Former Philips Engineer Convicted in Trade Secret Theft Case

A federal jury in Chicago has convicted a former engineer at Philips Medical Systems of conspiring to steal trade secrets for 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,” stated U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “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, Wis., worked as an engineer at Philips’ facility in Aurora, Ill., where employees researched, developed, and manufactured X-ray tubes used in computed tomography (CT) 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 Aurora facility, China-based Kunshan GuoLi Electronic Technology Co. Ltd. and a Kunshan GuoLi vice president—Xiaoqin Du—began communicating with 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, 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, prosecutors said. 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, according to the U.S. Attorney’s Office.

“Jen acted at the expense of his U.S. employer by stealing closely guarded X-ray technology trade secrets for the benefit of a Chinese competitor,” added Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence and Espionage Division. “Protecting America’s private sector companies is a priority for the FBI, and this conviction underscores our commitment to defend the homeland. Know that if you choose to steal trade secrets, the FBI will find you and hold you accountable.”

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

Two other former Philips engineers—Fince Tendian, 57, of Aurora, Ill., and Vladimir Nevtonenko, 77, of Arlington Heights, Ill.—pleaded guilty before the trial and admitted possessing stolen trade secrets. Nevtonenko is scheduled to be sentenced Dec. 1 and Tendian will learn his punishment on Dec. 8. 

A federal grand jury also indicted Du, 64, of Suzhou, China; Kunshan GuoLi; and a related Chinese company—Kunshan Yiyuan Medical Technology Co. Ltd. The trio was placed on the court’s Fugitive Calendar but have not yet been arraigned.

Assistant U.S. Attorneys Ramon Villalpando and Michael Maione for the Northern District of Illinois prosecuted the case.