General Electric Insider Handed Two Years for IP Theft

Yesterday, a New York man was sentenced to 24 months in prison for being part of a conspiracy to steal aviation trade secrets and send them to China.

Xiaoqing Zheng, 59, of Niskayuna, New York, was found guilty of conspiring to conduct economic espionage after a four-week jury trial that ended in March last year, according to the Department of Justice (DoJ).

Zheng worked at GE Power’s Schenectady plant from 2008 to 2018, specializing in turbine seal technology engineering.

His participation in the conspiracy sent top secret IP to Chinese companies and universities to research, develop and manufacture turbine components.

It is believed to be part of a sophisticated multi-year cyber espionage operation designed to help China build the C919 commercial airliner alongside Western aerospace companies.

According to Alan Kohler, Assistant Director of the FBI’s Counterintelligence Division, Zheng was a member of the controversial Thousand Man Plan. This is a Communist Party initiative to recruit science and technology experts living abroad to make the country a world leader in the field by 2050.

Between 2008 and 2016, this and hundreds of other similar programs attracted as many as 60,000 professionals, according to a US Senate report. Many of them had Chinese traditions. That same report declared the scheme a threat to American interests, given its focus on IP theft.

“This is a classic case of economic espionage. Mr. Zheng abused trust, betrayed his employer, and colluded with the Chinese government to steal innovative U.S. technology,” said the Justice Department’s National Security Agency. Department Assistant Attorney General Matthew Olsen said.

“The Department of Justice acquiesces in stealing valuable trade secrets on behalf of foreign powers and holds those who threaten national security to account.”

In addition to the prison sentence, Mr. Zheng must pay a fine of $7,500 and must be released under supervision for one year after imprisonment.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *