Tuesday, February 08, 2011, 2/08/2011 09:27:00 AM

Former Dow Scientist Convicted of Trade Secret Theft from Dow and Perjury

By Todd

Well, a federal jury in Baton Rouge, Louisiana has convicted of stealing trade secrets and selling them to companies in China. Prosecutors proved Wen Chyu "David" Liu worked with other Dow employees to steal confidential information on a polymer used in automotive hoses, electrical cables and vinyl siding.

Liu, 74, faces a maximum of 10 years in prison on the conspiracy charge and a maximum of five years on the perjury charge. Each count carries a maximum fine of $250,000.
Liu, also known as David Liou, retired from Dow, the biggest U.S. chemical maker, in 1992 after 27 years as a research scientist with the company.

Prosecutors said he traveled throughout China peddling information stolen from Dow. They said Liu paid an employee at a Dow facility in Plaquemine, Louisiana, $50,000 for a manual and other information relating to chlorinated polyethylene, an elastomeric polymer, that Dow sold under the brand name Tyrin. Liu told Chinese companies that he was the legal holder of the technical information he was selling. In court papers, Dow said that the only company licensed to make Tyrin was a joint venture between Dow and DuPont Co. called DuPont Dow Elastomers LLC.

Keith Stoecker was a senior engineer on one of the Tyrin production lines, according to court records. He allegedly downloaded the Tyrin process manual from his work computer to his home computer and then gave a modified version of it to Liu. Stoecker, who was fired by Dow in 1999, pleaded guilty to one count of perjury, cooperated with the government in the prosecution of Liu and is awaiting sentencing, according to court filings in Liu’s case.


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