California mayor's chilling ties to depraved baby factory: Bombshell claims about Chinese agent and couple who ran house of horrors out of $4m mansion

By MARJORIE HERNANDEZ, US WEST COAST NEWS EDITOR Published: 23:14, 1 June 2026 | Updated: 23:22, 1 June 2026 A California mayor who admitted to being a secret Beijing spy has alleged ties to a sinister baby factory scandal, the Daily Mail has learned.  We first exposed the scandal last year, revealing how Chinese-born couple Guojun Xuan and Silvia Zhang were allegedly running a surrogacy operation in the heart of Arcadia in suburban Los Angeles.  Now, the Daily Mail can reveal that Xuan was one of the top contributors to disgraced Arcadia Mayor Eileen Wang, who pleaded guilty on Friday to charges that she was an illegal agent for China and helped spread propaganda in the US on behalf of the Chinese government.  Sources told the Daily Mail that Xuan often bragged about his relationship with the mayor and other 'people in power' in the police and local government.  Xuan and Zhang were arrested in May 2025 on suspicion of felony child endangerment and neglect after Arcadia Police served a search warrant at their sprawling $4.1 million home.  According to police documents, they were found with 21 children in their care, most born via surrogates, amid allegations the children were abused and subjected to humiliating punishment techniques. Records obtained by the Daily Mail show Xuan was a top contributor to Wang's first election campaign in 2022 and provided the Chinese operative with $4,900.  Contractors who did work at properties owned by Xuan and Zhang said they allegedly used intimidation tactics to avoid paying them for their work. 'They would say we can't do anything because they knew the mayor, the police and threaten to go after us,' contractor Zhenhai Zhang told the Daily Mail.  Eileen Wang, former mayor of the City of Arcadia, pleaded guilty to being a Chinese spy last week Guojun Xuan (left) was among the mayor's top donors in 2022 during her election campaign Xuan and his partner Silvia Zhang were allegedly running a baby factory in their  $4.1million castle-like mansion in Arcadia  Sources told this website that Xuan often bragged about his relationship with the mayor and other 'people in power' in the police and local government 'That's how they got away with this - they used powerful people they know.  'He developed that habit in China, spending money and giving bribes to local government officials to form a protection umbrella for them.'  Neighbors had long suspected the couple were operating some sort of nursery or maternity house, but police were only alerted after one of the children - a two-month-old boy - was hospitalized with head injuries. That led officers to obtain a search warrant for their lavish nine-bedroom mansion, where they found indoor surveillance footage allegedly showing nannies 'physically and verbally' abusing children, Arcadia Police said.  The scandal emerged amid wider concerns about high-end Chinese-linked surrogacy arrangements in the US involving wealthy nationals seeking US-born children. There is no indication at this stage that the two cases are linked.  According to search warrants obtained by the Daily Mail, Xuan and Zhang’s 21 children ranged in age from two months to 13 years old. Investigators allege children were spanked on desks and forced to perform squats in a classroom-like setting.  The exact purpose of the operation, and the couple’s alleged links to influential figures, is still being uncovered by California detectives and the FBI.  But records obtained by the Daily Mail show Xuan and one of his companies, KLMN Investment LLC, donated $4,900 on April 9, 2022 to Wang's campaign. The former Arcadia mayor was elected in November 2022 to the Arcadia City Council, where each of the five-person governing body serve as mayor on a rotating basis. Wang, 58, resigned from city council earlier this month after her arrest. She has since pleaded guilty to following the bidding of Chinese officials by sharing articles that were favorable to Beijing, which requires notification to the US government as required by law. Police say a nanny can be seen allegedly spanking a child on a makeshift classroom desk from surveillance footage taken inside Zhang and Xuan's home in Arcadia, California Guojun Xuan and his girlfriend Silvia Zhang (pictured) initially ran their businesses out of their Arcadia home before moving their operation to an El Monte business center  Prosecutors allege Wang, along with her former fiancé, Yoaning 'Mike' Sun, ran a news website called US News Center that described itself as the premiere news source for Chinese Americans.  Officials said Wang and Sun 'executed directives' from Chinese government officials and posted pro-PRC propaganda on their news site. Wang is even alleged to have responded 'Thank you leader' to an official in Beijing in 2021 before she was elected.  