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U.S. says ex-Chinese national sold military secrets


Reuters

Friday, December 15, 2006

U.S. prosecutors charged a former Chinese national with stealing military-related trade secrets and using them in sales proposals to China and the Malaysian and Thailand air forces, the U.S. Attorney's Office said on Thursday.

Xiaodong Sheldon Meng, 42, a Canadian citizen, stole combat and commercial simulation software and other materials from his former employer, San Jose, California-based Quantum3D, according to a statement issued by U.S. Attorney Kevin Ryan's office.

"The economic espionage charges allege that Meng, formerly a resident of Beijing, China, and a resident of Cupertino, California, stole the trade secrets from Quantum3D with the intent that they would be used to benefit the foreign governments of China, Thailand, and Malaysia," the statement said.

Quantum3D's products were designed primarily for military uses, including combat training in simulated conditions and the use of advanced infrared, electro-optical and night vision devices.

"The government has misinterpreted innocent acts," Meng's attorney, Angela Hansen, said. "There is no evidence supporting the charges."

Meng faces three conspiracy counts, three counts of economic espionage and attempted economic espionage, two counts of violations of the Arms Export Control Act, 12 counts of theft of trade secrets and attempted theft of trade secrets, 15 counts of foreign and interstate transportation of stolen property and three counts of making false statements to a government agency.

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