- The Washington Times - Friday, January 19, 2018

A former developer for IBM was sentenced to five years in prison Thursday for selling trade secrets related to the company’s software, the Department of Justice said.

Xu Jiaqiang, 31, a Chinese national, was sentenced for stealing secrets during his time at IBM from 2010 to 2014. He stole the information to benefit the National Health and Family Planning Commission of the People’s Republic of China, according to the Justice Department.

Xu pled guilty to all six counts in which he was charged.


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Xu not only stole high tech trade secrets from his U.S. employer — a federal crime — he did so both for his own profit and intent ending to benefit the Chinese government,” said Acting Assistant Attorney General Dana Bonte.

During his time at IBM, Xu had access to property software for a so-called clustered file system that facilitates faster computer performance by coordinating work among multiple servers.



In May of 2014, Xu resigned from IBM, the Justice Department said. He then offered to sell the system’s source code to an undercover law enforcement officer posing as a financial investor. In August 2015, Xu demonstrated the product to undercover federal agents at a hotel in White Plains, New York. He arrested shortly after the demonstration. 

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