US charges six Chinese citizens with economic espionage

Six Chinese nationals, including three university professors, were charged with economic espionage in a US indictment unsealed today alleging the theft of technology used in mobile phones for Beijing's benefit.
According to a 32-count indictment, the six led a long-running effort to obtain US trade secrets for universities and companies controlled by the Chinese government.
Among those charged were Tianjin University professor Hao Zhang, who was arrested upon entry into the United States on Saturday, the US Justice Department said in a statement.
Five others named in the indictment were believed to be in China, according to a Justice Department official who noted that this is the 11th case brought for economic espionage under a 1996 law.

All could face lengthy prison sentences if convicted. The charges they face include economic espionage, theft of trade secrets and various conspiracy counts. Each carries penalties that could include 10-15 years in prison plus fines.
The scheme led to the theft of so-called FBAR technology, which enables mobile phones and other devices to filter radio signals and improve performance, according to the Justice Department.

"As today's case demonstrates, sensitive technology developed by US companies in Silicon Valley and throughout California continues to be vulnerable to coordinated and complex efforts sponsored by foreign governments to steal that technology," said federal prosecutor Melinda Haag.

FBI San Francisco agent in charge David Johnson said the scheme was "a methodical and relentless effort by foreign interests to obtain and exploit sensitive and valuable US technology through the use of individuals operating within the United States."
In a scheme that allegedly dates back to 2006, the six are accused of working to steal trade secrets from California-based Avago Technologies and Massachusetts-based Skyworks Solutions.
A shell company called Novana was created in the Cayman Islands but led by the Chinese academics and Tianjin University, with Chinese government support, to manufacture rival technology products, according to US investigators.
The Chinese company, called ROFS Microsystems, used technology stolen from the US firms, according to US officials.