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Ex-IBM Employee Guilty of Stealing Secrets For China (fortune.com)

An anonymous reader quotes Fortune: A former developer for IBM pled guilty on Friday to economic espionage and to stealing trade secrets related to a type of software known as a clustered file system, which IBM sells to customers around the world. Xu Jiaqiang stole the secrets during his stint at IBM from 2010 to 2014 "to benefit the National Health and Family Planning Commission of the People's Republic of China," according to the U.S. Justice Department. In a press release describing the criminal charges, the Justice Department also stated that Xu tried to sell secret IBM source code to undercover FBI agents posing as tech investors. (The agency does not explain if Xu's scheme to sell to tech investors was to benefit China or to line his own pockets).

Part of the sting involved Xu demonstrating the stolen software, which speeds computer performance by distributing works across multiple servers, on a sample network. The former employee acknowledged that others would know the software had been taken from IBM, but said he could create extra computer scripts to help mask its origins.

At one point 31-year-old Xu even showed undercover FBI agents the part of the source code that identified it as coming from IBM "as well as the date on which it had been copyrighted."

71 comments

  1. Sad that he didn't consider FOSS alternatives by Anonymous Coward · · Score: 0

    He could have just used Ceph and stayed out of jail.

    1. Re:Sad that he didn't consider FOSS alternatives by Joe_Dragon · · Score: 0

      but why let IBM SELL It's own shirty CEPH written by H1B's and you get layed off with no pay?

    2. Re:Sad that he didn't consider FOSS alternatives by jabuzz · · Score: 1

      Well apart from the fact that GPFS or Spectrum Scale as they like to call it these days is a couple of orders of magnitude better than CEPH.

      What puzzles me about this is that the licensing enforcement on GPFS is zero, nada none at all. You need a valid license to download the software but after that you just run mmlicense to say the node is licensed and bingo you are done. You could have purchased a couple of server license and be running 10 servers and 1000 nodes. It's not like the BSA can muscle their way into a Chinese government institution and demand to do a software audit. Sure you can't ring up IBM and get support but you can't do that with a hooky version complied from stolen source, and it's not like the GPFS source code is going to be easy to do self support on. It would likely be cheaper to just buy the support from IBM in the first place from the people who know and understand the code.

    3. Re:Sad that he didn't consider FOSS alternatives by Anonymous Coward · · Score: 0

      it's means it is, you sub-literate retard.

  2. China stealing trade secrets? by Anonymous Coward · · Score: 0

    Say it aint so!

  3. At least they didn't execute him by Anonymous Coward · · Score: 0

    China executes the spies it finds.

    1. Re: At least they didn't execute him by Anonymous Coward · · Score: 0

      And the west doesn't ?
      Grow up,fool..

    2. Re: At least they didn't execute him by WindBourne · · Score: 1

      No, the west does not execute spies.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    3. Re: At least they didn't execute him by d0rp · · Score: 1

      No, the west does not execute spies.

      That's not true; it just hasn't happened in a long time.

  4. Who cares? by nospam007 · · Score: 3

    China got what it wanted and this guy will spend a few years clothed, housed and fed by the taxpayer before retiring as a people's hero with a medal in China.

    1. Re:Who cares? by Anonymous Coward · · Score: 1

      China got what it wanted and this guy will spend a few years clothed, housed and fed by the taxpayer before retiring as a people's hero with a medal in China.

      Ideally it would be much longer than a few years. A sentence of 50 years or more would be ideal. That way we can warehouse this guy until the day when the Chinese have somebody that we want and then we can make a trade. This is why it's better not to execute spies when we catch them, you never know when they might come in handy to make a trade with a regime that otherwise might be disinclined to do a deal under any other circumstances. In fact, when they know that you gave their spy a bullet to the back of the head when you caught them, they might just return the favor tit-for-tat against your guy when the shoe is on the other foot.

    2. Re: Who cares? by Anonymous Coward · · Score: 0

      But they do not want to trade. They just steal what they want and still kill spies.

    3. Re: Who cares? by Anonymous Coward · · Score: 0

      China wouldn't trade for him, they consider him disposable

    4. Re: Who cares? by Anonymous Coward · · Score: 0

      Low level assets are at risk from a sides,including their own.
      High worth assets get treated differently,most you will never even hear a whisper about if the spooks etc can so arrange things..

  5. Re: but Russia is the enemy, right? by Anonymous Coward · · Score: 0

    Why would I trust anything written by the failing New York Times?

  6. The Chinese by Osgeld · · Score: 0, Troll

    Couldn't make a grilled cheese sandwich without copying it first, why am I not surprised

    1. Re:The Chinese by sit1963nz · · Score: 1

      Keep believing that, because one day very soon you will find the USA is lagging behind China, India, EU.

