Chinese Man Sentenced In Orange County Birth Tourism Scheme

IRVINE, CA — A Chinese national who fled the country following his guilty plea in a "birth tourism scheme" was sentenced Tuesday to three years in prison.

He was not present when the sentencing was read.

U.S. District Judge James Selna sentenced 35-year-old Chao "Edwin" Chen to 37 months in prison for his part in the scheme to help foreigners give birth in the United States to gain citizenship.

Federal prosecutors recommended 41 to 51 months in prison for Chen, who pleaded guilty in June 2016 to visa and marriage fraud and filing a false tax return, but then fled to China and remains a fugitive, said Ciaran McEvoy of the U.S. Attorney's Office.

Chen's attorney, Karren Kenney, objected in April to the sentencing date, as the COVID-19 pandemic prevented her client from traveling back to California. Also, she said she was still awaiting evidence involving another defendant in the case, 42-year-old Dongyuan Li of Irvine, who was sentenced to 10 months in federal prison in December.

Li was found guilty of operating a birth tourism company in Irvine and China called "You Win USA Vacation Services Corp.," according to her plea agreement. Her company advertised that more than 500 customers had been served, according to her indictment.

Twenty upscale Irvine apartments were used to operate the business.

Kenney argued that Chen was far less involved in the scheme than Li.

"Mr. Chen was NOT the leader of the scheme, did not receive the 'lion's share' of the proceeds, and did not control the millions of dollars flowing from China that Dongyuan Li controlled," Kenney wrote in her motion. "Yet, Dongyuan Li only received a sentence of 10 months of custody time, and Mr. Chen now deserves 37 months, despite the invaluable information he provided to the government during his numerous proffer sessions?"

Kenney said Li's husband, Qiang Yan, 44, bought a home in Irvine for $2 million in cash. Yan is a fugitive who investigators suspect is in China, McEvoy said, adding that the defendant was indicted in December 2018.

Prosecutors argued that Chen does not get any credit for taking responsibility for his part in the scheme with his guilty plea because he fled the country.

Both Chen, Li, and Yan "operated a multinational business that engaged in visa fraud," records show.

The pair would orchestrate bringing pregnant foreign nationals into the United States to obtain U.S. citizenship for their children. The parents misrepresented the real intention of their visits to the United States, according to prosecutors.

Fees for the birth tourism scheme ranged from $30,000 to $80,000, prosecutors say.
Chen had at least 60 customers, according to records.

Prosecutors acknowledge that Chen was not the most significant player in the scheme.

"While defendant was not the leader of the scheme, nor did he receive the lion's share of the proceeds, nor did he control the millions of dollars flowing from China, he did participate in most aspects of the scheme," prosecutors said.

At least ten others charged in connection with the scheme have fled to China, prosecutors said.