COUNTS DATE DOCUMENT CONTAINING
FALSE STATEMENTS

SEVEN June 13, 2016 RPPR submitted electronically to
NIH by the defendant

EIGHT June 5, 2017 RPPR submitted electronically to
NIH by the defendant

NINE June 5, 2018 RPPR submitted electronically to
NIH by the defendant

In violation of Title 18, United States Code, Section 1001.
COUNT TEN
Paragraphs number 1-13 of Section A and paragraphs number 1-21 of Section
C of Counts One through Six are realleged and incorporated herein by reference.
On or about January 31, 2019, in the Northern District of Florida and
elsewhere, the defendant,
LIN YANG,
did knowingly and willfully make materially false, fictitious, and fraudulent
statements and representations in a matter within the executive branch of the
Government of the United States, that is, the National Institute of Healths (NIH),
which was part of the U.S. Department of Health and Human Services, in that, the
defendant falsely stated to the University of Florida (UF), an institution that had
requested and received a NIH grant with the defendant as the PI, and was obligated
to disclose to NIH any financial conflicts of interest of any persons involved in the
grant research, in a response to a UF request to disclose financial support from

14


entities. YANG was also required to disclose any significant financial conflicts of
interest and any affiliations with foreign countries, organizations, or entities.

9. To further its national strategic development goals, the People’s
Republic of China (PRC) established “talent plans” to encourage the transfer of
original ideas, technology, and intellectual property from foreign institutions, such
as American universities, to PRC institutions. The PRC’s talent plans offered
competitive salaries, state-of-the-art research facilities, and honorific titles to entice
experts in Western countries to bring their knowledge and experience to the PRC.

10. Each PRC talent plan included the same basic requirements: applicants
were required to have experience in cutting-edge foreign science or engineering
research; possess a degree from a prestigious university; and have several years of
overseas work or research experience at prestigious universities, research institutes,
corporations, or well-known enterprises. The “Thousand Talents Program” (TTP)
was one such talent plan.

11. In 2016, while conducting NIH-fanded research at UF, LIN YANG
applied for the PRC’s TTP. Northwestern Polytechnic University, located in Xi’an,
China, sponsored YANG’s TTP application. No later than January 2017, YANG
was selected to participate in the TTP. YANG failed to disclose to UF and NIH his

application and selection for the TTP and his affiliation with Northwestern


14, On or about June 15, 2017, LIN YANG submitted a RPPR to NIH
falsely stating in his answers to questions that there had been (1) no change in “Other
Support,” in which he should have listed his affiliations and research endeavors with
a foreign government, company, entity, or university and institutional awards, and
(2) no change to any affiliation with foreign companies or businesses or foreign
universities.

15. On or about August 9, 2017, based upon the false statements made by
LIN YANG in the RPPR submitted on or about June 15, 2017, relating to, and
concealing, his activities concerning the creation of his business in China and his
application for the PRC’s TTP in connection with Northwestern Polytechnical
University, NIH issued a Notice of Award to UF, advising that $379,732 had been
authorized for disbursement to UF for the grant with YANG as the PI.

16. On or about June 15, 2018, LIN YANG submitted a RPPR to NIH
falsely stating in his answers to questions that there had been (1) no change in in
“Other Support,” in which he should have listed his affiliations and research
endeavors with a foreign government, company, entity, or university and
institutional awards, and (2) no change to any affiliation with foreign companies or
businesses or foreign universities.

17. On or about September 5, 2018, based upon the false statements made

by LIN YANG in the RPPR submitted on or about June 15, 2018, relating to, and
10


executing such scheme, did cause wire communications to be transmitted in
interstate and foreign commerce.
C. SCHEME TO DEFRAUD

It was part of the scheme to defraud that:

1. LIN YANG used the NIH research grant at UF to assist, promote, and
advance his business, research, and financial interests in China.

2. LIN YANG repeatedly made false statements to NIH and UF, and
failed to disclose and concealed his conflicts of interest related to the NIH grant
concerning his creation, and operation of, Deep Informatics, a Chinese company,
and his application for, and participation in, the PRC’s Thousand Talents Program,
which was sponsored by, and connected to, Northwestern Polytechnical University
in China.

3. Between in or about March and June 2016, LIN YANG, using his UF
email account, created a website for a new business known as Deep Informatics in
China and sent and received a number of emails concerning his founding of the
company and identifying him as the company’s Chief Executive Officer (CEO),

4, No later than in or about June 2016, LIN YANG caused the

establishment of Deep Informatics, a business operating in China.

5. In or about August 2016, YANG sent himself a document related to

Deep Informatics’ business activities in a’ Chinese city and claiming that the
7


Polytechnic University, and he made false statements to NIH when submitting his
annual RPPRs by denying any such foreign awards, applications, or affiliations.

12. No later than June 2016, YANG caused to be established a business
operating in China known as “Deep Informatics.” YANG did not disclose the
company, or his affiliation with it, to UF or NIH.

13. In January 2019, UF’s College of Engineering required all faculty,
including LIN YANG, to provide, in writing, updated disclosures concerning
activities with foreign entities in China and certain other countries. YANG provided
to UF a written response that falsely stated that he had no affiliation with any
business or entity or university and omitted any reference to his company in China
or his participation in the PRC’s TTP in connection with Northwestern Polytechnical
University, a Chinese university.

B. THE CHARGE

Between on or about March 1, 2016, and on or about December 31, 2019, in

the Northern District of Florida and elsewhere, the defendant,

LIN YANG,
did knowingly and willfully devise, and intend to devise, a scheme to defraud and
for obtaining money and property by means of materially false and fraudulent
pretenses, representations, and promises and half-truths, and by omissions and

concealment of material facts with a duty to disclose, and for the purpose of
6


support of, and to attach to, his TTP application.

10. On or about November 20, 2016, LIN YANG was in Beijing, China,
planning for interviews and discussions relating to his PRC TTP application.

11. Ata date unknown, but no later than in or about January 2017, the PRC
selected LIN YANG to participate in the TTP in connection with Northwestern
Polytechnical University, and issued an official notice reflecting that YANG had
been selected as one of the Chinese Communist Party’s TIP award recipients.

12. On or about June 13, 2016, LIN YANG submitted a RPPR to NIH
falsely stating in his answers to questions that there had been (1) no change in “Other
Support,” in which he should have listed his affiliations and research endeavors with
a foreign government, company, entity, or university and institutional awards, and
(2) no change to any affiliation with foreign companies or businesses or foreign
universities.

13. On or about July 15, 2016, based upon the false statements made by
LIN YANG in the RPPR submitted on or about June 13, 2016, relating to, and
concealing, his activities concerning the creation of his business in China and his
application for the PRC’s TTP in connection with Northwestern Polytechnical
University, NIH issued a Notice of Award to UF, advising that $316,467 had been

authorized for disbursement to UF for the grant with YANG as the PI.


IN THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF FLORIDA
GAINESVILLE DIVISION

UNITED STATES OF AMERICA
SEALED
v. INDICTMENT

LIN YANG [SOKO fide

THE GRAND JURY CHARGES:

COUNTS ONE THROUGH SIX
A. INTRODUCTION
At all times material to this Indictment:

1. The National Institutes of Health (NIH) was an agency of the U.S.
Department of Health and Human Services (HHS), which was part of the executive
branch of the United States government. The NIH awarded funding through
competitive grants to American universities, medical schools, and other research
institutions to enhance health, lengthen life, and reduce illness and disability and
to facilitate the development and improvement of medical technologies in the
United States.

2. In order to receive NJH funding, universities and other research

institutions were required to submit a detailed application describing, among

other things, the purpose and scope of the proposed research, the amount of

‘STbHd 02, GT 930
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related to the NIH grant.

D. WIRE COMMUNICATIONS
On or about the following dates, for the purpose of executing the scheme to

defraud, the defendant,

LIN YANG,
knowingly did cause wire communications to be transmitted in interstate and foreign

commerce as set forth below:

COUNTS DATE COMMUNICATION

ONE June 13, 2016 RPPR submitted electronically to
NIH by the defendant

TWO July 15, 2016 NIH Notice of Award of $316,467
electronically sent to UF

THREE June 15, 2017 RPPR submitted electronically to
NIH by the defendant

FOUR August 9, 2017 NIH Notice of Award of $379,732
electronically sent to UF

FIVE June 15, 2018 RPPR submitted electronically to
NIH by the defendant

SIX September 5, 2018 | NIH Notice of Award of $377,571
electronically sent to UF

All in violation of Title 18; United States Code, Sections 1343 and 2.

12


concealing, his activities concerning the creation of his business in China and his
application for the PRC’s TTP in connection with Northwestern Polytechnical
University, NIH issued a Notice of Award to UF, advising that $377,571 had been
authorized for disbursement to UF for the grant with YANG as the PI.

