‘Till Fraud Do Us Part

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Xiaojian Tao and Yu “Laura” Long are facing several charges due to their involvement in a  number of criminal activities. The married couple’s alleged scheme to defraud a research and development company that provided services to industrial and government clients in the United States and abroad has landed them in hot water. (The couple that commits crimes together, gets charged together.)

Tao worked for the research and development company, R&D Company (What a savvy name.), from 1994 through March 2020. However, Tao and his wife Lang also owned and operated Tyletech (Tyle Tech LLC and Tyle Tech), an engineering consulting firm, from 1997 through present.

Tao certified yearly that he would follow Standards of Conduct and notify R&D Company about any potential conflicts of interest, however he never disclosed his ownership of Tyletech. Not only did he not disclose his role, he also funneled business from R&D Company to Tyletech. (Apparently money meant more to him than company loyalty.)

Tao also allegedly exported items to China without obtaining a required export license from either the Department of State or the Department of Commerce. In addition, he and Lang also allegedly filed false income tax returns. (It’s probably best not to commit several crimes when working directly with government clients.)

Tao and Lang are both charged with one count of conspiracy to commit wire fraud, nine counts of wire fraud and five counts of filing false tax returns. Additionally, Tao is charged with one count of illegal export of defense articles, one count of unlawful export of commerce-controlled goods, one count of making a false statement with regards to the Export Control Reform Act (ECRA) and one count of making a false statement. Lang is also charged with two counts of making a false statement. (Other than those, they’re barely being charged with anything.)

If the couple is convicted of their crimes, they face a maximum of 20 years in prison on each of the wire fraud counts, five years for each of the false statement counts and defrauding the U.S. court, and three years for each of the false tax return counts. Additionally, Tao faces a maximum of 20 years in prison on each of the export counts and the false ECRA statement. (It seems safe to say that this couple will likely be on the inside of a jail cell sooner rather than later.)

Today’s Fraud of the Day comes from the Department of Justice press release “Husband and Wife arrested for Export Control Violations, Wire Fraud, Tax Fraud and Making False Statements,” published on April 12, 2022.

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.

 

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.