Posted on 12/11/2020 1:55:01 PM PST by ransomnote
COLUMBUS, Ohio – A former Dublin, Ohio man pleaded guilty in U.S. District Court today to conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
Yu Zhou, 50, also pleaded guilty to conspiring to commit wire fraud.
Zhou admitted to conspiring to steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for his own personal financial gain in China.
“The Chinese government has created a large-scale, sophisticated system to steal American ingenuity,” U.S. Attorney David M. DeVillers said. “We hope this conviction demonstrates that we will fight this system.”
“Zhou and his wife have both accepted responsibility for establishing a company in China to personally profit from the cutting-edge work done at Nationwide Children’s Hospital,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “The FBI will continue to work closely with our partners to protect the innovations that have made America a global leader.”
Zhou and his wife, Li Chen, 47, worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). They conspired to steal trade secrets related to exosome research from Nationwide Children’s Hospital.
Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
According to his plea agreement, Zhou and Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome “isolation kits.” Zhou’s research at Nationwide Children’s included a novel isolation method in which exosomes could be isolated from one drop of blood. This method was vital to the research being conducted in Zhou’s lab – because necrotizing enterocolitis is a condition found primarily in premature babies, only small amounts of fluid can safely be taken from them.
The defendants admitted to starting a company in China to sell the isolation kits. They received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China.
Zhou and Chen were arrested in California in July 2019 and their case was unsealed in August 2019 when they appeared in federal court in Columbus. Chen pleaded guilty in July 2020 to conspiring to steal trade secrets and commit wire fraud.
As part of their pleas, the couple has agreed to forfeit property or gains associated with their crimes. For Chen, this included approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc. The details of Zhou’s forfeiture will be finalized through the sentencing process. A sentencing date has not been set yet for either defendant.
David M. DeVillers, United States Attorney for the Southern District of Ohio; John C. Demers, Assistant Attorney General for National Security; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, Special Assistant United States Attorney J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, are representing the United States in this case.
# # #
We needed a China Czar, who would be able to sniff out ChiComs in the government, Academia, Small Business and in Big Business. and he can have the power to dispose of them. If Trump loses, they will own us.
So it turns out that Yu Zhou was spying for China? Dang. Good thing we had Sherlock Holmes to crack this case.
A czar can’t possibly sniff out a million potential spies. All the FBI needs to do is search for Chinese names of people working at all places of high value research. I say this not because I hate Chinese people but most of these spies working for CCP have Chinese names.
I could. And if you gave me a budget of a million bucks (not including payroll and offices) and you gave me the right people...
All the FBI needs to do is search for Chinese names of people working at all places of high value research.
You are exactly right. That's why I said what I said above. But I wouldn't get the losers at the FBI involved, though. What you said would be 50% of the battle won right there.
It was for the Chinese children.
Oh, Biden will create one - but his job will be to determine which Senators China wants to control most and how much they are willing to pay to buy them. :)
He is Chinese. he has family in China.If he does not co-operate with Chinese Intelligence his family will be downgraded on their Social Credit score. Family is much more important to people from a Confucian society than for Americans. Family is a person’s identity. Chinese are NOT individualists. Threatening a man’s father is
more serious than threatening the man. He must do what is necessary to protect his family.
That is necessarily so. Their families are hostage in China.
How do you know all that? The couple admitted to starting a business of their own back in China - for personal profit - to market what they stole here.
1) The enthusiastic believers.They worship Mao,believe nothing bad happened in Tienanmen Square and that the United States is the source of all evil in the world.
2) The ones who simply want to visit,or study in,the US but are given assignments by officials before they leave and are reminded "we know where your family lives".
The pressure is exerted on second generation Chinese-Ams, too.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.