http://www.usatoday.com/story/news/nation/2015/05/19/china-espionage-technology/27570735/Chinese
professors among 6 charged with economic espionageKevin Johnson,
USA TODAY 10:18 a.m. EDT May 19, 2015
WASHINGTON --
Two Chinese
professors are among six Chinese nationals accused by federal prosecutors of
economic espionage sponsored by their home government in the alleged
theft of sensitive
radio frequency filter technology developed
by two U.S. companies.
The professors, who attended the University of
Southern California, allegedly obtained
the trade secret
information-- designed in part to
limit interference in mobile
phone reception and other devices-- as part of a
"long-running
effort'' to benefit universities and companies controlled by the Chinese
government.
Tianjin University professor Hao Zhang, 36,
was arrested Saturday in Los Angeles shortly after stepping off a plane from
China. Fellow professor Wei Pang, 35, and four other alleged co-conspirators are
believed to be in China.According to the 32-count indictment,
Pang and Zhang met during their doctoral studies in electrical
engineering at USC. While at the university, the
two conducted
research related to the acoustic technology that was funded by the U.S.
Defense Advanced Research Projects Agency, known as
DARPA.
Shortly after earning their doctorates in 2005,
Pang was employed as an engineer by Colorado-based
Avago
Technologies, while Zhang went to work for
Skyworks Solutions
Inc., in Massachusetts, the two companies that developed the
proprietary trade information.
Specifically, the so-called
FBAR
technology is primarily used in mobile devices, filtering incoming and outgoing
wireless signals so that a user only receives and transmits communications
intended by the user. In addition to the consumer uses, FBAR technology
has
numerous applications for military and defense
communications.
...
The following year, according to federal
prosecutors, Pang and Zhang resigned from their U.S. companies and accepted
professorships with Tianjin University where a joint venture,
ROFS
Microsystem, was formed to mass produce the filter
technology.
"The defendants leveraged their access to and
knowledge of sensitive U.S. technologies to illegally obtain and share U.S.
trade secrets with the PRC for economic advantage," said Assistant
Attorney General John Carlin, who oversees the Justice Department's National
Security Division. "
Economic espionage imposes great costs on
American businesses, weakens the global marketplace and ultimately harms U.S.
interests worldwide.''
David Johnson, the FBI's top agent in San
Francisco, said
the suspects' alleged conduct represented "a methodical
and relentless effor by foreign interests to obtain and exploit sensitive and
valuable U.S. technology.''
"Complex foreign-government
sponsored schemes, such as the activity identified here, inflict
irreversible damage to the economy of the United States and undercut our
national security,'' Johnson said.
| - - - - - -
http://www.justice.gov/opa/pr/chinese-professors-among-six-defendants-charged-economic-espionage-and-theft-trade-secretsChinese
Professors Among Six Defendants Charged with Economic Espionage and Theft Of
Trade Secrets for Benefit of People’s Republic of ChinaFOR
IMMEDIATE RELEASE
Tuesday, May 19, 2015
Chinese Professors Alleged to
Have Stolen Valuable Technology from Avago Technologies and Skyworks Solutions
to Benefit a PRC University
On May 16, 2015, Tianjin University Professor
Hao Zhang was arrested upon entry into the United States from the People’s
Republic of China (PRC) in connection with a recent superseding indictment in
the Northern District of California, announced Assistant Attorney General for
National Security John P. Carlin, U.S. Attorney Melinda Haag of the Northern
District of California and Special Agent in Charge David J. Johnson of the FBI’s
San Francisco Division.
The 32-count indictment, which had previously
been sealed, charges a total of six individuals with economic espionage and
theft of trade secrets for their roles in a long-running effort to obtain U.S.
trade secrets for the benefit of universities and companies controlled by the
PRC government.
“According to the charges in the indictment, the
defendants leveraged their access to and knowledge of sensitive U.S.
technologies to illegally obtain and share U.S. trade secrets with the PRC for
economic advantage,” said Assistant Attorney General Carlin. “Economic
espionage imposes great costs on American businesses, weakens the global
marketplace and ultimately harms U.S. interests worldwide. The National
Security Division will continue to relentlessly identify, pursue and prosecute
offenders wherever the evidence leads. I would like to thank all the
agents, analysts and prosecutors who are responsible for this
indictment.”
“As today’s case demonstrates, sensitive technology
developed by U.S. companies in Silicon Valley and throughout California
continues to be vulnerable to coordinated and complex efforts sponsored by
foreign governments to steal that technology,” said U.S. Attorney Haag.
“Combating economic espionage and trade secret theft remains one of the top
priorities of this Office.”
