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The Case Against Walter Liew
Walter Lian-Heen Liew, also known as Liu Yuanxuan, has been sentenced to 15 years in federal prison for his involvement in a wide-ranging economic espionage scheme. This decision was announced by U.S. Attorney Melinda Haag, alongside officials from the FBI and IRS. Liew was found guilty of multiple charges, including conspiracy to commit economic espionage and theft of trade secrets, following a jury trial that concluded on March 6, 2014.
Background of the Crime
According to court records, Liew and his company, USA Performance Technology, Inc. (USAPTI), conspired with Robert Maegerle to illegally obtain trade secrets from E.I. du Pont de Nemours & Company. The stolen secrets pertained to DuPont’s chloride-route titanium dioxide production technology, which is crucial for manufacturing high-value materials used in various industries.
The jury revealed that Liew’s actions directly benefited state-owned companies in the People’s Republic of China, which had plans to establish a large-scale titanium dioxide factory in Chongqing. This case marks a historic conviction under the Economic Espionage Act of 1996, illustrating the serious implications of stealing trade secrets for foreign gain.
Details of the Conviction
Following a thorough investigation, it was found that Liew had not only stolen trade secrets but also engaged in various forms of financial misconduct. The jury convicted him on 20 counts, including tax evasion and bankruptcy fraud. This included filing false tax returns for both USAPTI and its predecessor company, Performance Group, and making misleading statements during bankruptcy proceedings.
Liew’s conviction is a stark reminder of the legal ramifications associated with corporate espionage. The court highlighted the severity of his actions, emphasizing that they undermine national economic security and the integrity of American businesses.
Financial Implications
As part of his sentence, Liew was ordered to forfeit $27.8 million in illegal profits and pay $511,667.82 in restitution to DuPont and other victims of his fraudulent activities. The court’s ruling is intended to deter similar offenses in the future, sending a clear message that the theft of trade secrets will not be tolerated.
The financial transactions connected to Liew’s activities were extensive, involving nearly $28 million in contracts with entities linked to the Pangang Group, where the stolen technology was sold. These proceeds were funneled through various accounts across the globe, including Singapore and the PRC, complicating the investigation further.
The Broader Impact of Economic Espionage
Liew’s case has broader implications for national security and the business landscape in the United States. The theft of intellectual property poses a significant threat to innovation and economic growth. The court’s decision serves as a warning to other individuals and corporations that engaging in similar criminal activities can lead to severe legal consequences.
Moreover, this case underscores the importance of safeguarding trade secrets and protecting intellectual property rights. Companies must remain vigilant against espionage, implementing robust security measures to prevent unauthorized access to sensitive information.
Conclusion of the Trial
During the sentencing hearing, Judge Jeffrey S. White remarked on the seriousness of Liew’s offenses, stating that the lengthy prison term reflects the need to protect American businesses from economic espionage. The case was prosecuted by the Special Prosecution Unit of the U.S. Attorney’s Office, highlighting the commitment of law enforcement agencies to address such crimes effectively.
In summary, Liew’s sentencing marks a pivotal moment in the ongoing fight against economic espionage, reinforcing the message that such crimes will have serious repercussions.