Wang’s unlawful conduct occurred from late 2020 to 2022, according to federal prosecutors. Arcadia city officials and Wang’s attorneys have previously said her criminal behavior ended before she took office.  The disgraced mayor appeared in LA federal court on Friday and changed her plea to guilty. She now faces up to ten years in federal prison, according to DOJ officials. Wang was allowed to remain out on a $25,000 bond until her October 6 sentencing. Sun, who has since broken off his engagement with Wang, is already serving a four-year federal prison sentence after he pleaded guilty in October 2025 to acting as an illegal agent of a foreign government. In the meantime, Xuan and Zhang remain free on $500,000 bail each.  Arcadia Police Capt. Kollin Cieadlo told the Daily Mail that they refiled their case against the couple last week to the LA County DA's office concerning the allegations of child endangerment and neglect. Nanny Chunmei Li, 56, was also arrested in May 2025, but has fled the area and has not been located, Cieadlo said.  The couple were taken into custody after a local hospital notified police of a two-month-old boy brought in with traumatic head injuries after he was allegedly shaken by a nanny working for the couple, according to warrants obtained by the Daily Mail Federal authorities said that from late 2020 through 2022, Arcadia Mayor Eileen Wang worked alongside her then-fiancé, Yaoning 'Mike' Sun (pictured), under the 'direction and control' of officials tied to the Chinese government Gang Liu (left) and Zhenhai Zhang (right) were both design contractors who said they completed home renovations for Guojun Xuan and Silvia Zhang. They both claim they have yet to be paid and the couple has ignored their various messages Former employees who worked for Xuan said he ran his real estate and surrogacy businesses out of this building in El Monte The Daily Mail has reached out to Xuan and Zhang's attorneys concerning their 2025 arrest and Xuan's contribution to Wang's campaign. The Mail also reached out to Wang's attorneys concerning her ties with the couple. Contractor Zhenhai Zhang told the Daily Mail that Xuan is known in the local Chinese community as a 'well-regarded leader' with deep pockets. 'In the beginning, Xuan said to me, "We are brothers and friends."' Zhenhai Zhang told the Daily Mail. 'He treated me to drinks every day and asked me to work hard for him. 'But then he began to take advantage of me and many other people. He and Silvia took advantage of people's weaknesses and kind human nature.' Another contractor, Gang Liu, said he answered Zhang's advertisement in a local Chinese newspaper looking for help renovating her properties. Liu claims Zhang told him she would pay him $9,000 to kick out people living in 38 of their properties that needed redesign and repairs. He drew up contracts detailing the work he had finished, but said Zhang always put off paying until the properties were inspected. Liu didn't question the late payments because he assumed the couple was rich. In total, Liu estimates the couple owes him at least $250,000 for materials, labor and other costs. The contractor said he is not surprised that Xuan and Zhang have possible ties to Wang.  Xuan is allegedly a known pro-communist figure and was very active in Chinese-regime affiliated groups throughout Southern California, according to local Chinese-American news outlets.  'They are very adept at bribery and corruption,' Liu told the Daily Mail.   Design contractor Gang Liu said he completed work on the couple's various homes but claims he has still yet to be paid Chester Chong, chairman of the Chinese Chamber Commerce of Los Angeles, told the Daily Mail that news of the surrogacy and child abuse allegations involving Xuan and Zhang, as well as Wang's arrest, have deeply affected the local Asian community.  He said while the Chinese Chamber of Commerce of Los Angeles remains a non-political organization, other pro-PRC groups have infiltrated the business community to spread dangerous propaganda.   'Everyone in the community knew Mayor Wang, especially in the Chinese community all over the country,' Chong said. 'She became very famous because of the position she had. We are all still in shock because she acted like a role model in the community.  'This has damaged the image of not only the Chinese but the entire Asian community, who have come here simply as immigrants who want to become American citizens and become loyal to our country.' In a statement released earlier this month, Wang's attorneys said the former mayor recognizes the seriousness of the spying charge and accepts responsibility. 'She apologizes and is sorry for the mistakes she has made in her personal life,' the statement said. 'Her love and devotion for the Arcadia community have not changed and did not waver.' No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? 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