California Man Guilty in Trade Secrets Case

California man Liming Li  pleaded guilty today in the United States District Court for the Central District of California to one count of possession of trade secrets. Li, 66, admitted to unlawfully retaining proprietary information from his former Southern California-based employers and using it to market his own competing company to a China-based entity.

According to court documents, Li worked for a precision measurement technology company, identified as "U.S. Company #1," from 1996 to 2018. During his tenure, he held senior engineering and management roles, contributing to the development of proprietary software. This software, critical for high-precision measurement applications, was subject to U.S. export controls due to its potential military applications, including use in the manufacture of nuclear submarines and military aircraft.

A LinkedIn profile for Liming Li describes a similar tenure at metrology equipment firm Mitutoyo America Corporation, and other California measurement firms, as well as a stint at the National Physical Laboratory, the UK's metrology institute.

In 2013, Li signed a confidentiality agreement prohibiting him from copying or retaining the company’s proprietary information without authorization. However, he admitted in his plea agreement that he frequently downloaded sensitive data onto his personal devices. Despite his termination in 2018, Li retained and accessed proprietary files belonging to U.S. Company #1 without authorization.

Following his employment at U.S. Company #1, Li established a consulting firm, JSL Innovations Inc., in February 2018. Two years later, in March 2020, he entered into an employment agreement with Suzhou Universal Group Technology Co. Ltd., a China-based manufacturer. Li continued to possess and utilize trade secrets from his former employer for personal economic gain and to the detriment of U.S. Company #1.

“The defendant stole intellectual property from a U.S. company to benefit foreign interests, undermining our national and economic security,” said Acting U.S. Attorney Joseph T. McNally. “We will aggressively prosecute those who engage in intellectual property theft.”

“China is actively seeking to obtain American intellectual property, and those who assist in such efforts will face serious legal consequences,” stated Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Li knowingly retained sensitive U.S. technology for his own financial gain, disregarding its implications on national security.”

Li was arrested on May 6, 2023, at Ontario International Airport upon returning from Taiwan. A subsequent FBI search of his residence revealed numerous digital devices containing proprietary files belonging to his former employers. Some of these files had been relocated to folders labeled “JSL” and “JSL Projects.”

Li’s case was prosecuted under the Disruptive Technology Strike Force, a joint initiative by the Departments of Justice and Commerce designed to prevent hostile foreign entities from illicitly acquiring U.S. technology.

United States District Judge John A. Kronstadt scheduled Li’s sentencing for May 8, 2025. He faces a statutory maximum sentence of 10 years in federal prison.

The FBI led the investigation with assistance from the Department of Commerce’s Office of Export Enforcement and the Bureau of Industry and Security. The case is being prosecuted by Assistant U.S. Attorneys Aaron B. Frumkin, Solomon D. Kim, and David T. Ryan of the National Security Division.