Posted on 04/13/2002 10:39:17 PM PDT by LarryLied
Three people are charged with a plot to steal secrets from Lucent and sell them to a Chinese telecommunications provider
A federal grand jury on Thursday handed up new charges against two former Lucent Technologies scientists and a third man, the alleged mastermind of a plot to steal secrets from Lucent to sell to a Chinese state-owned telecommunications provider, authorities said.
Xu Kai, 33, and Lin Hai, 30, former high-level scientists for Lucent, and Cheng Yong-Qing, 37, are set to be arraigned on Monday on an additional 14 counts of possessing trade secrets and nine counts of wire fraud.
The trio, all Chinese nationals living in New Jersey, were charged last May with one count of conspiring to steal trade secrets and possess stolen trade secrets, punishable by 10 years imprisonment and a $250,000 fine under the Economic Espionage Act.
Each count could add five years in prison and if convicted on all counts, each man could be liable for as much as $6m in fines, Assistant US Attorney Scott Christie said.
The charges stem from government allegations that the men stole key components of Lucent's PathStar server, a computer voice and data transmission system that the Chinese scientists had helped develop for the company.
More than 1,000 email messages, seized by the FBI through court orders and warrants, and other evidence will prove the three were setting up a joint venture to sell a system using PathStar's technology to state-owned Datang Telecom Technology of Beijing, Christie said.
The new indictment claims that in September 2000, the suspects demonstrated a prototype for Datang representatives in the basement of Lin's home.
By late December 2000, the indictment further states, the men received $500,000 from Datang to seed the venture, agreeing to include PathStar technology.
James Plaisted, the attorney for Cheng, the former vice president of Village Networks, an optical networking company, said his client will plead not guilty on Monday, following not guilty pleas entered by all the men to the first indictment.
Lucent has said it lost $80m because of the alleged theft.
The new indictment names four more companies as victims whose software or circuit boards were used under licensing agreements in PathStar. They include ZiaTech, a wholly owned subsidiary of Intel.
The suspects are free on bail pending a trial scheduled to open 24 September.
US seeks depositions in Lucent case (China/technology)
3 Indicted in Lucent Trade Secrets Case
Datang denies receiving Lucent Pathstar technology
Lucent Code Theft Denied
Asian Employees at Lucent Are Troubled by Handling of Arrests ^
Lucent - China spy case - Affidavit
Good guess...lol
The affidavit is dated May 3,2001.
The new indictment names four more companies as victims whose software or circuit boards were used under licensing agreements in PathStar. They include ZiaTech, a wholly owned subsidiary of Intel.
interesting. time IS your best defense. in a few short years, Lucent has gone from a traitorous criminal to a "victim" in this tech transfer case.
The idiot who hired these bozos should be forced to permanently wear one of Hillary's discarded and crusty pant suits.
It sounds like you never heard of H1-B visas. These are used by our wonderful business community to hire cheap indentured servants in the hi-tech arena so that they can lay off American workers. Those 3 Chinese undoubtedly replaced American workers. The person who arranged these visas probably got a promotion, and Lucent got themselves a higher stock price when they laid off Americans. Isn't it wonderful how our system works? There are over 800,000 H1-Bs in this country. Every one of them displaces an American who would love to have those jobs.
Now Lucent is going to find themselves ruined in the switch market...it serves them right.
"I don't know. Pinged ChaseR, he might have something. Not many replied to any of the threads on this subject posted last year."
Let me start now and see what I have on all of this. bbl.
This is a shame. If only more folks would find these type threads/make posts/ping others!
BTTT
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