$15 Million Bounty on Chinese Smugglers Allegedly Arming Iran’s Elite Forces!

In a significant move to combat the illicit transfer of sensitive military technology, the U.S. State Department has announced a reward of up to $15 million for information leading to the arrest of four Chinese nationals accused of smuggling U.S. electronic components to Iran. The individuals, Liu Baoxia (also known as Emily Liu), Li Yongxin (Emma Lee), Yung Yiu Wa (Stephen Yung), and Zhong Yanlai (Sydney Chung)—are alleged to have facilitated the unlawful export of technology that could be used in the production of drones and other military equipment by Iran’s Islamic Revolutionary Guard Corps (IRGC). ​

Details of the Allegations

According to the U.S. State Department, beginning as early as May 2007, Liu and her associates utilized various front companies in China to send dual-use U.S.-origin electronic components to IRGC-linked entities. These components are believed to have been used in the development of unmanned aerial vehicles (UAVs), ballistic missile systems, and other military applications. The individuals allegedly misrepresented the end-users of these components, leading U.S. companies to export goods under the assumption that they were destined for China, while they were actually rerouted to Iran. ​

Legal Actions and Rewards

In January 2024, the U.S. Department of Justice charged Liu, Li, Yung, and Zhong with conspiracy to violate U.S. export control laws. Federal arrest warrants have been issued for Liu and Zhong, both of whom are currently at large. To aid in their capture, the State Department’s Rewards for Justice program is offering up to $15 million for information leading to their arrest. The IRGC, known for its involvement in various regional conflicts, has reportedly used U.S. technology to manufacture arms and weapons systems sold to allied governments and groups, including those in Russia, Sudan, and Yemen. ​

Implications

The alleged activities of Liu and her associates highlight the complex networks employed to circumvent international sanctions and export controls. The misuse of U.S. technology by the IRGC underscores the challenges faced by the international community in preventing the proliferation of military capabilities to groups designated as terrorist organizations. The substantial reward offered reflects the severity with which the U.S. government views these violations and its commitment to disrupting the financial and operational networks supporting such activities.