TULSA, Okla. –A former associate scientist was sentenced Thursday in federal court for stealing proprietary information worth more than $1 billion from his employer, a U.S. petroleum company.

In November 2019, Tan pleaded guilty to theft of a trade secret, unauthorized transmission of a trade secret, and unauthorized possession of a trade secret. From June 2017 until December 2018, Tan was employed as an associate scientist at the petroleum company and was assigned to work in a group with the goal of developing next generation battery technologies for stationary energy storage, specifically flow batteries. In his plea agreement, Tan admitted to intentionally copying and downloading the technologies’ research and development materials without authorization from his employer.

“American ingenuity inspires advances in science and technology and drives world markets. Nowhere is that more true than in Oklahoma’s energy industry. Unscrupulous individuals like Hongjin Tan seek to steal American trade secrets to take home to China so they can replicate our technology,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “United States Attorneys from coast stand ready to combat China’s economic aggression that criminally threatens American industry.”

“This investigation and prosecution uncovered another instance of China’s persistent attempts to steal American intellectual property,” said Assistant Attorney General for National Security John C. Demers. “The department of justice will continue to confront this type of illicit behavior to safeguard American industry and protect American jobs.”

According to the plea agreement, Tan used a thumb drive to copy hundreds of files containing the proprietary information on Dec. 11, 2018. He subsequently turned in his resignation and was escorted from the premises on Dec. 12, 2018. Later that day, he returned the thumb drive, claiming that he had forgotten to do so before leaving his employer’s property. Upon examination, it was discovered that there was unallocated space on the thumb drive, indicating five documents had previously been deleted. Investigators with the FBI searched Tan’s premises and found an external hard drive. They discovered that the same five missing files from the thumb drive had been downloaded to the hard drive. Tan maintained the files on a hard drive so he could access the data at a later date. Further accessing the material would have been financially advantageous for Tan but caused significant financial damage to his Oklahoma employer.

"American companies invest heavily in advanced research and cutting-edge technology. Trade secret theft is detrimental to our national security and free-market economy.  It takes profits away from companies and jobs away from hard working Americans," said Melissa Godbold, Special Agent in Charge of the FBI Oklahoma City Field Office. “The sentencing of Hongjin Tan underscores the FBI’s commitment to protecting our country's industries from adversaries who attempt to steal valuable proprietary information.”

U.S. District Judge Gregory K. Frizzell sentenced Hongjin Tan, 36, a Chinese National and U.S. legal permanent resident, to 24 months in federal prison and ordered the defendant to pay $150,000 in restitution to his former employer. Following his release from prison, Tan will spend three years on supervised release.

Tan was remanded into the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.

The FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted this investigation. Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case, with assistance from Trial Attorney Matthew R. Walczewski and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Hongjin Tan, a 35 year old Chinese national and U.S. legal permanent resident, pleaded guilty Tuesday in federal court to committing theft of trade secrets from his employer, a U.S. petroleum company.

Tan pleaded guilty to theft of a trade secret, unauthorized transmission of a trade secret, and unauthorized possession of a trade secret. The defendant stole the information from a U.S.-based petroleum company regarding the manufacture of a “research and development downstream energy market product” that is worth more than $1 billion.

“China’s economic aggression poses a threat to America’s emerging high-technology industries. Industrial spies like Hongjin Tan engage in espionage to steal American trade secrets and intellectual property born out of the innovation that is innate in our free market system,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “Thanks to a vigilant company and the investigative efforts of the FBI, Hongjin Tan was caught red handed and prosecuted. American ingenuity and know-how are the envy of the international market, and the U.S. Attorneys community will work to protect our economic infrastructure.”

“Tan’s guilty plea continues to fill in the picture of China’s theft of American intellectual property,” said Assistant Attorney General for National Security John C. Demers. “The Department launched its China Initiative to battle precisely the type of behavior reflected in today’s plea—illegal behavior that costs Americans their jobs--and we will continue to do so.”  

"Trade secret theft is a serious crime which hurts American businesses and taxpayers. The FBI will continue to protect our country's industries from adversaries who attempt to steal valuable research and technology," said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.

Tan was employed as an associate scientist for the U.S. petroleum company starting in June 2017 until December 2018. The defendant was assigned to work within a group at the company with the goal of developing next generation battery technologies for stationary energy storage, specifically flow batteries. In his plea agreement, Tan admitted to intentionally copying and downloading research and development materials without authorization from his employer.

