August 16, 2022

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Husband and Wife Arrested for Export Control Violations, Wire Fraud, Tax Fraud and Making False Statements

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<div>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.</div>

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.

Tao and Yu Lang, aka Laura Long, 63, are both charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud. According to court documents, from 1997 to the present, Tao and Lang owned and operated Tyletech, aka Tylex Tech LLC and Tyle Tech, a company that provides engineering consulting services. From 1994 to March 2020 Tao worked for the R&D Company that directly competed with Tyletech. Although Tao certified that each year he would notify the R&D Company of any conflicts of interest and follow Standards of Conduct, Tao and Lang hid Tao’s role in Tyletech, instead funneling business from the R&D Company to Tyletech. 

Further, from 2016 to 2020, Tao and Lang allegedly filed false income tax returns and are both charged with one count of conspiracy to defraud the United States and five counts of filing false tax returns. Tao also is charged with one count of making a false statement and Lang is charged with two counts of making a false statement.

If convicted, Tao faces a maximum of 20 years in prison on each of the export counts and the false ECRA statement. Tao and Lang face a maximum 20 years in prison on each of the wire fraud counts; five years in prison on each of the false statement counts and the defrauding the U.S. count; and three years in prison on each of the false tax return counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Ashley C. Hoff for the Western District of Texas; Acting Special Agent in Charge Jason Hudson for the FBI’s San Antonio Field Office; Special Agent in Charge Ramsey E. Covington of the IRS – Criminal Investigation (IRS-CI); and Special Agent in Charge Trey McClish of the Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office made the announcement.

The FBI; IRS-CI; and the Department of Commerce, Bureau of Industry and Security, along with assistance from U.S. Customs and Border Protection, are investigating the case.

Assistant U.S. Attorneys Mark T. Roomberg and William R. Harris for the Western District of Texas are prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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