Contra Costa Herald

Source: Walk ‘N Roll John Muir Elementary

By Walk ‘n Roll John Muir Elementary

MARTINEZ, Calif. — A group of John Muir Elementary families is calling on the Martinez City Council to reverse a decision that quietly downgraded a planned bike lane on Alhambra Avenue to a painted “sharrow” during recent repaving — a change parents say was made without public notice and contradicts the city’s own Safe Routes to School plan.

The issue comes before the City Council at its Wednesday, November 4 meeting, 7:00 PM, at Martinez City Hall, 525 Henrietta Street.

Alhambra Avenue was slated for a protected bike lane as part of a repaving project earlier this year. Instead, the city installed a sharrow — a shared-lane marking with no physical separation from traffic — a change advocates say was never brought to the community for input and leaves families with no safe way to bike or walk to John Muir Elementary

“We were told this street would have a real bike lane, and instead we got paint,” said Tom Gray, Co-Coordinator of Walk ‘n Roll at John Muir Elementary. “Every Friday, our kids walk and bike to school together because we want them to grow up knowing their neighborhood is safe to move through on their own. A sharrow on a street like Alhambra doesn’t protect anyone — it just puts the responsibility on an 8-year-old to not get hit by a car. Martinez has a Safe Routes to School plan on paper. Wednesday night, the Council gets to decide whether that plan means anything.”

Walk ‘n Roll JME, a parent-led group that organizes weekly walk-and-bike-to-school events at John Muir Elementary, is asking Martinez residents to attend Wednesday’s hearing or submit written comment to the mayor and city manager before the vote. The group has set up a simple online tool for residents to do either in under two minutes, at https://www.google.com/url?q=http://walknroll-action.delicate-flower-76f8.workers.dev&source=gmail&ust=1793681589718000&sa=E.

See meeting agenda Item 13.

About Walk ‘N Roll JME

Walk ‘n Roll is a parent-run program at John Muir Elementary in Martinez, CA that organizes weekly Friday walk-and-bike-to-school events and advocates for safer streets around the school. Follow the campaign at @walknrolljme on Instagram.

By Karen Kerrigan

Small businesses are the engine of America’s economic and technological future, and the Trump administration knows it. Administration officials have repeatedly cited startup formation and entrepreneurship as key to addressing the nation’s most urgent policy challenges, from AI advancement and scientific leadership to job creation and reindustrialization.

To aid startup growth, administration officials have worked to expand government-backed financing for small firms, attract more private capital to startups, and help entrepreneurs commercialize emerging technologies and leverage domestic manufacturing.

Still, one of the most important ways to strengthen America’s startup ecosystem requires no new federal initiatives or additional funding at all. It simply requires policymakers to preserve a longstanding legal framework that has fueled American entrepreneurship for more than four decades.

Congress passed the bipartisan Bayh-Dole Act in 1980 to create a more effective pathway for federally funded research to become new technologies, products, and businesses — by letting universities, nonprofit research institutions, small businesses, and federal laboratories keep the patent rights to inventions they developed with federal support. That created incentives for universities to license those discoveries to small companies, which could then use the patents to attract capital and invest in further development.

Four and a half decades later, the Bayh-Dole framework remains indispensable to American small business growth.

New research shows that from 2021 through 2025, universities, hospitals, and nonprofit research institutes averaged more than 19,000 income-generating licenses each year — approximately twice the annual average from the early 2000s. Roughly 70% of university licensing agreements are with startups and small companies.

In many cases, those licensing agreements give rise to entirely new companies. Since 2001, the Bayh-Dole system has helped launch more than 19,000 startups.

As these businesses grow, they hire workers, do business with other local companies, and strengthen their regional economies. Since 1996, the Bayh-Dole system has contributed up to $1.7 trillion to U.S. GDP and supported up to 7.6 million years’ worth of jobs for Americans.

Unfortunately, in recent years, the Bayh-Dole system has faced growing uncertainty.

Some policymakers are debating changes that could reduce startups’ access to innovative, federally funded research. One proposed rule change would allow the government to cancel long-term research funding on a political whim. Meanwhile, one agency adopted guidelines that make industry licenses less secure by requiring ongoing product-access plans that can be used to revoke licenses even after products have been developed, which directly violates Bayh-Dole.

