AOH :: IS1968.HTM

Chinese National Arrested For Source Code Theft

Chinese National Arrested For Source Code Theft
Chinese National Arrested For Source Code Theft 

By Thomas Claburn
April 14, 2009 

A Chinese citizen on a work visa in the United States was arrested by 
the FBI last week for allegedly revealing proprietary software code 
owned by his unidentified U.S. employer to a Chinese government agency.

Yan Zhu, 31, of Lodi, N.J. -- also known as "Westerly Zhu" -- was 
arrested on charges of theft of trade secrets, conspiracy, wire fraud, 
and theft of honest services fraud.

"Crimes of this nature do not get much public attention," FBI Special 
Agent in Charge Weysan Dun said in a statement. "No one is shot, there 
is no crime scene, no prominent public figures are involved. However, 
this is an act of economic violence -- a paper crime that robs the 
victim company of the resources they expended to develop a product."

Dun said that white-collar crimes of this sort are clearly dangerous to 
America's economic infrastructure. "If American dollars are spent on 
research and development of a product, and then that product or research 
is taken without any compensation to American companies, the value of 
American companies and American products is significantly reduced in the 
global marketplace," he said.

David Schafer, the assistant federal public defender representing Zhu, 
declined to comment or to identify Zhu's former U.S. employer.


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