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Foreign agents target Falun Gong in Orange County

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Facts & Figures

Facts & Figures

jailed and tortured in China, according to the organization’s website, and a place to promote traditional Chinese culture and oppose the Chinese Communist Party.

The People’s Republic of China has banned Falun Gong since 1999, the criminal complaint states, and considers it one of the “Five Poisons” that threaten its rule.

Chen, 70, is a U.S. citizen and former Chinese citizen. Feng, 43, is a Chinese citizen and legal permanent resident of the U.S. Both live in the Los Angeles area.

The alleged scheme began in January when Chen discussed a plan with an FBI paid informant to bribe an IRS official to investigate Falun Gong, according to the complaint. The goal was to topple the organization.

In February, Chen submitted a whistleblower complaint to the IRS office in New Windsor, challenging the organization’s tax-exempt status. The whistleblower program rewards individuals who provide information about uncollected taxes.

Chen was notified that his whistleblower complaint was defective and would be rejected. But the FBI informant told Chen that he had a friend — the purported IRS official — who could help, according to the complaint. Chen allegedly replied that the agent could be paid and the Chinese leadership “is very generous.”

Chen traveled to China on Feb. 10. After returning on Feb. 19, he notified the FBI informant that the Chinese government was interested in working with the IRS official but needed more information about the official.

In March, a Chinese government official told the undercover FBI informant that he wanted Chen to have a face-to-face meeting with the IRS official.

The IRS had scheduled an official debriefing of the whistleblower complaint for May 15. Chen, according to the complaint, contacted the purported IRS official by email and set up a meeting on the day before the debriefing.

Chen, Feng and the fake IRS official met at a Newburgh restaurant on May 14. Chen offered to pay the official a $5,000 down payment and a total of $50,000 to open an audit on the Falun Gong charity. If the whistleblower complaint was successful, the IRS official would get 60% of the IRS reward.

Chen and the fake IRS official left the restaurant and got into the back seat of the official’s car, according to the complaint, and Chen handed over $1,000 in cash. Then they rejoined Feng in the restaurant.

On May 18, Feng met the official at JFK Airport and handed over $4,000 to complete the down payment.

Chen allegedly told the purported IRS official that he would return to China to get the rest of the money and he would make two $25,000 payments in July and August.

Chen and Feng were charged with bribing a public official, conspiracy to commit international money laundering, acting as foreign agents and conspiracy to act as foreign agents.

If convicted, the charges carry maximum sentences ranging from five to 20 years in prison.

“I look forward to speaking to you about our city, to announce new, exciting developments throughout the city. To bring you up to speed about how our city government is working in partnership with you to address the needs and the challenges of our city,” Ganim told the crowd. “If you think about it, Bridgeport is a very different city than it was eight years ago when I first became mayor, and I dare say that it’s more poised for growth and progress than at any other point in recent history. But this didn’t happen by accident.”

Ganim referred to three pillars that make up the “Strategic Vision for a Better Bridgeport” throughout his address.

The first pillar Ganim pointed to was “Growth and Development.” Ganim called the city’s transition from an “industrial powerhouse” to the “arts and entertainment capital of Connecticut” an intentional effort on both the part of the city government and the business community.

The Temptations, Andrea Bocelli, Darius Rucker, Boyz II Men, The Red Hot Chili Peppers and dozens of other big name musical acts that had performed at the venue were celebrated both in Ganim’s speech and signage around the amphitheater, an indication of a growing profile as a notable performance space. The adjacent Total Mortgage Arena was also noted for attracting both musical acts and other productions such as Cirque du Soleli performances and stand-up greats like Kevin Hart.

Ganim namechecked The Stress Factory Comedy Club, The Bijou Theater and the Klein Theater to indicate the spread of arts and entertainment throughout Bridgeport.

“We appreciate these venues not simply because they enrich the culture and vibrancy of our city but also because of the economic activity and stability they bring to our other valued businesses,” Ganim added. “As many of us experienced, you can’t get a reservation in a downtown restaurant when there’s an event at either the Amphitheater or the Arena.”

To indicate the sustainability of that demand, the mayor pointed to several restaurants, including 29 Markle and Queen’s Delight, which are showcasing a new era of investment.

“These restaurants and their owners are living proof of Bridgeport strengthening the economy and what is possible when you bring ingenuity and investment to Bridgeport,” he said.

Noting that the city is among the fastest growing communities in the state per the 2020 census, he said that Bridgeport has benefitted from New York City residents relocating but added that enjoying those benefits required the city to focus on housing.

“Bridgeport is reaping the benefits due to significant investment in housing stock through the city. Since 2015, when I took office we’ve seen hundreds of new units become available in Downtown… these developments have brought thousands of people into our downtown neighborhood and the trend is going to continue with the new development of Congress Street Plaza’s $25 million project of almost a hundred residential units with ground floor retail and a parking structure. What I call the proliferation of housing over the past eight years is not limited to just downtown. It extends throughout the city.”

Citing a number of affordable housing developments and the Southwest Community Health Care Facility to be administered by Park City Communities (the rebranded Bridgeport Housing Authority), Ganim made the case that the city is making strong headway against the statewide housing shortage. The decommissioning of troubled public housing to make way for new affordable units was touted as an example of the work of Park City Communities Executive Director Jilian Baldwin.

“By the way I’d like to point out that Jilian and the board who are here today have done an amazing job to bring Park City Communities out of troubled status with the federal government,” Ganim added, while listing several affordable housing projects across the city including the conversions of the Waltersville and Whittier schools and numerous large mar- ket rate developments.

Ganim said this complements the city’s waterfront and marina, which still includes industrial employers such as the Bridgeport Boatworks, the ferry and cruise ship manufacturing facilities of the Hornblower Group, and the world’s largest sail manufacturer North Sails.

Ganim also displayed renderings of the in-progress construction of a High-Speed Ferry Terminal linking Bridgeport with New York City and declared the city is committed to reclaiming the site of the former PSEG Power Plant. The last coal burning plant in the Northeast, the PSEG plant loomed over the amphitheater, separated from one of the city’s key economic drivers only by a short distance and the raised Metro-North rail line.

Remediating the site’s environmental damage will require a considerable investment, but the waterfront site has substantial value for potential development.

“Better Quality of Life” comprised the second pillar of Ganim’s trifecta. In addition to expanding affordable housing options, improvements to the city’s education, emergency services and transportation infrastructure featured prominently in Ganim’s speech. Projects like the Newfield Library in the East End — which will also include a police station) community health center and grocery store in close proximity — were described as a key step forward. Ganim noted that they continued to make progress despite “economic headwinds.”

Expanded facilities at public parks and the new Wakeman Boys and Girls Club in the North End will serve the city’s young people and children while helping ensure a bright future, according to Ganim. Murals and rapid deployment of coronavirus relief funds alongside making resources available to the homeless rounded out the second pillar.

The third pillar of the foundation upon which Ganim is building his plans for the city is fiscal responsibility.

“When I started this job, I took over a city that was literally bankrupt,” Ganim reminded the crowd. “Improving the quality of life in our city is of course extremely important, but such investments are not possible unless we maintain and keep our fiscal house in order.”

Ganim praised the city council for its work in delivering eight consecutive years of balanced budgets without raising taxes while still investing in the city.

“Because of our commitment to balanced budgets we’ve ended each year in the black and we’ve contributed significantly to the city’s once very much depleted rainy-day fund,” Ganim said.

The mayor underlined that both Fitch Ratings and Moody’s had upgraded the city’s bond rating for the first time in over a decade. As a result, the city stands to save millions on interest payments while pursuing capital projects.

“It continues to be my honor and pleasure to serve as mayor of Connecticut’s largest city,” Ganim concluded. “I’m proud to report today that the state of our city is strong and that Bridgeport continues to experience a resurgence, and that Bridgeport’s best days are yet to come. Brick by brick, neighborhood by neighborhood, day in and day out, we are making progress in Bridgeport together.”

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