18. On or about January 31, 2019, in response to a request for disclosure
from UF, LIN YANG falsely denied in writing having any affiliation and receiving
any funding in connection with any Chinese entity to include being a “company
employee, officer, owner or representative.”

19. Between in or about June 2016 and December 2019, while employed at
UF in Gainesville, Florida, and while conducting research funded by the NIH grant,
LIN YANG travelled extensively to China for significant periods of time. During
that time, YANG traveled to China approximately 27 times and was outside the
United States approximately 120 days in 2016, 201 days in 2017, 175 days in 2018,
and 235 days in 2019.

20. LIN YANG fraudulently obtained approximately $292,875 in salary
paid by UF from NIH grant funds for the years 2016 through 2018. YANG used
some of these monies for the purchase of, and payment for, real property in Tampa,
Florida.

21. Based upon his fraudulent misrepresentations and false statements,

LIN YANG fraudulently caused NIH to provide approximately $1.1 million to UF
il


company’s products were the result of years of research supported by millions of
dollars in U.S. government-funded research.

6. In 2018, LIN YANG participated in a Sino-American Pharmaceutical
Professional Association conference as the co-founder and director of the board for
Deep Informatics.

7. In or about June 2018, LIN YANG caused press releases to be issued
in China by a firm that invested in Deep Informatics. The press releases outlined
YANG?’s involvement as the co-founder and primary source of scientific expertise
at Deep Informatics and stated that YANG’s company had three branches in China
in the cities of Hangzhou, Shanghai, and Xi’an.

8. In or about December 2018, LIN YANG participated in a YouTube
video in which he gave a presentation at Philips Global Breakthrough Day about
Deep Informatics’ vision and potential partners.

9. In or about June 2016, LIN YANG applied for the PRC’s TTP. To help
prepare his application, on or about May 16, 2016, YANG received an email and
sample TTP application from a professor at Northwestern Polytechnical University;
on or about June 24, 2016, YANG teceived an email from an individual who
recommended changes to YANG’s TTP application to include his plans to work
fulltime in China; and on or about June 28, 2016, YANG, using his UF account, sent

an email to a Rutgers University professor, requesting a letter of recommendation in
8


was hired by UF, the NIH grant, which had not yet been funded, was transferred
to UF. YANG thereafter performed research funded by the NIH grant at UF.

6. The NIH grant period began September 2014 and was scheduled to
continue through July 2019, with the award totaling $1,760,906. YANG requested
a 12-month extension in the summer of 2019, which would have extended the grant
period into 2020.

7. The grant award was provided by NIH to UF, which administered the
grant monies. LIN YANG was the PI for the grant. As the PI, YANG was the
primary individual responsible for the preparation, conduct, and administration of
the research grant in compliance with applicable laws and regulations under Federal
law and institutional policies governing the conduct of sponsored research. As the
PI, YANG initiated reimbursement requests to UF for research related expenses, and
UF disbursed payments accordingly from funds distributed to UF by NIH.

8. As the PI, LIN YANG was also responsible for filing annual Research
Performance Progress Reports (RPPRs) with NIH concerning the status of the grant.
YANG submitted the RPPRs through an online system maintained on NIH’s servers,
which were located outside of Florida. Pursuant to Federal regulation and NIH
policy, YANG was required to disclose on the RPPRs any changes to his other

support, including but not limited to research support from foreign governments or


foreign entities that: he had not received any compensation from any entity in China
and certain other countries during the past twelve months; that he had not visited any
entity in China other than on one occasion to make an academic presentation at a
Chinese university on May 15, 2018, relating to matters that he had already
published; and that he had no affiliation with any entity in China; whereas, in truth
and fact, as the defendant well knew, these statements and representation were false
in that the defendant had created, and was operating, a Chinese company known as
Deep Informatics from which he received compensation; that he had visited entities
in China on occasions in addition to the May 15, 2018 academic presentation; and
that he had an affiliation in China with his Chinese company, Deep Informatics, and
had made an application for, and been selected to participate in, the Chinese
Government’s Thousand Talents Program connected to a Chinese university,
Northwestern Polytechnical University.

In violation of Title 18, United States Code, Sections 1001 and 2.

CRIMINAL FORFEITURE

The allegations contained in Counts One through Six of this Indictment are
hereby realleged and incorporated by reference for the purpose of alleging
forfeiture. From his engagement in the violations alleged in Counts One through
Six of this Indictment, the defendant,

LIN YANG,
15


to seek forfeiture of any other property of said defendant up to the value of the

forfeitable property.
A TRUE BILL:
{loo
DATE
emer

LAWRENCE KEEFE
United States Attorney

Sb De JA. eye
STEPHEN M. KUNZ @
Assistant United States Attorney

17


determine whether there was a financial conflict of interest that needed to be
reported to, and reviewed by, NIH. NIH would then determine whether the grant
personnel or conditions of the grant needed to be altered, or whether the grant
needed to be terminated.