On Dec. 11, 2018, Tan used a thumb drive to copy hundreds of files. He subsequently turned in his resignation and was escorted from the premises on Dec. 12, 2018. Later that day, he returned the thumb drive, claiming that he had forgotten to do so before leaving his employer’s property. Upon examination, it was discovered that there was unallocated space on the thumb drive, indicating five documents had previously been deleted. Investigators with the FBI searched Tan’s premises and found an external hard drive. They discovered that the same five missing files from the thumb drive had been downloaded to the hard drive. Tan maintained the files on a hard drive so he could access the data at a later date. Further accessing the material would have been financially advantageous for Tan but caused significant financial damage to his Oklahoma employer.

U.S. District Judge Gregory K. Frizzell presided over the plea hearing and set sentencing for Feb. 12, 2020.

The FBI conducted this investigation. Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case, with assistance from Trial Attorney Matthew R. Walczewski and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).

United States Attorney Trent Shores announced today the results of the January 2019 Federal Grand Jury.

The following individuals have been charged with violations of United States law in an indictment returned by the Grand Jury.  The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Brandon Dewayne Atnip.  Carjacking; Carrying, Brandishing, and Using a Firearm During and in Relation to a Crime of Violence; Felon in Possession of Firearm and Ammunition. Atnip, 31, of Sulphur, is charged with unlawfully taking a 2001 Toyota Corolla and a 1999 GMC Sonoma by force, violence, and intimidation; using a firearm during and in relation to a crime of violence; and being a felon in possession of a firearm and ammunition, including a Kimber Manufacturing, Inc., .45 ACP caliber semi-automatic pistol.  The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rogers County Sheriff’s Office, and the Craig County Sheriff’s Office are the investigative agencies.

Carlos Banegas.  Felon in Possession of Firearm and Ammunition. Banegas, age unknown, of Tulsa, is charged with being a felon in possession of a firearm and ammunition, including a Jimenez Arms Inc., JA3850, .38 caliber pistol.  The Federal Bureau of Investigation is the investigative agency.

Jeffrey Scott Cooper.  Attempted Coercion and Enticement of a Minor. Cooper, 45, of Broken Arrow, is charged with knowingly attempting to persuade an individual under the age of 18 to engage in sexual activity.  The Tulsa Police Department and the Tulsa County Sheriff’s Office are the investigative agencies.

Jesus Ponce Dominguez.  Possession of  Methamphetamine With Intent to Distribute; Possession of  Heroin With Intent to Distribute; Maintaining a Drug-Involved Premises; Possession of Firearms in Furtherance of Drug Trafficking Crimes. Dominguez, 29, of Tulsa, is charged with possession with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine; possession with intent to distribute 100 grams or more of a mixture and substance containing heroin; maintaining a place to manufacture and distribute methamphetamine and heroin; and possessing firearms in furtherance of drug trafficking crimes, including a Glock 21, .45 caliber pistol and a Smith & Wesson M&P9, 9mm caliber pistol. The Drug Enforcement Administration, and the Tulsa Police Department are the investigative agencies.

Robert James Hogard and Iola Mae Canon.  Carjacking; Carrying, Brandishing, and Using a Firearm During and in Relation to a Crime of Violence. Hogard, 26, of Tulsa, and Canon 29, of Midwest City, are charged with unlawfully taking a 2007 Chrysler Sebring by force, violence, and intimidation; and using a firearm during and in relation to a crime of violence. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa Police Department are the investigative agencies.

Dominic Larocca.  Felon in Possession of Firearms and Ammunition. Larocca, 55, of Acworth, Georgia, is charged with being a felon in possession of firearms and ammunition, including a Springfield Firearm, .45 caliber pistol and a Glock Firearm, .40 caliber pistol.  The Federal Bureau of Investigation and the Tulsa Police Department are the investigative agencies.

Meldonado Lavoise Lewis.  Felon in Possession of Firearms and Ammunition. Lewis, 33, of Tulsa, is charged with being a felon in possession of firearms and ammunition, including a Taurus, .40 S&W caliber pistol, a Glock, .45 Auto caliber pistol, a Smith & Wesson, .22 LR caliber rifle, and a Norinco, 7.62x39mm caliber rifle.  The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa County Sheriff’s Office, and the Oklahoma Highway Patrol are the investigative agencies.

Sean Clarke McCain.  Attempted Coercion and Enticement of a Minor. McCain, 31, of Tulsa, is charged with knowingly attempting to persuade an individual under the age of 18 to engage in sexual activity.  The Tulsa Police Department and the Tulsa County Sheriff’s Office are the investigative agencies.

