Chinese Companies Indicted for Trade Secret Theft from Aurora Company

From the U.S. Attorney:

Federal Indictment in Chicago Charges Two Chinese Companies and Four Individuals With Conspiring To Unlawfully Possess Trade Secrets

CHICAGO — Two related Chinese companies conspired with former employees of an Illinois facility operated by Philips Medical Systems to unlawfully possess Philips’ trade secrets, according to an indictment returned in federal court in Chicago.

Philips owned and operated a facility in Aurora, Ill., that engaged in the research, development, and manufacture of X-ray tubes used in computed tomography (CT) medical imaging machines. 

The company spent years developing its proprietary X-ray technology and selling devices incorporating this proprietary technology to medical facilities. 

According to the indictment, China-based KUNSHAN GUOLI ELECTRONIC TECHNOLOGY CO. LTD. and a Kunshan GuoLi vice president, XIAOQIN DU, 63, of Suzhou, China, helped form a rival X-ray tube development company and headquartered it in Aurora. 

In 2017, Kunshan GuoLi and Du recruited and hired for the new company three engineers from Philips’ Aurora facility, CHIH-YEE JEN, 69, of Mequon, Wisc., FINCE TENDIAN, 56, of Aurora, Ill., and VLADIMIR NEVTONENKO, 76, of Arlington Heights, Ill.

The indictment alleges that before the end of his employment at Philips, Jen copied, without authorization, Philips’ X-ray trade secret information from internal Philips databases. 

Jen stole the proprietary information on behalf of Kunshan GuoLi and Du, the indictment states. 

Jen used the stolen information in connection with his work developing X-ray tubes at the rival X-ray tube development company for Kunshan GuoLi and a related Chinese company, KUNSHAN YIYUAN MEDICAL TECHNOLOGY CO. LTD., the indictment states. 

Jen then shared the information with Tendian, who used it in her work for the new company, the indictment states. 

Nevtonenko also allegedly possessed and used the stolen information in his work there.

The indictment charges the two Chinese companies and the four individuals with conspiracy to unlawfully possess trade secrets. 

Jen is also charged with an individual count of possession or attempted possession of a stolen trade secret.  Jen, Tendian, and Nevtonenko pleaded not guilty during their arraignments in federal court in Chicago. 

Arraignments for the companies have not yet been scheduled, and an arrest warrant has been issued for Du. 

A joint status report on the case will be submitted to U.S. District Judge Edmond E. Chang by March 31, 2025.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Kavitha Babu, Vikas Didwania, and Ramon Villalpando.

The public is reminded that an indictment is not evidence of guilt.  Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.