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Year: 2026

Google engineer stole AI secrets for China, Senate hears in explosive testimony

Google engineer stole AI secrets for China, Senate hears in explosive testimony

A former CIA officer told senators Wednesday that a Google engineer who stole cutting-edge AI secrets for China went on to use the technology to build a company. The testimony before the Senate Judiciary Committee comes as lawmakers warn of growing national security threats tied to Chinese intellectual property theft in critical technologies like artificial intelligence. President Donald Trump has made AI a cornerstone of his policy agenda, calling for a single federal regulatory framework instead of a patchwork of state laws. His administration has also pushed to accelerate data center development and strengthen U.S. competitiveness against China. Tom Lyons, with more than 20 years of experience in the U.S. government and private sector on Chinese economic espionage, told lawmakers the deck is stacked against American companies. EX-GOOGLE ENGINEER FOUND GUILTY OF STEALING AI SECRETS FOR CHINESE COMPANIES “American firms are not competing against Chinese rivals in any normal sense,” Lyons said. “They are competing against the largest intelligence apparatus in the world, one whose mission includes putting American companies out of business.” “This is not GM versus Ford,” he told lawmakers in his opening remarks. “This is a U.S. startup versus the resources of China’s military, the People’s Liberation Army.” Lyons cautioned that the current approach leaves companies largely on their own to counter state-backed threats, treating what he described as a national security issue as a corporate compliance problem. His warning reflects concerns raised by a recent high-profile case involving a former Google employee stealing secrets for China. AMERICA MUST POWER AI WITH SPEED AND DISCIPLINE — OR CHINA WILL DOMINATE In January, federal prosecutors said Linwei Ding, a former Google software engineer also known as Leon Ding, was convicted on multiple counts of economic espionage and theft of trade secrets after stealing thousands of pages of confidential AI-related information for the benefit of China. The case, tried in federal court in California, marks one of the first major U.S. convictions tied to artificial intelligence espionage. According to evidence presented at trial, Ding downloaded sensitive data on Google’s AI infrastructure — including chip designs and software used to train advanced models — and uploaded it to a personal account while secretly working with China-based tech firms and launching his own startup. Prosecutors said he sought to use the stolen technology to build AI systems in China and attract investors, highlighting the case as part of a broader effort by Beijing to acquire advanced U.S. technology. Lyons argued that cases like this illustrate a wider gap in how the U.S. responds to such threats. “If a foreign military were conducting operations on American soil, we would not ask our companies to fund their own defense,” he said. U.S. officials have long argued that Chinese intellectual property theft has cost the American economy billions of dollars in revenue and thousands of jobs, posing a significant national security risk. China has repeatedly denied engaging in such activity.

Pat Fallon launches bid for House Oversight Committee chairman as James Comer’s term limit nears

Pat Fallon launches bid for House Oversight Committee chairman as James Comer’s term limit nears

FIRST ON FOX: Rep. Pat Fallon, R-Texas, is throwing his hat in the ring for the role of House Oversight and Government Reform Committee chairman. House Republicans impose a six-year term limit for committee chairs, meaning current Chairman James Comer, R-Ky., can’t serve in the role for an additional term.  Fallon is now the only declared Republican candidate for the role.  “I think one of the missions should be to expose the hypocrisy and lack of direction of the left. They’re focusing on divisiveness and opposing President Trump,” Fallon told Fox News Digital during an exclusive interview. “How about focusing on the country and the growth and prosperity of the greatest country history has ever known?” FLORIDA REPUBLICAN REP NEAL DUNN ANNOUNCES RETIREMENT FROM CONGRESS AFTER FIVE TERMS The Texas congressman specifically pointed out he intends to tackle and expose the rampant fraud that has rocked the country, COVID-19 misuse of taxpayer dollars, and the foreign funding behind agitator groups that have plagued college campuses and cities across the country.  “If a foreign national that is beyond our jurisdiction is funding a protest, anti-American protest, we need to expose the Americans that are taking the funds,” Fallon told Fox News Digital. “The left would have you believe that every political protest is organic. It’s just people that are fed up and they get on social media and they talk to other like-minded folks.  “And they say, the powers that be, we will hold you [accountable]. That’s not what’s going on here,” Fallon added. “If you were in Beijing, if you were a Chinese communist, what better way to chip away at an open society than fund their malcontents?” MUTINY THREAT SPARKS HOUSE GOP INFIGHTING AHEAD OF TRUMP VISIT: ‘JUST MORE STUPID’ Fallon was sworn into the U.S. Congress in January 2021. A former Air Force captain and graduate of Notre Dame, he represents parts of northeastern Texas. In regard to widescale Medicare and Medicaid fraud being exposed in various states across the U.S., Fallon said no states are off limits for investigation, but that mismanagement of state policy can make a difference in fraud prevention.  “Medicare, Medicaid fraud, particularly Medicaid fraud is systemic across the country, red and blue states,” Fallon explained. “The difference is in the red states, where this fraud is occurring, the leadership is far more apt to expose it once they get a hint that something’s going on, [whereas] the blue states largely look the other way. That’s the biggest difference.” COMER VOWS MINNESOTA FRAUD PROBE WILL EXPAND TO OTHER STATES AMID MOUNTING SCRUTINY “If you get caught most of the time, and this is what most Americans have no idea, it’s not even, you’re not even criminally prosecuted,” Fallon continued. “It’s a civil action that’s taken. You’re compelled to pay some of that money back and then you just go along your way. And you can’t work with the federal government anymore.” “That’s a pretty light sentence for stealing a significant amount of funds,” Fallon added.  The GOP faces an uphill battle in the 2026 midterm elections, which will determine whether the Republican Party maintains the majority in both the House and Senate. A NARROW MARGIN: TRUMP TAPS HOUSE REPUBLICANS FOR HIS SECOND ADMINISTRATION President Donald Trump traveled to Nevada and Arizona last week to tout his Working Families Tax Cuts, also known as the One Big Beautiful Bill Act, which includes policies surrounding no tax on tips and overtime.  Senate Majority Leader John Thune, R-S.D., as well as other Republican senators have been hitting the road for several weeks as the GOP looks to promote economic opportunity ahead of the midterms.  “Republicans made big changes to the tax code that benefit millions of Americans, and we need to make sure they know about it. It’s important that Republicans use every opportunity to educate the public on how the Working Families Tax Cuts deliver safe streets, more money in your pocket, and new opportunities to get ahead,” Thune said in a statement. Should the Republicans lose the majority in the House, Fallon would be the ranking member of the Oversight Committee. “God forbid we would go into the minority and I would become a ranking member,” Fallon said. “We have to defend President Trump because these folks are infected with wokeness and all they’re going to do is talk about impeachment, 25th Amendment and take their eye off the ball again for American prosperity.”

