Former Chinese National Charged with Stealing Military Application Trade Secrets

cybercrime.gov, Jan 11, 2007

United States Attorney Kevin V. Ryan announced that a former Chinese national was charged late yesterday in a 36-count superseding indictment alleging that he stole military application trade secrets and used them in demonstration and sales proposals to the Peoples Republic of China (PRC), Malaysian Air Force, and the Thailand Air Force. This prosecution is the result of a joint investigation by the U.S. Attorneys Office CHIP Unit, the Federal Bureau of Investigation (FBI) and Department of Homeland Security, Bureau of Immigration and Customs Enforcement (ICE).

Xiaodong Sheldon Meng 42, is charged with stealing military combat and commercial simulation software and other materials from his former employer Quantum3D, a company based in San Jose, California. The economic espionage charges allege that Meng, formerly a resident of Beijing, China, and a resident of Cupertino, California, stole the trade secrets from Quantum3D with the intent that they would be used to benefit the foreign governments of China, Thailand, and Malaysia.

United States Attorney Kevin V. Ryan stated, This case highlights the vital importance of protecting the intellectual property and trade secrets not only in Silicon Valley but also for our country's businesses. The alleged economic espionage and theft and export of trade secrets such as these -- visual simulation training software that has military application, no less -- has real consequences that could jeopardize our country's military advantages in the world, in addition to creating substantial financial losses for our businesses which legitimately developed and owned this information. We are grateful to our law enforcement partners for taking swift and appropriate action here, and also want to acknowledge the pivotal role private industry's ready cooperation has in these investigations. Read more at cybercrime.gov