Defendant Sentenced to 10 Years for Conspiracy to Send Trade Secrets to Undercover Agent

Klaus Pflugbeil, a resident of China and a Canadian and German national, pleaded guilty to conspiring to send trade secrets that belonged to a leading U.S.-based electric vehicle company, Victim Company-1, to an undercover U.S. agent.

The proceeding was held before United States Magistrate Judge Arlene R. Lindsay in federal court in Central Islip.

Pflugbeil, a former employee of a company later purchased by Victim Company-1, stole trade secrets from his then employer, and later used the trade secrets to build Business-1, marketing his business as a replacement for Victim Company-1’s products.

“Today, the defendant is guilty of boldly sending valuable trade secrets, detailed documents and drawings that he stole from a U.S.-based leading manufacturer of battery-powered electric vehicles to an undercover law enforcement agent expertly posing as a businessman on Long Island,” stated United States Attorney Breon Peace.

“Despite Pflugbeil’s agreement to protect what he knew was proprietary, sensitive technology, he chose to abscond with these trade secrets to China, where he sought an unfair and illegal advantage in critical industries such as electric vehicle manufacturing,” stated Assistant Attorney General Matthew G. Olsen.

Pflugbeil faces up to 10 years in prison when sentenced. Victim Company-1 is a U.S.-based leading manufacturer of battery-powered electric vehicles and battery energy systems.

Both Pflugbeil and his co-defendant, Yilong Shao, who remains at large, are former employees of a Canada-based manufacturer of automated, precision dispensing pumps and battery assembly lines, the Canadian Manufacturer.

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