Chicago Jury Convicts Engineer for Stealing X-Ray Trade Secrets for Chinese Rival

A federal jury in Chicago convicted Chih-Yee Jen, 71, of conspiring to steal proprietary X-ray technology from Philips Medical Systems for a Chinese competitor.

Chicago Engineer Convicted of Stealing Philips X-Ray Secrets for China-Based Firm

A federal jury in Chicago convicted a 71-year-old former engineer of conspiring to steal trade secrets from Philips Medical Systems and transferring them to a Chinese competitor, DOJ Justice News reports.

Chih-Yee Jen, of Mequon, Wisconsin, worked at Philips' facility in Aurora, Illinois, where staff researched, developed, and manufactured X-ray tubes used in computed tomography (CT) medical imaging machines. Philips marketed the technology under its Dunlee brand after investing years in its development.

In 2017, as Philips prepared to close the Aurora facility, China-based Kunshan GuoLi Electronic Technology Co. Ltd. and one of its vice presidents, Xiaoqin Du, began reaching out to Jen about establishing a U.S. subsidiary to compete with Philips in the X-ray tube market. While still on Philips' payroll, Jen began sending confidential Philips documents to Kunshan GuoLi and Du. He also recruited several fellow Philips engineers to follow him to the new subsidiary. Jen copied proprietary X-ray trade secret data from internal Philips databases and used that material in developing technology for Kunshan GuoLi.

After a week-long trial, the jury found Jen guilty on both counts: conspiracy to steal, misappropriate, or possess trade secrets, and possession or attempted possession of stolen trade secrets. U.S. District Judge Edmond E. Chang scheduled Jen's sentencing for January 5, 2027.

Two other former Philips engineers have already admitted their roles in the scheme. Fince Tendian, 57, of Aurora, Illinois, and Vladimir Nevtonenko, 77, of Arlington Heights, Illinois, each pleaded guilty before trial to possessing stolen trade secrets. Judge Chang set Nevtonenko's sentencing for December 1 and Tendian's for December 8.

Du, 64, of Suzhou, China, along with Kunshan GuoLi and a related entity, Kunshan Yiyuan Medical Technology Co. Ltd., were also indicted. All three have been placed on the court's Fugitive Calendar and have not yet been arraigned.

U.S. Attorney Andrew S. Boutros for the Northern District of Illinois said the theft of proprietary information "harms American jobs and stifles critically important research and development driving the future of our nation," adding that his office would continue prosecuting trade secret cases to protect innovation and national economic security.

Roman Rozhavsky, assistant director of the FBI's Counterintelligence and Espionage Division, said Jen "acted at the expense of his U.S. employer by stealing closely guarded x-ray technology trade secrets for the benefit of a Chinese competitor." Rozhavsky added that protecting private sector companies remains a priority for the FBI and that the conviction "underscores our commitment to defend the homeland."

Assistant U.S. Attorneys Ramon Villalpando and Michael Maione for the Northern District of Illinois prosecuted the case.

Source: DOJ Justice News