A Texas man and woman were arrested today in Helotes on criminal charges related to the husband’s involvement in alleged export violations and both of their alleged involvement in a scheme to defraud a research and development company (R&D Company) that provided services to industrial and government clients in the United States and abroad.

Xiaojian Tao, 63, is charged with one count of illegal export of defense articles; one count of unlawful export of commerce-controlled goods; and one count of making a false statement with regards to the Export Control Reform Act (ECRA). Tao allegedly exported items to China without having obtained a required export license from either the Department of State or the Department of Commerce.

Tao and Yu Lang, aka Laura Long, 63, are both charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud. According to court documents, from 1997 to the present, Tao and Lang owned and operated Tyletech, aka Tylex Tech LLC and Tyle Tech, a company that provides engineering consulting services. From 1994 to March 2020 Tao worked for the R&D Company that directly competed with Tyletech. Although Tao certified that each year he would notify the R&D Company of any conflicts of interest and follow Standards of Conduct, Tao and Lang hid Tao’s role in Tyletech, instead funneling business from the R&D Company to Tyletech. 

Further, from 2016 to 2020, Tao and Lang allegedly filed false income tax returns and are both charged with one count of conspiracy to defraud the United States and five counts of filing false tax returns. Tao also is charged with one count of making a false statement and Lang is charged with two counts of making a false statement.

If convicted, Tao faces a maximum of 20 years in prison on each of the export counts and the false ECRA statement. Tao and Lang face a maximum 20 years in prison on each of the wire fraud counts; five years in prison on each of the false statement counts and the defrauding the U.S. count; and three years in prison on each of the false tax return counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Ashley C. Hoff for the Western District of Texas; Acting Special Agent in Charge Jason Hudson for the FBI’s San Antonio Field Office; Special Agent in Charge Ramsey E. Covington of the IRS – Criminal Investigation (IRS-CI); and Special Agent in Charge Trey McClish of the Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office made the announcement.

The FBI; IRS-CI; and the Department of Commerce, Bureau of Industry and Security, along with assistance from U.S. Customs and Border Protection, are investigating the case.

Assistant U.S. Attorneys Mark T. Roomberg and William R. Harris for the Western District of Texas are prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Two Illinois men were today sentenced to 190 months and 170 months in prison, respectively, for their roles in the 2017 bombing of Dar al-Farooq (DAF) Islamic Center in Bloomington, Minnesota.

On Jan. 24, 2019, Michael McWhorter, 33, and Joe Morris, 26, both of Clarence, Illinois, pleaded guilty in the District of Minnesota to federal charges that originated in both the District of Minnesota and the Central District of Illinois. The charges included intentionally obstructing, and attempting to obstruct, by force and the threat of force, the free exercise of religious beliefs; carrying and using a destructive device during and in relation to crimes of violence; possession of a machine gun; conspiracy to interfere with commerce by threats and violence; and attempted arson. The pleas to the charges originating in the Central District of Illinois were entered in Minnesota pursuant to Federal Rule of Criminal Procedure 20, which allows for the transfer of charges for the entry of guilty pleas and the imposition of sentence.

“McWhorter and Morris carried out a violent plan to attack a house of worship as people peacefully prayed inside,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “In the United States, all people have a right to exercise their faith freely. The Justice Department will vigorously prosecute domestic terrorists who carry out acts of violence to suppress those rights or threaten and intimidate others based on their religious identity.”

“Hate-fueled acts of violence like the bombing of the Dar al-Farooq Islamic Center violate our laws and run contrary to our values as a nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This heinous bombing instilled fear in an entire faith community. These defendants made the decision to confess to their crimes and assist in the civil rights prosecution of the individual who led them to join a far-reaching criminal conspiracy rooted in white supremacy. The department will continue using all the tools in our law enforcement arsenal to prosecute hate-fueled acts, including those that target communities of faith and houses of worship.”

“These men followed Hari’s lead, complied with her direction, and subscribed to her violent and extremist ideology in carrying out this act of terrorism,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “Today, justice has been served for their actions. The U.S. Attorney’s Office and the Department of Justice will protect and uphold the rights of individuals and faith communities to worship freely, without the threat of violence.”

“Attacks on houses of worship and those practicing their faith are heinous acts,” said Assistant Director Timothy Langan of the FBI’s Counterterrorism Division. “The outcome of this case should serve notice that such actions will not be tolerated. The FBI will work with our partners to hold accountable those who commit or plot to commit such acts of violence in our communities.”

McWhorter and Morris were recruited by Emily Claire Hari, 51, formerly known as Michael Hari, to join a terrorist militia group called “The White Rabbits” in the summer of 2017. According to court documents, Hari recruited McWhorter and Morris to join the militia, which Hari outfitted with paramilitary equipment and assault rifles. On Aug. 4 and 5, 2017, Hari, McWhorter and Morris drove in a rented pickup truck from Illinois to Bloomington, Minnesota, to bomb the DAF Islamic Center. About an hour outside of Minnesota, Hari disclosed to McWhorter and Morris that there was a pipe bomb in the truck and that they were going to bomb a mosque. Hari targeted DAF specifically to terrorize Muslims into believing they are not welcome in the United States and should leave the country.

