A federal jury in Chicago convicted a former engineer at Philips Medical Systems Friday of conspiring to steal Philips’ trade secrets and bring them to a Chinese competitor.
“The theft of proprietary information is a serious economic crime that harms American jobs and stifles critically important research and development driving the future of our nation,” said U.S. attorney Andrew Boutros for the Northern District of Illinois in a statement on Monday. “When individuals, corporate entities, or nation states steal proprietary information, they are threatening our country’s technological edge. The Chicago U.S. Attorney’s Office will continue to prosecute trade secret theft to protect innovation, ensure fair competition, and safeguard national economic security.”
Chih-Yee Jen, 71, of Mequon, Wisconsin, worked as an engineer at Philips’ facility in Aurora, Illinois, where employees researched, developed, and manufactured X-ray tubes used in computed tomography medical imaging machines.
Through its Dunlee brand, Philips spent years developing proprietary X-ray technology and selling various devices to medical facilities. In 2017, as Philips prepared to close the facility in Aurora, China-based Kunshan GuoLi Electronic Technology and Kunshan GuoLi vice-president Xiaoqin Du began communicating with Mr Jen about creating a U.S. subsidiary for Kunshan GuoLi to help it compete with Philips in developing, manufacturing, and selling X-ray tubes.
While still employed at Philips, Mr Jen began sharing confidential Philips documents with Kunshan GuoLi and Mr Du. He recruited multiple Philips engineers to join him at the Kunshan GuoLi subsidiary.
Mr Jen copied Philips’ proprietary X-ray trade secret information from internal Philips databases and used the stolen information in connection with his new work developing the technology for the Kunshan GuoLi subsidiary.
After a week-long trial, Mr Jen was convicted on both counts, including conspiracy to steal, misappropriate, or possess trade secrets and possession or attempted possession of stolen trade secrets. U.S. District Judge Edmond Chang set Mr Jen’s sentencing for January 5, 2027, at 10:00 a.m.
Two other former Philips engineers—Fince Tendian, 57, of Aurora, Illinois, and Vladimir Nevtonenko, 77, of Arlington Heights, Illinois—pleaded guilty before trial and admitted to possessing stolen trade secrets.
The judge scheduled Mr Nevtonenko’s sentencing for December 1 at 10:00 a.m., and Mr Tendian’s sentencing for December 8 at 10:00 a.m.
Mr Du, 64, of Suzhou, China, Kunshan GuoLi, and a related Chinese company, Kunshan Yiyuan Medical Technology Co. Ltd, were also indicted in the case. They were placed on the court’s Fugitive Calendar and have not been arraigned.
