New details regarding the fraud and trade secret theft at HTC points to Thomas Chien working with China’s Chengdu government set up a mobile phone design firm in the region. HTC became suspicious when Thomas Chien flew to the region several times during the first half of the year even though HTC does not conduct any business there. Allegedly, the Chengdu government offered to pay for costs for opening the factory, production and marketing if Chien left HTC with cash and technology assets.
Wu Chien-hung and Justin Huang, two of Thomas Chien’s accomplices in the case are accused of fraudulently billing HTC for the HTC One’s design through an external design firm for US$668,000 (twice what was originally reported) in May and June even though the handset’s design was done in-house. Case documents form the hearing show that more than half of the money was confiscated from the three suspects with US$262,100 in cash taken from Thomas Chien’s Audi which was still parked at HTC.
For now, Wu Chien-hung and Thomas Chien are still in custody, while Justin Huang has been released on bail.
Source: Apple Daily via Engadget
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