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Former Employee Stole Ford Secrets Worth $50 Million

chicksdaddy writes "A ten year veteran of US automaker Ford pleaded guilty in federal court on November 17 to charges that he stole company secrets, including design documents, valued at between $50 million and $100 million, and shared them with his new employer: the Chinese division of a US rival of Ford's. Xiang Dong ('Mike') Yu admitted to copying some 4,000 Ford Documents to an external hard drive, including design specifications for key components of Ford automobiles, after surreptitiously taking a job with a China-based competitor in 2006. Yu, who took a job for Beijing Automotive Company in 2008, was arrested during a stopover at Chicago in October, 2009. The FBI seized his Beijing Automotive-issued laptop, and an analysis found 41 stolen Ford specification documents on the hard drive. He faces five to six years in prison and a $150,000 fine (PDF)."

14 of 236 comments (clear)

  1. Re:Wake up, people. by toastar · · Score: 5, Informative

    Good. And before we judge if that seems too harsh a punishment, I would ask if anyone knows what the Chinese government would do to an American engineer who did the same thing to a Chinese company.

    8 years

    http://www.foxnews.com/world/2010/07/04/chinese-court-sentences-geologist-tortured-state-security-agents-years-jail-1624851947/

  2. Re:Does this mean all the Chinese cars are going t by whoever57 · · Score: 2, Informative

    have bad power steering pumps and short life torque converters from now on?

    or V6 engines that die prematurely due to head gasket failure?

    --
    The real "Libtards" are the Libertarians!
  3. Re:Wake up, people. by Nursie · · Score: 2, Informative

    I would ask if anyone knows what the Chinese government would do to an American engineer who did the same thing to a Chinese company.

    FTFS - "Chinese division of a US rival of Ford's."

    Sounds like american companies doing it to each other, to me.

  4. Re:Why by Oxford_Comma_Lover · · Score: 2, Informative

    > It's not theft. It's breach of trust.

    According to the press release (also linked above), it's theft of trade secrets:

    http://www.justice.gov/usao/mie/press/2010/2010-11-17_xyu.pdf

    I assume it's also a breach of his employment contract. (Which would be relevant to a civil case by Ford against him.)

    --
    -- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
  5. Re:Does this mean all the Chinese cars are going t by phantomfive · · Score: 3, Informative

    Ford's been doing better. Over the last decade, they've built up some engineer teams in Europe (is it flamebait to say they are better because they are away from US unions?) who really are doing top notch work. The Fusion, for example, ranked #1 in its category for reliability. The Mustang has 300 horsepower at 30 MPG. I own a Honda, but if Ford continues the direction they're going, my next car may well be a Ford. Now if only they would do something about that horrid logo.....

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    Qxe4
  6. Re:Wake up, people. by magarity · · Score: 3, Informative

    "Chinese division of a US rival of Ford's."

    Sounds like american companies doing it to each other, to me.

    All the manufacturing companies in China must be majority owned by a local Chinese company which is owned by Chinese citizens. So it may be a joint venture partnership "division" of a US rival who owns a large chunk, but no, it is not just two US companies involved.

  7. Re:Why by SydShamino · · Score: 4, Informative

    When trade secrets are involved it's called theft, not copyright infringement.

    "Theft" is when the original owner is deprived by the action. In this case, the trade secrets were stolen, because the original owner was deprived of the secret (as its not secret any more).

    --
    It doesn't hurt to be nice.
  8. Re:Why by afidel · · Score: 3, Informative

    The U.S. Economic Espionage Act of 1996, which became effective on January 1, 1997, makes theft or misappropriation of trade secrets a federal crime.

    --
    There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  9. Re:Does this mean all the Chinese cars are going t by whoever57 · · Score: 2, Informative

    Head gaskets are called engine failure now?

    When the head gasket failure results in large quantities of coolant going into the oil followed by rapid failure of the main bearings, yes. You will see from the linked page that the repair bills from these failed head gaskets could be up to $4000. It was a common problem on Ford V6s built during the '90s.

    --
    The real "Libtards" are the Libertarians!
  10. Re:In short.... by afidel · · Score: 2, Informative

    Let's see 1997 Taurus 225k miles, 2001 Taurus 250k miles, 2001 Sable only 185k miles so far. Of course the common thread is all three had the Duratec V6, one of the best engines ever made. It helps to do your homework =)

    --
    There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  11. Re:Wake up, people. by wvmarle · · Score: 5, Informative

    Maybe not american, still accusation is theft of state secrets: 10 years prison.

    http://www.theaustralian.com.au/business/mining-energy/rio-tintos-stern-hu-jailed-10-years/story-e6frg9df-1225847088979

  12. Re:Wake up, people. by Anonymous Coward · · Score: 2, Informative

    Probably... but it would hurt less....

  13. I have reason to believe by The+Hatchet · · Score: 2, Informative

    That Ford and its competitors have stolen significantly more information than that from independent inventors, small firms, employees, etc. Call it stealing or not, but making millions-billions on others work is immoral and stealing in my book, even if you make them sign something to let you.

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    Where is the mod rating for "scary"? Also, ...
  14. Re:Was this an H1-B employee by any chance? by EricWright · · Score: 2, Informative

    Wow, put away your xenophobia for 5 minutes to RTFA. He was a naturalized US Citizen who completed his doctorate at UChicago.