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Chinese National Pleads Guilty to Committing Theft of Trade Secrets
justice.gov ^ | 11/12/19 | DOJ

Posted on 11/12/2019 2:40:02 PM PST by ransomnote

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Tuesday, November 12, 2019

Chinese National Pleads Guilty to Committing Theft of Trade Secrets

Hongjin Tan, a 35 year old Chinese national and U.S. legal permanent resident, pleaded guilty Tuesday in federal court to committing theft of trade secrets from his employer, a U.S. petroleum company.

Tan pleaded guilty to theft of a trade secret, unauthorized transmission of a trade secret, and unauthorized possession of a trade secret. The defendant stole the information from a U.S.-based petroleum company regarding the manufacture of a “research and development downstream energy market product” that is worth more than $1 billion.

“Tan’s guilty plea continues to fill in the picture of China’s theft of American intellectual property,” said Assistant Attorney General for National Security John C. Demers. “The Department launched its China Initiative to battle precisely the type of behavior reflected in today’s plea —illegal behavior that costs Americans their jobs — and we will continue to do so.”  

“China’s economic aggression poses a threat to America’s emerging high-technology industries. Industrial spies like Hongjin Tan engage in espionage to steal American trade secrets and intellectual property born out of the innovation that is innate in our free market system,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “Thanks to a vigilant company and the investigative efforts of the FBI, Hongjin Tan was caught red handed and prosecuted. American ingenuity and know-how are the envy of the international market, and the U.S. Attorneys community will work to protect our economic infrastructure.”

"Trade secret theft is a serious crime which hurts American businesses and taxpayers. The FBI will continue to protect our country's industries from adversaries who attempt to steal valuable research and technology," said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.

Tan was employed as an associate scientist for the U.S. petroleum company starting in June 2017 until his arrest in December 2018. The defendant was assigned to work within a group at the company with the goal of developing next generation battery technologies for stationary energy storage, specifically flow batteries. In his plea agreement, Tan admitted to intentionally copying and downloading research and development materials without authorization from his employer.

On Dec. 11, 2018, Tan used a thumb drive to copy hundreds of files. He subsequently turned in his resignation and was escorted from the premises on Dec. 12, 2018. Later that day, he returned the thumb drive, claiming that he had forgotten to do so before leaving his employer’s property. Upon examination, it was discovered that there was unallocated space on the thumb drive, indicating five documents had previously been deleted. Investigators with the FBI searched Tan’s premises and found an external hard drive. They discovered that the same five missing files from the thumb drive had been downloaded to the hard drive. Tan maintained the files on a hard drive so he could access the data at a later date. Further accessing the material would have been financially advantageous for Tan but caused significant financial damage to his Oklahoma employer.

U.S. District Judge Gregory K. Frizzell presided over the plea hearing and set sentencing for Feb. 12, 2020.

The FBI conducted this investigation. Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case, with assistance from Trial Attorney Matthew R. Walczewski and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).

Topic(s): 
Counterintelligence and Export Control
National Security
Press Release Number: 
19-1232


TOPICS: Miscellaneous
KEYWORDS: china; espionage; trade; tradesecrets

1 posted on 11/12/2019 2:40:02 PM PST by ransomnote
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To: ransomnote

First President to officially address the problem.


2 posted on 11/12/2019 2:48:24 PM PST by Balding_Eagle ( The Great Wall of Trump ---- 100% sealing of the border. Coming soon.)
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To: ransomnote

I have been saying that we need to stop hiring chinese nationals for more than 20 years. We also need to pressure universities to drastically lower the number of chinese students admitted into their universities. And NO more chinese/iranians/pakistanis in government labs.


3 posted on 11/12/2019 2:48:56 PM PST by Captainpaintball
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To: Balding_Eagle

The next time you hear that Asians are the smartest people, keep in mind this boy forgot to scramble the bits on his thumb drive. :)


4 posted on 11/12/2019 2:49:14 PM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: ransomnote

Anyone who has a chink working for them needs their head examined.


5 posted on 11/12/2019 2:49:42 PM PST by setter
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To: setter

"Dock that Chink a day's pay."

6 posted on 11/12/2019 2:50:49 PM PST by dfwgator (Endut! Hoch Hech!)
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To: setter

I agree....


7 posted on 11/12/2019 2:52:32 PM PST by caww
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To: Captainpaintball

The guys will not be happy about that.....a lot come here to find a decent wife because the few gals left in China are so demanding.


8 posted on 11/12/2019 2:54:23 PM PST by caww
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To: Balding_Eagle

It’s time for all of us to familiarize ourselves and our families with the meaning of the word Nation.


9 posted on 11/12/2019 3:04:30 PM PST by Hugh the Scot (I won`t be wronged. I won`t be insulted. I won`t be laid a hand on. - John Bernard Books)
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To: Tell It Right

There is a deep south mid 30ish engineer that had zero concept of a virtual server.


10 posted on 11/12/2019 3:10:25 PM PST by wally_bert (Your methods were a little incomplete, you too for that matter.)
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To: wally_bert
Here in deep south Alabama we use virtual servers quite a bit.

Surely the Chinese national could have used something like PGP shredder on the thumb drive. I mean, we're talking about a $1 billion theft.

11 posted on 11/12/2019 3:16:04 PM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Captainpaintball
Exactly .
They have flooded this country with millions of spies and the university , WS, Banks ,etc,,, .
They steal white collar jobs are positioned to strike when the CCP orders them .
I trust none of these invaders in the last 20 years .
12 posted on 11/12/2019 3:25:07 PM PST by ncalburt (Gop DC Globalists)
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To: Tell It Right

It might have been arrogance, not stupidity.


13 posted on 11/12/2019 4:39:02 PM PST by Balding_Eagle ( The Great Wall of Trump ---- 100% sealing of the border. Coming soon.)
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To: ransomnote

Absolutely shocked for the 30th year in a row! Started with Loral and Clinton. Any Chinaman is a security risk. They know no loyalty to the US.

We are fools all.


14 posted on 11/12/2019 5:32:50 PM PST by whistleduck
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