Tai-wing, an engineer with a Phoenix Television subsidiary in Los Angeles, and his wife, Li Fuk-heung. Mak Tai-wing is Mak Chi's brother. The judge set bail for Mak Chi's wife, Rebecca Chiu Lai-wah, at US$300,000.
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http://edition.cnn.com/2005/LAW/11/05/navy.indictments.ap/
U.S. charges 4 China spy suspects
LOS ANGELES, California (AP) -- An engineer and Chinese television director are among four people indicted on charges of stealing secret documents on Navy warships and trying to smuggle them to China, prosecutors said Friday.
Chi Mak, a naturalized U.S. citizen from China who lives in Los Angeles County, was arrested October 28. He allegedly took computer disks from Anaheim defense contractor Power Paragon, where he was lead engineer on a research project involving warship propulsion systems, according to an FBI affidavit.
He also allegedly e-mailed photos and reports about the project to his home computer.
Authorities say Chi Mak and his wife copied the information onto CDs and delivered them to Mak's brother, Tai Wang Mak, a broadcast and engineering director for the Phoenix North American Chinese Channel.
Tai Wang Mak was scheduled to fly to Hong Kong on October 28 with his wife. From there, he allegedly planned to travel to Guangzhou, China, to meet a contact.
Chi Mak and Tai Wang Mak were both charged, along with their wives, Rebecca Laiwah Chiu and Fuk Heung Li, according to a spokesman for the U.S. attorney's office.
The four face charges of stealing government property, transportation of stolen goods and conspiracy, said spokesman Thom Mrozek.
Chi Mak was ordered held without bail on Monday.
Chiu, an American of Chinese descent, appeared in court Friday and bail was set at $300,000. However, it will take several days for bond to be posted, Mrozek said. She will then be under house arrest with electronic monitoring.
Tai Wang Mak, a Chinese citizen and legal U.S. resident, also made a court appearance, but his bond hearing was postponed until Monday, when his wife, a legal resident from China, is also scheduled to appear in court.
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http://www.mercurynews.com/mld/mercurynews/news/breaking_news/13085780.htm
Posted on Fri, Nov. 04, 2005
Four charged with scheme to send U.S. Navy tech secrets to China
Associated Press
LOS ANGELES - An engineer and Chinese television director were indicted on charges of stealing secret documents on U.S. Navy warship technology and trying to smuggle them to China, prosecutors said.
Chi Mak, a naturalized U.S. citizen from China, was ordered held without bond after appearing Monday in federal court in Santa Ana, said Thom Mrozek, spokesman for the U.S. attorney's office.
Mak, who lives in Downey in Los Angeles County, was arrested on Oct. 28 along with his brother, Tai Wang Mak, a broadcast and engineering director for the Phoenix North American Chinese Channel. Also arrested were Chi Mak's wife, Rebecca Laiwah Chiu, and Tai Wang Mak's wife, Fuk Heung Li.
The four face charges of steeling government property, aiding and abetting, transportation of stolen goods and conspiracy, Mrozek said.
Chi Mak allegedly took computer disks from Anaheim defense contractor Power Paragon, where he was lead engineer on a sensitive research project involving propulsion systems for Navy warships, according to an FBI affidavit unsealed Monday. He also allegedly e-mailed photos and reports about the project to his home computer.
Authorities say Chi Mak and his wife copied the information onto CDs and delivered them to Tai Wang Mak, who was scheduled to fly to Hong Kong on Oct. 28 with his wife. From there, Tai Wang Mak allegedly planned to travel to Guangzhou, China, to meet a contact.
Chi Mak, who has been represented by a federal public defender, is trying to retain a private attorney and will return to court Nov. 10, when the new lawyer will seek bond for his client, Mrozek said.
Chiu, an American of Chinese descent, appeared in court Friday and bond was set at $300,000. However, it will take several days for bond to be posted, Mrozek said. She will then essentially be under house arrest with electronic monitoring.
Tai Wang Mak, a Chinese citizen and legal U.S. resident, also made a court appearance but his bond hearing was postponed to Nov. 7. His wife, a legal resident from China, is also scheduled in court that day.
