Foreign agents target Falun Gong in Orange County

Two alleged Chinese agents have been charged with bribing an undercover federal agent who they thought was an IRS official helping them sabotage the Falun Gong spiritual movement in Orange County.

John Chen, also known as Chen Ju, and Lin Feng were arrested on May 26 in California.

They were tripped up by the undercover agent posing as an IRS official, a paid informant, recorded conversations and court-ordered wire taps that exposed a plan to challenge the tax-exempt status of a Falun Gong charitable organization.

The criminal complaint, filed in U.S. District Court, White Plains, does not identify the charity. But Dragon Springs Buddhist Inc. is the nonprofit organization that runs a 393-acre compound in Cuddebackville, near Middletown, where Falun Gong and the Shen Yun dance company are headquartered.

The compound is a refuge for Falun Gong practitioners who were persecuted, jailed and tortured in China, according to the organization’s website, and a place to promote traditional Chinese culture and oppose the Chinese Communist Party.

The People’s Republic of China has banned Falun Gong since 1999, the criminal complaint states, and considers it one of the “Five Poisons” that threaten its rule.

Chen, 70, is a U.S. citizen and former Chinese citizen. Feng, 43, is a Chinese citizen and legal permanent resident of the U.S. Both live in the Los Angeles area.

The alleged scheme began in January when Chen discussed a plan with an FBI paid informant to bribe an IRS official to investigate Falun Gong, according to the complaint. The goal was to topple the organization.

In February, Chen submitted a whistleblower complaint to the IRS office in New Windsor, challenging the organization’s tax-exempt status. The whistleblower program rewards individuals who provide information about uncollected taxes.

Chen was notified that his whistleblower complaint was defective and would be rejected. But the FBI informant told Chen that he had a friend — the purported IRS official — who could help, according to the complaint. Chen allegedly replied that the agent could be paid and the Chinese leadership “is very generous.”

Chen traveled to China on Feb. 10. After returning on Feb. 19, he notified the FBI informant that the Chinese government was interested in working with the IRS official but needed more information about the official.

In March, a Chinese government official told the undercover FBI informant that he wanted Chen to have a face-to-face meeting with the IRS official.

The IRS had scheduled an official debriefing of the whistleblower complaint for May 15. Chen, according to the complaint, contacted the purported IRS official by email and set up a meeting on the day before the debriefing.

Chen, Feng and the fake IRS official met at a Newburgh restaurant on May 14. Chen offered to pay the official a $5,000 down payment and a total of $50,000 to open an audit on the Falun Gong charity. If the whistleblower complaint was successful, the IRS official would get 60% of the IRS reward.

Chen and the fake IRS official left the restaurant and got into the back seat of the official’s car, according to the complaint, and Chen handed over $1,000 in cash. Then they rejoined Feng in the restaurant.

On May 18, Feng met the official at JFK Airport and handed over $4,000 to complete the down payment.

Chen allegedly told the purported IRS official that he would return to China to get the rest of the money and he would make two $25,000 payments in July and August.

Chen and Feng were charged with bribing a public official, conspiracy to commit international money laundering, acting as foreign agents and conspiracy to act as foreign agents.

If convicted, the charges carry maximum sentences ranging from five to 20 years in prison.