Kevin P. Davidson, U.S. Attorney | U.S. Attorney for the Middle District of Alabama
A federal grand jury in Montgomery, Alabama, has indicted Foster Dai, also known as Fa Dai, a dual citizen of China and the United States. The charges include filing false tax returns and failing to report foreign bank accounts. The indictment was issued on September 10, 2024, but was unsealed this week. This announcement came from Acting United States Attorney Kevin Davidson, Special Agent in Charge Demetrius Hardeman with the IRS Criminal Investigation Atlanta Field Office, and Special Agent in Charge Paul Brown with the FBI Mobile, Alabama Field Office.
The indictment claims that Dai, aged 60 and a former professor at Auburn University’s Electrical Engineering Department, served as a corporate executive officer of Shenzhen NRT, Co., Ltd., based in China. It is alleged that he used accounts with China Merchants Bank and Industrial & Commercial Bank of China to receive payments from at least five entities in China. The income allegedly went unreported on his federal tax returns for the years 2018 through 2020.
According to U.S. regulations cited in the indictment, citizens and residents must file a "Report of Foreign Bank and Financial Accounts" (FBAR) if they have a financial interest or authority over foreign bank accounts exceeding $10,000 during any calendar year. It is alleged that Dai failed to file these required reports for his accounts at Industrial & Commercial Bank of China in 2018 and China Merchants Bank in 2020.
The indictment serves as an allegation; all defendants are presumed innocent until proven guilty beyond reasonable doubt.
If convicted, Dai could face up to five years in prison along with a fine reaching $250,000. A federal district court judge will decide on any sentence after reviewing U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by agents from IRS Criminal Investigation and the FBI with support from the United States Department of the Army Criminal Investigation Division. Auburn University cooperated fully with law enforcement throughout the investigation process. Assistant United States Attorney Megan A. Kirkpatrick is prosecuting this case.
