JEFFERSON CITY — Missouri Attorney General Andrew Bailey announced he has expanded an investigation into the Chinese Service Center in St. Louis to make sure it complies with state law.
Bailey issued a civil investigative demand, which is reserved for the Attorney General's Office after he previously received evidence that the service center had violated the Missouri Merchandising Practices Act.
The investigation follows evidence suggesting that the CSC may have violated the Missouri Merchandising Practices Act, prompting Bailey to issue a civil investigative demand (CID). This demand, a tool that grants subpoena power to the Attorney General’s Office, requires the CSC to provide detailed records related to its fundraising and operational practices.
Bailey's scrutiny stems from concerns that the CSC, which is reportedly linked to the government of the People’s Republic of China, might be engaging in deceptive practices.
The CID specifically seeks information about the CSC’s solicitation of donations and its reporting of charitable funds.
Bailey suspects that the CSC could be involved in various forms of misconduct, including fraud, misrepresentation and unfair practices related to its charitable activities.
Bailey said as attorney general, he will enforce the laws as written, which includes holding all those accountable who violate the law
"Our investigation centers on allegations that the communist government of China is attempting to establish a footprint in the Show Me State," Bailey said in a provided statement. "My office takes these allegations very seriously and will continue to fight for and protect Missouri citizens and consumers."
The investigation was initially launched in 2023, prompted by a referral from a Missouri Congressional delegation member.
The referral followed allegations that the People's Republic of China is establishing a network of "service centers" worldwide, allegedly aimed at furthering Chinese Communist Party goals and influencing international affairs.
Reports suggest that there could be over 100 such centers globally, which might also serve as bases for targeting individuals who previously resided in China.
Bailey’s office is now working to uncover potential connections between the Chinese government and the CSC, a non-profit organization registered under Missouri state law.
"This investigation will inquire into, among other things, the acts and omissions of Subject(s) in connection with the solicitation and reporting of charitable funds in or from Missouri," the CID states. "The Attorney General has reason to believe that the Subject(s) have engaged in, are engaging in, or are about to engage in, deception, fraud, false promises, misrepresentation, unfair practices, and/or the concealment, suppression, or omission of material facts in connection with the solicitation of charitable funds."
Last year, Bailey wrote in a letter to U.S. Rep. Ann Wagner, R-Mo., thanking her for informing him about the service center.
"Missouri residents from Kansas City to St. Louis watched helplessly as the spy balloon made its way across our state," Bailey wrote in the letter. "In a blatant affront to our national security, it floated over our state capitol in Jefferson City, our local military installations, and the many private defense contractor facilities headquartered in St. Louis."