IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA

UNITED STATES OF AMERICA

v.

WANG DONG, a/k/a "Jack Wang," a/k/a "UglyGorilla,"

SUN KAILIANG, a/k/a "Sun Kai

Liang," a/k/a "Jack Sun,"

WEN XINYU, a/k/a "Wen Xin Yu," a/k/a "WinXYHappy," a/k/a "Win_XY," a/k/a "Lao Wen,"

HUANG ZHENYU, a/k/a "Huang Zhen

Yu," a/k/a "hzy_lhx," GU CHUNHUI, a/k/a "Gu Chun

Hui," a/k/a "KandyGoo,"

Criminal No. L--H

UNDER   SEAL

FILED

MAY  -1 Z014

CLERK  U.S. DISTRICT COURT

INDICTMENT  MEMORANDUM

WEST. DIST. OF PENNSYLVANIA

AND NOW  comes the United States of America, by its

attorneys, David  J.  Hickton, United  States Attorney   for  the

Western  District  of  Pennsylvania,

and  James   T.

Kitchen,

Assistant United States Attorney for said District, and submits this Indictment Memorandum to the Court:

I .        THE   INDICTMENT

A   Federal Grand Jury returned a  31-count Indictment against        the above-named defendants for  alleged violations of

federal law:

COUNT  OFFENSE/DATE

TITLE/SECTION

DEFENDANTS CHARGED

1      Conspiracy to Commit Computer Fraud, from in or about 2010 to in or about April 2014

18 u.s.c. §  1030(b)    All defendants

1

COUNT

OFFENSE/DATE

TITLE/SECTION           DEFENDANTS CHARGED

2-9

10-23

Intentionally Accessing and

Obtaining Information from a Protected Computer, on various dates from on or about February 26, 2010 to on or about April 13, 2012

Intentional Damage to a Protected Computer, on various dates from on or about February 8, 2010 to on or about April 13, 2012

18 u.s.c. §

1030(a)(2)(C) &

(c)(2)(B)  (i)-(iii)

18 u.s.c. §

1030(a) (5) (A) &

(c) (4) (B)

All defendants

All defendants

30      Economic Espionage, on or      18 u.s.c. §                                    All

about May 6, 2010              1831(a)(2) &      ( 4)                      defendants

II.   ELEMENTS OF THE OFFENSES

A.    As   to   Count   1:     In   order   for   the   crime   of

Conspiracy  to Commit Computer Fraud, in violation of 18 U.S.C. §

1030(b), to be established, the government must prove all of the following essential elements beyond a reasonable doubt:

1.    That   two   or   more   persons   agreed   to   commit   an

offense   set   forth   under   subsection    (a) of   Title   18,   United

States Code, Section 1030;

2.    That the defendants were a party to or member of

that agreement;

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3. That the defendants joined the agreement or conspiracy knowing of its objective to commit an offense in violation of subsection (a) of 18 U.S.C. §  1030, and intending to join together with at least one other alleged conspirator to achieve those objectives; that is, that the defendants and at least one other alleged conspirator shared a unity of purpose and the intent to achieve common goals or objectives, to commit an offense in violation of subsection (a) of 18 U.S.C. § 1030.

B.          As   to   Counts   2-9:     In order for the crime of

Illegal   Access    and   Obtaining    Information    from    a   Protected Computer, in violation of 18 U.S.C. §  1030(a)(2) &               (c)(2)(B)(i)­ (iii), to be established, the government must prove all of the following essential elements beyond a reasonable doubt:

1.   The defendants intentionally accessed a computer

without authorization or in excess of authorization;

2.        That   the   defendants  obtained   thereby   the

information in the relevant count;

3.   From a "protected computer;u and

4.    That the offense:

a.   Was  committed  for  purposes   of  commercial advantage or private financial gain;

b.   Was committed in furtherance of any criminal

or tortious act in violation of the Constitution or laws of the

United States or of any State; or

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c.         Involved       the         obtaining         of        information exceeding $5,000 in value.

c.       As     to      Counts    10-23:          In    order     for     the     crime  of

Intentional  Damage   to  a  Protected   Computer, in  violation  of   18

U.S.C.   §    1030(a) (5) (A)     &       (c) (4) (B),    to    be   established,    the government   must   prove   all  of   the   following   essential  elements beyond  a   reasonable  doubt:

1.         That    the  defendants      knowingly caused  transmission

of  a   program, information,   or  command;

2.         That,       as      a     result       of     such    transmission,       the defendants intentionally  caused  damage to  a   protected  computer;

3.         The    damage    caused      by     the     defendants      was   without authorization;  and

4.       That    the     offense     resulted      in     a    loss     of     $5,000

during     one  year,    or   the   damage affected   ten  or  more   protected computers during  one year.

D.    As    to      Counts    24-29:          In    order     for     the     crime  of

Aggravated Identity   Theft,   in    violation     of     18    u.s.c.    §

1028A(a) (1),   (b),    (c) (4),  to be  established,   the government   must prove  all    of     the    following  essential    elements     beyond    a reasonable  doubt:

1.        That   the    defendants   violated     the     Computer     Fraud and Abuse Act,  as  charged  in  Count One;

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2.   That the defendants, during and in relation to that conspiracy, knowingly transferred, possessed or used, a "means of identification;"

3.   Without lawful authority; and

4.  Which means of identification belonged to another person.

18 U.S.C. § 1028A(a)(1).

E.   As to Count 30:  In order for the crime of Economic Espionage, in violation of 18 U.S.C. §  1831(a)(2) &        (4) ,   to be established, the government must prove all of the following essential elements beyond a reasonable doubt:

1.   That the defendants, intending or knowing that an

offense   will   benefit   any   foreign    government,   foreign instrumentality, or foreign agent;

2)    Knowingly   stole   or   without   authorization

appropriated  information   (including  through    copying    and

downloading); and

3.   That the defendants knew or  had  a  firm belief that the information was a trade secret;

4.   (Except   in   the   case   of   an   attempt)   That   the information was, in fact, a trade secret.

F.    As to Count 31:    In order for the crime of Theft of

Trade Secrets, in violation of 18 U.S.C. §  1832(a)(2) &  (4), to be established, the government must prove all of the following

essential elements beyond a reasonable doubt:

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1.   That the defendants, knowing or intending that an offense would economically benefit someone other than the owner

thereof;

2.    Knowingly

stole   or   without   authorization

appropriated

downloading);

information

(including  through    copying    and

3.   That the defendants knew or  had  a  firm belief

that the information was a trade secret;

4.  The defendants acted with the knowledge or intent that the offense would injure the trade secret owner.

5.   (Except in cases of attempt)  that the information

taken or possessed was a trade secret; and

6.  That the trade secret was related to or included in a product that was produced for or placed in interstate or foreign commerce.

G.   Pinkerton Liability

For a defendant to be guilty of a substantive crime based on Pinkerton liability, the Government must prove:

1.   That the defendant was a member of the conspiracy

charged in the indictment;

2.   That while the defendant was still a member of the conspiracy,  one  or more  of the  other members  of the conspiracy committed the substantive offense charged in the

relevant count, by  committing each of  the elements of  that

offense;

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3. That the other members of the conspiracy committed this offense within the scope of the unlawful agreement and to help further or achieve the objective(s) of the conspiracy; and

4.    That these offenses were reasonably foreseeable to

or   reasonably   anticipated   by   the   defendant   as   necessary   or natural consequences of the unlawful agreement.

The government does not have to prove that the defendants specifically  agreed  or  knew  that  this  offense  would  be committed.  However, the government must prove that the offense was reasonably foreseeable to the defendants, as a member of the conspiracy,  and  within  the  scope  of  the  agreement  as  the defendants understood it.

Third Circuit Model Jury Instruction 7.03.

H.   Accomplice   Liability:

u.s.c. §  2)

Aiding   and   Abetting    (18

In order to find a defendant guilty of an offense he or she aided or abetted, the government must prove:

1.   That the alleged principal committed the offenses charged  by  committing  each  of the elements  of the  offenses charged.