According to court documents, Hari, McWhorter and Morris arrived at DAF at approximately 5:00 a.m. on Aug. 5, 2017. Morris used a sledgehammer to break the window of the Imam’s office at DAF and threw a plastic container with a mixture of diesel fuel and gasoline into the office. McWhorter then lit the fuse on a 20-pound black powder pipe bomb and threw it through the broken window. McWhorter and Morris ran back to the truck where Hari was waiting in the driver’s seat. The three sped away from the building and drove back to Illinois. When the pipe bomb exploded, the blast caused extensive damage to the Imam’s office. It also ignited the gasoline and diesel mixture, causing extensive fire and smoke damage. At the time of the bombing, several worshipers were gathered in the mosque for morning prayers.

According to court documents, on Nov. 7, 2017, Hari, McWhorter and Morris attempted to set fire to the Women’s Health Practice in Champaign, Illinois. Morris used a sledgehammer to break a window and placed a PVC device containing thermite powder in the Women’s Health Practice. The device did not ignite and was found on the floor by an employee of the Women’s Health Practice when the employee arrived to work later that morning.

According to court documents, on Dec. 16, 2017, McWhorter and Morris participated in an armed home invasion in the town of Ambia, Indiana, where they dressed as police officers and carried firearms, including two that had been illegally converted into machine guns. Hari, McWhorter and Morris also carried out armed robberies of two Walmart stores, one in Watseka, Illinois, and one in Mt. Vernon, Illinois, on Dec. 2, and 17, 2017, respectively.

This case is the result of an investigation conducted by the FBI.

Assistant U.S. Attorneys Allison Ethen and Timothy Rank for the District of Minnesota prosecuted the case, with valuable assistance provided by Trial Attorney Timothy Visser of the Civil Rights Division, Lead Paralegal Specialist Lynette Simser, Community Affairs Director Angie LaTour, Witness Specialist Selina Kolsrud, former Assistant U.S. Attorneys John Docherty and Julie Allyn, Assistant U.S. Attorney Eugene Miller of the Central District of Illinois, and the special agents of the FBI’s Minneapolis and Springfield Divisions, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bloomington Police Department, and the Bloomington Fire Department.

A U.S. citizen who conspired to provide services to the Democratic People’s Republic of Korea (DPRK or North Korea), including technical advice on using cryptocurrency and blockchain technology to evade sanctions, was sentenced to 63 months in prison after pleading guilty to conspiracy to violate the International Emergency Economic Powers Act (IEEPA).

According to court documents, Virgil Griffith, 39, began formulating plans as early as 2018 to provide services to individuals in the DPRK by developing and funding cryptocurrency infrastructure there, including to mine cryptocurrency. Griffith knew that the DPRK could use these services to evade and avoid U.S. sanctions, and to fund its nuclear weapons program and other illicit activities.

Pursuant to the IEEPA and Executive Order 13466, U.S. persons are prohibited from exporting any goods, services or technology to the DPRK without a license from the Department of the Treasury, Office of Foreign Assets Control (OFAC).

In April 2019, Griffith traveled to the DPRK to attend and present at the “Pyongyang Blockchain and Cryptocurrency Conference” (the DPRK Cryptocurrency Conference). Even though the Department of State had denied Griffith permission to travel to the DPRK, Griffith delivered presentations at the DPRK Cryptocurrency Conference, tailored to the DPRK audience, knowing that doing so violated sanctions against the DPRK.

At the DPRK Cryptocurrency Conference, Griffith and his co-conspirators provided instruction on how the DPRK could use blockchain and cryptocurrency technology to launder money and evade sanctions. Griffith’s presentations at the DPRK Cryptocurrency Conference had been approved by DPRK officials and focused on, among other things, how blockchain technology such as “smart contracts” could be used to benefit the DPRK, including in nuclear weapons negotiations with the United States. Griffith and his co-conspirators also answered specific questions about blockchain and cryptocurrency technologies for the DPRK audience, including individuals whom Griffith understood worked for the North Korean government.

After the DPRK Cryptocurrency Conference, Griffith pursued plans to facilitate the exchange of cryptocurrency between the DPRK and South Korea, despite knowing that assisting with such an exchange would violate sanctions against the DPRK. Griffith also attempted to recruit other U.S. citizens to travel to North Korea and provide similar services to DPRK persons and attempted to broker introductions for the DPRK to other cryptocurrency and blockchain service providers. At no time did Griffith obtain permission from OFAC to provide goods, services or technology to the DPRK.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and U.S. Attorney Damian Williams for the Southern District of New York made the announcement.

The FBI’s New York Field Office investigated the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section, Office of International Affairs, and the Singapore Police Force.

Assistant U.S. Attorneys Kimberly Ravener and Kyle A. Wirshba for the Southern District of New York and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.