Chinese battery expert is charged with stealing trade secrets from US employer
beta.scmp.com
beta.scmp.com
> On 12/12/2018 at approximately 10:30 a.m., Tan contacted his supervisor, advised he was resigning from Company A, and gave his two weeks' notice. Tan told his supervisor that he was returning to China to be with his family as he is the only child to aging parents. Tan told his supervisor that he did not currently have a job offer, but was negotiating with a few battery companies in China.
> Tan's resignation prompted Company A to revoke his access to company systems, and conduct a Systems Access review of Tan's computer activity.
> That review confirmed that Tan had accessed hundreds of files, including research reports. The reports included not only how to make Product A, which, according to Company A, is a complicated and technically difficult process, but also Company A's plans for marketing Product A in China and in cell phone and lithium-based battery systems. These files included information that Company A considers to be trade secrets and outside the scope of Tan's employment with Company A. The review revealed Tan downloaded restricted files to a personal thumb drive. In the course of his regular duties and responsibilities, Tan should have used his company issued laptop. Tan did not have authorization to use a thumb drive to download Company A files. Tan's supervisor confirmed that nothing in the downloaded files was within Tan's area of responsibility. Further Company A confirmed, through Tan's supervisor, Tan did not have a work related need to access or download the restricted files.
Call me confused, but I don't really see a crime here? The defendant turned over the data before his resignation and is not accused of actually making an attempt to transfer or sell the data to another party, or conspiring to do so. The only accusation is that he had some files that weren't part of his job to have, apparently. But presumably the internal corporate system allowed him access to it and thus he obtained it without breaching any computer system. Perhaps his workplace policy barred him from downloading files onto a USB drive. But is that considered theft?
An exec reports "phone stolen," phone found in his "collaborator's" locker who accidentally shoved it into her bag along with other papers on the table. Both the exec who reported theft and his "accomplice" are send to jail, and a "national security" case just sprung up from two completely unrelated cases thanks to prosecutor's creativity.
Same thing here:
1. Apparently they found that he simply had "weird files" on his flash drive.
2. He had full right to access them.
3. He deleted "weird" files he had rightful access to, and voluntary surrendered the physical medium upon his resignation.
On the sole premise of him deleting "weird" files, he was accused of espionage, with the charge constructed from nothing but tangents, but no "corpus" to "habeus."
You don’t need a smoking gun of a crime to be suspicious that a crime may have been committed. Suspicious facts are plenty to start investigating, and a mountain of “circumstantial” evidence can even be enough for a conviction.
I don’t know anything about this case, and I’m not accusing this guy of anything, but your line of argument is wrong.
That's all about accusing a man of murder without proving that the person being murdered is dead. That's unjust, and is a joke of justice, and most fundamental legal standards of criminal law jurisprudence.
Man, who taught you all that?
Hongjin has not been convicted yet, so I don't follow the logic in your comment. The criminal case process has only just started and we have not seen the full evidence yet, and there has been no determination by the court system on whether or not he is guilty.
I think there is some confusion because of the differences in the judicial process between the U.S. and other countries like China.
I'm not saying the U.S. judicial process is perfect, but I think it's unreasonable to attack it before a verdict has even been issued.
Is it possible that tan deliberately deleted them in such a way that they could be recovered forensically? That might save him from getting caught, and his "handler" overseas could even have recommended it.
But who knows... This article doesn't provide enough information to make a good guess at what was going on.
2. They found confidential files there, but nothing he had no right to access to
3. They found out that he deleted "weird" files the day before he quit the company.
He could not have ever exfiltrated that data to begin with as he gave the drive back to Philips.
But he could certainly have copied data off the USB before deleting it.
And there, the parallel with Micron case gets more startling: the alleged "spy" was the very man who said that his cellhpone was missing. Then the police found the cellphone in his coworkers locker. The coworker accidentally put his phone into her back along with papers on the table. Then the police searched his phone, and found out that "he happened to be a spy" on very similar circumstances.
I mean, he deleted the files first. It's reasonable that he thought that was sufficient; given the code I've seen from some scientists, scientist != computer expert.
