Accused Chinese Spy From Hayward Linked To Real Estate Scheme
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.
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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.
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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.
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.