That uncertainty could have devastating consequences for startups and America’s innovation ecosystem. Startups often build their businesses around a single unproven invention, and they have fewer resources than larger companies to absorb the risks of developing a new product and bringing it to market.

If small companies cannot reliably protect their patent rights, it could become much harder for them to raise the investment needed to continue researching, testing, and manufacturing new technologies.

Instead of altering the Bayh-Dole system, policymakers must preserve it. Protecting this framework will help ensure that startups can continue turning federally supported discoveries into new companies, jobs, and technologies that strengthen American competitiveness.

Karen Kerrigan is president and CEO of the Small Business and Entrepreneurship Council in Washington. This column originally appeared at DCJournal.com.

By Marcus Walton, Director, Communications & Special Projects, Contra Costa County Office of Education

PLEASANT HILL, Calif.— According to U.S. News & World Report, six Contra Costa County elementary and middle schools are among the top-ranked schools in California in its 2027 Best K-8 Schools rankings.

Wagner Ranch Elementary School in the Orinda Union School District (OUSD) ranked No. 36 among California elementary schools, followed by Happy Valley Elementary School in the Lafayette School District (LAFSD) at No. 37. Creekside Elementary School in San Ramon Valley Unified School District (SRVUSD) ranked No. 85 and Lafayette Elementary School in LAFSD ranked No. 92. Orinda Intermediate School in OUSD ranked No. 46 and Windemere Ranch Middle School in the SRVUSD ranked No. 61 among California middle schools.

“Congratulations to these school communities on this prestigious distinction.” Contra Costa County Superintendent of Schools Lynn Mackey said. “The rankings reflect the dedication of educators, administrators, staff, families, and community members who work together to create environments where students can learn and thrive academically. These schools are examples of what can be achieved when scholars are surrounded by strong resources, engaged families, and supportive communities.”

For the 2027 rankings, U.S. News & World Report analyzed more than 107,223 pre-K, elementary, and middle schools. 46,713 elementary schools and 24,756 middle schools across the country were evaluated as part of its 2027 Best K-8 Schools rankings.

The rankings were based on publicly available standardized test data from state education agencies and the U.S. Department of Education. Schools were evaluated on average student proficiency in reading/language arts and math. While considering the proficiency and performance in each subject, the report also accounts for socioeconomic context when interpreting test results. The methodology webpage of the report states, “The top-ranked schools are all high-achieving and have succeeded at educating all their students.”

Contra Costa County Schools in the Top 100 of the 2027 U.S. News Best K-8 Rankings

Elementary School Rankings

• No. 36: Wagner Ranch Elementary School — Orinda Union School District
• No. 37: Happy Valley Elementary School — Lafayette School District
• No. 85: Creekside Elementary School – San Ramon Valley Unified School District
• No. 92: Lafayette Elementary School – Lafayette School District

Middle School Rankings

• No. 46: Orinda Intermediate School — Orinda Union School District
• No. 61: Windemere Ranch Middle School – San Ramon Valley Unified School District

According to U.S. News & World Report, the top-ranked schools achieve strong academic results while effectively serving students across socioeconomic groups.

About Contra Costa County Office of Education

One of 58 counties in California, Contra Costa County has the 11th largest public-school student population in the state (approximately 169,225 students). Officially established in 1932, CCCOE has a long history of providing direct services to some of the county’s most vulnerable students, including young people who are incarcerated, homeless, or in foster care, as well as students who have severe physical or emotional challenges.

CCCOE also provides support services to schools and school districts in Contra Costa County; services that can be handled most effectively and economically on a regional basis rather than by each of the county’s 286 schools or 18 school districts. These services range from budget approval and fiscal support to technology infrastructure, communication support, and high-level professional development opportunities for educators. CCCOE maintains a website at www.cocoschools.org.

Sign at the former FCI Dublin women’s prison. Photo courtesy of Jesstess87.

