Two Charged in Conspiracy to Steal GM Trade Secrets

Topics:  General Motors

U.S. Attorney’s Office, Eastern District of Michigan
July 22, 2010

A federal Indictment was unsealed today in Detroit charging two individuals with conspiracy to possess trade secrets without authorization, unauthorized possession of trade secrets, and wire fraud. One of the individuals was also charged with obstruction of justice, announced Barbara McQuade, United States Attorney for the Eastern District of Michigan. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge of the FBI.

Charged in the seven-count indictment are Yu Qin, aka Yu Chin, 49, and his wife, Shanshan Du, aka Shannon Du, 51, of Troy, Michigan.

According to the indictment, from December 2003 and continuing through May 2006, the defendants conspired to possess trade secret information of General Motors Company 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 GM trade secret information relating to hybrid vehicles to her husband, Qin, for his benefit and for the benefit of a company, Millennium Technology International Inc. (MTI), that the defendants owned and operated. Approximately five days after Du was offered a severance agreement by GM in January 2005, she copied thousands of GM documents, including trade secret documents, to an external computer hard drive used for MTI business. A few months later, Qin moved forward on a new business venture to provide hybrid vehicle technology to Chery Automobile, a Chinese automotive manufacturer based in China and a competitor of GM. The indictment further alleges that in May 2006, the defendants possessed GM trade secret information 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 defendant Qin discarded plastic bags containing shredded documents responsive to federal grand jury subpoenas seeking information relating to MTI and hybrid vehicles.

GM has been involved in the development and production of hybrid vehicles for over a decade and has invested many millions of dollars in the research and development of hybrid vehicles. Based on preliminary calculations, GM estimates that the value of the stolen GM documents is over $40 million.

U.S. Attorney McQuade said, “As our auto industry works to find new areas of innovation, such as hybrid technology, we will not tolerate the theft of our trade secrets from foreign competitors,” McQuade said. “ We will aggressively prosecute people who steal from the investment that our auto industry has made in research and development.”

Special Agent in Charge Arena said, “Michigan, as well as the rest of the United States, is significantly impacted by the auto industry. Theft of trade secrets is a threat to national security and investigating allegations involving theft of trade secrets is a priority for the FBI. The FBI will continue to aggressively pursue allegations involving the theft of trade secrets.”

The defendants will be appearing in federal court this afternoon at 1p.m. for arraignment.

The conspiracy to possess trade secrets without authorization count and each of the counts charging unauthorized possession of trade secrets carry a maximum penalty of 10 years’ imprisonment and a $250,000 fine. The wire fraud counts each carry a maximum penalty of 20 years’ imprisonment and a $250,000 fine. The obstruction of justice count carries a maximum penalty of 20 years’ imprisonment and a $250,000 fine.

An Indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

The indictment is the result of an investigation by the Federal Bureau of Investigation. This case is being prosecuted by Assistant U.S. Attorney Cathleen Corken.