Nov 23, 2024

MIT Professor Arrested After Grant Fraud

by Nadia El-Yaouti | Jan 21, 2021
MIT Professor Gang Chen facing charges related to grant fraud and undisclosed ties to China. Photo Source: Gang Chen (MIT via The Boston Globe)

A highly respected MIT Professor has been arrested and charged with grant fraud after he failed to disclose his ties to the People's Republic of China.

The arrest comes after an aggressive investigation from the U.S. Department of Justice regarding American universities and any influence the Chinese government may have on them.

Gang Chen, 56, holds a variety of prestigious roles at the Massachusetts Institute of Technology. Chen served as the Director of the MIT Pappalardo Micro/Nano Engineering Laboratory and Director of the Solid-State Solar Thermal Energy Conversion Center. Chen's leadership in these roles spans almost a decade. In these roles, Chen conducted a variety of research that was supported by several government grants totaling roughly around $19 million.

While he was securing federal grants for his research, Chen simultaneously held positions with the People's Republic of China. In applying for the grants, Chen failed to disclose that he was working for the Chinese government.

According to the U.S. Attorney's Office, Chen was knowingly providing his "advice and expertise" gained through the federally funded research process. According to the U.S. attorney's office, Chen's cooperation with the PRC was “designed to promote the PRC’s technological and scientific development.”

Chen is alleged to have been in direct communication with Chinese government officials and at times even received financial compensation for the information he provided. The U.S. attorney's office goes on to say, “Since 2013, Chen allegedly received approximately $29 million of foreign funding, including $19 million from the PRC’s Southern University of Science and Technology (SUSTech).”

As part of evidence collected painting an image of Chen’s relationship with the Chinese government, an email that was sent from Chen's MIT email account to himself highlighted Chen’s pursuit to further build on Chinese scientific and technological advancement. Some of his notes in the email indicate, “We must count on technology, cannot grow as past.” The email goes on to list, “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.”

While applying for the grants and using them to conduct research is not illegal in and of itself, the Department of Justice explains, “From at least 2017 to 2019 when Chen was serving in several advisory roles for the PRC and PRC entities, Chen applied for and obtained a U.S. Department of Energy (DOE) grant in order to fund a portion of his research at MIT. In doing so, it is alleged that Chen failed to disclose information about his ongoing affiliations with the PRC as required by DOE.”

In addition to withholding his relationship with the PRC from the Department of Justice, Chen failed to disclose on his 2018 taxes that he had over $10,000 in an account in China.

Chen faces several charges, including wire fraud, failing to file a foreign bank account report (FBAR), and making a false statement in a tax return. In addition to jail time, Chen could face a slew of fines.

MIT shared a statement regarding Chen's arrest that read in part, “For all of us who know Gang, this news is surprising, deeply distressing and hard to understand."

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Nadia El-Yaouti
Nadia El-Yaouti
Nadia El-Yaouti is a postgraduate from James Madison University, where she studied English and Education. Residing in Central Virginia with her husband and two young daughters, she balances her workaholic tendencies with a passion for travel, exploring the world with her family.

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