An advisor to Arcadia City Councilwoman April Verlato has pleaded guilty to acting as an unregistered agent of the Chinese government, marking a significant development in a case that has sent ripples through local politics in the San Gabriel Valley.

Xiangping “Eric” Kong, 65, entered his plea in federal court on Thursday, admitting to working under the direction of China’s Ministry of State Security (MSS) to spread propaganda and gather intelligence within the United States. The case represents the latest in a series of prosecutions targeting covert Chinese influence operations on American soil.

Court documents reveal that Kong operated as part of a sophisticated influence network while advising Verlato, who currently serves as Arcadia’s mayor pro tem. Prosecutors alleged that Kong leveraged his political connections to advance Beijing’s agenda, though Verlato herself has not been accused of wrongdoing.

“This case demonstrates how foreign governments attempt to exploit civic and political organizations to advance their own interests,” said U.S. Attorney Martin Estrada in a statement following the plea. “Kong’s actions represent a direct challenge to our democratic institutions and the transparency we expect from those involved in local governance.”

Kong’s activities primarily centered on promoting pro-Beijing narratives within Southern California’s Chinese American community while simultaneously reporting information back to his handlers in China. According to court filings, he received specific taskings from MSS officers and submitted regular reports on local political developments.

The investigation, led by the FBI’s counterintelligence division, uncovered communications between Kong and Chinese intelligence officials dating back several years. Authorities intercepted encrypted messages in which Kong discussed strategies for influencing public opinion and monitoring individuals deemed hostile to Chinese government interests.

Arcadia, a city of approximately 58,000 residents with a large Asian American population, has become an unexpected focal point in the broader geopolitical tensions between the United States and China. The city’s demographic makeup—nearly 61% Asian according to recent census data—makes it particularly significant in Beijing’s efforts to shape overseas Chinese communities.

City officials have scrambled to respond to the revelation. In a statement, Arcadia Mayor Paul Cheng emphasized the city’s commitment to transparency and assured residents that a review of all policy decisions involving Kong’s input would be conducted.

“The integrity of our local government is paramount,” Cheng stated. “We are cooperating fully with federal authorities and will take all necessary steps to ensure that Arcadia’s governance remains free from foreign interference.”

Councilwoman Verlato has distanced herself from Kong, issuing a statement expressing shock at the revelations and claiming no knowledge of his ties to Chinese intelligence. “I am deeply disturbed by these allegations and am fully cooperating with investigators,” Verlato said. “At no point was I aware of any illegal activity or foreign connections.”

Legal experts note that cases involving unregistered foreign agents have become increasingly common as the Department of Justice prioritizes countering foreign influence operations. Under the Foreign Agents Registration Act (FARA), individuals working on behalf of foreign governments must register with the Justice Department and disclose their activities—requirements Kong admittedly circumvented.

“These prosecutions send a clear message that covert influence operations will not be tolerated,” said Rebecca Davis, a former federal prosecutor who specializes in national security cases. “The concern isn’t just about propaganda, but about the subversion of local democratic processes.”

Kong faces up to five years in prison and potential fines of up to $250,000 when sentenced later this year. As part of his plea agreement, he has agreed to cooperate with ongoing investigations, suggesting authorities may be pursuing additional targets in what they describe as a broader network of Chinese influence operations.

The case highlights growing concerns about China’s “united front” work—efforts to influence overseas Chinese communities and foreign political systems through both overt and covert means. Similar cases have emerged in other parts of the country, including New York and California, indicating a pattern of sustained efforts by Chinese intelligence to establish footholds in American civic institutions.

For Arcadia’s residents, the case raises troubling questions about the integrity of local governance and the potential vulnerability of smaller municipalities to foreign interference campaigns that typically target larger governmental bodies.