A federal grand jury has decided to indict a Chinese energy technology company, its U.S. subsidiary, and its president, the U.S. Department of Justice announced Thursday (Oct. 29). They are accused of conspiring with a pleaded guilty American to steal technology from a Houston-area oil and gas manufacturer.
The announcement was made Thursday by U.S. Attorney Ryan K. Patrick and John C. Demers, the Justice Department’s assistant secretary for national security.
Jason Energy Technologies Co. of Yantai, Shandong Province, China, Jason Oil & Gas Equipment (JOG), and Jason Gao, a Chinese citizen, are charged with criminal conspiracy, theft of trade secrets, and attempted theft of trade secrets. Gao Lei, 45, is the president of Jason Oil & Gas Equipment.
The U.S. Department of Justice says Gao Lei used to live in Houston, but is now believed to be in China. A warrant for his arrest has not been executed.
Also charged in connection with the case is 41-year-old Robert Erford Jr. He used to work for a Houston-area company. Previously, he pleaded guilty to conspiracy to steal trade secrets.
The indictment says that on or about Nov. 7, 2019, Gao Lei signed a consulting agreement with Erford at the offices of Jason Oil & Gas Equipment in Houston, hiring Erford to work as a consultant in China on continuous pipeline technology. He was to be paid $1,000 per day for the 15 days he worked in China. The agreement is believed to have a confidentiality clause as well.
On or about Nov. 22, 2019, Elford allegedly transferred, without authorization, a document containing trade secrets of an aggrieved company from the United States to Jason Energy Technologies.
The indictment further alleges that on or about November 25-29, 2019, Elford met with Gao Lei and others at the offices of Jason Energy Technologies in China and at a continuous pipeline facility. During these meetings, they allegedly discussed continuous pipeline technology, including the injured company’s proprietary technology, practices, and procedures.
The charges also allege that authorities obtained evidence that Elford and Gao Lei used an encrypted WeChat application to obtain, collect, and copy manufacturing information from the victim companies in December 2019.
If convicted, the business entities are subject to fines of up to $5 million, or three times the value of the stolen trade secrets, whichever is greater. Gao Lei could also face the same fine and up to 10 years in prison.
Founded in 2014, the company is a leading global manufacturer of continuous tubing with operations in more than 50 countries, according to information provided by Jason Energy Technologies’ website.
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