U.S. Federal Authorities Arrest Chinese National for Theft of Code Worth $9.5 Million
Bo Zhang was arrested by U.S. federal authorities Wednesday morning for allegedly copying a software code worth more than $9.5 million. Zhang worked as a computer programmer for an as yet unnamed technology consulting company that the Federal Reserve Bank of New York used to maintain their computer system.
Zhang is accused of copying the software, which is owned by the United States Treasury Department. It is estimated that the software cost the government $9.5 million to have it developed. A spokesman for the Federal Reserve Bank of New York said that when Zhang copied the software, the bank was almost immediately aware of the theft. This is because Zhang told a co-worker what he had done. An investigation was opened and once Zhang was identified, the matter was turned over to federal authorities. As a result of the breach, the Federal Reserve Bank of New York has now implemented security changes to prevent such an occurrence in the future.
Zhang appeared in court briefly today and was released on a $200,000 bond. His attorney, Joseph Grob, confirmed to reporters that Zhang is indeed a citizen of China; however, he would not comment on the charges against his client. According to the complaint, Zhang said that he copied the software in order to have some use of it should he ever lose his job.
The United States has been concerned about espionage from Russia and China that would have economic consequences; however, it does not appear that Zhang was stealing the program for anything other than his own use. The software is called the GWA or the Government-wide Accounting and Reporting Program. It is used as tracking software for the massive amounts of money that are transferred each day by the United States government.
The criminal complaint charges Zhang with the theft of U.S. government property. If convicted, Zhang could be sentenced to ten years in prison.
