
Chinese citizen admits stealing US trade secrets for next-generation national security tech
Though Chenguang Gong, 59, of San Jose, pleaded guilty to one count of theft of trade secrets, he remains free on a $1.75 million bond, according to the Justice Department.
U.S. District Judge John F. Walter scheduled sentencing for Sept. 29. Prosecutors said Gong faces a statutory maximum penalty of 10 years in prison.
According to his plea agreement, Gong transferred more than 3,600 files from a Los Angeles-area research and development company where he worked, to personal storage devices during his brief tenure with the company last year.
Federal prosecutors said the files Gong transferred include blueprints for sophisticated infrared sensors designed for use in space-based systems to detect nuclear missile launches and track ballistic and hypersonic missiles. Other files were said to have included blueprints for sensors designed to enable U.S. military aircraft to detect incoming, heat-seeking missiles and take countermeasures, including by jamming the missiles' infrared tracking ability.
"These files describe the methods, designs, techniques, processes, specifications, testing, and manufacture of these technologies and would be extremely damaging economically if obtained by the Victim Company's competitors, and would be dangerous to U.S. national security if obtained by international actors," the complaint says.
The "intended economic loss" from Gong's criminal conduct exceeds $3.5 million, according to the plea agreement.
Court documents note that much of the Malibu-based company's work is funded through contracts with the U.S. Department of Defense and other U.S. government contractors.
Gong was hired by the company in January 2023 as an application-specific integrated circuit design manager responsible for the design, development and verification of its infrared sensors. From approximately March 30 that year until his termination on April 26, 2023, Gong allegedly transferred thousands of files from his work laptop to three personal storage devices. That included more than 1,800 files after he had accepted a job at one of the company's main competitors, prosecutors said.
Prosecutors said many of the files Gong transferred contained proprietary and trade-secret information related to the development and design of a readout integrated circuit that allows space-based systems to detect missile launches and track ballistic and hypersonic missiles and a readout integrated circuit that allows aircraft to track incoming threats in low-visibility environments.
Gong also allegedly transferred files containing trade secrets relating to the development of "next generation" sensors capable of detecting low-observable targets while demonstrating increased survivability in space, as well as the blueprints for the mechanical assemblies used to house and cryogenically cool the company's sensors. That information was among the company's most important trade secrets and is worth hundreds of millions of dollars, according to the DOJ.
Many of the files had warnings in bold letters that the information was proprietary, export-controlled and for "official use only."
The FBI executed a search warrant on May 8, 2023 at Gong's temporary residence in Thousand Oaks, California, and also searched his vehicle and his person. Law enforcement recovered multiple digital devices belonging to Gong, some of which contained the company's propriety files. The complaint says the FBI, however, did not locate two hard drives Gong used to exfiltrate the company's trade secret and proprietary information, "and the whereabouts of those drives to date remains unknown."
Prosecutors said Gong repeatedly denied processing those hard drives or knowing where they were located in May 2023 interviews with the FBI. Gong was arrested on federal charges on Feb. 7, 2024, but was later released on bond.
Court documents say Gong first entered the United States in or around 1993 and became a U.S. citizen in 2011. His resume states that he earned a Master of Science Degree in Electrical Engineering from Clemson University and completed some PhD work at Stanford University, according to the complaint.
Law enforcement also said Gong applied to "Talent Programs" administered by the People's Republic of China while he was employed at several major technology companies in the U.S. between approximately 2014 and 2022.
While employed at a U.S. information technology company headquartered in Dallas, Gong in 2014 sent a business proposal to a contact at a high-tech research institute in China focused on both military and civilian products, prosecutors said. In the proposal, Gong described a plan to produce high-performance analog-to-digital converters like those produced by his employer.
In another "Talent Program" application from September 2020, prosecutors said, Gong proposed to develop "low light/night vision" image sensors for use in military night vision goggles and civilian applications. Gong's proposal included a video presentation that contained the model number of a sensor developed by an international defense, aerospace, and security company where Gong worked from 2015 to 2019, according to the DOJ.
Authorities said Gong traveled to China several times to seek "Talent Program" funding in order to develop sophisticated analog-to-digital converters. The Justice Department cited a 2019 email translated from Chinese in which Gong remarked that he "took a risk" by traveling to China to participate in the Talent Programs because he worked for "an American military industry company" and thought he could "do something" to contribute to China's "high-end military integrated circuits."
