SoCal businessman fled county after allegations he helped lover accused of being Chinese spy

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A Southern California businessman targeted in a federal investigation of a real estate agent accused of spying for China has fled the country — as it was revealed that he’s the married alleged mole’s lover, according to sources familiar with the case.

Fatai Miao, a Chinese-born California construction entrepreneur, is believed to have accompanied realtor Wanying Zhang to Seattle in September 2025, where she allegedly surveilled the Taiwanese president’s son, according to the sources.

Miao took a “one-way” flight to China two weeks ago, prosecutors said in court on Wednesday, referring to him as “Individual 1.” His empty house in Irvine was searched by FBI agents on Sunday.

Miao allegedly joined Zhang, who has children with her husband Edric Ding, when the 34-year-old accused spy visited Seattle to keep tabs on Ting-Yu Lai, the son of Taiwan President Ching-te Lai. The younger Lai is an engineer in his 30s who is based in the US.    

Zhang, who worked for a real estate firm along with her husband, was arrested at LAX Sunday after being accused of spying for Beijing. Zhang, also known as “Heather,” was busted as she tried to board a flight to Shanghai. 

Allegations surfaced that Zhang is “an unfit mother” at a hearing at a LA courthouse Wednesday, where prosecutors seeking her confinement said that her ties to “her family may not be as strong as they seem,” as Ding looked on.

At the hearing, prosecutors accused Zhang of having access to $190,000 in a secret Chinese cryptocurrency account that she “was still receiving profits from.” They also pointed to Zhang’s brother having ties to the Chinese government.

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Prosecutors vehemently argued at the hearing that Zhang was a flight risk and pointed to a seized iCloud video that they said would show Zhang was “a danger to society.”

“You should have produced this video and I could say she’s an unfit mother,” Judge Steve Kim said, as it was revealed that Zhang has “young children.”

Judge Kim ruled Zhang was a flight risk, and she was taken into custody by US Marshals without bail.

She’s expected back in court on October 19.

Zhang, who hails from Irvine, is accused of working with handlers from the People’s Republic of China to surveil the Taiwanese president’s son.

This week, an image emerged of Zhang during a visit by Chinese President Xi Jinping to San Francisco in November 2023.

She is seen wearing a red baseball cap and standing behind a banner for the All American Chinese Association.

The picture has drawn attention because of the AACA’s connections to organizations and individuals tied to the Chinese Communist Party‘s “united front” system.

The CCP’s United Front Work Department oversees a strategy aimed in part at building relationships with overseas Chinese communities and influential figures abroad.

She appeared to have lived a jet-setting lifestyle before federal authorities detained her, documenting trips to Paris and outings with friends across the West Coast on her social media pages.

She also appeared to have graduated from USC, where the total cost of attendance can run more than $75,000 per year.

Ding’s social media shows outings to Korean barbecue restaurants, as well as anime and sword-art expos.

The couple is also seen posing with what appears to be their child.

Zhang’s arrest comes amid several other high-profile California cases involving allegations of covert Chinese government activity or influence. 

Disgraced former Arcadia mayor Eileen Wang entered a plea in federal court following the bombshell admission she was a spy for China in March. 

Former Democratic Rep. Eric Swalwell confessed to a prescription drug-fueled sex romp with a suspected Chinese spy Christine Fang, also known as “Fang Fang,” according to newly released FBI files in August.