On road to 5G, allegations of Huawei spy craft start in Chicago

CHICAGO (WLS) -- A techno-era ago, in 2002, long before 5G was on the public radar, top secret data began disappearing from Chicago-based Motorola.

Eventually, company investigators said they traced the thefts to employees - corporate spies who were working from the inside.

Among the accused Schaumburg thieves, Hanjuan Jin, was convicted and sent to federal prison.

Then, in a 2010 civil lawsuit, Motorola asserted that Chinese electronics giant Huawei was intimately involved in an expansive scheme that included Jin and her efforts to steal company secrets.

According to the suit filed in Chicago federal court, "Huawei knew or should have known that the 'products' and proprietary technology being brought to China for 'presentation' to the founder and chairman of Huawei were acquired and derived from misappropriated Motorola trade secrets and confidential information by full time Motorola employees."

Huawei denied the allegation that it used Motorola employees, including Hanjuan Jin, to steal secrets and deliver them the data. And Huawei continues to deny any involvement in corporate espionage.

The lawsuit was settled, outside of court without a trial, and no details were made public.

Huawei, that has rapidly expanded to foreign markets including the U.S. and now stands poised to command the global 5G market, did not respond to I-Team requests for comment about the Jin case or her corporate thievery.

"People say we're an arm of the (Chinese) government" Huawei's chief security officer Andy Purdy told the I-Team last month for a report on 5G security.

"They say the government is substantially funding us-neither of which has any evidence that has ever been produced in support of that perspective" Purdy said.

The evidence against Ms. Jin was overwhelming. She was caught by federal investigators at O'Hare airport in 2007 carrying Chinese military catalogues and stolen Motorola technology. According to the federal indictment Jin had bought a one-way ticket to Beijing a few days earlier and was boarding a flight when she was stopped for carrying $30,000 in cash after declaring she only had $10,000.

Investigators said they found 1,300 electronic records and paper documents belonging to Motorola in Jin's possession-some stamped confidential. Schaumburg based Motorola estimated the stolen data was worth $600 million and destined to snake its way through an elaborate spy system right into Huawei's computers.

Jin told the I-Team in 2008 that she wasn't a spy, stole nothing, had tuberculosis and was going to China to visit her ill mother.

"The federal government is saying basically that you're a corporate spy. What about that?" Jin was asked during the interview with ABC7 investigative reporter Chuck Goudie.

"No, I'm not. I'm not. I'm not," she responded.

"You're not a spy?" Goudie inquired.

"They made a mistake," Jin said.

During a bench trial in 2012, a federal judge didn't buy her claims. Jin was convicted of stealing trade secrets and sentenced to four years in prison.

Judge Ruben Castillo did acquit Jin, a naturalized American citizen, of economic espionage charges. However, Judge Castillo said that she "was willing to betray her naturalized country"-the United States.

Jin, a graduate of the Illinois Institute of Technology, had worked at Motorola as a software engineer since 1998. She was released from prison in 2017.

Now 48, Jin has an address in Chicago's Streeterville neighborhood. She did not reply to repeated I-Team messages, emails and letters. Her attorney in the criminal case, Thomas Breen, told the I-Team that he has had no contact with her for years.

Even as Huawei defends its corporate motives and claims no control by the Chinese government, U.S. officials ramp up a public campaign aimed at discrediting China's government-backed tech industry. Top Trump administration officials say that Chinese intellectual property theft has cost the American economy billions of dollars in revenue and thousands of jobs. They say it threatens U.S. national security.

Both China and Huawei insist they do not engage in intellectual property theft. Last week acting Defense Secretary Pat Shanahan said "Huawei is too close to the government." Shanahan said the administration is concerned about sharing intelligence with partners on networks underpinned by Chinese technology.
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