The innocent explanation is that he was cleaning up company property before returning it, but I expect that will play out in court.
But aren't it? He surrendered his flash drive. You can't do anything with it if it is not in your possession... What do you think he was supposed to do with it???
And he had an option to not to do so, or moreover, just fly to China without a notice (remember the case of a hedge fund boy who allegedly "stole keys to the kingdom" and then warned his employer that he is leaving the company on a short notice...)
And there is no proof so far of him doing that (otherwise it will be put in bold letter on his charge sheet.)
That's nothing less than an estoppel condition in hands of a skilled lawyer.
But you can expect that prosecutors will now be trying their best to made up, and attempting to keep him behind bars for the duration of the court proceedings.
“The perfect crook would have covered his tracks better” is not persuasive. The perfect crook wouldn’t get caught. People who do bad things are just as fallible as people who don’t.
If he did not commit a crime, would he not do so, and this be the most normal thing he can do?
The answer is yes
Now there is no distinction in between a normal employee leaving the company and a criminal following your logic.
Every time I see people going for such argument, I almost feel my sight getting dark, but people who can shove such line of thought into a legal argument in a criminal case are found left and right in the West.
I would've liked to put much stronger terms here.
But it is doubtful that the SCMP has squeezed information out of the FBI before the court case. Once the court case happens we will see all the evidence that the FBI has gathered, which probably demonstrates much more clearly that he is guilty. It doesn't make sense to discuss hypotheticals until we at least have the evidence.
It also doesn't make sense to fear getting convicted based on deleting some files unless he is actually convicted on this flimsy evidence. But again, this is unlikely -- if you would not convict someone based solely on this evidence, then why do you think anyone else would decide on a guilty verdict?
(Keep in mind that the information in the affidavit [1] "is intended to show merely that there is sufficient probable cause for the requested warrant" and doesn't include all of the evidence that they have.)
[1] https://www.justice.gov/opa/press-release/file/1122851/downl...
Is this common?
I upvoted a few of your comments that were clearly non-inflammatory and useful. But I'd like to tell everyone who's blindly downvoting you, please read comments before downvoting them, instead of just downvoting everything you can that's tied to the person you disagree with.
Think about it. The USB device was for transferring data to something else. That might have been a personal device with a cellular data plan.
Sure, he gave back the USB drive. He didn't physically take that to China, or intend to do so. Those files were on it for a reason though, and that reason is transferring them to something that gets the data to China.
The entire point of the comment I made (which you replied to) is not that baybal2 is correct (in fact, I have no idea/opinion of whether they are correct about the defendent being innocent). The point is that ad hominem attacks through downvotes are a bad thing.
As the Department of Justice statement [2] says:
> A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
There will be a court case where the FBI will lay out all the evidence they have and the jury will decide whether or not the evidence is sufficient to demonstrate that he is guilty.
The court case has not happened yet so it doesn't make sense to jump to conclusions without hearing the evidence first.
[1] https://www.justice.gov/opa/press-release/file/1122851/downl... [2] https://www.justice.gov/opa/pr/chinese-national-charged-comm...
Seriously though, it's interesting to discuss this case. Clearly we don't have all the information. Some of us may change our minds later. Right now, the evidence that is out there isn't convincing on its own. It's okay to point that out!
You may have missed this part of the criminal complaint:
“Tan's supervisor confirmed that nothing in the downloaded files was within Tan's area of responsibility. Further Company A confirmed, through Tan's supervisor, Tan did not have a work related need to access or download the restricted files.”
The FBI affidavit contends Tan deleted the confidential data before leaving the U.S. company, not that he turned the thumb drive over to them. The charges suggest Tan kept the drive after leaving the company, though the article doesn't say so explicitly.
Correction: The affidavit does say Tan turned the drive over to them, and of his own initiative, after he was escorted from the company's premises. See paragraph 17 of the affidavit that user baybal2 links to below.
https://www.justice.gov/opa/press-release/file/1122851/downl...
The affidavit that you linked to explicitly states:
> This affidavit is intended to show merely that there is sufficient probable cause for the requested warrant and does not set forth all of my knowledge about this matter.
