Former Dow Scientist to Pay $25K, Serve 60 Months for Trade Secret Theft
On January 13, 2012, the Justice Department announced that a former research scientist, Wen Chyu Liu, was sentenced to 60 months in prison and ordered to forfeit $600,000 and pay a $25,000 fine for stealing trade secrets from Dow Chemical Company and selling them to companies in China, as well as committing perjury.
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(Dow is a leading producer of the elastomeric polymer, chlorinated polyethylene (CPE). Dow’s Tyrin CPE is used in a number of applications worldwide, such as automotive and industrial hoses, electrical cable jackets and vinyl siding.)
Conspired with 4 Others to Misappropriate Trade Secrets on Dow Elastomers
Liu worked as a research scientist at Dow's Louisiana facility on various aspects of the development and manufacture of Dow elastomers, including Tyrin CPE. Liu had access to trade secrets and confidential and proprietary information pertaining to Dow’s Tyrin CPE process and product technology.
The evidence at trial established that Liu conspired with at least four current and former employees of Dow’s facilities in Louisiana and Stade, Germany, who had worked in Tyrin CPE production, to misappropriate those trade secrets in an effort to develop and market CPE process design packages to various Chinese companies.
Bribed Employees for Information, Traveled in China to Market Stolen Info
Liu traveled extensively throughout China to market the stolen information, and evidence introduced at trial showed that he paid current and former Dow employees for Dow’s CPE-related material and information. In one instance, Liu bribed a then-employee at the Louisiana facility with $50,000 in cash to provide Dow’s process manual and other CPE-related information.
Falsely Denied Arranging for Co-Conspirators to Travel to China
In addition, according to evidence presented at trial related to the perjury charge, Liu falsely denied during a deposition that he made arrangements for a co-conspirator to travel to China to meet with representatives of a Chinese company interested in designing and building a new CPE plant. Liu was under oath at the time of the deposition, which was part of a federal civil suit brought by Dow against Liu.
Sentenced to 60 Months and Ordered to Forfeit $600K, Pay $25K
Liu was sentenced to 60 months in prison and two years of supervised release. He was ordered to forfeit $600,000 and pay a $25,000 fine.
(See ITT's Online Archives 11032817 for summary of this case as part of DOJ's list of major export and embargo-related criminal prosecutions in 2011.)