    2. Re: The Chinese by Osgeld · · Score: 1, Offtopic

      Ya ya ya been hearing that since I was a child

      Been to China and India on multiple occasions, nice place to visit... Couldn't pay me enough to live in either

    3. Re: The Chinese by sit1963nz · · Score: 2

      weird I feel the same way about the USA. However that does not change the facts, China will overtake the USA within the next decade.

    4. Re:The Chinese by drinkypoo · · Score: 0, Troll

      Keep believing that, because one day very soon you will find the USA is lagging behind China, India, EU.

      They've been saying that for decades. But they still shit in the street in India and most Chinese still live like peasants while whole cities sit empty because China won't let their people have things unless they are well-connected and pay all the right bribes. They have no meaningful consumer protection laws, you can be executed for cheating on your taxes, and the nail that sticks up gets hammered down. This is not an environment that rewards creativity. That's probably also why a larger percentage of China's "scientific" papers are fakes than anyone else's.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    5. Re: The Chinese by Dr.Saeuerlich · · Score: 3, Interesting

      I hope they're paying you for this and you don't really believe what you say. The US may not be doing great, but when it comes to healthcare, pensions, social security, civil liberties, equality, sustainability, workers rights, corruption, China is so far behind in the middle ages, it isn't even a contest.
      That's why you see so many white elephants in China. It's much easier to pour concrete into awesome projects with high visibility, where people take home half the project budget in kickbacks. Changing the social and civil fabric of a society much more difficult than building some glitzy skyscrapers.

    6. Re:The Chinese by Anonymous Coward · · Score: 0

      China

      Alas, we're not number one in air pollution.

      India

      Or shitting in the street.

      EU

      Or being afraid of the fallen "power" of Russia. We're close to taking that title back, though!

    7. Re: The Chinese by sit1963nz · · Score: 5, Informative

      When it comes to those things, the USA is also way behind the rest of the civilised world. Parts of US cities, e.g. Detroit are basically abandoned, over 10 years after Katrina things are still not rebuilt. US "voter registration" laws in different states are there to block peoples right to vote. What you call corruption, others call "lobbying". Many schools are run down in the USA, and need armed guards to try and make them safe, and you still have school shootings. You have the highest prison population in the world (per 100,000) by a large margin Workers rights are not great in the USA compared to other countries. Your serious crime, murder, rape rates are higher than other 1st world countries. The USA, when compared to the rest of the 1st world does not fare that well at all.

    8. Re: The Chinese by Anonymous Coward · · Score: 0

      When you compare American whites with European countries the USA is equal to or better than Europe. Compare Apples to Apples, not Apples to Apples covered with feces.

      The USA has a lot more minorities than the rest of "the 1st world" (read: white countries) so just wait until Merkel sends in a few million more refugees. You'll get there soon enough.

    9. Re: The Chinese by Anonymous Coward · · Score: 0

      you are a fucking cuck

    10. Re: The Chinese by Anonymous Coward · · Score: 0

      s/ck$/nt/

    11. Re: The Chinese by Trailer+Trash · · Score: 0, Offtopic

      When it comes to those things, the USA is also way behind the rest of the civilised world.

      US "voter registration" laws in different states are there to block peoples right to vote.
      The USA, when compared to the rest of the 1st world does not fare that well at all.

      Uh, you do realize that in most of the civilized world what you derisively call "voter registration" laws are the norm, right? The only way the USA is behind the civilized world in that regard is that we have idiots trying to claim that requiring an ID to vote disenfranchises people. Admittedly, it *does* disenfranchise the dead people who tend to vote D, but maybe we don't need their votes.

    12. Re: The Chinese by gatkinso · · Score: 1, Interesting

      What does that even mean, aside from some esoteric numbers on graphs and metrics that put people to sleep?

      Culturally, the Chinese will never over take the US - it will be a cold day in hell when US or EU kids wake up and think a Chinese app is the next big thing.

      --
      I am very small, utmostly microscopic.
    13. Re: The Chinese by Anonymous Coward · · Score: 0

      Right on. A lot of minorities ride the white's coattails in the US.

    14. Re: The Chinese by Anonymous Coward · · Score: 0

      You are a fool if you would rather live your life and have your children and your family live their lives in India or China, vs the US or any Western Nation.

    15. Re: The Chinese by Anonymous Coward · · Score: 0

      It's more complicated than that, but still not more defensible.

      Chicago, New York City, and the duality of Los Angeles and San Fransisco are major population centers, and by all census data have enough population to overwhelm the rest of their states. Even if the census data is partially fictitious, those cities still would house enough legal voters to outweigh most of the rest of their states.

