Two Chinese nationals have been sentenced to 30 months in federal prison for helping gather information about US military personnel and sites for China’s intelligence service, US prosecutors said.
Liren “Ryan” Lai, 40, and Yuance Chen, 39, were both sentenced after pleading guilty to charges linked to their work supporting intelligence efforts for China’s Ministry of State Security. The US Attorney’s Office for the Northern District of California announced the sentences on Friday.
Prosecutors said the two men collected information about US military personnel and installations. They also helped efforts to recruit people inside the US military who could provide information to Chinese intelligence officials.
China’s Ministry of State Security, known as the MSS, is the country’s main civilian intelligence service. It carries out foreign intelligence and counterintelligence work, according to prosecutors.
The case involved secret cash transfers, including a payment of about $10,000 in January 2022. Prosecutors said Lai and Chen helped arrange the payment by coordinating with people in the United States.
The cash was placed inside a backpack and left in a locker at a recreational facility in Livermore, California. The arrangement was described as a “dead drop,” a method used by intelligence operatives to pass money or information without meeting the recipient face to face.
Prosecutors said such methods can help those involved keep their identities and activities hidden. The use of a locker and backpack allowed the money to be transferred without a direct exchange between the parties.
The case also involved information about US Navy facilities and personnel. Chen obtained photographs of Navy Base Kitsap in Bremerton, Washington, according to prosecutors.
He also collected photos and videos showing military recruits and active-duty sailors inside a Navy recruiting station in Southern California. Investigators said Chen gathered personal identifying information about a US Navy employee as well.
Prosecutors said Chen kept detailed biographical records about military personnel who could have been targets for intelligence recruitment. Such information can help intelligence services assess people who may have access to sensitive information or could be approached for cooperation.
The charges also described another planned cash transfer. In May 2025, Lai was sent to Phoenix to help arrange a further secret payment of about $20,000, the US Attorney’s Office said.
Prosecutors said the payment was intended to support the intelligence operation. The statement did not provide further details about the planned recipient or whether the money was delivered.
Lai and Chen were arrested on June 27, 2025. Lai pleaded guilty on December 12, 2025, while Chen entered his guilty plea on February 20, 2026.
The 30-month prison sentences mark the outcome of a case focused on alleged efforts to collect military information and support recruitment activity for a foreign intelligence service. The prosecutors’ announcement linked the men’s actions to efforts on behalf of China’s MSS.
The case highlights the use of basic methods, such as cash hidden in a backpack, alongside the collection of personal details and images of military locations. Intelligence operations can use such information to build profiles of possible targets and seek access to people with knowledge of military activities.
US officials have repeatedly treated attempts to gather sensitive military information as a national security concern. In this case, prosecutors said the two men helped China’s intelligence service by gathering information and arranging secret payments inside the United States.
The case involved military sites in different parts of the country, including Washington state and Southern California, as well as a cash transfer arranged in Livermore and a later planned payment in Phoenix.
The sentencing announcement did not provide further details about the people who were expected to receive the money or whether any military personnel shared classified information. It also did not state that the photographs or personal details collected by Chen included classified material.
The guilty pleas and prison sentences conclude the federal prosecution of Lai and Chen over their roles in the intelligence-related activity described by prosecutors.