The full evidence will come out in a court case, and a decision on whether or not he is guilty will be made based on that full evidence. He has only just been charged and the court case has not started yet.
> On 12/12/2018 at approximately 10:30 a.m., Tan contacted his supervisor, advised he was resigning from Company A, and gave his two weeks' notice. Tan told his supervisor that he was returning to China to be with his family as he is the only child to aging parents. Tan told his supervisor that he did not currently have a job offer, but was negotiating with a few battery companies in China.
> Tan's resignation prompted Company A to revoke his access to company systems, and conduct a Systems Access review of Tan's computer activity.
> That review confirmed that Tan had accessed hundreds of files, including research reports. The reports included not only how to make Product A, which, according to Company A, is a complicated and technically difficult process, but also Company A's plans for marketing Product A in China and in cell phone and lithium-based battery systems. These files included information that Company A considers to be trade secrets and outside the scope of Tan's employment with Company A. The review revealed Tan downloaded restricted files to a personal thumb drive. In the course of his regular duties and responsibilities, Tan should have used his company issued laptop. Tan did not have authorization to use a thumb drive to download Company A files. Tan's supervisor confirmed that nothing in the downloaded files was within Tan's area of responsibility. Further Company A confirmed, through Tan's supervisor, Tan did not have a work related need to access or download the restricted files.
My company knows every file every person accesses, where it came from, and where it went. They lock down computers down to the individual USB port. If you put a thumb drive in the wrong port Windows machine, a guy from IT Security shows up within 30 minutes.
That was the day I found out that if I try to charge my hotspot at work, it shows up as a USB drive.
... [Another Company A supervisor] was asking if there is anything I have with me associated with company IP. I have a memory disk that contains lab data that I plan to write report on, and papers/reports I plan to read at home. Now that I have been exited from (COMP ANY A), can you check what is the best way of handling the information and how sensitive they are? Can I still read the papers/reports from the memory disk?
> 16. After receiving the above text from Tan, Tan's supervisor asked him to return the flash drive (which Tan's text message referred to as a "memory disk") to Company A.> 17. At approximately 5:15 pm on 12/12/18, Tan returned to the Research Technology Center at Company A where he provided a USB flash drive to his supervisor. The USB flash drive was Tan's personal property, which he was not authorized to utilize within Company A's space. There is no record of Company A having issued a USB flash drive to Tan.
Every. Damn. Day.
Particularly at the university, I was setting up a GitLab box that wasn’t supposed to be externalized (didn’t realize at the time that LAN utilizes the public addresses instead of NAT). 90K ssh attacks in 3 days, vast majority from the east Asia area. Luckily none made it through. Learned my lesson (and firewalld) from that experience. Nearly had a panic attack from that (first time setting something up like that).
The above was from my naive days before I started getting more deeply involved in sysadmin and networking work. It’s still incredibly annoying to log in to systems with “There have been 173 failed login attempts since the last successful login.”
A lot of this is widely reported on by credible news sources. Many current and ex intelligence and defense officials have called out China as the biggest threat to the US over the past year. I can't believe our government is shutdown right now over a "wall" separating us from countries who, in comparison, are our BFFs.
I hope you have your tinfoil hat ready:
https://www.npr.org/2018/10/02/627249909/australia-and-new-z...
https://www.washingtonpost.com/news/josh-rogin/wp/2018/05/22...
https://www.theguardian.com/news/2018/dec/07/china-plan-for-...
https://www.reuters.com/article/us-china-canada/canadian-hel...
Canada, US call for 'immediate release' of two Canadians held by China
https://www.nst.com.my/world/2018/12/442866/canada-us-call-i...
Be as careful as you can
I don't think it's typical. For example, JFT has 350e6 images, and it probably cost ~$35M to hand-label, but Google has paid people far in excess of that to work on image classification.
