Tuesday, August 07, 2007, 8/07/2007 05:16:00 PM

Conviction in Chinese Economic Espionage Case

From SFGate.com, a story concerning a former Chinese national from Cupertino, California, Xiaodong Sheldon Meng, who pleaded guilty to economic espionage for stealing software from a Silicon Valley defense contractor and trying to sell it to military buyers in China.

Under terms of the plea deal, Meng faces up to two years in federal prison and up to $1.5 million in fines. He will be sentenced early next year.

According to the story, Meng was accused of stealing a program used to simulate real-world motion for military training from Quantum3D, a San Jose company he used to work for, and providing a demonstration version to the Chinese navy. Meng was also accused of exporting without a license the source code for a Quantum 3D simulation software used to train military fighter pilots.

"This conviction, the first in the nation for illegal exports of military-related source code, demonstrates the importance of safeguarding our nation's military secrets," Assistant Attorney General for National Security Kenneth Wainstein said in a statement.

The economic espionage beat goes on.
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