Federal probe links Saipan to alleged Chinese military smuggling scheme

By Bryan Manabat

Saipan--Federal investigators have linked Saipan to an international smuggling operation involving military-grade satellite modems and other sensitive equipment allegedly destined for China, according to a recent unsealed criminal complaint filed in U.S. District Court for Utah.

The complaint alleges that Ding Wei Chen, a Chinese national, conspired to illegally procure and export items on the U.S. munitions list , including satellite modems used in military communications , through covert channels involving Switzerland, cryptocurrency payments and a planned pickup in Saipan.

According to Homeland Security Investigations, Chen and a co-conspirator arranged contracts with a U.S.-based subsidiary of a Swiss defense company to purchase 10 modems, including models manufactured by L3Harris, Viasat and Comtech.

The equipment is subject to strict export controls under the International Traffic in Arms Regulations and licenses for transfer to China are “presumptively denied.”

Federal agents say Chen proposed using Saipan as a discreet handoff location, telling an undercover agent posing as a supplier: “I will arrange for personnel to pick up the goods in Saipan.”

In encrypted messages, Chen later expressed concern about meeting on U.S. soil, texting, “Our goods r illegal u know” and “Sapan is not a safe place to meet.”

Despite those concerns, Chen reportedly planned to travel to Saipan around Oct. 6, 2025. A Department of Homeland Security database confirmed his itinerary matched details shared in prior calls with the undercover agent, including hotel arrangements and a linked email address.

The complaint outlines a broader procurement scheme valued at over $18 million, with Chen allegedly referencing past smuggling routes through Mexico and anonymous “cold wallet” cryptocurrency transactions to avoid detection.

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Although federal court records confirm that the criminal complaint against Chen was originally filed in the District of Utah and later transferred to the District Court for the Northern Mariana Islands, the case has yet to appear in the CNMI court’s public docket.

According to a federal docket report, Chen was arrested in Saipan on Oct. 6, 2025, and the case was sealed the same day.

A Rule 5 transfer order and related documents from the Utah court were filed on Oct. 14, indicating the case had been moved to the CNMI for further proceedings. However, as of early January, no corresponding entry appears in the District Court for the NMI’s online docket system.

The case was unsealed on Dec. 4 following a motion by federal prosecutors, and Chen’s initial appearance was held the same day before Magistrate Judge Jared C. Bennett in Utah.

Federal authorities have not disclosed whether any CNMI-based individuals or entities are under investigation.

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