Texas Couple Charged With Violating Export Controls and Engaging in Fraud Scheme

Xiaojian Tao and Yu Lang, residents of Helotes, Texas, were arrested for alleged export violations and their role in a scheme to defraud an unnamed research and development company, the U.S. Attorney's Office for the Western District of Texas said. Tao is charged with one count each of illegal export of defense articles, illegally exporting commerce-controlled goods and making a false statement over the Export Control Reform Act. Both he and Yu are charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud, the U.S. Attorney's Office said April 12.

From 1997 to the present, the couple owned and operated the engineering consulting firm Tyletech. During a large period of this time, from 1994 to March 2020, Tao also worked for an R&D company that competed with Tyletech. Tao allegedly hid his role in Tyletech, giving business from the R&D company to Tyletech. The pair also allegedly filed false income tax returns from 2016 to 2020.