Dual citizen faces 10 years behind bars for stealing missile detection trade secrets

LOS ANGELES (CN) — A dual U.S. and Chinese citizen pleaded guilty Monday to theft of trade secrets, information authorities say is used by the government for detecting nuclear missile launches.

Chenguang Gong, 59, of San Jose, faces a maximum of 10 years incarceration. His sentencing is set for Sept. 29 before U.S. District Judge John F. Walter.

Gong remained free Monday on a $1.75 million bond pending his sentencing, said the U.S. Attorney’s Office for the Central District of California.

Gong pleaded guilty to one count, which focuses on a theft that happened in spring 2023. However, prosecutors describe a pattern of conduct that extends back a decade and includes links to a Chinese government program.

In his plea agreement, Gong indicated that the minimum intended economic loss through his theft was $3.5 million.

Gong in his plea agreement said that an unnamed company hired him in 2023 for integrated circuit design. Between March 30 to April 26, 2023 — the day he was fired — Gong transferred thousands of files from his work laptop to three storage devices. He transferred almost 2,000 of those files after accepting a position at a rival company.

“Many of the files Gong transferred contained proprietary and trade secret information related to the development and design of a readout integrated circuit that allows space-based systems to detect missile launches and track ballistic and hypersonic missiles and a readout integrated circuit that allows aircraft to track incoming threats in low visibility environments,” the U.S. Attorney’s Office said in a statement.

Additionally, Gong obtained trade secrets linked to next-generation sensors that can detect low-observable targets. This information was valued at hundreds of millions of dollars, the office said.

Gong’s company fired him on April 26, 2023, after discovering he took the proprietary information. It found one of the storage devices at his workstation, the office added.

While prosecutors dropped Gong’s other two charges, they pointed to connections he had with the People’s Republic of China going back years.

During their investigation, authorities found that Gong worked at several major tech companies between 2014 and 2022. He applied to “talent programs” administered by China’s government, which are used to find people with superb skills in areas like advanced sciences and technology. These people’s skills are used to help change China’s economy and its military abilities, the office said.

Gong in 2014 sent a proposal to someone at a Chinese research facility. In that proposal Gong explained a plan to make analog-to-digital converters, like the ones his company made at the time, prosecutors added.

In a different talent program application, Gong in 2020 suggested the development of low light/night vision image sensors. That application included a video with information about a sensor made by a company that previously employed him, the office said.

Additionally, Gong went to China over the years seeking money for the development of high-end analog-to-digital converters. He emphasized these converters had military use, arguing they could determine range and accuracy of radar systems, prosecutors said.

“In a 2019 email, translated from Chinese, Gong remarked that he ‘took a risk’ by traveling to China to participate in the talent programs ‘because (he) worked for… an American military industry company’ and thought he could ‘do something’ to contribute to China’s ‘high-end military integrated circuits,’” prosecutors wrote.

The U.S. Attorney’s Office declined any further comment apart from its initial statement. Gong’s attorney couldn’t be reached for comment via email.