**Canadian Man Arrested in New York for Selling Tesla Trade Secrets**
A Canadian man living in China was arrested in New York this week for attempting to sell Tesla trade secrets to undercover law enforcement officers. His business partner, a Chinese national, is still on the run.
**Accused Individuals and Their Alleged Crimes**
Klaus Pflugbeil, 58, was caught meeting with officers in Long Island. He and his partner Yilong Shao had set up a company in China, later expanding to Canada, Germany, and Brazil. Their alleged operation involved using stolen information to aid in the production of batteries for electric vehicles (EVs).
The two men are suspected of obtaining the information during their time working for a Canadian manufacturer specializing in automated precision dispensing pumps and battery assembly lines. While the Justice Department did not disclose the company’s name or the automaker involved, evidence points to Hibar Systems and Tesla.
**Legal Ramifications and Investigations**
The Justice Department claims that Pflugbeil and Shao not only founded their company using confidential secrets, which Tesla had invested over $13 million in developing, but also actively sought additional original drawings to replicate.
Authorities allege that the men were aware of the illegality of their actions. In 2020, Pflugbeil emailed drawings to a gear manufacturer for parts production, noting that the information was confidential. The drawings closely resembled those created by Tesla, with minor alterations to the company name and identification numbers.
**Investigative Efforts and Arrest**
The men inadvertently helped investigators by running online ads offering stolen parts. This led undercover FBI agents to a trade show where they met Shao and received technical documents containing Tesla’s proprietary information, falsely presented as their own. Subsequently, Pflugbeil was arrested.
Assistant Attorney General Matthew Olsen emphasized the severity of the crime, stating that stealing advanced trade secrets related to battery components and assembly undermines America’s technological edge and national security. Pflugbeil faces a maximum penalty of 10 years in prison.
**Conclusion**
The case highlights the importance of protecting intellectual property and the consequences of attempting to profit from stolen trade secrets. The investigation serves as a reminder of the legal repercussions individuals face when engaging in such illicit activities.