4, Between August 2014 and December 2019, the defendant, LIN
YANG, was an Associate Professor in the Department of Biomedical
Engineering at the University of Florida in Gainesville, Florida (UF). Prior to
August 2014, he was an Assistant Professor at the University of Kentucky. As a
faculty member at UF, YANG owed a duty of loyalty and candor to UF at all
times and was aware that any other support (to include foreign research support
and ownership, or interest in, foreign entities and companies), and all conflicts
of interest, needed to be reported to UF and NIH, which sponsored his research
at UF. As part of its reporting requirements, UF required professors and
researchers, like YANG, to disclose any potential and actual conflicts of interest,
including income from other sources.

5. When LIN YANG obtained employment at UF, his research
involved biomedical imaging and informatics. While employed at the University
of Kentucky, YANG obtained a grant from NIH to develop and disseminate an

imaging informatics tool for muscle known as “MuscleMiner.” When YANG

3


funding requested, the names of the principal participants conducting the
research, and how the funding would be used. Both during the application
process, and periodically after awards were made, the principal investigator (PI)
with the institution receiving the award, was required to disclose to NIH all
“Other Support.” Other Support included all financial resources, whether
Federal, non-Federal, commercial or institutional, available in direct support of
an individual’s research endeavors, including but not limited to research grants,
cooperative agreements, contracts, and institutional awards, regardless of any
monetary value and regardless of any connection to the institution receiving the
current grant. This requirement included reporting ownership, or interest in,

foreign entities and research companies, as well as foreign research contracts.

3. Additionally, the PI was required to report to the institution
receiving the NIH award any significant financial interests that existed prior to
the commencement of the award, as well as any that arose throughout the
duration of the award. Significant financial interests included anything of
monetary value, including but not limited to salary or other payments for
services (e.g., consulting fees or honoraria); equity interests (e.g., stocks, stock
options or other ownership interests); and intellectual property rights (e.g.,

patents, copyrights, and royalties from such rights). The institution then would

2


COUNTS SEVEN THROUGH NINE

Paragraphs number 1-13 of Section A and paragraphs number 1-21 of Section
C of Counts One through Six are realleged and incorporated herein by reference.

On or about the dates set forth below, in the Northern District of Florida and
elsewhere, the defendant,

LIN YANG,

did knowingly and willfully make materially false, fictitious, and fraudulent
statements and representations in a matter within the executive branch of the
Government of the United States, that is, the National Institutes of Health (NIH),
which was part of the U.S. Department of ‘Health and Human Services, in that,
related to a NIH grant, the defendant falsely certified in annual Research
Performance Progress Reports (RPPRs) the answer “No” in response to the question,
“Changes in Other Support - Has there been a change in the active other support of
senior/key personnel since the last reporting period?”; whereas, in truth and fact, as
the defendant well knew, this statement and representation was false in that the
defendant had created, and was operating, a Chinese company known as Deep
Informatics and had made an application for, and been selected to participate in, the
Chinese Government’s Thousand Talents Program connected to a Chinese

university, Northwestern Polytechnical University.

13


shall forfeit to the United States, pursuant to Title 18, United States Code, Section
981(a)(1)(C), and Title 28, United States Code, Section 2461(c), any and all of the
defendant’s right, title, and interest in any property, real and personal, constituting,
and derived from, proceeds traceable to such offenses, specifically, the following
real property:
Real property located at 17207 Talence Court, Tampa, Florida 33647
more particularly described as:
Lot 7, Block 1, Tampa Palms Area 4 Parcel 23 Phase 1, according to
the Plat thereof, recorded in Plat Book 89, Page(s) 46, of the Public
Records of Hillsborough County, Florida.
If any of the property described above as being subject to forfeiture, as a
result of acts or omissions of the defendant:
i, cannot be located upon the exercise of due diligence;
ii. has been transferred, sold to, or deposited with a third party,
iii. has been placed beyond the jurisdiction of this Court;
iv. has been substantially diminished in value; or
v. has been commingled with other property that cannot be
subdivided without difficulty,

it is the intent of the United States, pursuant to Title 21, United States Code,

Section 853(p), as incorporated by Title 28, United States Code, Section 2461(c),

16