Javier Najera-Adame.  Possession of an Unregistered Weapon Made From a Shotgun; Possession of Firearms and Ammunition by an Alien Illegally in the United States. Najera-Adame, 59, of Broken Arrow, is charged with possessing a weapon made from a shotgun, specifically a modified Ithaca Gun Co., 12 gauge shotgun, not registered to him in the National Firearms Registration and Transfer Record; possessing firearms and ammunition by an alien illegally in the United States, including a weapon made from an Ithaca Gun Co., 12 gauge shotgun and a German Sports Guns, .22 long rifle caliber pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Broken Arrow Police Department are the investigative agencies

Gerardo Resendez-Rosales.  Reentry of Removed Alien. Resendez-Rosales, 52, address unknown, is charged with having returned to the United States unlawfully after being deported on August 13, 2002 from Del Rio, Texas. The Immigration and Customs Enforcement’s Homeland Security Investigations is the investigative agency.

Devon Marie Rosen.  Felon in Possession of Firearm and Ammunition. Rosen, 32, of Tulsa, is charged with being a felon in possession of a firearm and ammunition, including a Taurus .38 caliber pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Tulsa Police Department are the investigative agencies.

Feliciano Saldana-Juarez.  Possession of a Firearm After Conviction for a Misdemeanor Crime of Domestic Violence; Possession of a Firearm by an Alien Illegally in the United States; Reentry of Removed Alien. Saldana-Juarez, 53, of Tulsa, is charged with possessing a firearm after being convicted of a misdemeanor crime of assault and battery; being an alien illegally in the United States and knowingly possessing a firearm, including a Beretta US Corp., .22 caliber semi-automatic pistol; and having returned to the United States unlawfully after being deported on April 17, 2015 from Del Rio, Texas.  The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Immigration and Customs Enforcement’s Homeland Security Investigations, and the Sand Springs Police Department are the investigative agencies.

Hongjin Tan.  Theft of Trade Secrets; Unauthorized Transmission of Trade Secrets; Unauthorized Possession of Trade Secrets. Tan, 35, of Bartlesville, is charged with stealing trade secrets pertaining to methods for developing a particular Research and Development Downstream Energy Market Product; and knowingly possessing, duplicating, and transmitting the trade secrets to persons other than the trade secrets’ owner without permission.  The Federal Bureau of Investigation, and the Dallas Customs and Border Protection are the investigative agencies.

TULSA, Okla. – Hongjin Tan, a 35 year old Chinese national and U.S. legal permanent resident, was arrested on Dec. 20 and charged with theft of trade secrets. Tan is alleged to have stolen the trade secrets from his employer, a U.S. petroleum company.

The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Trent Shores for the Northern District of Oklahoma, and Special Agent in Charge Kathryn Peterson of the FBI Oklahoma City Field Office.

“The United States filed a criminal complaint against a Chinese national alleging the theft of intellectual property from a company with significant operations in Oklahoma,” said U.S. Attorney Shores. “The value of the trade secrets in this case is estimated to be more than $1 billion dollars. Theft of critical research, development, and other intellectual property harms the economic prosperity and security of the United States. My office and the Federal Bureau of Investigation will utilize all tools available to respond to these types of threats. We will protect Oklahomans and Oklahoma businesses by prosecuting those who violate the law.”

"Hongjin Tan allegedly stole trade secrets related to a product worth more than $1 billion from his U.S.-based petroleum company employer, to use for the benefit of a Chinese company where he was offered employment," said Assistant Attorney General Demers. "The theft of intellectual property harms American companies and American workers. As our recent cases show, all too often these thefts involve the Chinese government or Chinese companies. The Department recently launched an initiative to protect our economy from such illegal practices emanating from China, and we continue to make this a top priority." 

Tan made an initial appearance Thursday before U.S. Magistrate Judge Jodi F. Jayne. A preliminary and detention hearing has been set for Dec. 26.

According to the criminal complaint, Tan allegedly stole trade secrets from a U.S.-based petroleum company regarding the manufacture of a “research and development downstream energy market product.” The company’s methods of developing the product are of great value, both economically and to competitors. Until recently, Tan worked for the petroleum company and allegedly downloaded hundreds of files, including files related to the manufacture of the product. Investigators allege that Tan was offered a job at a company in China where he planned to use these files to benefit his new employer. Tan has been residing in the United States for the past 12 years.

A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

The FBI conducted this investigation.

Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma is prosecuting the case, with assistance from Trial Attorneys Matthew R. Walczewski and Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).