FBI’s Unexpected Lancaster Operation Uncovers Shocking Ties to Chinese Auto Giant BYD

In a dramatic turn of events, two prominent politicians from a Southern California high desert town have come under federal scrutiny. Allegations have surfaced that Lancaster Vice Mayor Marvin Crist and City Councilmember Raj Malhi received financial contributions from a contentious Chinese electric vehicle company, The Post has learned.

On April 15, FBI agents conducted a series of raids, during which Crist and Malhi were taken from their homes at gunpoint. This information comes from a source intimately familiar with the operation. During these raids, officials confiscated various documents and electronic devices as part of an expansive investigation.

The inquiry is focused on potential connections between the politicians and BYD, a Chinese electric-car manufacturer that is currently conducting the first U.S. trial of electric buses in Lancaster. As part of the investigation, agents searched a total of four locations, including Lancaster City Hall and the residence of a Bel-Air developer.

Documents related to the federal search warrant indicate that the agents were searching for evidence of any items of value that BYD might have provided, either directly or indirectly, to any elected official, candidate, committee, or political action committee.

Lancaster City Hall and the home of a Bel-Air developer were also searched in the raids.

Details of the federal search warrant reveal that agents were looking for “information pertaining to anything of value given by BYD, directly or indirectly, to an elected official, candidate, committee or political action committee.” 

The warrant allowed agents access to phones, computers and other digital devices, including deleted or encrypted data, as well as access to devices protected by fingerprints or facial recognition technology.

The investigation spans activity from 2018 to the present and targets records tied to key individuals, financial transactions, government actions and political contributions.

The agency also sought “information on government actions sought, or contemplated to be sought, by BYD,” according to the source.

Malhi and Crist did not respond to calls for comment. No arrests have been made and no charges have been filed.

Shenzhen-based BYD makes cheap, cutting-edge electric cars that outsell Tesla globally, but its cars are nowhere on US roads — due in part to security fears that the vehicles are packed with sensors and software that could pose a surveillance risk. They also face a near 100% tariff to not undercut American-made cars.

The company’s link to Lancaster dates back to 2013, when the city was selected as the site of a 550,000-square-foot electric bus factory.

The company has spent at least $250 million there, including $53 million on the factory alone.

It employs more than 750 people and is considered the largest electric bus factory in the US. It’s also BYD’s largest in the nation.

BYD does provide domestically made buses for Lancaster’s public fleet, which went all-electric in 2020. American-made BYD buses are also used in Los Angeles, Anaheim, Albuquerque and Denver.

When contacted by The Post, Lancaster Mayor R. Rex Parris said he was unaware of any wrongdoing on the part of Crist and Malhi and denied any corrupt conduct by City Hall.

“I’ve worked with them for almost 20 years,” he said of the two politicians.

“They’ve always been honorable, from everything I can see.”

Parris, who has been Lancaster’s mayor for the past two decades, revealed the FBI contacted City Hall two years ago seeking documents related to its dealings with the federal government.

When the city asked for more time to comply, the FBI dropped the matter, he said.

But The Post’s source said the probe never stopped. “The concern was that the buses could be used for spying,” the person said.

FBI agents seeking evidence on Malhi have “have approached many people, asked them to wear a wire to record their calls,” the source added. “They interviewed many people.”

BYD has donated to the campaigns of Crist and Malhi, as well as to a pair of political action committees that supported the two politicians, the source explained.

The developer whose home was searched in Bel Air was also a supporter of Malhi’s campaign, the source added.

Representatives for BYD did not reply to a request for comment.

The company has drawn controversy for both its potential to put US automakers out of business and fears it is using its vehicle for espionage.

A trio of US senators earlier this month urged President Donald Trump to bar Chinese carmakers, including BYD, from building vehicles in ‌the US, and to prevent Chinese cars assembled in Mexico or Canada from entering the country.

“[I]t would trigger a national security ​crisis that could never be reversed,” the lawmakers said in a letter to Trump.

“The administration should move without ​hesitation to designate BYD and other Chinese automakers as military-connected entities,” they wrote.

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Jennifer Seguin, a spokesperson for the city of Lancaster, issued a statement saying the city “is not aware of the details” of the FBI’s searches.

The FBI raids came less than 24 hours after a City Council election in which Crist, a retired firefighter, did not seek reelection after 16 years on the council.

Malhi, who joined the council in 2015, on Tuesday barely lost his seat to a challenger. He had served on the City’s Planning Commission since 2008.

FBI spokeswoman Laura Eimiller confirmed that the FBI served search warrants in Lancaster, including City Hall.

“Affidavits in support of the warrants have been sealed by the court and I’m unable to comment as to the nature of the investigation,” Eimiller said.