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Old 10-16-2009, 03:56 AM   #1
AVANTI R5
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Default BREAKING: Ex-Ford Employee from China Arrested in Chicago for Stealing Trade Secrets

http://carscoop.blogspot.com/2009/10...rom-china.html



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A Chinese man who worked for the Ford Motor Company until 2007 has been arrested in Chicago upon entering the U.S. and charged with stealing trade secrets, and unauthorized access to a protected computer, U.S. Attorney for the Eastern District of Michigan, Terrence Berg announced on Thursday. Xiang Dong Yu, aka Mike Yu, 47, from Beijing, China, was a Product Engineer for the Ford Motor Company from 1997 to 2007 and is said to have had access to important Ford trade secrets.
In December 2006, Yu accepted a job at the China branch of a U.S. company that has not been named. According to the indictment, on the eve of his departure from Ford and before he told the Detroit automaker of his new job, Yu allegedly copied some 4,000 Ford documents onto an external hard drive, including what are described as "sensitive design documents".

The FBI said that among others, those documents included system design specifications for the Engine/Transmission Mounting Subsystem, Electrical Distribution system, Electric Power Supply, Electrical Subsystem and Generic Body Module.

The indictment also claims that Yu used the stolen documents in an effort to lock a job with a yet unnamed Chinese automaker in 2008.

In an official statement, U.S. Attorney Terrence Berg said: "Protecting the competitive edge technology of our companies through vigorous enforcement of our federal trade secret laws is a top priority of this office. Both employees and employers should be aware that stealing proprietary trade secrets to gain an economic advantage is a serious federal offense that will be prosecuted aggressively."

Special agent Andrew G. Arena from the FBI's Detroit division stated: "Michigan, as well as the rest of the United States, is significantly impacted by the auto industry. Theft of trade secrets is a threat to national security and investigating allegations involving theft of trade secrets is a priority for the FBI. The FBI will continue to aggressively pursue these cases."

The United States Attorney's Office said that each of the theft and attempted theft of trade secrets counts carries a maximum penalty of 10 years in prison and a $250,000 fine while unauthorized access to a protected computer carries a maximum penalty of five years in prison and a $250,000 fine.

According to the FBI, Yu will remain in federal custody in Chicago where he is scheduled to have a detention hearing on Tuesday, Oct. 20, 2009.
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Old 10-16-2009, 09:36 AM   #2
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Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 3_1 like Mac OS X; en-us) AppleWebKit/528.18 (KHTML, like Gecko) Version/4.0 Mobile/7C144 Safari/528.16)

I think this sort of thing is more common than people think. This exact thing (not auto industry) happened where I went to grad school. Guy wAs literally caught in the airport with confidential research materials hidden on him & his family. Modern Chinese business ethics are "interesting" from a Western perspective to say the least.
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Old 10-16-2009, 11:26 AM   #3
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I bet it was defense related.
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Old 10-16-2009, 11:52 AM   #4
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All the tech companies I deal with in San Jose/San Francisco for the most part do their manufacturing overseas. All of them suffer from IP theft issues.

Often when the company I work for installs our data loss prevention tools, during a trial run before they buy, people get fired. Picking on the Chinese folks mostly, their business practice overseas generally is not so honest. And you know what? The Chinese government turns a blind eye to it all.
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Old 10-16-2009, 11:55 AM   #5
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Ford has 'trade secrets?' Like how to barely survive bankruptcy and make boring mundane cars that people don't buy?
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Old 10-16-2009, 11:59 AM   #6
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Originally Posted by JohnnyC View Post
Ford has 'trade secrets?' Like how to barely survive bankruptcy and make boring mundane cars that people don't buy?
This.
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Old 10-16-2009, 12:24 PM   #7
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Ford has 'trade secrets?' Like how to barely survive bankruptcy and make boring mundane cars that people don't buy?
Guess Chrysler needs a boost
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Old 10-16-2009, 01:11 PM   #8
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Should treat him like China would treat one of ours.
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Old 10-16-2009, 01:24 PM   #9
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Originally Posted by JohnnyC View Post
Ford has 'trade secrets?' Like how to barely survive bankruptcy and make boring mundane cars that people don't buy?