10th at now closed FCI Dublin to plead guilty or be convicted to date

By William Elwood, Public Affairs Officer, U.S. Attorney’s Office Northern District of California

OAKLAND – Former Bureau of Prisons (BOP) correctional officer David Perez pleaded guilty Wednesday, Oct. 28, 2026, to sexually abusing two female inmates at the Federal Correction Institution (FCI) in Dublin, Calif., a low- and minimum-security federal prison for females.  Perez also admitted to making false statements to federal investigators.

Perez was charged by Information on September 16, 2026.  He is the tenth correctional officer to have either pleaded guilty or been convicted at trial as part of an ongoing federal investigation into sexual abuse of inmates at FCI Dublin.

According to the plea agreement, Perez was employed at BOP from September 1994 to August 2019.  From approximately October 2014 until August 2019, Perez served as a Discipline Hearing Officer (DHO) at FCI Dublin.  In that role, he was responsible for adjudicating disciplinary actions against inmates who allegedly engaged in misconduct while in prison and issuing punishment if he found them guilty.

Between 2014 and 2015, Perez served as the DHO for four disciplinary hearings for a female inmate.  Each time, he found her guilty and assessed various sanctions, which sometimes included time in the Special Housing Unit (SHU) and loss of good time. Between August 2015 and September 2016, Perez repeatedly met with that inmate alone in a room in the Captain’s Complex.  During several of those meetings, Perez kissed the inmate and touched her breasts over and under her clothing.

In July 2016, Perez served as the DHO for another female inmate.  He found her guilty and sentenced her to a little over two weeks in the SHU, among other things.  After her release from the SHU, Perez began calling her to meet with him alone in the Captain’s Complex.  During those meetings, Perez complimented her looks, asked her to show him her breasts, and on one occasion told her that he had the power to add or subtract time from her sentence.  On two occasions when he was alone with this inmate, Perez kissed her and grabbed her breasts and buttocks.  On another occasion, Perez digitally penetrated the inmate’s vulva.

On October 8, 2024, Perez spoke with special agents with the Department of Justice Office of the Inspector General (DOJ OIG) and the Federal Bureau of Investigation (FBI).  During that interview, Perez falsely stated that the only time he had ever touched any female inmate was when he escorted them to and from discipline hearings.

Perez was released on bond.  He is scheduled to be sentenced on March 25, 2027, before U.S. District Judge Yvonne Gonzalez Rogers.

Perez faces a maximum sentence of 15 years in prison and a fine of $250,000 for the count of sexual abuse of a ward in violation of 18 U.S.C. § 2243(b), two years in prison and a $250,000 fine for each count of abusive sexual contact in violation of 18 U.S.C. § 2244(a)(4), and eight years in prison and a $250,000 fine for the count of false statements to a government agency in violation of 18 U.S.C. § 1001(a)(2).  Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Scandal Investigation Leads to Prison’s Closure

The investigation of the sexual misconduct scandal led to the facility’s closure.

According to a website about federal women’s prisons, the facility has been “closed since April 2024. It no longer houses anyone and is not a current federal designation.” It was a “low-security women’s FCI with an adjacent minimum-security satellite camp.”

“In January 2024, a 60 Minutes report and FBI activity at the prison brought a new wave of scrutiny. In a class-action lawsuit brought by women held at Dublin, U.S. District Judge Yvonne Gonzalez Rogers moved in March 2024 to appoint a special master to oversee conditions at the prison. Legal advocates described it as the first time a special master had been ordered over a federal prison. Within weeks, on April 15, 2024, the Bureau of Prisons announced it was closing FCI Dublin.”

FCI Dublin Investigation

As part of the Department of Justice’s ongoing investigation into FCI Dublin, 11 FCI Dublin correctional officers have been charged with crimes related to the sexual abuse of the female prisoners at the facility.  The status of these cases is below:

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Assistant U.S. Attorneys Andrew Paulson, Sailaja Paidipaty, and Molly Priedeman are prosecuting these cases with the assistance of Amala James, Analisse Iniguez, and Aryan Sawant.  The prosecutions are the result of an investigation by the DOJ OIG and the FBI.

Case No. 4:26-CR-00464-YGR

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.

