US Engineers Admit to Stealing Trade Secrets
Two dual US citizens, who once worked as engineers in Southern California, have confessed to stealing trade secrets related to advanced national security technologies.
The Justice Department reported that a 59-year-old resident of San Jose has pleaded guilty to charges of trade secret theft, though he remains out on a hefty $1.75 million bond. A ruling from US District Judge John F. Walter is set for September 29, with prosecutors indicating that Gong could face a maximum sentence of 10 years.
In his plea agreement, Gong is referenced as having transferred over 3,600 files from the Los Angeles-area research company where he was employed briefly last year. Among these files were detailed blueprints for advanced infrared sensors intended for nuclear detection systems, which can identify missile launches and track various missile types. Some blueprints described sensors that could help US military aircraft counter heat-seeking missiles.
The complaint elaborated on how the stolen files contained critical information on design, methods, and testing processes, emphasizing the potential economic harm to the victim company and the risks to national security if the information fell into the wrong hands.
Gong’s actions reportedly led to intended economic damages exceeding $3.5 million. Much of the affected company’s work is tied to contracts with the US Department of Defense, highlighting the importance of the stolen data.
Hired in January 2023, Gong took on the role of an application-specific integrated circuit design manager, focusing on the development and verification of infrared sensors. Prosecutors claim that from late March to late April, Gong transferred thousands of files from his work laptop onto personal storage devices, with over 1,800 files moving after he had accepted a position with a competitor.
Many of these files held sensitive ownership details and information crucial to missile detection and tracking systems used by space-based platforms. Additionally, Gong is said to have stolen trade secrets about the development of innovative sensors capable of detecting low-visibility targets, a significant asset valued in the hundreds of millions.
Files were marked as unique and export-controlled, indicating their restricted use. The FBI executed a search warrant at Gong’s temporary home in Thousand Oaks, California, in early May 2023 and retrieved several of his digital devices. However, Gong reportedly could not provide information on two hard drives believed to hold the trade secrets down to his May 2023 FBI interview.
Initially entering the US in 1993, Gong became a US citizen in 2011. His academic credentials include a Master’s in Electrical Engineering from Clemson University and a PhD from Stanford University.
Furthermore, authorities highlighted that Gong sought involvement in a Chinese “talent program” while employed by notable US tech firms from 2014 to 2022. He had submitted business proposals aiming to develop high-performance analog-to-digital converters and military applications while working for a US IT company. In a 2020 application for the same program, Gong proposed creating low-light and night vision sensors for military and civilian use, leveraging designs from previous employers.
Gong reportedly traveled to China multiple times seeking funding for this program. His communications indicated an awareness of the risks involved due to his employment in the American military industry, coupled with aspirations to contribute to Chinese advancements. It raises a troubling dimension to what may unfold in the realm of national security and technology theft.
