Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 1 of 12 PageID #:1

/ FILED
DEC

12 2017

UNITED STATES DISTRICT COURT
THOMAS G. BRUTON
NORTHERN DISTRICT OF ILLINOIS
C[ERK
U.S. DISTRICT COURr
EASTERN DIVISION
UNITED STATES OF AMERICA
v.
XUDONG YAO,
also known as "William Yao"

)
)
)
)
)
)

NO

L?CR

?95

Violations: Title 18, United States
Code, Section 1832(aX3) and (4)
JIIDGE

PAIITEIM
-'[llASON

COUNT ONE

I\/IAGISTRATE ,UDGE

The SPECIAL DECEMBER 2016 GRAND JURY charges:

1.

At times material to this indictment:

a.

Company A was a business located

in the suburbs of Chicago,

Illinois, that manufactured and sold locomotives in the United States and
internationally.

b.

Company B was a business located

in the

People's Republic of

China and a provider of automotive telematics service systems.

c.

Defendant XUDONG YAO, also known as "William Yao," worked

for Company A as a sofbware engineer beginning on or about August 26,20L4. During

his employment, defendant YAO signed multiple documents in which he agreed to
protect Company A's proprietary and trade secret information.

d.

By no Iater than on or about September 6, 2014, defendant YAO

d.ownloaded, from Company,A,s internal computer network, more than 3,000 unique

electronic frles containing Company A's proprietary and trade secret information

fp

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 2 of 12 PageID #:1

relating to the control system software source code designed to operate Company A's
locomotives.

e.

Between in or around

August2}L[and February

2015, defendant

YAO download.ed, from Company As internal computer network,

numerous

additional electronic files containing Company A's proprietary and trade secret
information, including technical documents and software source code.
Between

in or around September 2Ol4 and

defendant YAO sought, negotiated, and accepted employment

October 2015,

in

China with

Company B,

g.

On or about February 9, 20L5, defendant YAO was terminated by

h.

Between on or about February 27 and. 28, 2015, while seeking

Company A.

employment with Company B and other companies, defendant YAO made copies of
Company A's trad.e secret information, namely, certain control system source code, as

weII as systems specifications that explained how the control system source code
worked.
On or about July 29, 2015, defendant YAO traveled to China and
began working for Company B.

j.

On or about November L5, 20L5, defendant YAO traveled from

China to O'Hare International Airport in Chicago, Illinois. At the time, he had in his
possession over 3,000 unique electronic frles containing Company A's proprietary and

trade secret information, including nine complete copies of Company A's control

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 3 of 12 PageID #:1

system source code and the systems specifi.cations that explained how the control
system source code worked.

2.

On or about November 15, 2015, at Chicago, in the Northern District of

Illinois, and elsewhere,
XUDONG YAO,
also known as "William Yao,"
d.efendant herein, with intent to convert a trade secret that was related. to a product

and service used

in and intended for use in interstate and foreign commerce,

specffically an electronic folder containing iffirmation regarding Company A's

proprietary control system

source

code entitled, in

part,

"LCC_system_Specifi.cations," to the economic benefit of a person other than the

trade secret's owner, and knowing and intending that the offense would injure any
owner of that trade secret, knowingly did possess and attempt to possess such
information, knowing the information to have been stolen or appropriated, obtained,
and converted without authorization;

In violation of Title 18, United States Code, Section 1832(aXB) and (a).

3

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 4 of 12 PageID #:1

COUNT TWO
The SPECIAL DECEMBER

hOLG

GRAND JURY further charges:

1.

Paragraph 1 of Count One is incorporated here.

2.

On or about November

1.5,

2015, at Chicago, in the Northern District of

Illinois, and elsewhere,
XUDONG YAO,
also known as "William Yao,"
defendant herein, with intent to convert a trade secret that was related to a product

and service used.

in and intended for use in interstate and foreign commerce,

specifically an electronic folder containing Company A's proprietary control system

source code entitled,

in part,

to the

"LCC-Release-E25.11.00-TRI 20140708,"

economic benefit of a person other than the trade secret's owner, and knowing and

intending that the offense would injure any owner of that trade secret, knowingly did
possess and attempt to possess such information, knowing the information

to have

been stolen or appropriated, obtained, and converted without authorization;

In violation of Title 18, United States Code, Section 1832(a)(3) and

4

(a).

