Lei Gao, Theft of Trade Secrets, Texas 2019
HOUSTON, Texas - A brazen scheme to steal trade secrets from a Houston-area oil and gas manufacturer has been uncovered, and the masterminds behind it have been caught in the act.
Lei Gao, 45, a Chinese national, and his company Jason Energy Technologies Co. (JET) in Yantai, People's Republic of China, have been indicted for conspiracy, theft of trade secrets, and attempted theft of trade secrets.
Gao, who previously resided in Houston but is now believed to be in China, faces a possible prison sentence of up to 10 years as well as a $250,000 fine or twice the gross gain or loss. His company, JET, could be fined up to $5 million or three times the value of the stolen trade secret, whichever is greater.
The investigation, led by the FBI, reveals that Gao met with Robert Erford Jr., 41, of Dayton, who worked for a Houston-area company, at the Jason Oil and Gas Equipment LLC (JOG) offices in Houston on November 7, 2019. Erford had previously pleaded guilty to conspiracy to commit theft of trade secrets.
According to the indictment, Erford was to work in China as a consultant to assist JOG in coiled tubing technology. However, without authorization, on November 22, 2019, Erford allegedly transferred a victim company document that contained a trade secret from the United States to China for JET's benefit.
The charges also allege that Erford and Gao used encrypted messaging app WeChat in December 2019 to obtain, collect, and copy victim company manufacturing information.
The case is being prosecuted by Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre of the Southern District of Texas, along with Trial Attorney William Mackie from the National Security Division's Counterintelligence and Export Control Section.
A warrant remains outstanding for Gao's arrest, and authorities are urging anyone with information to come forward.
A defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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