A Chinese businessman was indicted for conspiring to steal trade secrets from General Electric worth millions of dollars.
The individual, 64-year-old Chi Lung Winsman Ng who resides in Hong Kong, conspired to steal secrets relating to the company’s silicon carbide MOSFET technology.
“As alleged in the indictment, Winsman Ng conspired to steal trade secrets from General Electric to start a competitor,” said Attorney for the United States, Elizabeth C. Coombe.
“Mr. Ng conspired to steal valuable and sensitive technology from GE and produce it in China,” Federal Bureau of Investigation Special Agent in Charge Thomas F. Relford added.
The Department of Justice (DOJ) indictment describes how Ng and “at least one co-conspirator plotted to develop a business” using General Electric’s technology:
The indictment alleges that between about March 2017 and January 2018, Ng and at least one co-conspirator plotted to develop a business that would manufacture and sell silicon carbide MOSFETs using trade secrets stolen from GE. MOSFETs, or silicon carbide metal-oxide semiconductor field-effect transistors, are small electronic semiconductors/switches that regulate the flow of electricity through devices and are used in a variety of products.
Ng conspired with at least one other person, a GE engineer of more than seven years, to steal MOSFET trade secrets and other proprietary information from GE. Ng and co-conspirator #1 allegedly used those trade secrets to create a business plan and develop PowerPoint presentations which they gave to prospective investors. Ng and co-conspirator #1 told potential investors that their business could be profitable within three years and that their start-up business possessed assets – tangible and intangible – they estimated to be worth $100 million. As part of the scheme, they sought approximately $30 million in funding in exchange for an ownership stake in their start-up company. In August 2017, Ng and co-conspirator #1 allegedly met in China and gave presentations to a Chinese investment company that was considering providing funding to Ng’s start-up company.
Ng faces up to 10 years in prison and a fine of up to $250,000.