US Court Revokes Citizenship of Couple Found Guilty of Trade Secret Theft, Wire Fraud
TL/DR –
Husband and wife Li Chen and Yu Zhou had their US citizenship revoked by a judge in California because they illegally procured their naturalization. They had pled guilty to one count of conspiracy to commit theft of trade secrets and one count of conspiracy to commit wire fraud, which the court deemed to be crimes involving moral turpitude. They also committed unlawful acts that adversely reflected on their moral character, which made them ineligible for naturalization, and were arrested in 2019 for stealing and selling medical trade secrets from their employer, Nationwide Children’s Hospital.
Judge Revokes US Citizenship of Chinese Couple Over Trade Secrets Theft
On March 30, a ruling from U.S. District Judge James E. Simmons Jr. in the Southern District of California stripped Li Chen and Yu Zhou, a husband and wife duo, of their U.S. citizenship due to the illegal procurement of their naturalization. The court ruled that both had committed crimes of moral turpitude, including theft of trade secrets and wire fraud, that disqualified them from naturalization because of their lack of good moral character.
According to Attorney General Pamela Bondi, such violations against the American people are a misuse of the US immigration system, with the latest denaturalizations highlighting the Department of Justice’s focus on preserving citizenship as a privilege rather than a right to be exploited. Assistant Attorney General Brett A. Shumate echoed these sentiments, stating that naturalization is a privilege granted by the country’s people.
Background of the Case
Chen and Zhou, both Chinese nationals, arrived in the U.S. on H-1B Specialty Occupation visas and became permanent residents in 2011. Chen was granted citizenship in 2016 and Zhou in 2017. However, in 2019, they were arrested for stealing medical trade secrets from Nationwide Children’s Hospital (NCH), where they worked as research scientists.
Financial Gains and Penalties
Reportedly, the pair profited from their theft by setting up their own company and purchasing shares in another that used the stolen trade secrets. Additionally, they received funding from China’s State Administration of Foreign Expert Affairs, acquiring roughly $1.5 million from the sale of exosome isolation intellectual property. As a result, Chen was sentenced to 30 months in prison and Zhou to 33 months, with a combined restitution order of over $2.6 million.
Ruling and Implications
The court ruled that their acts of wire fraud and conspiracy to commit theft of trade secrets reflected adversely on their moral character, providing sufficient grounds for the revocation of their U.S. citizenship. The cases were investigated by U.S. Immigration and Customs Enforcement and pursued by the Civil Division’s Office of Immigration Litigation.
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