Allen D. Payton contributed to this report.

Held on $2 million bail

Police ID victim

By James Laughter, PIO, San Pablo Police Department

San Pablo, CA – As previously reported, on Sunday, October 25, 2026, San Pablo Police Detectives began investigating the homicide of 33-year-old San Pablo resident Luis “Luigi” Ramirez in the 1600 block of 16th Street. After receiving an outpouring of cooperation, support, and information from the community and, utilizing the City’s comprehensive network of public safety technology, SPPD Detectives identified Jose Jesus Cornelio-Aguirre (18-years old, San Pablo, born 12/24/2007) as the individual believed to be responsible for the homicide. Within 48 hours of the initial investigation, Cornelio-Aguirre was located in the 1400 block of North Victoria Court in San Pablo, and subsequently taken into custody in the evening of Tuesday, October 27, 2026.

Based on the preliminary investigation, Detectives believe the victim and suspect were known acquaintances, and that the victim was shot during the early-morning hours on Sunday, October 25th following an altercation with the suspect. At this time, further details of the relationship between the victim and suspect, or cause of the altercation, are still under investigation.

Following his arrest, Cornelio-Aguirre was booked at the Martinez Detention Facility (Contra Costa County) on one charge of PC 187(A) – Murder, pending filing of formal charge(s) in collaboration with the Contra Costa County District Attorney’s Office.

This investigation remains active and ongoing; anyone with information is encouraged to contact the San Pablo Police Department Investigations Division at (510) 215-3150.

According to the Contra Costa County Sheriff’s Office, the five-foot, 10-inch tall, 180-pound Cornelia-Aguirre whose race is not listed but also, listed  as unknown, is being held on $2 million bail. His next court appearance is scheduled for Nov. 13th at 1:30 p.m. in Superior Court Department 5 in Martinez.

Allen D. Payton contributed to this report.

By Dr. Salvatore J. Giorgianni, PharmD, CMHE

I’ve been a pharmacist for more than 50 years. In that time, I’ve witnessed staggering medical advances. Patients now have access — at least in theory — to lifesaving medicines that seemed like science fiction just a decade or two ago.

But in practice, tens of millions of Americans struggle to obtain those drugs. In recent years, I’ve watched more and more patients approach the pharmacy counter, look at the required co-pay on the screen with horror, and glumly walk away without their prescribed treatments.

These patients have insurance. But all too often they can’t afford the out-of-pocket costs that remain after coverage kicks in.

The crisis stems, in large part, from the fact that big insurers like UnitedHealth, Cigna, and Humana don’t merely process claims, anymore. Their parent companies control physicians’ practices and hospitals. They also own pharmacies and operate pharmacy benefit managers — the middlemen that determine which drugs patients can access and what they pay for them.

Today, just three PBMs (pharmacy benefit manager) control prescription drug access for roughly 80% of Americans. In virtually any other industry, that level of concentration would raise serious concerns about competition. Yet these vertically integrated conglomerates have warped the healthcare system to maximize their own profits — and gouge patients — every step of the way.

PBMs typically base patients’ out-of-pocket costs on drugs’ much higher “list” prices, rather than the discounted prices negotiated behind the scenes. Those inflated list prices only exist on paper, yet they justify higher co-pays while also generating larger rebates for PBMs and more profit for the companies that own them. In some cases, PBMs collect more from patients via co-pays or co-insurance than they actually reimburse pharmacies for dispensing a drug.

PBMs also profit by making it harder for patients to access the medicines their providers prescribe.
One of their most common tactics is prior authorization. Providers must justify prescriptions they have already determined are appropriate and wait for the insurer’s approval before patients can begin treatment. The process can delay care for days, weeks, or even months. Faced with those hurdles, up to eight in 10 patients forgo treatment altogether.

Then there’s “step therapy”, sometimes called “fail first”. Patients must first try one or more older, less expensive medicines before gaining access to the treatment their provider originally recommended. That may reduce short-term costs for insurers, but it can also delay effective care and, in some cases, seriously harm patients.
Together these, and other, barriers contribute to unmanaged chronic disease, avoidable hospitalizations, and more than 100,000 preventable deaths every year.