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
7 minutes ago
- Yahoo
1 Killed in Shooting at University of New Mexico Dorm Building, Suspect in Custody
Students were allowed to return to their dorms, but police remain at the scene A suspect is reportedly in custody after a shooting at the University of New Mexico left one person dead and another injured. On Friday, July 25, UNM informed students that the Albuquerque school was still part of 'an active crime scene on the central corridor of the central campus' following a shelter-in-place issued earlier in the day. 'Evacuation is not mandatory. Dorm students will be able to eat in La Posada and return to their dorm rooms. Please avoid the crime scene shown in the attached image and follow the directions of officers on scene,' the college said in a final emergency update shared to their website at 4:14 p.m. local time. U.S. Marshals in Los Lunas arrested the suspect that afternoon, KOB 4 reported. Neither the suspect nor the two victims were identified. The UNM Police Department responded to a report of gunshots at the Casas del Rio student housing complex that morning, according to the outlet. The shooting took place around 3:00 a.m. local time Friday morning, KRQE added, citing a Lobo Alert. However, students in the Gila building said they heard about 'four or five shots' just before midnight and sheltered in place, KOB 4 reported. The UNM Police Department did not immediately respond to PEOPLE's request for comment. 'I just heard like three pops, three loud pops, and then, uh, we thought it was like gunshots or something, so then we checked out the window and then, like, we just seen like random people running around,' Jubilee Tasi, a freshman from Seattle told KRQE. 'We heard another popping, and then after that, we were just confused on what was going on, so we just called it a night, and then I went to sleep.' The student said they'd been watching a movie with friends at the time of the shooting, and also said they hadn't witnessed any other disturbances since moving in on June 13. 'What happened last night is just crazy, cause I mean, I'm still trying to get used to the environment over here, so for that to happen it's just kinda crazy,' Tasi said. President Garnett Stokes shared a message to the school's social media channels saying 'law enforcement confirmed that multiple shots were fired in the early morning in our Casas del Rio student housing.' 'The shooting resulted in the death of one individual and the injury of another, who is currently being cared for at a local hospital. The identities of both the deceased and the injured individual have not yet been released,' Stokes continued in the lengthy post, which was one of several updates. Want to keep up with the latest crime coverage? Sign up for for breaking crime news, ongoing trial coverage and details of intriguing unsolved cases. School officials urged students and staff to 'Continue to monitor your UNM email, text messages, and LoboGuardian for real-time updates.' The university also said multiple law enforcement agencies were present and actively investigating. Read the original article on People
Yahoo
7 minutes ago
- Yahoo
Elevance Health, Inc. (ELV) Downgrades 2025 Earnings Amid Rising Medical Costs
We recently compiled a list of Elevance Health, Inc. stands third on our list among the most undervalued healthcare stocks. Elevance Health, Inc. (NYSE:ELV) is a major U.S. healthcare company, known for its insurance brands Anthem and WellPoint, and its growing Carelon health services arm. It serves around 45.6 million medical plan members and is recognized for integrating technology and value-based care to improve healthcare delivery. The company is facing increased healthcare utilization and rising medical costs, especially in the ACA and Medicaid segments. This has led to a downgrade in full-year 2025 earnings. A 'market-wide morbidity shift' is evident, with new ACA enrollees using emergency services at nearly double the rate of commercial members, and Medicaid patients showing higher acuity due to redeterminations. Amid these challenges, some investors see Elevance Health, Inc. (NYSE:ELV) as one of the most undervalued stocks in the healthcare sector, given its long-term positioning and strategic adjustments. The company expects a surge in elective procedures by Q4 2025 as members act ahead of expiring tax credits in 2026 that could raise their out-of-pocket costs. To address these pressures, the business is ramping up AI-driven tools for risk detection, care coordination, and operational efficiency. It's also expanding value-based care contracts, particularly in behavioral health and oncology, with over one-third of benefit expenses tied to risk-sharing models. The company is adjusting pricing strategies for ACA plans and advocating for Medicaid access amid potential regulatory changes. A healthcare professional discussing a treatment plan with a patient in an outpatient clinic. Though total membership fell by 212,000 in Q2 due to Medicaid attrition, the Medicare Advantage segment continues to grow. Elevance Health, Inc. (NYSE:ELV) is prioritizing long-term financial stability over aggressive member growth as it navigates rising costs, shifting regulations, and post-pandemic care patterns. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 minutes ago
- Yahoo
Keybanc Hikes Spotify Technology S.A. (SPOT)'s Price Target To $860, Maintains Overweight Rating
Spotify Technology S.A. (NYSE:SPOT) is among the 13 Best Global Stocks to Buy Right Now. On July 11, Keybanc lifted the stock's price target to $860 from $640, while maintaining an Overweight rating for its shares. The adjustment represents significant upside potential, given its share price of $674.46 at the close on July 23. Copyright: dennizn / 123RF Stock Photo The firm said that it expects Spotify Technology S.A. (NYSE:SPOT)'s second-quarter results and guidance for the third quarter to contain some variability related to foreign exchange, seasonal gross margin dynamics, and social charges. The analyst has advised investors to buy any near-term dips and reiterated that its core thesis remains intact. Keybanc believes that music is under-monetized in a price inflationary market with favorable competitive dynamics and several initiatives that support high-teens revenue growth. In other news, Deutsche Bank on Wednesday also raised Spotify Technology S.A. (NYSE:SPOT)'s target price to $775 from $700 and maintained a Buy rating for its shares. The Luxembourg-based company, which provides digital music-streaming services worldwide, has seen impressive returns in 2025, gaining 51% year-to-date. While we acknowledge the potential of SPOT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Small Cap Defense Stocks to Buy According to Hedge Funds and 13 Best Booming Stocks to Buy Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data