Reuter reports that a federal judge, citing national security
concerns, refuses to release from house arrest a Chinese suspect,
because it is "a serious offense involving much money and, potentially,
An FBI agent told the judge that the alleged theft of source code fits
a "profile of Chinese intelligence operations."
The source code is described as "part of the information superhighway"
valued at significantly more than $1 million.
Two men arrested earlier this year were accused by a grand jury of planning
to supply unspecified technology to Beijing Machinery Import & Export in
return for $550,000. Both men have pleaded innocent.
Obtaining technology from American companies is the suggested motive of the
theft from Ellery Systems (Boulder) which "is developing software for the
Data/Code was apparently transfered over the Internet from one guy (working
at Ellery) to the other, employed at Unidata.
A company named China Resource Products (U.S.A) Ltd., Inc was named as
a cover for the whole operation.