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 5 of 12 PageID #:1

COUNT THREE
The SPECIAL DECEMBER 20L6 GRAND JURY further charges:

1.

Paragraph 1 of Count One is incorporated here.

2.

On or about November l-5, 2015, at Chicago, in the Northern District of

Illinois, and elsewhere,
XUDONG YAO,
also known as "William Yao,"
defend.ant herein,

with intent to convert a trad.e secret that was related to a prod.uct

and service used

in and intended for use in interstate and foreign commerce,

specifi.cally an electronic folder containing Company A's proprietary control system

source cod.e entitled.,

in part,

"LCC-Release-E25.11.0L-TRI-2 OL4O72},"

to

the

economic benefit of a person other than the trade secret's owner, and knowing and

intend.ing that the offense would. injure any owner of that trade secret, knowingly did
possess and attempt to possess such information, knowing the information to have

been stolen or appropriated, obtained, and converted without authorization;

In violation of Tit1e 18, United States Code, Section 1832(a)(3) and (4).

5

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 6 of 12 PageID #:1

COUNT FOUR
The SPECIAL DECEMBER 20L6 GRAND JURY further charges:

1.

Paragraph L of Count One is incorporated here.

2.

On or about November 15, 2015, at Chicago, in the Northern District of

Illinois, and elsewhere,
XUDONG YAO,
also known as "William Yao,"
defendant herein, with intent to convert a trade secret that was related to a product

and service used

in

and intended for use

in interstate and foreign eommerce,

specifically an electronic folder containing Company A's proprietary control system

source code entitled,

in part, "LCC-ReIease-825.11.02-TRl-?.Ot40814," to the

economic benefit of a person other than the trade secret's owner, and knowing and

intending that the offense would injure any owner of that trade secret, knowingly did
possess and attempt to possess such information, knowing the information to have

been stolen or appropriated, obtained, and converted without authorization;

In violation of Title 18, United States

6

Cod.e,

Section 1832(a)(3) and (a).

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 7 of 12 PageID #:1

.

COUNT FTVE

The SPECIAL DECEMBER 2OI6GRAND JURY further charges:

1.

Paragraph 1 of Count One is incorporated here.

2.

On or about November 15, 2015, at Chicago, in the Northern District of

Illinois, and elsewhere,
XUDONG YAO,
also known as "William Yao,"
defendant herein, with intent to convert a trade secret that was related to a product

and service used

in and intended for use in interstate and foreign commerce,

specifically an electronic folder containing Company A's proprietary control system
source code entitled, in part, "LCC-ReIease-825.11 ICC," to the economic benefit of

a person other than the trade secret's owner, and knowing and intending that the
offense would

injure any owner of that trade secret, knowingly did

possess and

attempt to possess such information, knowing the information to have been stolen or
appropriated., obtained, and converted without authorization;

In violation of Title 18, United States Code, Section 1832(a)(3) and (4).

7

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 8 of 12 PageID #:1

COUNT SD(
The SPECIAL DECEMBER 2O16GRAND JURY further charges:

1.

Paragraph 1 of Count One is incorporated here.

2.

On or about November 15, 2015, at Chicago, in the Northern District of

Illinois, and elsewhere,
XUDONG YAO,
also known as "William Yao,;'
defendant herein, with intent to convert a trade secret that was related to a product

and service used

in and intended for use in interstate and foreign commerce,

specifically an electronic folder containing Company A's proprietary control system
source code entitled, in part, "LCC-Release-E25.11-RSI," to the economic benefit of

a person other than the trade secret's owner, and knowing and.intending that the
offense would injure any owner of

that trade secret, knowingly did

possess and

attempt to possess such information, knowing the information to have been stolen or
appropriated, obtained, and converted without authorization;

In violation of Tit1e 18, United States Code, Section 1832(a)(3) and (4).