      However, (and this mostly comes from observing Chicago and reading similar public behavior from the rest I listed) the majority of the legal, documented citizenry of those cities does not want to take the time to vote, they just want to have dinner parties and complain about republicans. So they don't mind all the local voter fraud because they agree with the results. The homeless doing the bulk of the multi-voting get some cash and cigarettes for it, so they like the process. The local government gets voted back in with 180% approval, so they like what's happening.

      If you force them to implement voter registration, that ruins the system they have become accustomed to. If the population does not adapt immediately, the hosting states would have a sudden and significant change in electoral tendency, among many local issues.

    16. Re: The Chinese by Anonymous Coward · · Score: 0

      Been to...India on multiple occasions, nice place to visit...

      multiple people who been to india all said it was a shithole...

      FTFY

      where did you go that's good?

    17. Re: The Chinese by Anonymous Coward · · Score: 0

      "where did you go that's good?"

      The airport on the way back!

    18. Re: The Chinese by luis_a_espinal · · Score: 1

      When you compare American whites with European countries the USA is equal to or better than Europe. Compare Apples to Apples, not Apples to Apples covered with feces.

      The USA has a lot more minorities than the rest of "the 1st world" (read: white countries) so just wait until Merkel sends in a few million more refugees. You'll get there soon enough.

      I can take you on a trip through the Rust Belt or the Appalachians to disabuse you of of that notion.

    19. Re: The Chinese by sit1963nz · · Score: 1

      Like the Aliexpress/alibaba App ?

      I use lots of Chinese made stuff , buy in thousands a year for both work and personally, as do other people I know.

      So feel free to go back to sleep because one day you are going to wake and find that you were wrong.

    20. Re: The Chinese by Anonymous Coward · · Score: 0

      Voter registration has nothing to do with keeping legal people from voting. If people are okay with showing an ID to use their credit cards and sign up for their TV services, they should be fine with showing an ID to VOTE FOR THE MOST IMPORTANT OFFICES IN THE ENTIRE COUNTRY!

  7. Disappointed in Trump by Anonymous Coward · · Score: 0

    China is our enemy. This proves that they are our enemy. Trump should have labeled China as the currency manipulators that they are. That would go a long way to solving problems like this.

    1. Re: Disappointed in Trump by Anonymous Coward · · Score: 0

      They stopped manipulating their currency. For now.

      Trump needs to focus on a couple enemies at a time. He is attacked on all sides from other countries and from treasonous and confused leftists. There is no solution to the leftists, but the international affairs can be solved, and must be.

    2. Re:Disappointed in Trump by Anonymous Coward · · Score: 1

      Anyone who is surprised that Donald Trump is putting anyone but Donald Trump first, second, third, and fourth, has deliberately ignored his past history. What evidence did he ever present that he was really going to act other than the same way he always had in the past, other than he gave his word that he would? His word and name that, incidentally, have been used to hawk all sorts of things ranging from badly overpriced to outright snake oil?

      And that's not to say that you can't decide that his tendency to find any and every way to enrich himself, even at the expense of investors, suppliers, etc, still wasn't as bad as what you felt his opponent would bring - just don't kid yourself about who he is, and who he always has been.

    3. Re: Disappointed in Trump by Anonymous Coward · · Score: 0

      You forgot the treasonous and confused rightists who also want him gone. How many factions? Pence, Bannon, Priebus, Munchkin, Ryan, Rubio, McCain, basically everyone except his family and they're not certain. Maybe not Bannon, he'd be kicked out the minute Trump went.

    4. Re:Disappointed in Trump by Anonymous Coward · · Score: 1

      Name a country that ISN'T a currency manipulator these days. All are hell-bent on devaluing their currency for the sake of exports and it's a full-on race to the bottom, with the citizens breaking the landing of the fiat chariot.

  8. IBM by Anonymous Coward · · Score: 0

    They are working for us now? So the Nazis weren't paying enough or did they just jump ship when the found out Hitler wasn't going to win. IBM we will never forget who's side you were in in WW2.

    1. Re:IBM by Anonymous Coward · · Score: 0

      Well Schlomo, that's one good reason to buy IBM!

  9. Re:but Russia is the enemy, right? by Anonymous Coward · · Score: 0

    god damn you are a fucking retard

  10. Re: but Russia is the enemy, right? by Anonymous Coward · · Score: 0

    Got it, no Russians.

  11. After 20+ quarters of falling revenue... by Anonymous Coward · · Score: 2, Insightful

    ...The real news here should that IBM has (or had) something worth stealing!

    1. Re:After 20+ quarters of falling revenue... by Anonymous Coward · · Score: 0

      Since when does a corporation's profits have anything to do with the quality of its products?

