kolon-executives-indicted-for-225m-trade-secret-heist
A federal grand jury in Richmond, Virginia, has indicted top executives at Kolon Industries Inc. for allegedly engaging in a multi-year campaign to steal trade secrets related to DuPont’s Kevlar para-aramid fiber and Teijin Limited’s Twaron para-aramid fiber.
The indictment seeks forfeiture of at least $225 million in proceeds from the alleged theft of trade secrets from Kolon’s competitors.
“Kolon is accused of engaging in a massive industrial espionage campaign that allowed it to bring Heracron quickly to the market and compete directly with Kevlar,” said U.S. Attorney Neil H. MacBride. “This country’s greatest asset is the innovation and the ingenuity and creativity of the American people. The genius of free enterprise is that companies compete on the excellence of their ideas, products and services – not on theft. This indictment should send a strong message to companies located in the United States and around the world that industrial espionage is not a business strategy.”
According to the indictment, from July 2002 through February 2009, Kolon allegedly sought to improve its Heracron product by targeting current and former employees at DuPont and Teijin and hiring them to serve as consultants, then asking these consultants to reveal information that was confidential and proprietary.
The indictment charges Kolon with one count of conspiring to convert trade secrets, four counts of theft of trade secrets and one count of obstruction of justice. Headquartered in Seoul, South Korea, Kolon makes a product called Heracron, which is a recent entrant into the para-aramid fiber market as a competitor to products called Kevlar and Twaron.
“By allegedly conspiring to steal DuPont’s and Teijin’s intellectual property, Kolon threatened to undermine an economic engine at both companies,” said Assistant Attorney General Lanny A. Breuer. “Developing Kevlar and Twaron was resource-intensive work, and required strategic investment and ingenuity. Kolon, through its executives and employees, allegedly acted brazenly to profit off the backs of others. The Justice Department has made fighting intellectual property crime a top priority, and we will continue to aggressively prosecute IP crimes all over the country.”
The FBI’s Richmond Field Office, led by Special Agent in Charge Jeffrey C. Mazanec, investigated the case.
Para-aramid fibers are used to make, for example, body armor, fiberoptic cables and automotive and industrial products. Kevlar is produced by E. I. du Pont de Nemours and Company (DuPont), one of the largest chemical companies in the United States. For decades, Kevlar has competed against Twaron, a para-aramid fiber product produced by Teijin Limited, one of the largest chemical companies in Japan.
Related Federal Cases
- Oliver Sentenced for Drug Smuggling Ring Heist · Virginia
- William Kyndall Francis Sentenced in $2.5M HOA Heist · Maryland
- Grave Robbery: WV Cemetery Owner Admits Fraud · Virginia
- WV Barber Board Staffer Pilfers Fees · West Virginia
- WV Cemetery Owner Plundered Grieving Families · West Virginia
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News