SAN FRANCISCO (KPIX 5) — A Hayward man caught on camera spying for a Chinese intelligence agency has been linked to a Bay Area real estate scheme, federal prosecutors said.
Edward Peng is charged with giving classified information to Chinese officials through so-called “dead drops” at locations in Northern California and Georgia.READ MORE: 18-Year-Old Driver Dies, 3 Teen Passengers Injured in Saturday-Night Crash Near Davis
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Federal officials say he is linked to a real estate scheme through his sister, who bought millions of dollars worth of Bay Area property with money wired from China.READ MORE: Suspect Resisting Arrest Shoots Himself in the Foot During Struggle With Sunnyvale Police
The suspicious purchases include four hotels: the Shree Ganeshai in San Francisco, the Red Lion in Oakland, the Country 17 Inn in Dixon and a bed and breakfast spot in Napa. The properties were bought for a total of nearly $20 million.MORE NEWS: 'The Father Is A Hero'; Oakland Man, 1-Year-Old Daughter Die In Horrific Arson Fire
Authorities say Peng’s sister misrepresented the transactions to lenders and tax authorities. In most instances, the people who sent money from China did not receive ownership interests.