Li Chen, Exosome Trade Secrets Theft, Ohio 2023

A former Dublin, Ohio woman, Li Chen, 47, pleaded guilty via video conference in U.S. District Court today to conspiring to steal exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.

Chen, a former researcher at Nationwide Children's Hospital, admitted to stealing scientific trade secrets related to exosomes and exosome isolation from the hospital's Research Institute for her own personal financial gain.

According to her plea agreement, Chen conspired to steal and then monetize one of the trade secrets by creating and selling exosome 'isolation kits.' Chen admitted to starting a company in China to sell the kits.

Chen received benefits from the Chinese government, including the State Administration of Foreign Expert Affairs and the National Natural Science Foundation of China. Chen also applied to multiple Chinese government talent plans, a method used by China to transfer foreign research and technology to the Chinese government.

As part of her plea, Chen has agreed to forfeit approximately $1.4 million, 500,000 shares of common stock of Avalon GloboCare Corp. and 400 shares of common stock of GenExosome Technologies, Inc.

Chen and her husband, Yu Zhou, 50, worked in separate medical research labs at the Research Institute for 10 years each. They are charged with conspiring to steal at least five trade secrets related to exosome research from Nationwide Children's Hospital.

Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.

The case was unsealed in August 2019, when Chen and Zhou appeared in federal court in Columbus. They were arrested in California in July 2019.

U.S. Attorney David M. DeVillers said, 'Nationwide Children's Hospital's Research Institute took reasonable measures to protect its cutting-edge intellectual property and trade secrets regarding exosomes, and I commend the cooperation of Nationwide Children's throughout this investigation.'

FBI Cincinnati Special Agent in Charge Chris Hoffman stated, 'Li Chen was a trusted researcher at Nationwide Children's Hospital, conducting cutting-edge U.S. government-funded research. With her guilty plea, she admits that she abused this trust to establish a company in China for her own financial gain.'

Source: https://www.justice.gov/usao-sdoh/pr/woman-who-worked-local-research-institute-10-years-pleads-guilty-conspiring-steal-trade