Klaus Pflugbeil, who ran a China-based business that sold technology used in electric vehicles, was arrested on Tuesday in New York, federal prosecutors in Brooklyn said.
A Tesla dealership in New York. Photo: Reuters
Prosecutors said Pflugbeil and his business partner, Yilong Shao, built their business using trade secrets belonging to “a leading U.S.-based electric vehicle company.” Shao was also charged but remains free. They are charged with conspiracy to sell trade secrets and could face up to 10 years in prison if convicted.
Prosecutors did not name the U.S.-based company, but said it acquired a Canadian-based battery assembly line manufacturer in 2019. That matches the description of Tesla’s acquisition of a Canadian company called Hibar. Prosecutors said both Pflugbeil and Shao are former employees of the Canadian company.
“The defendants set up a company in China, stole... crucial trade secrets from a U.S. company in the production of electric vehicles, spent millions of dollars on research and development, and sold products developed using the stolen trade secrets,” said U.S. Attorney Breon Peace of the Eastern District of New York.
Mai Van (according to SCMP)
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