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Date: 01-04-2023
Case Style:
United States of America v. Xiaoqing Zheng
Case Number: 1:19-cr-00156
Judge: Mae A. D'Agostino
Court: United States District Court for the Northern District of New York (Onondaga County)
Plaintiff's Attorney: United States Attorney’s Office
Defendant's Attorney:
Description: Onondaga, New York criminal defense lawyer represented Defendant charged with conspiracy to commit economic espionage in violation of 18 U.S.C. 1831.
Xiaoqing Zheng, 59, of Niskayuna, New York, was convicted of conspiracy to commit economic espionage, following a four-week jury trial that ended on March 31, 2022. According to court documents, Zheng was employed at GE Power in Schenectady, New York, as an engineer specializing in turbine sealing technology. He worked at GE from 2008 until the summer of 2018. The trial evidence demonstrated that Zheng and others in China conspired to steal GE’s trade secrets surrounding GE’s ground-based and aviation-based turbine technologies, knowing or intending to benefit the PRC and one or more foreign instrumentalities, including China-based companies and universities that research, develop, and manufacture parts for turbines.
“This is a case of textbook economic espionage. Zheng exploited his position of trust, betrayed his employer and conspired with the government of China to steal innovative American technology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will hold accountable those who threaten our national security by conniving to steal valuable trade secrets on behalf of a foreign power.”
“Zheng sought to enrich himself, and benefit the People’s Republic of China, by stealing trade secrets developed and owned by his longtime employer, General Electric," said U.S. Attorney Carla B. Freedman for the Northern District of New York. "We will continue to work with the FBI to hold criminals accountable when they seek to illegally exploit American ingenuity.”
“American ingenuity is an integral part of the United States economic security – it is what has guided the U.S. to become the global leader, even as China seeks to topple our status,” said Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division. “Xiaoqing Zheng was a Thousand Talents Program member and willingly stole proprietary technology and sent it back to the PRC. Let today’s sentencing serve as a reminder that the FBI remains dedicated in our pursuit of those who collaborate with the People’s Republic of China (PRC) and steal American trade secrets.”
U.S. District Judge Mae A. D’Agostino also sentenced Zheng to pay a $7,500 fine and serve one year of post-imprisonment supervised release.
This case was investigated by the FBI, with assistance from the Buffalo Field Office of Homeland Security Investigations (HSI).
The case was prosecuted by Assistant U.S. Attorney Rick Belliss and former Assistant U.S. Attorney Emily Powers for the Northern District of New York, and Trial Attorney Matthew Chang of the National Security Division’s Counterintelligence and Export Control Section.
18 U.S.C. §1831. Economic espionage
(a) In General.—Whoever, intending or knowing that the offense will benefit any foreign government, foreign instrumentality, or foreign agent, knowingly—
(1) steals, or without authorization appropriates, takes, carries away, or conceals, or by fraud, artifice, or deception obtains a trade secret;
(2) without authorization copies, duplicates, sketches, draws, photographs, downloads, uploads, alters, destroys, photocopies, replicates, transmits, delivers, sends, mails, communicates, or conveys a trade secret;
(3) receives, buys, or possesses a trade secret, knowing the same to have been stolen or appropriated, obtained, or converted without authorization;
(4) attempts to commit any offense described in any of paragraphs (1) through (3); or
(5) conspires with one or more other persons to commit any offense described in any of paragraphs (1) through (3), and one or more of such persons do any act to effect the object of the conspiracy,
shall, except as provided in subsection (b), be fined not more than $500,000 or imprisoned not more than 15 years, or both.
(b) Organizations.—Any organization that commits any offense described in subsection (a) shall be fined not more than $10,000,000.
Outcome: The defendant was sentenced on Count 1s of the Superseding Indictment to the custody of the Bureau of Prisons to be imprisoned for a term of 24 months - the Court recommends to the BOP that the defendant be placed in a facility as close to the Capital District as possible; 1 year Supervised Release to follow, with standard and special conditions (the Court adopts the special conditions and makes them a part of this record); No Restitution; Fine of $7,500.00 (due within 90 days) - interest requirement waived; $100.00 Special Assessment; and Forfeiture pursuant to the preliminary order of forfeiture (The Court finds that the forfeiture order is appropriate, over the objection of the defense); The defendant is directed to surrender to the Bureau of Prisons, as designated by the US Marshal's Service, but will remain on supervision during the pendency of any appeal in this matter;
Plaintiff's Experts:
Defendant's Experts:
Comments: