Former Philips engineer convicted of stealing trade secrets for China firm

A federal jury in Chicago convicted a former Philips Medical Systems engineer Friday of conspiring to steal the company’s trade secrets and bring them to a Chinese competitor, according to the Justice Department.

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, prosecutors said. Through its Dunlee brand, Philips spent years developing proprietary X-ray technology and selling various devices to medical facilities, according to the release.

In 2017, as Philips prepared to close the Aurora facility, China-based Kunshan GuoLi Electronic Technology Co Ltd. and company vice president Xiaoqin Du began communicating with Jen about creating a U.S. subsidiary to help Kunshan GuoLi compete with Philips in developing, manufacturing and selling X-ray tubes, the Justice Department said. While still employed at Philips, Jen began sharing confidential company documents with Kunshan GuoLi and Du and successfully recruited multiple Philips engineers to join him at the Kunshan GuoLi subsidiary, according to prosecutors. He also copied Philips’ proprietary X-ray trade secret information from internal company databases and used the stolen information in connection with his new work developing technology for the subsidiary, the release said.

Following a week-long trial, Jen was convicted on both counts against him — conspiracy to steal, misappropriate or possess trade secrets, and possession or attempted possession of stolen trade secrets, prosecutors said. U.S. District Judge Edmond E. Chang set Jen’s sentencing for Jan. 5, 2027.

“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 S. Boutros for the Northern District of Illinois. Boutros said his office would continue prosecuting trade secret theft to protect innovation, ensure fair competition and safeguard national economic security.

FBI Counterintelligence and Espionage Division Assistant Director Roman Rozhavsky said Jen “acted at the expense of his U.S. employer” and warned that the bureau “will find you and hold you accountable” for trade secret theft.

Two other former Philips engineers, Fince Tendian, 57, of Aurora, and Vladimir Nevtonenko, 77, of Arlington Heights, pleaded guilty before trial and admitted possessing stolen trade secrets, according to the Justice Department. Judge Chang scheduled Nevtonenko’s sentencing for Dec. 1 and Tendian’s for Dec. 8.

Du, 64, of Suzhou, China, along with 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, prosecutors said.