Election Software CEO Faces Felony Charges for Storing Data on Servers in Communist China

On October 17th, Eugene Yu, founder and CEO of Michigan-based Konnech Inc., was charged with felony embezzlement of public funds and storing the personal data of thousands of poll workers on the servers in Communist China.

Eugene Yu was reportedly arrested on October 4th for embezzling public funds in excess of $100,000. There have long been concerns that Yu’s company has ties to the Chinese Communist Party (CCP). As the 2022 midterm elections approach, the allegation has led local governments across the U.S. to decide to ditch Konnech’s problematic software, including the company’s PollChief software, which is used by cities and counties across the country. Konnech had signed a $2.645 million contract with the Los Angeles government in 2019, agreeing to store and process all personal information in the United States. It violated that contract by storing them on servers in the Communist nation. The company is currently facing serious doubts as to whether the 2020 presidential election has any significant bearing on it.

Konnech has repeatedly denied storing the data outside the United States, and Yu also claimed that the data only involved the personally identifiable information of election workers, had no impact on the election’s vote counting, and did not change the election results. The district attorney believes that the security of any part of the election is critical so that people can have confidence in the entire process.