Businessmen Charged with Economic Espionage
Two businessmen from Houston have been charged with conspiring to commit economic espionage for the benefit of a Chinese manufacturing company.
Shan Shi, 53, and Gang Liu, 32, a Chinese national, were charged yesterday by superseding indictment with conspiracy to commit economic espionage for the benefit of CBM-Future New Material Science and Technology Co. Ltd. (CBMF), a Chinese company based in Taizhou.
Both businessmen were previously indicted in June 2017 for conspiracy to commit theft of trade secrets. The superseding indictment issued yesterday also charged CBMF and its Houston-based subsidiary, CBM International, Inc. (CBMI), for their roles in the conspiracy.
The charges were announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director Bill Priestap of the FBI’s Counterintelligence Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Chief Don Fort of the IRS-Criminal Investigation.
According to court records, Shi and Liu conspired with others to commit economic espionage and steal trade secrets from a U.S. engineering firm that produces syntactic foam, a strong, lightweight material with commercial and military uses.
The maximum statutory penalty for conspiracy to commit economic espionage is 15 years in prison. The maximum for conspiracy to commit theft of trade secrets is 10 years, and the maximum for conspiracy to commit money laundering is 20 years. The charges also carry potential financial penalties.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division’s Counterintelligence and Export Control Section.
The defendants are presumed innocent unless and until proven guilty.
Shan Shi, Gang Liu, CBM-Future New Material Science and Technology Co. Ltd. (CBMF), and CBM International, Inc. (CBMI) are facing the following charges:
Conspiracy to commit economic espionage
Conspiracy to commit theft of trade secrets
Conspiracy to commit money laundering
Shan Shi was previously indicted in June 2017 for conspiracy to commit theft of trade secrets. Gang Liu was also previously indicted in June 2017 for the same charge.
The superseding indictment includes the original charge, adds the conspiracy to commit economic espionage count against Shi and Liu, and includes a federal money laundering conspiracy count against Shi.
CBMF and CBMI have also been indicted on all three charges.
This is the latest development in a long-running investigation into the theft of trade secrets and economic espionage. The case is ongoing and the defendants are presumed innocent unless and until proven guilty.
Shan Shi, 53, of Houston, TX, Gang Liu, 32, a Chinese national, CBM-Future New Material Science and Technology Co. Ltd. (CBMF), a Chinese company based in Taizhou, and CBM International, Inc. (CBMI), a Houston-based subsidiary, are the defendants in this case.
The charges were announced on June 2017, and the superseding indictment was issued yesterday.
The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the defendants’ sentences will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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