Xu Jiaqiang, a Chinese national, has been sentenced to five years in prison for his role in stealing high-tech trade secrets from a U.S. company with the intent to benefit the National Health and Family Planning Commission of the People’s Republic of China.
The crimes were committed between November 2010 and May 2014, during which time Xu worked as a developer for a particular U.S. company (the “Victim Company”). As a developer, Xu had access to certain proprietary software (the “Proprietary Software”), as well as that software’s underlying source code (the “Proprietary Source Code”). The Proprietary Software is a clustered file system developed and marketed by the Victim Company in the United States and other countries.
Xu stole the Proprietary Source Code, intending to benefit the Chinese government. He subsequently communicated with undercover law enforcement officers and sent them a sample of the code. In May 2014, Xu voluntarily resigned from the Victim Company, and he was subsequently charged with economic espionage and theft of a trade secret.
U.S. Attorney Geoffrey S. Berman said, “As he previously admitted in federal court, Xu Jiaqiang stole high-tech trade secrets from a U.S. employer, intending to benefit the Chinese government. The laws governing economic espionage and trade secrets exist, in part, to protect the sanctity of American ingenuity and property. Xu’s prison sentence should be a red flag for anyone attempting to illegally peddle American expertise and intellectual property to foreign bidders.”
Acting Assistant Attorney General Dana J. Boente stated, “Xu, a Chinese national, is being held accountable for engaging in economic espionage against an American company. Xu not only stole high-tech trade secrets from his U.S. employer – a federal crime – he did so both for his own profit and intending to benefit the Chinese government. Xu’s sentence clearly demonstrates that the National Security Division will not hesitate to pursue and prosecute those who steal from American businesses.”
The defendant, Xu Jiaqiang, is a Chinese national. The crime of economic espionage and theft of a trade secret is a federal offense. The city and state where the crime occurred is White Plains, New York. The exact date of the crime is between November 2010 and May 2014. The sentence imposed on the defendant is five years in prison.
Mandatory Facts:
- Defendant: Xu Jiaqiang
- Criminal Charges: Economic Espionage and Theft of a Trade Secret
- City and State: White Plains, New York
- Exact Date: Between November 2010 and May 2014
- Sentence: Five years in prison
Key Facts
- State: New York
- Category: Cybercrime
- Source: DOJ Press Release â†â€â€
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