Liming Li of Rancho Cucamonga pleaded guilty to illegally possessing sensitive technologies that he downloaded from his employers and used them to market his own competing company to a 
company.
From 1996 to Nov 2019, Li worked in various engineering, management and software development roles for two companies in Southern California. These software programs are related to high-precision measurement studies interpretation and point cloud technology, which often are used in making 3D models. They can be used in various sensitive manufacturing contexts, including manufacturing parts for nuclear submarines and military aircraft, and are subject to US export controls for national security, nuclear nonproliferation and anti-terrorism reasons.
From 1996 to 2013, Li worked as senior software engineer and then program manager for Mitutoyo America Corporation, which specialized in precision measuring instruments and metrological technology and equipment.
From 2013 to 2018, Li worked as chief technologist at Micro Encoder, a wholly-owned subsidiary of Mitutoyo America Corporation. During his employment at Mitutoyo and Micro Encoder, Li worked on the development of the source code for one of the company’s software programs, which was considered its proprietary information.
In July 2013, Li signed an employee handbook and confidentiality agreement with Mitutoyo that required him to turn over all writings, records, files, technology, trade secrets or data containing any proprietary information belonging to the company. The agreement also prohibited Li from copying the company’s proprietary information without written permission.
Li admitted in his plea agreement that he occasionally downloaded the company’s proprietary information onto his personal devices without permission. Li failed to return all the proprietary information belonging to Mitutoyo after its subsidiary terminated him in Jan 2018.
Li then worked at Wenzel Technologies from Sep 2018 until Nov 2019. Shortly before beginning his employment with Wenzel, Li and his wife established their own business, JSL Innovations, which was based out of their Rancho Cucamonga home.
After Wenzel terminated Li, company security discovered that Li was using his company-issued laptop to attempt to download files from Wenzel’s root directory onto his personal external hard drive. Company security searched Li’s company-issued laptop and found a folder labeled “ChinaGovernment.” That folder allegedly contained numerous documents showing Li’s efforts to participate in China’s Thousand Talents Program and to use JSL Innovations to provide services and technology to Chinese business and government entities related to the export-controlled and trade secret technology that Li took from his former employers in Southern California.
In Mar 2020, he signed an employment agreement with Suzhou Universal Group Technology Co Ltd, a China-based chain-and-bearing manufacturer, to serve as its CTO.
In Sep 2020, FBI agents executed a search warrant at Li’s home and found numerous digital devices containing millions of files belonging to Mitutoyo and Wenzel and containing the source code for those companies’ proprietary software. Although the source code files had been developed by and belonged to these companies, some of the files had been moved into folders labeled “JSL” or “JSL Projects.”
Li continued to work for Suzhou Universal until his arrest in May 2023.
During this period, Li continued to knowingly possess Mitutoyo’s proprietary information and — more than once — accessed this information without Mitutoyo’s authorization.
Li admitted that he used the proprietary information for his own economic benefit and that it would injure Mitutoyo’s interests.
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company.
From 1996 to Nov 2019, Li worked in various engineering, management and software development roles for two companies in Southern California. These software programs are related to high-precision measurement studies interpretation and point cloud technology, which often are used in making 3D models. They can be used in various sensitive manufacturing contexts, including manufacturing parts for nuclear submarines and military aircraft, and are subject to US export controls for national security, nuclear nonproliferation and anti-terrorism reasons.
From 1996 to 2013, Li worked as senior software engineer and then program manager for Mitutoyo America Corporation, which specialized in precision measuring instruments and metrological technology and equipment.
From 2013 to 2018, Li worked as chief technologist at Micro Encoder, a wholly-owned subsidiary of Mitutoyo America Corporation. During his employment at Mitutoyo and Micro Encoder, Li worked on the development of the source code for one of the company’s software programs, which was considered its proprietary information.
In July 2013, Li signed an employee handbook and confidentiality agreement with Mitutoyo that required him to turn over all writings, records, files, technology, trade secrets or data containing any proprietary information belonging to the company. The agreement also prohibited Li from copying the company’s proprietary information without written permission.
Li admitted in his plea agreement that he occasionally downloaded the company’s proprietary information onto his personal devices without permission. Li failed to return all the proprietary information belonging to Mitutoyo after its subsidiary terminated him in Jan 2018.
Li then worked at Wenzel Technologies from Sep 2018 until Nov 2019. Shortly before beginning his employment with Wenzel, Li and his wife established their own business, JSL Innovations, which was based out of their Rancho Cucamonga home.
After Wenzel terminated Li, company security discovered that Li was using his company-issued laptop to attempt to download files from Wenzel’s root directory onto his personal external hard drive. Company security searched Li’s company-issued laptop and found a folder labeled “ChinaGovernment.” That folder allegedly contained numerous documents showing Li’s efforts to participate in China’s Thousand Talents Program and to use JSL Innovations to provide services and technology to Chinese business and government entities related to the export-controlled and trade secret technology that Li took from his former employers in Southern California.
In Mar 2020, he signed an employment agreement with Suzhou Universal Group Technology Co Ltd, a China-based chain-and-bearing manufacturer, to serve as its CTO.
In Sep 2020, FBI agents executed a search warrant at Li’s home and found numerous digital devices containing millions of files belonging to Mitutoyo and Wenzel and containing the source code for those companies’ proprietary software. Although the source code files had been developed by and belonged to these companies, some of the files had been moved into folders labeled “JSL” or “JSL Projects.”
Li continued to work for Suzhou Universal until his arrest in May 2023.
During this period, Li continued to knowingly possess Mitutoyo’s proprietary information and — more than once — accessed this information without Mitutoyo’s authorization.
Li admitted that he used the proprietary information for his own economic benefit and that it would injure Mitutoyo’s interests.
justice.gov/usao-cdca/pr/i
courthousenews.com/wp-content/upl
justice.gov/usao-cdca/pr/i
justice.gov/archives/opa/p
linkedin.com/in/liming-li-7
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