Chinese Company, US Affiliate, Chinese National Charged With Theft of US Tech Secrets
A Chinese energy company, its U.S. affiliate and a Chinese national were charged with conspiracy to steal technology and trade secrets from a U.S. company, the Justice Department said Oct. 29. The agency said China-based Jason Energy Technologies (JET), U.S.-based Jason Oil and Gas Equipment and Chinese national Lei Gao worked with Robert Erford of Dayton, Texas, to steal the technology from a Houston oil and gas manufacturer.
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Gao hired Erford as a consultant in 2019 to help with “coiled tubing technology,” and Erford allegedly gave JET a document containing trade secrets belonging to the Houston oil company. Erford met with Gao and other JET officials at JET’s offices in China and allegedly discussed the U.S. company’s “proprietary technology, practices and procedures.” Erford and Gao also used WeChat to send encrypted messages of the stolen manufacturing information from the U.S. company, the Justice Department said. Erford was paid $1,000 a day for his consultancy work.
JET and its affiliate face up to a $5 million fine or three times the value of the stolen trade secret -- whichever is greater. Gao, who the Justice Department believes is in China, faces the same fine and a possible maximum 10-year prison sentence. The Justice Department said Erford previously pleaded guilty to conspiracy to commit trade secrets.