FBI offers $15 million for info on Chinese nationals for alleged smuggling of US tech to Iran PHOTO

The US Federal Bureau of Investigation (FBI) has released a wanted poster for Zhong Yanlai and Baoxia Liu, the Chinese nationals charged in connection with an alleged years-long conspiracy to smuggle U.S. drone weapons to Iran. 

The U.S. State Department is offering a reward of up to $15 million for information leading to Liu's capture, as well as details on her co-defendants, Caliber.Az reports, citing American media.

Liu, along with three other Chinese nationals, was charged in January 2024 by the Justice Department in a scheme that unlawfully exported U.S. export-controlled items through China and Hong Kong. These items were allegedly destined for entities linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) and the Ministry of Defense and Armed Forces Logistics (MODAFL), which is responsible for the production of Tehran's missile systems, weapons, and Unmanned Aerial Vehicles (UAVs).

The other co-defendants are Li Yongxin, known as "Emma Lee"; Yung Yiu Wa, also called "Stephen Yung"; and Zhong Yanlai, also known as "Sydney Chung."

In its announcement, the State Department emphasized the importance of the Rewards for Justice (RFJ) program, which offers the $15 million reward for information that could disrupt the financial mechanisms of the IRGC and its branches, including the IRGC-Qods Force (IRGC-QF), which is designated as a Foreign Terrorist Organization (FTO).

"The IRGC has financed numerous terrorist attacks and activities globally, including via its external proxies such as Hamas, Hizballah, and Iran-backed militia groups in Iraq," the State Department stated. "The IRGC funds its terrorist activities — in part — through sales of military equipment, including UAVs, or drones."

Liu and her associates are accused of using front companies in China to export dual-use U.S.-origin electronic components to IRGC-affiliated companies. These components could be used in the production of UAVs, ballistic missile systems, and other military applications. The U.S. State Department noted that the IRGC and its supporters "generate and move millions of dollars around the world by establishing and relying on front companies to procure cutting-edge technology to evade sanctions and trade controls."

According to the Department of State, the scheme began as early as 2007, with Liu and her associates allegedly misrepresenting the end users of the electronic components, leading U.S. companies to export these items to China, believing they were not destined for Iran. However, the products ended up in the hands of companies such as Shiraz Electronics Industries (SEI) and Rayan Roshd Afzar, which are linked to the IRGC.

The announcement comes after recent U.S. military actions, including airstrikes against Iran-backed Houthis in Yemen, and escalating tensions in Gaza with Israel’s bombardment of Hamas targets. Hezbollah, another Iran-backed group, also launched a missile towards Israel, though it was intercepted before reaching Israeli airspace.

The U.S. State Department underscored that Liu’s alleged actions have violated U.S. sanctions and export control laws, contributing to the IRGC's military capabilities.

By Khagan Isayev