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U.S. NEWS Tuesday 1 OcTOber 2019
U.S. citizen accused of spying on behalf of Chinese government

SAN FRANCISCO (AP) — A economic espionage and
California tour operator attempted intellectual
charged by U.S. officials property theft, nearly all of
with illegally ferrying in- which lead back to China.
formation to China was a The Justice Department
quiet and friendly man with has brought multiple cases
a taste for luxury cars, a in the past year involving
neighbor said. Chinese espionage and
Xuehua Edward Peng, 56, has also brought charges
of Hayward was charged in against operatives working
documents unsealed Mon- with the Ministry of State Se-
day with being an illegal curity as law enforcement
foreign agent and deliver- officials grapple with how
ing classified U.S. national to deal with an increas-
security information to offi- ing threat of China trying
cials in China, U.S. Attorney to steal information from
David L. Anderson said in American companies.
San Francisco. Last October, prosecutors
Anderson accused Peng, charged a Chinese spy
whom he described as a with attempting to steal
tour operator for Chinese trade secrets from several
students and visitors, of a American aviation and
"combination of age-old aerospace companies, the
spycraft and modern tech- first time an MSS operative
nology." was extradited to the U.S. U.S. attorney David Anderson announces criminal spy charges against a San Francisco Bay Area
"The charges announced Anderson did not say how tour operator Xuehua Edward Peng Monday, Sept. 30, 2019, in San Francisco.
today provide a rare long Peng had been op- Associated Press
glimpse into the secret ef- erating as an unregistered
forts of the People's Re- spy for China's Ministry of license from the state. Tour and Travel in San Fran- years in prison and a
public of China to obtain State Security, only that Peng was arrested at his cisco, but no website for $250,000 fine if convicted
classified national security the FBI employed a double home Friday and ordered the company was found in of working as an unregis-
information from the United agent in 2015 who con- held without bond at a an online search. tered agent of a foreign
States," Anderson said. ducted exchanges with hearing before U.S. Magis- He could face up to 10 government.q
Danilo Serrano said Peng Peng in the San Francisco trate Judge Joseph C. Spe-
moved in across the street Bay Area and in Columbus, ro. He is scheduled to return
from him about five years Georgia. to court Wednesday. A 94-year-old WWII
ago and kept a Lexus Over six occasions be- Qian Peng, the suspect's
and Porsche parked out- tween 2015 and 2018, Peng daughter, said she could Veteran receives
side. About a year ago, he would secure a hotel room not comment because she
SUV, the nice one where there, authorities said in Serrano said he sometimes France's top honor
bought "an expensive Tesla and leave up to $20,000 had not seen the charges.

the doors go up," Serrano the criminal complaint. The wondered what Peng did
said. double agent would then for a living but didn't in- TERRE HAUTE, Ind. (AP) — heroism and the sacrifice of
Serrano recalled thinking, get a key to the room, take quire. A 94-year-old World War II Mr. Royer's generation, the
"Man, he must have a lot of the cash and leave a digi- "He seemed to travel a lot," veteran from Indiana has French flag would be his-
money." tal card containing infor- Serrano said, recalling he received France's highest tory." The Terre Haute man
The U.S. is engaged in a mation, it said. would sometimes see cars military honor for his war- served as a gunner in the
trade war with China. But Peng would then take the come to pick up Peng, who time service. 106th Cavalry Reconnais-
John Bennett, the FBI agent card and travel to Beijing to would get in with suitcases. France Consul General sance Squadron, taking
in charge of San Francisco, meet Chinese intelligence Serrano and Peng chatted Guillaume Lacroix be- part in campaigns in Rhine-
said international politics officers, authorities said. about domestic things, he stowed the Legion of Hon- land, Germany, and Nor-
had nothing to do with the Authorities say the un- said, with Peng admiring or medal Sunday on Jim- mandy, Northern France, in
arrest and charges against named double agent the fencing and succulents mie H. Royer. Napoleon 1944. He was wounded on
Peng. went to the FBI in 2015 af- in front of Serrano's home. Bonaparte established the Oct. 27, 1944, on the Lor-
"We have criminal spies ter China's intelligence de- Peng installed a similar honor in 1802. raine front and honorably
that are running around in partment tried to recruit fence and planted suc- Hundreds of people gath- discharged in August 1945.
our area of responsibility the person as a spy. The culents that Serrano gave ered at an American Le- For 75 years, Royer said
and it's the FBI's mission to unnamed agent was told him. gion post in Terre Haute that he has cherished his
stop this, so what's going by Chinese intelligence of- Serrano was shocked when to watch the award cer- memories of the French
on in the rest of the world, ficials at a meeting in 2015 told about the spy charges. emony, the Tribune-Star re- people and their gratitude
it doesn't matter to us," he that "Ed" was reliable and "I can't believe Ed was a ported. after liberation.
said. had family in China, ac- Chinese spy!" he said. Lacroix said he was excited "When we would go and
FBI Director Christopher cording to the complaint. Court records indicate to honor "a son of Ameri- liberate a town, the people
Wray has said China poses The criminal complaint says Peng will be represented ca's greatest generation." would have a joy in their
a more serious counter- Peng is a naturalized U.S. by the federal public de- "It is a generation that eyes and a happiness," he
intelligence threat to the citizen who entered the fender's office. The office changed a lot of America said. "They were so happy.
United States than any oth- country on a temporary did not respond to requests for the better," Lacroix said. When I went over there I
er country, including Russia. business visitor visa and seeking comment. "But is also a generation wondered, 'What am I do-
In July, he testified before became a permanent resi- Anderson did not elabo- that changed everything in ing here?' I found out, but
a Senate panel that the dent in 2006. Peng was nat- rate on Peng's tour op- Europe. Without the brav- I remember the laughter
FBI had more than 1,000 uralized in September 2012. erations. Public records list ery, the dedication, with- and them passing the bot-
investigations involving He holds an acupuncturist Peng as president of U.S. out the courage and the tle around."q