  12. What about VMware? by Anonymous Coward · · Score: 0

    VMware/EMC/Dell (who owns VMware now - Dell), fired all of it's developers in the USA and hired Chinese replacements in China.
    Had the USA workers train their Chinese replacements.

    Nothing ever came out of that...but I refuse to use VMware anymore.

    1. Re: What about VMware? by bestweasel · · Score: 1

      Is that what they call virtual signalling?

  13. Drop in the bucket by Anonymous Coward · · Score: 0

    All of the software coming out of China in telecommunications gear has been stolen and used down to the typographical errors and misspellings in the output.

  14. open source is the answer by Anonymous Coward · · Score: 0

    only love can conquer hate

  15. The Chinese Stealing to be ahead. by Anonymous Coward · · Score: 0

    Steal enough and anyone can be "ahead".

  16. Response in kind? by Anonymous Coward · · Score: 0

    So in China, they SHOT any US agents/spies they caught? And this guy? He'll get 20 years, maybe, and an internet connection so he can carry on.

  17. DIVERSITY by Anonymous Coward · · Score: 0

    BUT DIVERSITY!!!!!!!

    1. Re:DIVERSITY by Anonymous Coward · · Score: 0

      Chinese people are too well educated and don't commit any crimes (besides espionage) so they are considered white from a sjw perspective.

    2. Re:DIVERSITY by Anonymous Coward · · Score: 0

      retard

  18. Was it worth the risk? by jgfenix · · Score: 1

    "Part of the sting involved Xu demonstrating the stolen software, which speeds computer performance by distributing works across multiple servers, on a sample network. " This has been done for years.

  19. You have to look in the right places by SuperKendall · · Score: 1, Troll

    When it comes to those things, the USA is also way behind the rest of the civilised world.

    You can find examples where that is true - as you mentioned Detroit, and places like Chicago or New York.

    But not every place in the U.S. is run solely by Democrats. Across most of the rest of the country, the people are better balanced, the corruption FAR less than pretty much any place in Europe (not sure what else you might mean by First World that would be any better).

    Many schools are run down in the USA, and need armed guards to try and make them safe

    Again, not many, just some in the inner cities that are - again - run my Democrats. Other places in the U.S. manage to integrate children of different races without issue.

    The USA, when compared to the rest of the 1st world does not fare that well at all.

    Only if you do not separate out where the times occur, and to who... something forbidden in todays PC climate. But you can find that data if you REALLY want to know the truth. I have a feeling it is not the truth you seek however.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:You have to look in the right places by Anonymous Coward · · Score: 0

      idiot

    2. Re:You have to look in the right places by Anonymous Coward · · Score: 0

      And there it is Supercunt lying again.
      Your country is primitive, and the most primitive of all are the red states, theres a reason smart people call them flyover, meanwhile those nasty democrats have to subsidise the inbred hicks of the other states.
      Your lies are getting more pathetic than each time, though that is hard to believe.

    3. Re:You have to look in the right places by Anonymous Coward · · Score: 0

      Actually NYC is quite nice these days after about 20 years of Republican mayors cleaning up the place and driving out bums (both literal and figurative), although DeBlasio is doing what he can to backslide to the 80s.

  20. So let's not hire them by Anonymous Coward · · Score: 0

    Heard so many of these stories over the years that it really makes me wonder, why the hell would any big company want to hire any Chinese. I'm sure people from other cultural backgrounds do espionage too, but for the Chinese it seems to be a national sport.

    1. Re: So let's not hire them by Anonymous Coward · · Score: 0

      Because that would be discrimination. There are laws against that.

    2. Re: So let's not hire them by Anonymous Coward · · Score: 0

      DIVERSITY!!!!

    3. Re:So let's not hire them by Anonymous Coward · · Score: 0

      Because global companies are not American, or Chinese, or European.

  21. H1-B by lucaiaco · · Score: 1

    Was he an H1-B visa holder? I wouldn't be surprised.

  22. SOOL: No President Trump by Anonymous Coward · · Score: 0

    Unlucky dude: Trump was not in office in those days... And on top of that this dude did not spy for the Russians.

  23. Why is the FBI wasting its time on this by hackel · · Score: 1

    This should be a *civil* case. Why are the FBI and the Justice Department wasting their time on this? It's not the government's job to enforce these companies' ridiculous proprietary, closed-source license agreements.

    1. Re:Why is the FBI wasting its time on this by Anonymous Coward · · Score: 0

      Industrial espionage resulting in theft of trade secrets has nothng to do with 'license agreements', dipshit

    2. Re:Why is the FBI wasting its time on this by Anonymous Coward · · Score: 0

      If you say so, Stallman.