Chinese man charged with with theft of trade secrets

Hongiin Tan

HONGIIN TAN, 35, a Chinese national and U.S. legal permanent resident, was arrested and charged with stealing trade secrets from his employer worth over $1 billion.

Tan allegedly stole trade secrets related to a product from his employer, a U.S.-based petroleum company, to use for the benefit of a Chinese company where he was offered employment, said Assistant Attorney General John C. Demers. 

FBI agents allege that Tan was offered a job at a company in China where he planned to use these files to benefit his new employer.

“The theft of intellectual property harms American companies and American workers. As our recent cases show, all too often these thefts involve the Chinese government or Chinese companies. The Department recently launched an initiative to protect our economy from such illegal practices emanating from China, and we continue to make this a top priority,” said Davis.

A LinkedIn page with Tan's name says he’s part of a research team at Phillips 66.

“We can confirm that we are cooperating with the FBI on an ongoing investigation involving a former employee at our Bartlesville location,” the company told Bloomberg News in an emailed statement. “We are unable to share any further details at this time.”

“The value of the trade secrets in this case is estimated to be more than $1 billion dollars. Theft of critical research, development, and other intellectual property harms the economic prosperity and security of the United States," said U.S. Attorney Trent Shores. 

Tan made an initial appearance Dec. 20 before U.S. Magistrate Judge Jodi F. Jayne. A preliminary and detention hearing has been set for Dec. 26.

According to the criminal complaint, Tan allegedly stole trade secrets from a U.S.-based petroleum company regarding the manufacture of a “research and development downstream energy market product.” 

The company’s methods of developing the product are of great value, both economically and to competitors. Until recently, Tan worked for the petroleum company and allegedly downloaded hundreds of files, including files related to the manufacture of the product. 

 Tan has been residing in the United States for the past 12 years.
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