Former UW-Milwaukee professor agrees to plead guilty to defrauding Chinese graduate students

A former University of Wisconsin-Milwaukee professor has agreed to plead guilty to federal crimes related to a years-long scheme to defraud Chinese graduate students and visiting scholars.

Yue Liu, 41, of Mequon, also known as Troy Liu, joined the UWM faculty in 2009 as an assistant professor and became a full professor of civil and environmental engineering who was active as of 2021. He is no longer employed at UWM, said Michelle Johnson, a university spokeswoman.

Johnson declined any other comment about the matter other than to say, "We also want to express our gratitude to the U.S. Attorney’s Office, which is working to obtain restitution for our students."

According to a plea agreement filed Friday in federal court, in 2016 Liu created UW International Education Foundation LLC, and in 2017 changed its name to Wisconsin International Education LLC. He made promises to foreign students accepted into graduate programs at UWM that his organizations could help them meet various expenses.

Some key expenses, such as tuition, were already waived for graduate students who worked as research assistants.

Liu used a fake name, Ian Wyatt, and letterhead that incorporated the UWM logo. He later told agents students would not have trusted someone with a Chinese name.  Liu, a Chinese citizen with permanent legal resident status in the U.S., targeted more than 20 Chinese graduate students during the scheme, according to records.

In response to Liu's false representations, students would wire money to Wisconsin International Education. Between 2016 and 2020, Liu obtained $1.1 million through the scheme, according to the plea agreement.

"As further part of the scheme, Liu attempted to conceal his fraudulent activity by creating a fraudulent Sponsored Research Agreement with UWM using a fictitious entity purportedly based in China," the court records indicate.

Some of the money students sent to Liu's WIE group paid his personal expenses and some was channeled through the fictitious Chinese entity to repay UWM for certain research expenses.

A relative paid Liu to become a research assistant at UWM, according to the plea agreement. Several visiting scholars from China also paid money through Liu to spend time at the Milwaukee campus.

Some students told agents they had met Liu in Shanghai, where he gave presentations about studying at UWM. Some later learned from fellow graduate students it was unusual to pay around $30,000 a year to be part of the program Liu advertised, and it was not actually part of UWM.

In interviews with agents, "Liu admitted that UWM did not know he was profiting off the students, but said 'that's the difference between China and the U.S.. . . You don't know the culture of China. That's the reason why this business exists.' "

Wire fraud is punishable by up to 20 years in prison and a $250,000 fine, and the unlawful monetary transaction offense carries a maximum 10 year prison term and fine of up to $250,000. Prosecutors have agreed to recommend a sentence with the sentencing guidelines range.

No date for Liu's sentencing has been set.

Contact Bruce Vielmetti at (414) 224-2187 or bvielmetti@jrn.com. Follow him on Twitter at @ProofHearsay.