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http://news.bbc.co.uk/2/hi/asia-pacific/4409216.stm
US holds four China spy suspects
FBI agents in Los Angeles have arrested four people for allegedly trying to smuggle US military secrets to China.
An FBI affidavit said they were charged with theft of government property, conspiracy and transportation of stolen goods, Reuters news agency reported.
The affidavit said one suspect worked for a California defence contractor.
Those arrested - two married couples - are all ethnic Chinese. Two of them are naturalised US citizens, while the other two are legal US residents.
Navy secrets
Chi Mak and his wife Rebecca Laiwah Chiu along with Mr Chi's brother, Tai Wang Mak and his wife Fuk Heung Li, were held last week at Los Angeles airport as they prepared to board a flight to China.
The FBI affidavit unsealed earlier this week showed that all four were later charged in a US district court.
It said Mr Chi was a lead engineer on a research project that involves Quiet Electric Drive technology for US Navy ships.
Along with the three others, he is suspected of trying to smuggle sensitive information about the project.
"Based on my experience and training, I believe the targets are foreign intelligence operatives," FBI Special Agent James Gaylord wrote in the affidavit, according to Reuters news agency.
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http://www.ocregister.com/ocregister/homepage/abox/article_755850.php
Tuesday, November 8, 2005
Four held for stealing military info
Prosecutors say info stolen from defense firm in Anaheim was bound for China.
From Register staff and news-service reports
SANTA ANA - Two Chinese nationals were ordered held without bail Monday on federal charges of stealing information about U.S. Navy submarine technology from an Anaheim defense contractor and trying to smuggle it to China.
Tai Wang Mak of Alhambra and his wife, Fuk Heung Li, are among four people arrested for conspiring to deliver an encrypted disk containing the military secrets to Guangzhou, China.
Authorities believe that Mak's brother, Chi Mak, stole secret information from Power Paragon, where Chi Mak was the lead engineer on an "extremely sensitive" research project involving Navy warships, according to the criminal complaint.
Tai Wang Mak, a broadcast director for Phoenix North American Chinese Channel, and Li were arrested at Los Angeles International Airport on Oct. 28 as they boarded a plane to China.
The disk was found in Li's luggage, Assistant U.S. Attorney Deirdre Eliot said.
John Early, Tai Wang Mak's attorney, said nothing proved that information on the disk was classified.
"Mak has not been charged with espionage. I didn't hear the word classified or semi-classified in any of that information," Early said.
The investigation comes at a time when China "has designs on Taiwan and is seeking to strengthen its naval capabilities and convert to a blue-water program," Eliot said. A blue-water program means a navy that can function in the open sea, as opposed to hugging shallow coastal waters.
Eliot said authorities have recorded conversations in which Tai Wang Mak and Li discussed how to transport the information and Mak reassured his wife after she said she was afraid to participate, Eliot said.
The disk was encrypted with a Chinese code that contained a PowerPoint presentation on quiet electric drive, a technology that suppresses noise from a submarine's propulsion system. It was marked "company confidential," Eliot said.
Chi Mak, a naturalized U.S. citizen from China, and his wife, Rebecca Laiwah Chiu, an American of Chinese descent, also were arrested Oct. 28. Chi Mak is being held without bail and Chiu, accused of helping copy the information onto CDs, is being held in lieu of $300,000 bond. They live in Downey.
"Based on my experience and training, I believe the targets are foreign intelligence operatives," FBI special agent James Gaylord wrote in the criminal complaint.
Eliot said authorities recovered restricted documents on the DDX Destroyer - "destroyer of the future" - that were generated by the Naval Surface Warfare Center and marked "for official use only."
Also seized were documents on how to reconfigure a damaged ship after it's been attacked, as well as two lists in Chinese that asked Chi Mak to get documents containing information on submarine torpedo technology, electromagnetic artillery systems, early- warning technology to detect incoming missiles and defenses against nuclear attack.
The information was to be fed to China's science and technology committee, which is "basically equivalent to the government itself," Eliot said.
A Power Paragon spokesman could not be reached to comment.
All four defendants are scheduled to appear Nov. 15 in U.S. District Court in Santa Ana for a preliminary hearing.
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