{"id":53166,"date":"2023-05-16T12:07:01","date_gmt":"2023-05-16T19:07:01","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=53166"},"modified":"2023-05-16T12:07:01","modified_gmt":"2023-05-16T19:07:01","slug":"california-man-arrested-for-allegedly-stealing-sensitive-software-from-u-s-employers-to-build-a-competing-business-in-china","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=53166","title":{"rendered":"California Man Arrested for Allegedly Stealing Sensitive Software from U.S. Employers to Build a Competing Business in China"},"content":{"rendered":"<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0 <strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 LOS ANGELES\u00a0<\/strong><\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3918 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice.png 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>An Inland Empire man was arrested for allegedly stealing sensitive technologies from his Southern California-based employers, officials stated.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">According to authorities, Liming Li allegedly used the stolen technology to market his competing company to businesses in the People\u2019s Republic of China.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0Li, 64, of Rancho Cucamonga, is charged with theft of trade secrets. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">Li was arrested at Ontario International Airport on May 6 after arriving on a flight from Taiwan. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">Since his arrest, Li has been in federal custody.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cLi stole thousands of files of sensitive technology that did not belong to him and used it to help foreign companies build competing technology \u2013 technology that could be used in the manufacture of nuclear submarines and military aircraft,\u201d said United States Attorney Martin Estrada. \u201cProtecting our nation\u2019s national security is paramount, and my office will aggressively investigate and prosecute those who misappropriate sensitive intellectual property to the benefit of foreign actors.\u201d<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The case against Li was brought under the auspices of the Disruptive Technology Strike Force, which is co-led by the Departments of Justice and Commerce. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\"><a href=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/05\/fgh69mi53mw-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-53168 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/05\/fgh69mi53mw-1-300x200.jpg\" alt=\"brown padlock on black computer keyboard\" width=\"300\" height=\"200\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/05\/fgh69mi53mw-1-300x200.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/05\/fgh69mi53mw-1-1024x683.jpg 1024w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/05\/fgh69mi53mw-1-768x512.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/05\/fgh69mi53mw-1-1536x1024.jpg 1536w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/05\/fgh69mi53mw-1.jpg 1600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>The Strike Force seeks to counter efforts by hostile nation-states to illicitly acquire sensitive U.S. technology to advance their authoritarian regimes and facilitate human rights abuses. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">The case against Li is one of\u00a0<a href=\"https:\/\/www.justice.gov\/opa\/pr\/justice-department-announces-five-cases-part-recently-launched-disruptive-technology-strike\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">five announced this morning<\/a> at a news conference at the Department of Justice. O<\/span><span style=\"font-size: 20px; font-family: helvetica;\">fficials detailed cases against defendants accused of crimes that include export violations, smuggling, and theft of trade secrets.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 According to an affidavit filed with the complaint filed in Los Angeles, from 1996 to November 2019, Li worked in various engineering, management and software development roles for two companies in Southern California. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-6328 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/FBI-Logo-300x225.jpg\" alt=\"\" width=\"300\" height=\"225\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/FBI-Logo-300x225.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/FBI-Logo-45x35.jpg 45w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/FBI-Logo.jpg 534w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>The companies are identified in court documents as \u201cCompany #1\u201d and \u201cCompany #2.\u201d<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">These software programs are related to high-precision measurement studies interpretation and point cloud technology, often used in 3D models. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">They can be used in various sensitive manufacturing contexts, including parts for nuclear submarines and military aircraft, and are subject to United States export controls for national security, nuclear nonproliferation, and anti-terrorism. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">As a result of its military application, federal law mandates that this software cannot be exported to China without a license from the Department of Commerce.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Li worked for Company #1 from 1996 to 2018 and then worked at Company #2 from 2018 until November 2019. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">Shortly before beginning his employment with Company #2, Li and his wife established their own business, JSL Innovations, which was based out of their Rancho Cucamonga home.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 After Company #2 terminated Li, company security discovered that Li was using his company-issued laptop to attempt to download files from Company #2\u2019s root directory onto his personal external hard drive, according to the complaint affidavit. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">Company security searched Li\u2019s company-issued laptop and found a folder labeled \u201cChinaGovernment.\u201d <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">That folder allegedly contained numerous documents showing Li\u2019s efforts to participate in the PRC\u2019s Thousand Talents Program and to use JSL Innovations to provide services and technology to PRC business and government entities related to the export-controlled and trade secret technology Li took from his former employers in Southern California.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In March 2020, Li entered into an agreement with a PRC-based manufacturing company to serve as its chief technology officer. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">Li\u2019s agreement with this employer required him to spend at least six months per year in the PRC.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">Six months later, FBI agents executed a search warrant at LI\u2019s home and found numerous digital devices containing millions of files belonging to Company #1 and Company #2 and containing the source code for those companies\u2019 proprietary software, the complaint alleges. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">Although the source code files had been developed by and belonged to these companies, some of the files had been moved into folders labeled \u201cJSL\u201d or \u201cJSL Projects.\u201d<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Both Company #1 and Company #2 derive significant value from the secrecy of <\/span><span style=\"font-size: 20px; font-family: helvetica;\">their proprietary software source code and take extensive steps to protect the source code from discovery by competitors.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All defendants are presumed innocent unless proven guilty.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If convicted, Li faces up to10 years in federal prison.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI is investigating this matter.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorneys Solomon Kim of the Terrorism and Export Crimes Section; David Ryan, Chief of the Terrorism and Export Crimes Section; Aaron Frumkin of the Cyber and Intellectual Property Crime Section; and Trial Attorney Stephen Marzen of the Justice Department\u2019s National Security Division\u2019s Counterintelligence and Export Control Section are prosecuting the case.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">. It is designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. <\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: helvetica;\">Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.<\/span><\/p>\n<p class=\"yiv7650927256MsoNormal\" style=\"text-align: center;\">\n<p style=\"text-align: center;\">\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 LOS ANGELES\u00a0 An Inland Empire man was arrested for allegedly stealing sensitive technologies from his Southern California-based employers, officials stated. According to authorities, Liming Li allegedly&#8230;<\/p>\n","protected":false},"author":1,"featured_media":53167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3255],"tags":[],"class_list":["post-53166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>California Man Arrested for Allegedly Stealing Sensitive Software from U.S. Employers to Build a Competing Business in China<\/title>\n<meta name=\"description\" content=\"\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 LOS ANGELES\u00a0 An Inland Empire man was arrested for allegedly stealing sensitive technologies from his Southern California-based employers,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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