Fortunately, Washington is beginning to crack down. The Federal Trade Commission has sued the nation’s three largest PBMs over practices that inflate drug prices. The Department of Labor recently proposed a rule that’d require PBMs to better disclose the fees and compensation they receive. And earlier this year, Congress passed legislation requiring PBMs to increase transparency and pass through more of the discounts they receive to employers.
It’s a great start — and a much more viable way to decrease Americans’ pharmacy bills than one of the other ideas frequently tossed around Capitol Hill. Some lawmakers want to mimic other nations’ price controls on prescription drugs. But artificially lowering what biotech companies charge for medicines would deter research investments — meaning that the pharmacists of the future will have fewer lifesaving drugs to dispense to patients.
Until policymakers decisively confront PBMs, Americans will continue to pay more, get less of the care they need, and be at risk of worse health.

Salvatore J. (Sal) Giorgianni, Jr, PharmD, CMHE is vice-president and cofounder of Healthy Men, a nonprofit dedicated to advancing the health of boys, men and their families. He is chair-emeritus and cofounder of the American Public Health Association Caucus On Men’s Health. This piece originally appeared in Issues & Insights.

Families encouraged to enroll by November 30 for priority placement at their resident school

By Office of Communications, Family and Community Engagement, San Ramon Valley Unified School District

Danville, CA (October 29, 2026) – The San Ramon Valley Unified School District (SRVUSD) will open enrollment on November 1 for all incoming Transitional Kindergarten (TK) and Kindergarten students for the 2027-28 school year.

The enrollment process can be completed entirely online, making it convenient for families to get started. Families are encouraged to complete enrollment by November 30, 2026, to receive priority placement at their resident school. Enrollment will remain open after that date; however, placement at a resident school will be based on a first-come, first-served basis and is subject to space availability.

“We look forward to welcoming our newest TK and Kindergarten students next fall,” said Superintendent CJ Cammack. “These early learning experiences provide a strong foundation for future academic success, curiosity and a love of learning.”

Eligibility Guidelines

Children are eligible for the 2027-28 school year if they meet the following age requirements:

• Transitional Kindergarten (TK): Children who turn four years old on or before September 1, 2027.
• Kindergarten: Children who turn five years old on or before September 1, 2027.

Families can visit the SRVUSD website to complete online enrollment and learn more about the enrollment process.

Student photo 

Students photo

Teacher/Student photo

About San Ramon Valley Unified School District: Located in the San Francisco Bay Area, San Ramon Valley Unified School District (SRVUSD) is one of the highest-achieving school districts in California. With approximately 28,500 students, the district encompasses the communities of Alamo, Danville, San Ramon, and a small portion of Walnut Creek and Pleasanton.

SRVUSD has been recognized at state and national levels with many awards and achievements and is designated as a Learning 2025 Lighthouse District by AASA, the School Superintendents Association. Based on a foundation of academic excellence, the district’s work is guided by its Strategic Directions and Learner Profile. SRVUSD is committed to preparing students for their future by providing a strong academic foundation, supporting their well-being, and equipping them with the skills and confidence to thrive in an ever-changing world.

Read tips and reminders for voting in the November 3rd General Election

By Dawn Kruger, Community and Media Relations Coordinator, Contra Costa County Clerk-Recorder-Elections Department 

Regional Early Voting Sites open today, Friday, October 30th with convenient times to vote in-person, and polling places are open on Election Day, Tuesday, November 3rd from 7:00 AM to 8:00 PM.

Voters can still return their ballots by mail, postmarked on or before Election Day – to ensure mailed ballots are received on time, voters mailing their ballots should go into the post office and ask for a postmark. To avoid stress and ensure the Elections office receives their ballot on time, voters can drop their ballot off at one of the County’s 43 official drop boxes before 8:00 PM on Election Day.

“We want Contra Costa Voters to know that they can vote their way with confidence,” said Kristin B. Connelly, the County’s Registrar of Voters. “The Elections office is here to ensure that your vote is counted and your voice is heard.”

In-Person Voter Services

If you prefer to vote in-person or need in-person services to cast your ballot, Contra Costa County residents have early voting options at five Regional Early Voting sites throughout the county.

