Autoblog

Former GM engineer found guilty of trying to sell trade secrets

Chris Tutor — Mon, 03 Dec 2012 14:00:00 EST

Filed under: Hybrid, Government/Legal, Technology, GM, Chery, Electric

After an almost month-long trial, former General Motors engineer Shanshan Du and her husband, Yu Qin, were convicted Sunday of stealing hybrid vehicle trade secrets from the automaker. Qin was convicted on seven counts, while Du was convicted of three trade-secret counts but acquitted of wire fraud charges.

Prosecutors said Qin used the data in attempts to either get employment with or form partnerships with GM's Chinese competitors, including Chery Automobile Co. GM claimed in the trial that the secrets were worth more than $40 million. Defense lawyers said the data wasn't secret, wasn't stolen and was "useless for other companies."

"These defendants stole trade secrets, which General Motors spent many years and millions of dollars to develop, to give an unfair advantage to a foreign competitor," US Attorney Barbara McQuade said. "We hope that this prosecution will send a message that stealing proprietary information from an employer or competitor is a serious crime."

Du worked for GM from 2000 until her resignation in 2005. Prosecutors argued that Du and her husband had formed Millennium Technology International through which they had hoped to sell the stolen information. Lawyers said 16,262 stolen files were found on Du's computer.

Sentencing is scheduled for February. The couple face maximum sentences of 10 years on each trade secret count and fines of as much $250,000.

Former GM engineer found guilty of trying to sell trade secrets originally appeared on Autoblog on Mon, 03 Dec 2012 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Former Ford employee pleads guilty to stealing $50M in trade secrets

Zach Bowman — Wed, 24 Nov 2010 13:32:00 EST

Filed under: Government/Legal, Ford

According to the Department of Justice, 49 year-old Mike Yu has pleaded guilty to two counts of theft of trade secrets. Yu worked as a product engineer for Ford for 10 years before accepting a job with another company, but when he left the Blue Oval, he took more than his family photos with him when he walked out the door. The engineer copied over 4,000 Ford documents onto an external hard drive before letting the company know of his new employer. Those documents included proprietary information on everything from engine and transmission mounting designs to electrical systems and full body shells. Yu began working for Beijing Automotive Company in 2008.

Yu returned to the United States in November of that same year, and was arrested upon his arrival. The Federal Bureau of Investigation found a Beijing Automotive Company laptop among Yu's possessions at that time with 41 Ford design specification documents on its hard drive. Yu had apparently accessed those documents while working for the company.

Under his plea agreement, Yu faces up to six and a half years in prison and a $150,000 fine in addition to an agreed loss amount of between $50 million and $100 million. The former engineer will be deported after his prison time is up. Follow the jump to read the official government statement.

[Source: The Department of Justice]

Continue reading Former Ford employee pleads guilty to stealing $50M in trade secrets

Former Ford employee pleads guilty to stealing $50M in trade secrets originally appeared on Autoblog on Wed, 24 Nov 2010 13:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Report: Ex-GM worker accused of stealing hybrid secrets

Jeremy Korzeniewski — Thu, 22 Jul 2010 16:29:00 EST

Filed under: Hybrid, Government/Legal, Technology, GM

It seems that the lure of stealing trade secrets from a former employer has struck again, this time involving General Motors. Ex-GM employee Shanshan Du and her husband Yu Qin have reportedly been indicted by a federal grand jury for their part in an alleged conspiracy to steal hybrid vehicle information from The General.

It seems that Du waited until five days after she received a severance package from the automaker before copying thousands of documents back in January of 2005 related to hybrid technology. In May of the following year, Du and her husband are said to have shredded the documents and dumped them in a bin behind a nearby store after the grand jury began its inquiry.

Between those two dates, it is alleged that Du's husband entered into an agreement with Chinese automaker Chery to provide hybrid technology from his company, Millennium Technology International. According to General Motors, the stolen data is worth about $40 million.

This is not the first time we've seen such cases. Late last year, Former Ford engineer Xiang Dong Yu was arrested and indicted on suspicion of stealing trade secrets from his former employer.

[Source: Detroit Free Press, CNN]

Report: Ex-GM worker accused of stealing hybrid secrets originally appeared on Autoblog on Thu, 22 Jul 2010 16:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Former Ford employee arrested for stealing trade secrets

Chris Shunk — Fri, 16 Oct 2009 10:00:00 EST

Filed under: China, Government/Legal, Ford

Former Ford engineer Xiang Dong Yu, also known as Mike Yu, was arrested Wednesday at the Chicago O'Hare airport and indicted on suspicion of stealing trade secrets from his former employer. Yu, who worked at Ford Motor Company from 1997 to 2007, is being charged with downloading over 4,000 sensitive documents to an external hard drive before leaving the automaker for an opportunity with another U.S. company's Chinese operations. Yu was nabbed while arriving in the U.S. from China where he was stationed.

The Free Press is reporting that Yu is being charged with stealing "system design specifications connected to engine and transmission mounting systems; outside rear view windows; sliding doors; steering wheel assembly; interior trim; wipers and washers systems; front/rear side door; instrument panel and console systems; sound and heat control and electric power systems."

Those sound like some serious charges, and if Yu is convicted he can do some even more serious time behind bars. Each count of the theft of trade secrets carries a 10 year term in prison and a fine of up to $250,000. Yu is also charged with unauthorized access of a protected computer, which carries a five year term in the clink and a $250,000 fine. Detroit FBI Special Agent in Charge Andrew Arena told the Free Press that the Bureau takes the trade secrets of the auto industry very seriously, adding that "theft of trade secrets is a threat to national security and investigating allegations involving theft of trade secrets is a priority for the FBI."

Ford is understandably being silent right now in light of the seriousness of what's going on, and at this point we have no idea if any of Ford's important information fell into the hands of the wrong people. Since Yu is just now being brought to justice, it will likely be some time before all the details materialize. Regardless, it will be interesting to see if Yu shopped the illegal data and if there were any takers.

[Source: Free Press | Photo: U.S. Marshals Service]

REPORT: Former Ford employee arrested for stealing trade secrets originally appeared on Autoblog on Fri, 16 Oct 2009 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments