SAN FRANCISCO, Feb 1 (Reuters) - Chinese government
representatives directed a U.S. businessman to obtain valuable
technology manufactured by chemical giant DuPont and U.S.
authorities were seeking on Wednesday to keep him in jail ahead
of his trial on charges relating to trade secret theft,
prosecutors said in newly released court documents.
Walter Liew, a U.S. citizen, and his wife, Christina Liew,
each were indicted last year by a Northern California grand jury
on three counts, including witness tampering, making a false
statement and conspiracy to tamper with witnesses and evidence,
according to court documents.
A hearing on bail is scheduled for Walter Liew on Wednesday
in U.S. federal court in San Francisco as prosecutors try to
keep him behind bars.
According to court documents, Walter Liew paid at least two
former DuPont engineers for assistance in designing
chloride-route titanium dioxide, also known as TiO2. DuPont is
the world's largest producer of the white pigment used to make a
range of white-tinted products, including paper, paint and
plastics.
Both Liew, 54, and his wife have pleaded not guilty. Liew
was held without bail, while his wife was released, court
documents show.
DuPont also filed a civil lawsuit against Liew for
misappropriating trade secrets.
Liew denies obtaining or possessing "any confidential,
proprietary trade secret materials" from DuPont regarding TiO2,
according to court documents.
Last month, Liew's attorneys requested that a U.S.
magistrate judge reconsider the decision to deny Liew bail. In
the court filing on Tuesday, prosecutors argued for Liew's
continued incarceration by listing his connections with Chinese
officials.
Liew was hosted at a banquet in 1991 by Luo Gan, who at the
time was a high-ranking official of the Communist Party of China
Central Committee, according to correspondence from Liew that
U.S. federal officials say they seized from his safety deposit
box. Luo Gan went on to become a member of the nine-member
Standing Committee of the Politburo, prosecutors wrote in the
filing.
Several other Chinese officials also attended, according to
the documents.
"The purpose of the banquet is to thank me for being a
patriotic overseas Chinese who has made contributions to China,"
Liew wrote in a memo to a Chinese company, according to U.S.
prosecutors, "and who has provided key technologies with
national defense applications, in paint/coating and microwave
communications."
Luo Gan gave Liew directives at the meeting, and two days
later Liew received a list of "key task projects," including
TiO2, prosecutors stated.
"DuPont's state-of-the-art technology is not available
publicly and PRC (People's Republic of China) companies have not
been able to master it on their own," prosecutors wrote. "Liew,
however, obtained that technology from former DuPont employees
and sold it to companies controlled by the PRC government."
In his court filing seeking bail, Liew denies he was invited
to a banquet with some Chinese officials, but Luo Gan is not
discussed. In seeking bail, Liew's attorneys note that was born
in Malaysia and has lived in the United States for 32 years.
The Chinese embassy in Washington did not immediately
respond to an e-mail seeking comment early on Wednesday.
The case in U.S. District Court, Northern District of
California is United States of America vs. Walter Liew and
Christina Liew, 11-cr-573.
For the USA: John Hemann and Peter Axelrod of the U.S.
Attorney's Office.
For Liew: Thomas Nolan Jr of Nolan, Armstrong, Barton, James
Thomson of the Law Offices of James S. Thomson and John Williams
Jr of Manchester, Williams & Seibert.
(Reporting by Dan Levine)
Follow us on Twitter: @ReutersLegal