Former Philips engineer convicted of trade secret theft

What happened

A federal jury in Chicago convicted former Philips Medical Systems engineer Chih-Yee Jen on 21 August 2026 of conspiring to steal trade secrets for a Chinese competitor, according to the US Department of Justice.

Jen, 71, of Mequon, Wisconsin, was found guilty after a week-long trial. The jury convicted him on both counts: conspiracy to steal, misappropriate or possess trade secrets, and possession or attempted possession of stolen trade secrets.

The Department of Justice, which published the account on 24 August, said Jen copied confidential X-ray technology information from Philips' internal databases. He then used it to develop technology for a US subsidiary of China-based Kunshan GuoLi Electronic Technology Co Ltd.

Two other former Philips engineers pleaded guilty before the trial and admitted possessing stolen trade secrets. They are Fince Tendian, 57, of Aurora, Illinois, and Vladimir Nevtonenko, 77, of Arlington Heights, Illinois.

The prosecution also covers Kunshan GuoLi, its vice president Xiaoqin Du, and a related Chinese company, Kunshan Yiyuan Medical Technology Co Ltd. Those three defendants have been indicted but have not been arraigned, and their cases are on the court's Fugitive Calendar, the department said. The charges against them remain unproven.

The background

Jen worked at Philips' facility in Aurora, Illinois, where staff researched, developed and manufactured X-ray tubes for computed tomography, or CT, scanners. These medical imaging machines use X-rays to produce images of the inside of the body.

Through its Dunlee brand, Philips had spent years developing its own X-ray technology and selling devices to medical facilities. The case concerned technical information kept within the business, rather than patient records or other clinical data.

In 2017, as Philips prepared to close the Aurora facility, Kunshan GuoLi and Du began discussing a US subsidiary with Jen. According to the department, the proposed business was intended to help Kunshan GuoLi compete with Philips in the development, manufacture and sale of X-ray tubes.

Jen began sharing confidential Philips documents with Kunshan GuoLi and Du while he was still a Philips employee. He also recruited several Philips engineers to work with him at the subsidiary, the department said.

That sequence is important to understanding the insider risk: the transfer of information began before Jen left his employer. The account describes an employee taking information from internal databases, rather than an outside attacker breaking into a company network.

Recruiting experienced engineers and taking their employer's confidential documents are distinct activities. In this case, the criminal convictions concerned stolen trade secrets, not simply the movement of staff between competing businesses.

The case has parallels with the conviction of a fibre laser specialist who stole Corning research files to support a planned business in China. Both accounts concern technical knowledge taken from an employer for use in another commercial venture.

A separate case alleging AI trade secret theft by a Google engineer also involved prosecutors' claims that an employee copied confidential files while pursuing interests with China-based technology companies. That report concerned allegations following an arrest, rather than a jury conviction.

The Philips release does not give a financial value for the stolen information or explain how the copying was detected. It also does not describe the company's access controls or establish that any particular security measure failed.

What people are saying

US Attorney Andrew S. Boutros, of the Northern District of Illinois, said theft of proprietary information damages American employment and research and development. He said his office would continue prosecuting such cases to protect innovation, competition and national economic security.

Roman Rozhavsky, assistant director of the FBI's Counterintelligence and Espionage Division, said Jen had taken protected X-ray technology information to benefit a Chinese competitor at his US employer's expense. He described protecting private-sector companies as an FBI priority and said those who steal trade secrets would be held accountable.

What happens next

US District Judge Edmond E. Chang scheduled Jen's sentencing for 5 January 2027 at 10am. The release does not state a recommended sentence or give a potential prison term.

Nevtonenko is due to be sentenced on 1 December 2026, followed by Tendian on 8 December. Both hearings are scheduled for 10am before Judge Chang.

No arraignment date was announced for Du, 64, of Suzhou, China, or the two corporate defendants. Their unresolved cases are separate from the forthcoming sentencing hearings for the three former Philips engineers.

The department's release contains no response from Jen, his lawyers or the companies charged in the case, and does not announce whether he intends to appeal.