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MIT professor charged with alleged grant fraud, failure to disclose work for the People’s Republic of China

BOSTON — A professor at the Massachusetts Institute of Technology has been charged and arrested for allegedly failing to disclose contacts, appointments, and awards with various entities in the People’s Republic of China to the U.S. Department of Energy.

Gang Chen was charged by a criminal complaint with wire fraud, failing to file a foreign bank account report, and making a false statement in a tax return.

According to charging documents, the 56-year-old is a naturalized U.S. citizen who was born in the People’s Republic of China. He serves as a professor, researcher, Director of the MIT Pappalardo Micro/Nano Engineering Laboratory, and Director of the Solid-State Solar Thermal Energy Conversion Center.

Since 2012, he has allegedly held various positions with the People’s Republic of China designed to promote the country’s technological and scientific development by providing advice and expertise often in exchange for financial compensation. This includes his involvement as an “overseas expert” for the Chinese government at the request of funding, including $19 million from the People’s Republic of China’s Southern University of Science and Technology.

Chen’s alleged efforts to promote the People’s Republic of China’s scientific and economic development were partially detailed in a 2016 email that he sent himself using his MIT email account.

The email read:

1. promote chinese collaboration

2. China places innovation (scientific) as key and core not fashion [sic], but because we must do it, from historic trend as well from our stage

3. our economy is no. 2, but from technology (structure of economy) and human resources, we are far from no. 2

4. we are paying big price in environment, not sustainable, as well as from labor cost

5. environment protection and development in same place, environment even higher, clean energy if higher cost, reduce steel, cement. We must count on technology, cannot grow as past

6. communist 18th convention, scientific innovation placed at core. We realize not just independent innovation; but also internationalize to plan for and facilitate. Closed door innovation does not work; innovation as driving force

From at least 2017 to 2019 when Chen was serving in several advisory roles for the People’s Republic of China and Chinese entities, he applied for and obtained a U.S Department of Energy grant to fund a portion of his research at MIT. He allegedly failed to disclose information about his affiliations with China as required by the Department of Energy.

Chen also allegedly failed to disclose to the IRS in his 2018 tax returns that he maintained a bank account in the People’s Republic of China with more than $10,000 in 2018.

For the charge of wire fraud, he could face up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of making false statements can provide a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000.

More information can be found here.

This is a developing story. Check back for updates as more information becomes available.

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