You'd be shocked how little the Chinese know about many aspects of vehicle design, especially in the fields of safety, chasis design, and robust design/longevity. While they are progressing quickly, it takes a lot of engineering time to develop this knowledge. Stealing the right documents could save them years and years of trial and error.

It's fun to bag on Ford and the other two domestics, but lets face it, compared to your average Chinese automaker, they are super advanced. The Chinese must copy/steal industry sensative knowledge if they wish to enter the world market any time in the next decade.

We (my company which designs and manufactures airbag inflators) obtained a booklet from a chinese company that supposedly makes airbag inflators too. We got this booklet from on of our customers (an OEM) who was concerned. On the page talking about their Driver's side inflator, there were pictures of our inflators! Not a clone, but our inflators which they had probably pulled from a car and didn't even remove the labels. Then they had a bunch of performance statistics for the inflator that were definately our documents, but copy and pasted. It pisses me off that we spend 5 years developing this inflator and they are ready to rip it off and sell it as their own... and no body seems to give a ****.
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Old 10-16-2009, 01:44 PM   #10
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Good friend is in the FBI - his main focus is corporate espionage. Yes its a huge issue impacting every major industry in the US. China / Russia being the key players.

Glad to see they caught someone who could have cost Ford some serious money and heart ache when a China auto builder shows up with a design oddly identical to what Ford had spent years and mucho money researching and developing.
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Old 10-16-2009, 02:24 PM   #11
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They should have given the chinese plans to the 1997-2002 F150 that collapses like an accordion in crash tests
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Old 10-16-2009, 02:37 PM   #12
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Glad to see the penalties are high for this - 10 years on theft and 5 years for computer access.

I wish we had something in place to protect US companies from foreign companies that engage in corrupt practices. Penalties are very high if US citizens/companies act corruptly - which basically means we can't compete in corrupt societies legally.
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Old 10-16-2009, 11:07 PM   #13
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Ha, Dong. Haha.
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Old 10-17-2009, 10:29 AM   #14
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Threat to national security??? Ha ok, we aren't talking about Government Motors here.
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Old 10-17-2009, 11:00 AM   #15
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Threat to national security??? Ha ok, we aren't talking about Government Motors here.
No, just the one US auto manufacturer that isn't on life support.
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Old 10-17-2009, 11:19 AM   #16
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Quote:
Originally Posted by JohnnyC View Post
Ford has 'trade secrets?' Like how to barely survive bankruptcy and make boring mundane cars that people don't buy?
Quote:
Originally Posted by inthenameofweez View Post
This.

Ford does make exciting and good looking cars... just not in the US.

Not that I'd ever own a ford...
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Old 10-17-2009, 11:33 AM   #17
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Originally Posted by mbs627 View Post
No, just the one US auto manufacturer that isn't on life support.
Right, they are just going through plastic surgery trimming all the fat off. Not in the ICU like the others...
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Old 11-20-2009, 11:00 AM   #18
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Wow good thing they caught this guy!
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Old 11-20-2009, 11:39 AM   #19
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The next Chinese copy will be a ripped off F-150?
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Old 11-20-2009, 11:46 AM   #20
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Have any of you guys driven the 2010 Mustang, Flex, or Fusion? They are MILES ahead of anything coming out of China in terms of engineering or safety and are very attractive cars. I understand busting on Chrysler and GM....but you might want to take a second look at Ford's new products. They are nice.
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Old 11-20-2009, 01:43 PM   #21
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Originally Posted by Eyeflyistheeye View Post
They should have given the chinese plans to the 1997-2002 F150 that collapses like an accordion in crash tests
Seriously, I've been talking about doing something like that for years, planting documents that, if followed, would produce a horribly dangerous and unreliable product.

Quote:
Originally Posted by 2.5RSMatt View Post
Ha, Dong. Haha.
He'll be seeing plenty of it in prison. They'll slap a sailor moon wig on him and have him for desert.

Also, for any of you that have never had to deal with the Chinese in a business context, count yourselves lucky. Nobody cheats like the Chinese.

Last edited by KidCorporate; 11-20-2009 at 01:50 PM.
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