Posted on 09/26/2007 8:02:00 PM PDT by NormsRevenge
Two engineers about to go on trial for allegedly stealing confidential computer chip designs from their Silicon Valley employer and a partner firm were indicted Wednesday on the rare and more serious charge of economic espionage, prosecutors said.
The indictment returned by a grand jury in U.S. District Court in San Jose accuses Lan Lee, 42, of Palo Alto, and Yuefei Ge, 34, a Chinese national living in San Jose, of orchestrating the computer-chip plot so they could go into business with the Chinese military.
The men are accused of stealing secret data sheets and other confidential documents from NetLogic Microsystems Inc. of Mountain View, which designs processors for use in networking equipment such as Internet routers and switches, and Taiwan Semiconductor Manufacturing Co., a Taiwan-based company that operates chip.m.aking factories and has offices around the world, including one in San Jose.
Lee and Ge worked for NetLogic between 2001 and 2003. They were not employees of Taiwan Semiconductor but allegedly downloaded software with some of its manufacturing secrets from an internal server at NetLogic. The two companies worked together on chip development and production.
The indictment alleges Lee and Ge formed a company called SICO Microsystems Inc. to develop chips based on the stolen designs. They then allegedly reached out to Chinese government agencies for help funding the business, including a branch of the Chinese military responsible for the development of weapons systems, and an agency that funnels money toward technology companies with a military bent.
Lee and Ge were charged with five felony counts each, including two counts of economic espionage, two counts of theft of trade secrets and one count of conspiracy.
Matt Parrella, the assistant U.S. attorney prosecuting the case, declined to comment on whether any Chinese officials knew the chip designs were stolen.
Wednesday's indictment overrides the previous charges against Lee and Ge from June 2006, when they were accused only of stealing trade secrets, not trying to benefit China. Jury selection for their trial was set to begin Nov. 27.
They remain free in lieu of $300,000 bond each and are scheduled to appear in court again Oct. 29 on the new charges.
Defense lawyers for Ge and Lee did not immediately return calls.
Only three people have been convicted in the U.S. of economic espionage, the theft of trade secrets to benefit a foreign government and the most serious crime under the Economic Espionage Act of 1996 . All the convictions were from Silicon Valley, an area that investigators describe as a hotbed for intellectual property theft to benefit foreign nations.
In August, Xiaodong Sheldon Meng, a Chinese national with Canadian citizenship, pleaded guilty to one count of economic espionage for stealing software used to train military fighter pilots and trying to sell it to the Chinese Navy. He faces a reduced sentence of up to two years in prison and a $1.5 million fine when he's sentenced Jan. 23.
In December, two other engineers in an unrelated but similar case pleaded guilty to two counts each of economic espionage.
Fei Ye, a U.S. citizen from China, and Ming Zhong, a permanent resident of the U.S. from China, were charged with stealing confidential microchip blueprints from their employers and attempting to smuggle them to China to start a microprocessor company.
Sentencing was set for August but has been continued to an unspecified date.
This is valuable technology both commercially and militarily.
We're practically giving it away...
Economic Espionage should be punishable by hanging in the public square...and we should prevent foreigners from working in the tech business. US Citizens only.
Just read an article (in Popular Science, I think) regarding the ubiquitous theft of technology and patents by Chinese companies (not Taiwanese); some of these rogue pirate plants even pirate the trademarks and tradenames.
I'd like to know the story behind this case. Specifically, the reduced sentence part.
Not sure about the reduced sentence part,, he may be 'cooperating'.
Clinton probably put in a good word for him.
The instant I saw “engineers” and “theft” I knew it was Chinese engineers. This would be the sixth or seventh big-headline story in about as many years here.
Compared to zero non-Chinese engineers that is.
Isn’t is interesting that EVERY one of these folks is Chinese!
Tip of the iceberg.
Many Chinese have relatives back in China, and are vulnerable to espionage pressure.
Just as the Mexican govt views Mexico as where ever its people are, the Chinese govt views its people, as state employees, obligated to aid the Chinese govt.
Unselective immigration laws allow more than just illegals here to nurse at the low income aid nipple. Spies and 5th columns are allowed in as well.
But this is logic way over the heads of our govt leadership and the Dems would open the door to Hell as long as they were reasonably sure the emerging demons would vote Dem.
Hell would just be another Dem voting block. As are Liberals, illegals, felons, street people/homeless(for a pack of smokes), the dead, and the imaginary.
Stop hiring Chinese. No more H1-B visas for people from China, Russia, and muslim countries. send your complaints to me@idontgiveaflyingcrapwhatyouthinkofme.com
A Chinese National? Probably just a rogue Swede. Everybody knows the Chinese are straight shooters who NEVER cheat, lie, or steal, engage in piracy, violate international trade laws, engage in corporate or military espionage.
Next thing you know, you’ll be telling me the Chinese engage in slave labor and oppress priests. Nah. They are sweeties...
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