All Contra Costa registered voters will be able to vote at any of the Regional Early Voting locations, which will be open Friday, October 30th from 11:00 AM to 6:00 PM; Saturday, October 31st from 9:00 AM to 3:00 PM; and Monday, November 2nd from 11:00 AM to 6:00 PM.

Here are the locations of Contra Costa’s Regional Early Voting sites:

• Oakley Recreation Center, 1250 O’Hara Ave, Oakley
• Pittsburg Library-Community Room, 80 Power Ave, Pittsburg
• Richmond Memorial Auditorium, 403 Civic Center Plaza, Richmond
• San Ramon Valley United Methodist Church, 902 Danville Blvd, Alamo
• Center for Community Arts Auditorium, 111 N Wiget Ln, Walnut Creek

Voters can also come to the Elections Office at 555 Escobar St in Martinez, Friday, October 30th from 8:00 AM to 5:00 PM, Saturday October 31st from 9:00 AM to 3:00 PM, Monday November 2nd from 8:00 AM to 5:00 PM, and Election Day, Tuesday November 3rd from 7:00 AM to 8:00 PM.

Polling Places

Polling places will be open on Election Day, Tuesday, November 3rd from 7:00 AM to 8:00 PM.  Please go to our website and check “My Voting Information.” to find your assigned polling place.

Conditional Voter Registration

If you missed the voter registration deadline, you can still register and vote in-person using Conditional Voter Registration. It is a one-stop opportunity to register and cast your ballot and is available (1) at our office at 555 Escobar St in Martinez, (2) at Regional Early Voting sites, and (3) at all polling places.

Accessible Voting Equipment and Additional Language Access

Official ballots and voting instructions are provided in English, Spanish, and Chinese. Additional language resources are available through ballot translation guides which are available online and at all in-person voting locations. Ballot marking equipment with accessible features is available at every in-person voting location for voters who may need assistance.

Be Prepared

If you vote in-person, many voters find it helpful to come prepared. Make your choices ahead of time and bring your pre-marked Sample Ballot to the polls to help you save time. Copies of the Voter Information Guide are available at the polls and the information is also available online.

No Electioneering within 100 Feet of Polling Place – Leave Campaign T-Shirts, Buttons and Hats at Home

Please remember that voters have the right to cast a ballot free from intimidation or distraction. Under California law, electioneering is prohibited within 100 feet of any voting location.  Anyone wearing items promoting any position in this election will be asked to remove or cover them while they are at the voting location.  Please help our poll workers by refraining from electioneering and leave your campaign t-shirts, buttons, and hats at home.

For more information on voting options for the November 3rd General Election, visit www.contracostavote.gov or call 925.335.7800.

In Concord Nov. 4th

By State Building and Construction Trades Council

As AI reshapes the Bay Area job market and raises questions about the future of white-collar careers, more than 1,000 Contra Costa parents and students have signed up to explore alternatives to a traditional four-year college degree at “Building Trades Parents Night” at Concord High School, Wednesday, Nov. 4 from 5:30-7:30 p.m.   The event highlights well-paying careers in the building trades and gives students and parents an opportunity to meet trade professionals, try hands-on activities and learn how apprenticeships provide training and a pathway to rewarding careers.

Sparks will fly as students try their hand at welding and soldering, while others test their skills at pole climbing under the guidance of skilled trade professionals.

As families consider the rising cost of college and changing job opportunities, careers in the building trades offer an attractive alternative. Apprenticeships provide hands-on training and opportunities to earn while learning valuable skills for in-demand careers.

This is a unique partnership between the Mt. Diablo School Unified District, the Torlakson Whole Child Institute, and the State Building and Construction Trades Council of California.

Congressman Mark DeSaulnier, County Supervisor Shanelle Scales-Preston, other elected officials, and union leaders will be in attendance.

Concord High School is located at 4200 Concord Blvd.

Defendants facilitated secret cash payments using Livermore drop box targeting U.S. military personnel for China’s Ministry of State Security

The FBI San Francisco Field Office was assisted by FBI’s Portland, Houston and San Diego Field Offices, and Naval Criminal Investigative Service

By William Elwood, Public Affairs Officer, U.S. Attorney’s Office Northern District of California

OAKLAND – Two nationals of the People’s Republic of China (PRC) were sentenced today to federal prison for conspiring to act as agents of the PRC government and acting as agents of a foreign government without prior notification to the Attorney General.  Liren “Ryan” Lai, 40, and Yuance Chen, 39, were each sentenced to 30 months imprisonment and three years of supervised release by U.S. District Judge Jon S. Tigar.  The defendants agreed to operate under the direction and control of the PRC’s Ministry of State Security (MSS), carrying out clandestine intelligence activities in the United States that included facilitating secret “dead drop” cash payments in exchange for information related to the national security of the United States, gathering information about U.S. military personnel and installations, and assisting efforts to recruit potential intelligence assets from within the U.S. military.

“These defendants were directed by a foreign intelligence service to gather information about the U.S. military in the hopes of undermining our national security.  This office and our federal law enforcement partners stand watch day and night to prevent our adversaries from doing just that, and we will continue to do so,” said United States Attorney Craig H. Missakian. “There are many nations around the world that wish this country ill.  And today’s sentences should demonstrate our commitment to holding accountable anyone who poses a similar threat to our nation.”

According to court documents, Lai and Chen began acting as agents of the MSS no later than May 2021.  The MSS is the PRC’s principal civilian intelligence service, responsible for conducting foreign intelligence and counterintelligence operations.  Lai recruited Chen into the scheme and initially served as an intermediary between Chen and MSS intelligence officers.  Chen subsequently received assignments directly from MSS officers.

As detailed in the government’s sentencing memorandum, Lai and Chen facilitated a clandestine cash payment of approximately $10,000 in January 2022.  While the defendants were in the PRC, they coordinated with individuals in the United States to leave a backpack containing the cash in a locker at a recreational facility in Livermore, California.  Such arrangements, known as “dead drops,” allow intelligence operatives to transfer money or information without directly meeting the intended recipient.

The defendants’ illegal activities extended beyond facilitating covert payments on behalf of the MSS.  Beginning in 2022, Chen gathered information about U.S. military installations and personnel at the direction of Lai and MSS intelligence officers.  These activities included obtaining photographs of Navy Base Kitsap in Bremerton, Washington, and photographs and videos of military recruits and active-duty sailors inside a Navy recruiting station in Southern California.  Chen also collected personal identifying information about a U.S. Navy employee and maintained detailed biographical information about military personnel who were potential intelligence targets.

In March 2023, Lai traveled to the U.S. and delivered a cell phone to Chen for covert communications with the MSS referred to by Chen as a “state secret.”  Chen later traveled to China in 2024 and 2025, where he met with MSS officers and received additional assignments concerning U.S. service members.

In April 2025, Lai again traveled from China to the U.S. to carry out assignments for the MSS.  The following month, the MSS directed him to travel to Phoenix to facilitate another clandestine cash payment of approximately $20,000 in furtherance of its intelligence operations.

Lai and Chen were arrested on June 27, 2025, during a coordinated Federal Bureau of Investigation (FBI) counterintelligence and law enforcement operation.  A federal grand jury in the Northern District of California returned an indictment on July 1, 2025, charging both defendants with conspiracy to act as agents of a foreign government without prior notification to the Attorney General, in violation of 18 U.S.C. § 371, and act as agents of a foreign government without prior notification, in violation of 18 U.S.C. § 951.

Lai pleaded guilty to both offenses on December 12, 2025.  Chen pleaded guilty to both offenses on February 20, 2026.

The FBI San Francisco Field Office led the investigation, with assistance from the FBI’s Portland, Houston and San Diego Field Offices, and the Naval Criminal Investigative Service.

The National Security, Cyber & Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California and the National Security Division’s Counterintelligence and Export Control Section handled the prosecution of the case.  Significant operational support and assistance was also provided by the U.S. Attorney’s Offices for the District of Oregon, the Southern District of Texas, and the Southern District of California.

Case No. 4:25-cr-00186-JST