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Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE
Wednesday, January 20, 2021

MIT Professor Indicted on Charges Relating to Grant Fraud

BOSTON – A professor and researcher at Massachusetts Institute of Technology (MIT) was indicted yesterday by a federal grand jury in connection with failing to disclose contracts, appointments and awards from various entities in the People’s Republic of China (PRC) to the U.S. Department of Energy.

Gang Chen, 56, was indicted on two counts of wire fraud, one count of failing to file a foreign bank account report (FBAR) and one count of making a false statement in a tax return. Chen was charged by criminal complaint and arrested on Jan. 14, 2021.

According to charging documents, Chen is a naturalized U.S. citizen who was born in China. He is a professor and researcher at MIT where he serves as Director of the MIT Pappalardo Micro/Nano Engineering Laboratory and Director of the Solid-State Solar Thermal Energy Conversion Center (S3TEC). Since approximately 2013, Chen’s research at MIT has been funded by nearly $19 million in grants awarded by various U.S. federal agencies.

Since 2012, Chen has allegedly held various appointments with the PRC designed to promote the PRC’s technological and scientific development by providing advice and expertise – sometimes directly to PRC government officials – and often in exchange for financial compensation. This includes acting as an “overseas expert” for the PRC government at the request of the PRC Consulate Office in New York and serving as a member of at least two PRC Talent Programs. 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).

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.

Chen also allegedly failed to disclose to the IRS in his 2018 tax return that he maintained a bank account in the PRC with more than $10,000 in 2018.

The charge of wire fraud provides for a sentence of 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 provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigation, Boston; Ramsey Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jim Breckenridge, Special Agent in Charge of the Department of Energy, Office of Inspector General made the announcement today. Assistant U.S. Attorneys B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Jason Casey and Timothy Kistner also of Lelling’s National Security Unit are prosecuting the case with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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Updated January 20, 2021