A Chinese national who worked for Monsanto, a U.S. agrochemical and agricultural biotechnology company, was indicted by a grand jury for allegedly spying and stealing trade secrets for the Chinese regime.
DOJ officials said Xiang, who was an imaging scientist at Monsanto, tried to steal an algorithm that was a crucial component to an online farming software platform used by farmers to collect, store, and visualize critical agricultural field data, and increase and improve agricultural productivity for farmers. The algorithm, referred to as the Nutrient Optimizer, was considered a valuable trade secret to the agribusiness giant.
Federal officials said Xiang attempted to leave the United States with the Nutrient Optimizer in June 2017, a day after he resigned from Monsanto. But he was arrested at the airport with copies of the stolen algorithm.
“The indictment alleges another example of the Chinese government using Talent Plans to encourage employees to steal intellectual property from their U.S. employers,” Assistant Attorney General for National Security John C. Demers said in a statement.
“Xiang promoted himself to the Chinese government based on his experience at Monsanto. Within a year of being selected as a Talent Plan recruit, he quit his job, bought a one-way ticket to China, and was caught at the airport with a copy of the company’s proprietary algorithm before he could spirit it away,” he added.
If convicted, Xiang faces a maximum of 15 years in prison and a $5 million fine for each espionage charge, and up to 10 years in prison and a $250,000 fine for each theft of trade secret charge.
Meanwhile, the FBI has more than 1,000 active investigations into intellectual property (IP) theft, “almost all leading back to China,” FBI Director Christopher Wray told senators at a congressional hearing in July.