2.   That the defendant knew that the offenses charged was going to be committed or was committed by the principal;

3.    That the defendant knowingly did some act for the

purpose    of   aiding,   assisting,    soliciting,    facilitating,    or

encouraging    the    alleged    principal    to   commit    the    specific

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offenses charged and with the intent that the alleged principal commit those specific offenses; and

4.   That the defendant's acts did, in some way, aid,

assist, facilitate, or encourage the alleged principal to commit the offense.   The defendant's acts need not themselves be against the law.

Third Circuit Model Jury Instruction 7.02.

III.      PENALTIES

A.    As     to      Count    1:         Conspiracy       to     Commit  Computer

Fraud (18 U.S.C.  §  1030(b));  Multi-Object Conspiracy to violate

18 U.S.C.  §  1030(a) (2) (C)    and  (c) (2) (B)  (i)-(iii) and  18  U.S.C.   §

1030 (a) (5) (A)    &   (c) (4) (B)  :

In the  case  of  a conviction  on a Conspiracy to violate

18 U . S . C . § 10 30 (a) ( 2 ) (C)    and  (c) ( 2 )  (B)  ( i) - (iii) :

1.        Individuals        The    maximum   penalties    for

individuals are:

(a) a term of imprisonment of not more than 5 years;

(b) a  fine of  up  to  $250,000  or  twice  the pecuniary gain to any person or twice the pecuniary loss to any person;

(c) A term  of  supervised release of  not  more

than three years.

(d) Any or all of the above.

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In the  case  of  a conviction  on   a  Conspiracy  to violate

18 U.S. C.   §  1030 (a) (5) (A)   and  (c) (4) (B)  :

1.        Individuals        The    maximum    penalties    for individuals are:

(a) a term of imprisonment of not more than 10 years;

(b) a  fine   of  up  to   $250,000   or  twice   the

pecuniary gain to any person or twice the pecuniary loss to any person;

(c) A   term of   supervised release of  not more than three years.

(d) Any or all of the above.

B.        As     to      Counts    2-9:     Illegal  Access        and Obtaining

Information          from        a         Protected           Computer        (18        u.s.c.   §

1030 (a) (2) (c) &            (c) (2) (B)  (i)- (iii)):

1.    A term of imprisonment of not more than 5 years;

2.    A   fine of up to $250,000 or twice the pecuniary gain to any person or twice the pecuniary loss to any person;

3.   A   term of  supervised release of   not more   than

three years.

C.        As      to       Counts      10-23:       Intentional          Damage   to      a

Protected  Computer     (18 U.S. C.   §  1030 (a) (5) (A)   &           (c) (4) (B)) :

1.   A term of imprisonment of not more than 10 years;

2.    A fine of up to $250,000 or twice the pecuniary gain to any person or twice the pecuniary loss to any person;

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3.   A  term of  supervised release of   not more than three years.

D.        As       to      Counts     24-29:       Aggravated      Identity       Theft

(18 U.S.C.  §  1028A(a) (1),  (b),            (c) (4)):

1.   A mandatory term of imprisonment of two years to run consecutively with any other term of imprisonment imposed,

except  as   stated   in   18  U.S.C.  §      1028A(b)(4)

1028A(a)(1), (b));

(18 u.s.c.     §

2.   A fine of up to $250,000 or twice the pecuniary gain or loss to any person;

3.   A term of supervised release of not more than one

(1) year;

4.    Any or all of the above.

E.        As     to     Count     30:        Economic Espionage            (18  U.S. C.  §

1831(a) (2)) :

1.   A term of imprisonment of not more than 15 years;

2.    A fine of up to $5,000,000;

3.   A   term of  supervised release of  not more than three years.

F.        As       to      Count     31:          Theft      of      Trade     Secrets        (18

U.S.C.  §  1832(a) (2)  &         (4)):

1.   A term of imprisonment of not more than 10 years;

2.   A fine of up to $250,000 or twice the pecuniary gain to any person or twice the pecuniary loss to any person;

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