From Google:
>Of course, the elephant in the room is where can we obtain a dataset that is 300x larger than ImageNet? At Google, we have been continuously working on building such datasets automatically to improve computer vision algorithms. Specifically, we have built an internal dataset of 300M images that are labeled with 18291 categories, which we call JFT-300M. The images are labeled using an algorithm that uses complex mixture of raw web signals, connections between web-pages and user feedback. This results in over one billion labels for the 300M images (a single image can have multiple labels). Of the billion image labels, approximately 375M are selected via an algorithm that aims to maximize label precision of selected images. However, there is still considerable noise in the labels: approximately 20% of the labels for selected images are noisy. Since there is no exhaustive annotation, we have no way to estimate the recall of the labels.
https://ai.googleblog.com/2017/07/revisiting-unreasonable-ef...
Companies nowadays have really nothing to protect to, the higher up the tech chain they are.
TSMC can easily dump all and every of their "family jewels" onto the Internet, and I guarantee that no mainland fab will ever manage to extract any value from that.
P.S. Stay away from the whole M.L. space, it is filled with plain frauds, pump and dumpers, and people seeking to sell their companies upon first opportunity. If you are an established professional, you do yourself a disservice working in that.
I don't know what the solution is. I don't think companies should flat out stop hiring Chinese nationals, because that's punishes the ones with good intent. But it's clear there is enough danger that you need some plan to take on the risk.
It takes only one bigoted executive to screw up your company fairly well too, but I think we all know what to do about that one.
Edit: Fine, "bigoted" for the guy having a pedantic problem with the word "racism." Prejudice is prejudice.
Of course it's difficult to talk about the real issues associated with this, such as how China leverages family relations in China against expats abroad, or how they've made it a national priority to entice this sort of behavior.
The reason it's difficult is because it's on the borderline of dog-whistle racism and what not. But these are serious issues that should be examined.
The wheels of justice move slowly. In the US, felony cases can take more than a year to resolve:
https://www.nolo.com/legal-encyclopedia/how-criminal-cases-t...:
> The amount of time that passes between an arrest and the filing of charges on the one hand, and trial or entry of a guilty or “no contest” plea on the other, varies widely from case to case.... Felony trials can linger without resolution for over a year—and that’s without accounting for any delay between arrest and the filing of charges.
Basically, even if you make this alleged crime punishable by life in prison, will people still attempt it because the upside is so much?
Likewise, most soldiers don’t do soldiering for the glory or death, they do it for the money/opportunity.
So they will only protect billionaires? No, that doesn't drive people to make sacrifices. In my opinion it's just about protecting what you love. There are some things worth fighting for even if it means a “glorious death”. Soldiers aren't stupid, I know some. They just can't not take the responsibility. In my eyes they are heroes.
https://www.forbes.com/sites/joanlappin/2011/09/27/american-...
https://www.npr.org/2018/07/06/626683457/judge-orders-chines...
- Money
- Ideology
- Compromise/Coercion
- Ego/Extortion
There are also local level derivatives.
That guy who edited babies no long ago is one of it, apparently he raked in hundreds of millions of both government and private investment, claiming he invented an industry-leading gene sequencing machine that in fact is a failed US product he bought from his professor.
Also, Huawei in their early ages stole one of Cisco router's source code and priced out Cisco with an exact same product compatible with Cisco systems, one Chinese academic invovled in modifying admitted it in an article. One of the role model stories.
Source?
Cheers to all the software pirates out there making the world a better place.
This fantasy of "if only all commercially valued knowledge were free" ignores the realities of economics, which pays for the development of technology. Even open source software development exists largely on the corporate dollar with a few companies funding most development.
If more secrets were shared, stolen, distributed, whatever, that will change the equation for companies deciding to invest. You're better off optimizing for time to market and making a half ass product than trying to achieve technical differentiation/superiority only to have the results of your research and development stolen outright.
That's not the alternative at all. If companies have insufficient incentive to do certain kinds of R&D, they just won't do it. Entire categories of products wouldn't exist. Do you think any part of the computer you typed that on would be as nice - or exist at all - if the people who invented better screens and batteries and storage media hadn't expected to gain first/most from the basic physics and chemistry and process engineering involved? No, there would have been zero product iteration cycles without the basic innovations on which those depend.
They did not force anyone to migrate to the country.
Note that this is sarcasm about the incongruity in attitudes, not support of this sort of theft.