Ex-engineer at Southwest Research Institute accused with wife of bilking it

A former Southwest Research Institute engineer has been charged in a scheme to defraud the San Antonio research and development organization by funneling business to a firm he ran with his wife. A 28-page federal indictment unsealed Wednesday accused Xiaojian Tao, 63, of using his position at Southwest Research — designated as “Company 1” in court documents — to gain more than $2.5 million in business through a competing company he controlled with his wife, Yu Lang, also known as Laura Long, 63. The pair are charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud.

Tao also faces three export-related charges accusing him of shipping sensitive technical specifications or data for U.S. military fighter jets, helicopters and related military aircraft to China, in violation of U.S. arms embargoes on that country. The indictment said Tao and Lang since 1997 have owned and operated Tyletech, also known as Tylex Tech LLC and Tyle Tech, which provides engineering consulting services. The indictment said that, from 1994 to March 2020, Tao also worked for “Company 1,” an unnamed research and development company. The San Antonio Express-News confirmed “Company 1” is Southwest Research Institute. “Although Tao certified that each year he would notify the R&D Company of any conflicts of interest and follow Standards of Conduct, Tao and Lang hid Tao’s role in Tyletech, instead funneling business from the R&D Company to Tyletech,” U.S. Justice Department officials said in a news release.