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Wednesday, 28 October 2009

Ex-Ford engineer stole secrets to job-hunt

An engineer who formerly worked at the US-based Ford Motor company has been accused of stealing secrets from his former employer by downloading it into a USB drive, and then using it to look for a new job in China.

Xiang Dong Yu, also known as Mike Yu, was arrested on October 14 in Chicago’s O’Hare Airport on his return from a trip to China, according to a report published by the Associated Press. The 47 year-old Yu is charged with theft, attempted theft of trade secrets, and unauthorized access to a computer.

Around December 2006, he allegedly copied design details on doors, mirrors, steering wheel assemblies, power systems, wipers, among other components, of cars manufactured by Ford. The information totalled 4,000 documents. Less than a month later, he quit Ford to work for a company in Shenzhen. He used the information again in the spring of 2008, when he was hunting for another job in China.

He sought employment with China’s Shanghai Automotive Industry Corporation using these secrets. Eventually, he was hired by Beijing Automotive Corporation, according to a Bloomberg report.

A spokeswoman from the FBI said the case began with a referral from Ford. Ford said it is aware of the case, and is cooperating with authorities, but declined to comment further.

“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,” said US Attorney Terrence Berg.

The maximum penalty for Yu’s offenses is 45 years in jail and US$1.25 million in fines.

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