Former GM Engineer, Husband Indicted for Trying to Sell Trade Secrets to Chery
By Scott Doggett July 26, 2010
Feds say they don't believe the Chinese carmaker benefited from the stolen hybrid technology.
By Scott Doggett, Contributing Editor
When it comes to industrial espionage, it used to be that America's intelligence agencies primarily feared Russian and Chinese spies (Industrial espionage.doc). Today, they see a much greater threat in crooked insiders.
Among the latest in a long list of allegedly crooked insiders accused of stealing a company's valuable trade secrets are former General Motors engineer Shannon Du, 51, and her husband, Yu Qin, 49, both U.S. citizens.
The Troy, Michigan, couple was charged in a seven-count indictment in federal court in Detroit last week for, among other things, conspiring to steal secrets from GM relating to hybrid technology and sell those secrets - worth on estimated $40 million - to Chinese automaker Chery Automobile.
According to the indictment, from December 2003 and continuing through May 2006, the couple conspired to possess GM trade secrets relating to hybrid vehicles, knowing that the information had been stolen, converted or obtained without authorization.
The indictment alleges that Du, while employed with GM, provided those trade secrets to her husband for his benefit and for the benefit of a company, Millennium Technology International Inc., that the defendants owned and operated.
Approximately five days after Du was offered a severance agreement by GM in January 2005, she allegedly copied thousands of GM documents, including many containing trade secrets, to an external computer hard drive used for MTI business.
A few months later, Qin allegedly moved forward on a new business venture to provide hybrid vehicle technology to Chery Automobile, a competitor of GM in China.
The indictment further alleges that in May 2006, the defendants possessed GM trade secrets without authorization on several computer and electronic devices located in their residence.
The indictment also charges that on May 23, 2006, the defendants drove to a Dumpster behind a grocery store where Qin discarded plastic bags containing shredded documents "responsive to federal grand jury subpoenas seeking information relating to MTI and hybrid vehicles."
Or put another way, he allegedly tried to destroy evidence that could be used against him and wife. The FBI claims agents had been tailing the couple at the time and retrieved the documents from the Dumpster.
According to the indictment, as a result of the Dumpster incident the couple was charged in 2006 with destroying documents sought by investigators. However, that case that was soon dropped while a broader probe was pursued.
The FBI developed its case against the pair and last Thursday moved in and arrested them. The defendants waived a reading of the indictment and non-guilty pleas were entered for them during a court appearance the same day.
If convicted, they could spend a maximum of 20 years in prison.
Outside court, Assistant U.S. Attorney Cathleen Corken said there's no indication the Chinese automaker benefited from the alleged thefts.
In a statement, Andrew Arena, who heads the FBI's office in Detroit, said "theft of trade secrets is a threat to national security."
Du's attorney, Robert Morgan, declined to comment. Qin's attorney, Frank Eaman, said he was "completely surprised" by the indictment, adding that he figured the FBI would have charged the couple a long time ago if it had evidence to support the charges.
Corken said GM learned about the alleged theft and notified the FBI. The automaker later estimated the value of the stolen information at $40 million.
Du and Qin are free on bond pending trial, although a judge has restricted their movements to the Detroit area.
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