“The conduct alleged in this superseding
indictment reveals a methodical and relentless effort by foreign interests to
obtain and exploit sensitive and valuable U.S. technology through the use of
individuals operating within the United States,” said Special Agent in Charge
Johnson. “Complex foreign-government sponsored schemes, such as the
activity identified here, inflict irreversible damage to the economy of the
United States and undercut our national security. The FBI is committed to
rooting out industrial espionage that puts U.S. companies at a disadvantage in
the global market.”
According to the indictment, PRC nationals Wei Pang
and Hao Zhang met at a U.S. university in Southern California during their
doctoral studies in electrical engineering. While there, Pang and Zhang
conducted research and development on thin-film bulk acoustic resonator (FBAR)
technology under funding from U.S. Defense Advanced Research Projects Agency
(DARPA). After earning their doctorate in approximately 2005, Pang
accepted employment as an FBAR engineer with Avago Technologies (Avago) in
Colorado and Zhang accepted employment as an FBAR engineer with Skyworks
Solutions Inc. (Skyworks) in Massachusetts. The stolen trade secrets
alleged in the indictment belong to Avago or Skyworks.
Avago is a
designer, developer and global supplier of FBAR technology, which is a specific
type of radio frequency (RF) filter. Throughout Zhang’s employment,
Skyworks was also a designer and developer of FBAR technology. FBAR
technology is primarily used in mobile devices like cellular telephones, tablets
and GPS devices. FBAR technology filters incoming and outgoing wireless
signals so that a user only receives and transmits the specific communications
intended by the user. Apart from consumer applications, FBAR technology
has numerous applications for a variety of military and defense communications
technologies.
According to the indictment, in 2006 and 2007, Pang, Zhang
and other co-conspirators prepared a business plan and began soliciting PRC
universities and others, seeking opportunities to start manufacturing FBAR
technology in China. Through efforts outlined in the superseding
indictment, Pang, Zhang and others established relationships with officials from
Tianjin University. Tianjin University is a leading PRC Ministry of
Education University located in the PRC and one of the oldest universities in
China.
As set forth in the indictment, in 2008, officials from Tianjin
University flew to San Jose, California, to meet with Pang, Zhang and other
co-conspirators. Shortly thereafter, Tianjin University agreed to support
Pang, Zhang and others in establishing an FBAR fabrication facility in the
PRC. Pang and Zhang continued to work for Avago and Skyworks in close
coordination with Tianjin University. In mid-2009, both Pang and Zhang
simultaneously resigned from the U.S. companies and accepted positions as full
professors at Tianjin University. Tianjin University later formed a joint
venture with Pang, Zhang and others under the company name ROFS Microsystem
intending to mass produce FBARs.
The indictment alleges that Pang, Zhang
and other co-conspirators stole recipes, source code, specifications ,
presentations, design layouts and other documents marked as confidential and
proprietary from the victim companies and shared the information with one
another and with individuals working for Tianjin University.
According to
the indictment, the stolen trade secrets enabled Tianjin University to construct
and equip a state-of-the-art FBAR fabrication facility, to open ROFS
Microsystems, a joint venture located in PRC state-sponsored Tianjin Economic
Development Area (TEDA), and to obtain contracts for providing FBARs to
commercial and military entities.
The six indicted defendants
include:
•Hao Zhang, 36, a citizen of the PRC, is a former Skyworks employee
and a full professor at Tianjin University. Zhang is charged with
conspiracy to commit economic espionage, conspiracy to commit theft of trade
secrets, economic espionage and theft of trade secrets. Zhang was arrested
upon entry into the United States on May 16, 2015.
•Wei Pang, 35, a citizen
of the PRC, is a former Avago employee and a full professor at Tianjin
University. Pang is charged with conspiracy to commit economic espionage,
conspiracy to commit theft of trade secrets, economic espionage and theft of
trade secrets.
•Jinping Chen, 41, a citizen of the PRC, is a professor at
Tianjin University and a member of the board of directors for ROFS
Microsystems. Chen is charged with conspiracy to commit economic espionage
and conspiracy to commit theft of trade secrets.
•Huisui Zhang (Huisui), 34,
a citizen of the PRC, studied with Pang and Zhang at a U.S. university in
Southern California and received a Master’s Degree in Electrical Engineering in
2006. Huisui is charged with conspiracy to commit economic espionage and
conspiracy to commit theft of trade secrets.
•Chong Zhou, 26, a citizen of
the PRC, is a Tianjin University graduate student and a design engineer at ROFS
Microsystem. Zhou studied under Pang and Zhang, and is charged with
conspiracy to commit economic espionage, conspiracy to commit theft of trade
secrets, economic espionage and theft of trade secrets.
•Zhao Gang, 39, a
citizen of the PRC, is the General Manager of ROFS Microsystems. Gang is
charged with conspiracy to commit economic espionage and conspiracy to commit
theft of trade secrets.