READ: Dr. Oz puts all 50 governors on notice over billions lost to Medicaid fraud

READ: Dr. Oz puts all 50 governors on notice over billions lost to Medicaid fraud

FIRST ON FOX: Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz is putting state leaders on notice to root out rampant fraud, directing them in letters Thursday to take immediate action within days to identify and remove noncompliant Medicaid providers. “Corrupt individuals and organizations masquerading as health care providers are defrauding Medicaid, and American taxpayers, of billions of dollars each year, placing valuable resources out of reach for those the program was intended to serve: low-income senior citizens, children, and disabled individuals. Classes of providers with less rigorous [enrollment standards]…” Oz wrote in a letter, obtained by Fox News Digital, sent to each of the nation’s 50 governors on Thursday morning.  Oz has given governors and state Medicaid leaders 10 business days to tell CMS whether they will commit to conducting a swift “revalidation” of high-risk Medicaid providers and provide a proposed timetable, alongside a separate 30-day deadline for a broader provider-revalidation strategy, escalating federal pressure on states to tighten anti-fraud enforcement. WALZ’S MINNESOTA MESS COULD SPARK THE TOUGHEST FRAUD REFORMS IN DECADES Oz said it is “urgent that action be taken immediately.” “Failure to [commit to the revalidation plan] will be considered as we evaluate the likelihood of fraud in each state moving forward,” Oz stated.  States must also submit, within 30 days, a broader two-year strategy outlining how they will review healthcare providers for legitimacy and compliance. The letters sent to the 50 governors all contained the same information directions, with Fox News Digital obtaining a copy sent to the state of Alabama.  KAROLINE LEAVITT WARNS ‘PEOPLE WILL BE IN HANDCUFFS’ AS FEDS ZERO IN ON MINNESOTA FRAUD SCANDAL “While the factors contributing to fraud are multifaceted and require a comprehensive approach to address, a revalidation process for high-risk providers will immediately deter criminal actors from continuing their fraud schemes, as the federal and state governments closely review and scrutinize the qualifications of providers to suspend or terminate clearly abusive actors from the program,” Oz wrote. The letters target providers at “high risk of waste, fraud, abuse, and corruption,” particularly those with “less rigorous enrollment and billing requirements,” with CMS directing states to include any provider operating without a National Provider Identifier. A second letter was also sent to each state Medicaid director reiterating the call for a revalidation strategy tailored to each state. JD VANCE SPEARHEADS ‘WAR ON FRAUD,’ PROMISES TO ROOT OUT TAXPAYER MONEY ‘STOLEN’ BY ILLEGAL IMMIGRANTS “Our analysis of national trends strongly suggests a persistent and growing Medicaid threat posed by sophisticated actors knowingly exploiting these complex systems for financial gain,” Oz wrote. Proposals must include a methodology and timeline for off-cycle provider revalidation (with emphasis on high-risk providers and those without NPIs); metrics to measure effectiveness and progress (including public reporting); processes for ongoing verification of provider information; strategies to ensure consistency and accuracy of provider data across fee-for-service and managed care systems (including oversight of managed care directories); and coordination with relevant law enforcement partners. Medicaid fraud has been of particular interest to the Trump administration given the massive fraud scandal that has unfolded in Minnesota. The push comes amid heightened focus on large-scale fraud cases, including Minnesota’s $250 million “Feeding Our Future” scheme, which became a national flashpoint after surfacing in 2022 and has led to a wave of convictions in recent years. A separate state-commissioned review of Minnesota’s Medicaid program this year identified vulnerabilities across 14 high-risk services and estimated that up to $1.7 billion in payments over four years may have been improper — findings that have intensified federal scrutiny and calls for reform. CMS is also weighing Medicaid deferrals in states, including California, New York and Maine, signaling potential legal battles as federal and state officials clash over enforcement.