8

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 9 of 12 PageID #:1

COUNT SEVEN
The SPECIAL DECEMBER 20L6 GRAND JURY further charges:

1

Paragraph 1 of Count One is incorporated here.

2.

On or about November 15, 2015, at Chicago, in the Northern District of

Illinois, and elsewhere,
XUDONG YAO,
also known as "William Yao,"
defendant herein, with intent to convert a trade secret that was related to a product

and service used

in and intended for use in interstate and foreign commerce,

specifically an electronic folder containing Company A's proprietary control system
source code entitled, in part, "LCC-Release-E25.11-WTL," to the economic benefrt of

a person other than the trade secret's owner, and knowing and intending that the
offense would injure any owner of

that trade secret, knowingly did

possess and

attempt to possess such information, knowing the information to have been stolen or
appropriated, obtained, and converted without authorization;

In violation of Title 18, United States Code, Section 1832(aXB) and (a).

I

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 10 of 12 PageID #:1

COUNT EIGHT
The SPECIAL DECEMBER

1.
2.

2OL6

GRAND JURY further charges:

Paragraph 1 of Count One is incorporated here.
On or about November 15, 2015, at Chicago, in the Northern District of

Illinois, and elsewhere,
XUDONG YAO,
also known as "William Yao,"
defendant herein, with intent to convert a trade secret that was related to a product

and service used

in and intend.ed for use in interstate and foreign commerce,

specifically an electronic folder containing Company A's proprietary control system

source code entitled,

in part, "LCC kcs-20136932-WTL-E25.11-WTL," to the

economic benefi.t of a person other than the trade secret's owner, and knowing and

intending that the offense would injure any owner of that trade secret, knowingly did
possess and attempt to possess such information, knowing the information to have

been stolen or appropriated, obtained, and converted without authorization;

In violation of Title 18, United States Code, Section 1832(a)(3) and ( ).

10

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 11 of 12 PageID #:1

COUNT NINE
The SPECIAL DECEMBER 20L6 GRAND JURY further charges:

1.

Paragraph L of Count One is incorporated here.

2.

On or about November L5, 2015, at Chicago, in the Northern District of

Illinois, and elsewhere,
XUDONG YAO,
also known as "William Yao,"
defendant herein, with intent to convert a trade secret that was related to a product

and service used

in and intended for use in interstate and foreign commerce,

specifically an electronic folder containing Company A's proprietary control system
source code entitled, in part, "LCC_rbt_53_ACe E25.11," to the economic benefit of

a person other than the trade secret's owner, and knowing and intending that the
offense would injure any owner of

that trade secret, knowingly did

possess and

attempt to possess such information, knowing the information to have been stolen or
appropriated, obtained, and converted without authorization;

In violation of Title 18, United States Code, Section 1832(a)(3) and (4).

11

 Case: 1:17-cr-00795 Document #: 1 Filed: 12/12/17 Page 12 of 12 PageID #:1

The SPECIAL DECEMBER 20rO GRAND JURY alleges:

1.

The allegations of this Ind.ictment are incorporated here for the purpose

of alleging forfeiture pursuant to Titte 18, United States Code, Sections 1834 and
2323(a)(L) (B) and (b)( 1).

2.

As a result of his violations of Title 18, United States Code, Section

1832(a), as alleged in this Indictment

,

XUDONG YAO,
also known as "William Yao,"
defendant herein, shall forfeit to the United States, pursuant to Title 18, United
States Code, Sections 1834 and 2323(a)(1XB) and &)(1),

ory and all right, title, and

interest defendant may have in any property used, or intended to be used, in any
manner or part to commit or facilitate the commission of the offense.

3.

The interests of defend.ant subject to forfeiture pursuant to Title L8,

United States Code, Sections 1834 and 2323(a)(1XB) and @X1), includ.e, but are not

limited to,

a Dell

Inspiron Laptop Computer displaying express service

cod.e

L8637 44L525 and,service ta g AK'3S 1X1.

All pursuant to Title

18, United States Code, Sections 1834 and 2323(aX1)(B)

and (b)(1).

A TRUE BILL:

FOREPERSON

UNITED STATES ATTORNEY
12