Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Ex-IBM employee from China gets five years prison for stealing code

Published 01/19/2018, 08:38 PM
Updated 01/19/2018, 08:38 PM
Ex-IBM employee from China gets five years prison for stealing code

By Brendan Pierson

NEW YORK (Reuters) - A former software engineer for IBM in China was sentenced to five years in prison after he pleaded guilty to stealing proprietary source code from the company, prosecutors announced on Friday.

Jiaqiang Xu, 32, was sentenced on Thursday by U.S. District Judge Kenneth Karas in White Plains, New York, according to a statement from the office of U.S. Attorney Geoffrey Berman. Xu pleaded guilty in May 2017 to economic espionage and theft of a trade secret.

Leanne Marek, Xu's attorney, did not immediately respond to a request for comment.

Xu worked as a systems software developer for International Business Machines (NYSE:IBM) Corp from 2010 to 2014, according to a public LinkedIn (NYSE:LNKD) profile. The company was not identified by name in court documents, and did not immediately respond to a request for comment.

Xu was arrested in December 2015 after meeting with an undercover officer at a White Plains hotel, where authorities said he was recorded saying he used proprietary IBM code to make software to sell to customers, according to prosecutors.

He was originally charged with theft of a trade secret. The economic espionage charges were added in a superseding indictment filed last June.

Prosecutors said the proprietary computer code Xu stole was related to a so-called clustered file system, which facilitates faster computer performance.

Xu, who began working at IBM in China in 2010, had full access to the source code before voluntarily resigning in May 2014, prosecutors said.

According to the criminal complaint filed in 2015, the Federal Bureau of Investigation in 2014 received a report that someone in China was claiming to have access to the code and using it for business ventures, prompting the investigation that led to the arrest.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.