Category Archives: cyber-spies

Ex-GM Engineer Arrested for Trying to Sell Hybrid Secrets to China

Man have heard of knockoff Chinese electronics clones of popular American products — from the iPod to laptop computers.  The largely underreported story is the role intellectual property theft plays in the creation of these products.  Often Chinese engineers directly steal designs which are used to produce cheap clones.

That issue has been brought under the microscope with the arrest of Shanshan Du, 51, and her husband, Yu Qin, 49, for attempting to steal hybrid trade secrets and sell them to China according to the Detroit News.

The bizarre story begins in 2000 when Du obtained a job working at General Motors.  Soon she became involved with hybrid vehicle efforts, and from 2003 to 2005 she collected thousands of pages of design documents and a wealth of computer files.  When she left GM in 2005, she focused on trying to sell the information on behalf of her Michigan startup Millennium Technology International, MTI, which she and her husband founded in 2000.

via DailyTech – Ex-GM Engineer Arrested for Trying to Sell Hybrid Secrets to China.


Former Boeing Engineer Charged with Economic Espionage in Theft of Space Shuttle Secrets for China

Former Boeing Engineer Charged with Economic Espionage in Theft of Space Shuttle Secrets for China

WASHINGTON, D.C. — A former Boeing engineer was arrested this morning after being indicted last week on charges of economic espionage and acting as an unregistered foreign agent of the People’s Republic of China (PRC), for whom the engineer stole Boeing trade secrets related to several aerospace programs, including the Space Shuttle.

Dongfan “Greg” Chung, 72, of Orange, Calif., who was employed by Rockwell International from 1973 until its defense and space unit was acquired by Boeing in 1996, was arrested without incident at his residence by special agents with the Federal Bureau of Investigation and investigators with NASA. Chung, who is expected to make his initial court appearance here this afternoon, was named in an indictment returned last Wednesday by a federal grand jury.

The indictment accuses Chung of eight counts of economic espionage, one count of conspiracy to commit economic espionage, one count of acting as an unregistered foreign agent without prior notification to the Attorney General, one count of obstruction of justice, and three counts of making false statements to FBI investigators.

“Certain foreign governments are committed to obtaining the American trade secrets that can advance the development of their military capabilities. Today’s case demonstrates that the Justice Department is equally committed to foiling those efforts through the arrest and prosecution of those who conduct economic espionage at the expense of our economic and national security,” said Assistant Attorney General for National Security, Kenneth L. Wainstein.

Chung, a native of China who is a naturalized United States citizen, held a Secret security clearance when he worked at Rockwell and Boeing on the Space Shuttle program. He retired from the company in 2002, but the next year he returned to Boeing as a contractor, a position he held until September 2006. The indictment alleges that he took and concealed Boeing trade secrets relating to the Space Shuttle, the C-17 military transport aircraft and the Delta IV rocket. Chung allegedly obtained the materials for the benefit of the PRC.

United States Attorney Thomas P. O’Brien stated: “Mr. Chung is accused of stealing restricted technology that had been developed over many years by engineers who were sworn to protect their work product because it represented trade secrets. Disclosure of this information to outside entities like the PRC would compromise our national security.”

via #08-106: 02-11-08 Former Boeing Engineer Charged with Economic Espionage in Theft of Space Shuttle Secrets for China.


Former Ford Engineer – and Chinese Spy – Draws 6-Year Sentence | TheDetroitBureau.com

Case underscores mounting problems with Chinese industrial espionage.

by  on Apr.14, 2011

A former Ford engineer will be spending as much as six years behind bars after being convicted of stealing trade secrets with the intent of selling them to the Chinese.

Xiang Dong Yu, arrested in October 2009, will also have to pay a $12,500 fine after pleading guilty to two felony counts in U.S. District Court.

The Ford case underscores growing concerns about Chinese industrial espionage – thought the outcome stands in sharp contrast to the spy scandal that embroiled French automaker Renault and has led to the ousting of five senior executives, including the maker’s chief operating officer.

The 49-year-old Yu worked at Ford from 1997 through 2007.  According to government prosecutors, he accepted another position with Beijing Automotive Industry Corp., in December 2006. But before notifying Ford – which routinely escorts employees out of the building once they take a competitive job – Yu copied at least 4,000 Ford documents onto an external hard drive.

The documents, some quite sensitive, covered a range of topics, including electric power supplies, engines and transmission systems.  In all, prosecutors claim, the stolen material was worth millions of dollars.

via Former Ford Engineer – and Chinese Spy – Draws 6-Year Sentence | TheDetroitBureau.com.


China Cyber Warrior – Video

101 East – takes us to China and looks into Chinese patriot hackers. In the US we go after our hackers and prosecute them in China they give them a future. We should re-think our ways of punishing the hacker community.  Anyway enjoy a very good expose about the Chinese mindset in cyber space.