Second Circuit – Economic espionage: United States v. Zheng

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United States Court of Appeals for the Second Circuit

Economic espionage — Government involvement – Sufficiency of evidence

United States v. Zheng

23-6070

Judges Wesley, Nardini, and Robinson

Background: The defendant appealed from his conviction for conspiracy to commit economic espionage. He argues that there was insufficient evidence supporting the conviction.

Ruling: The Second Circuit affirmed. The court held that the statute does not require proof of a foreign government’s involvement in his conduct. What is required is that the defendant must intend or know that his misappropriation of trade secrets will benefit a foreign government or instrumentality. The record demonstrates that he misappropriated trade secrets with the intent to benefit the Peoples Republic of China. He sought funding from local governments to launch two businesses and the publications from those businesses explained how their objectives aligned with the PRC’s national economic policies regarding improved domestic turbine manufacturing.

Thomas R. Sutcliffe, assistant United States attorney, for the appellee; Bradley L. Henry, of Blank Rome, for the defendant-appellant.

Oral argument audio