DETROIT -- A federal grand jury indictment unsealed yesterday in Detroit reveals that a former vice president and two former senior employees of Metaldyne were charged with plotting to steal and stealing Metaldyne's secret process for manufacturing heavy automotive parts from powdered metal, and providing this information to a Chinese competitor.

Headquartered in Plymouth, MI, Metaldyne is one of only two automotive parts manufacturers in the world to have developed a process to successfully fabricate powdered metal into large, heavy-duty automotive parts, such as connecting rods.

Charged in the 64-count indictment were Anne Lockwood, 53, formerly a vice president of sales at Metaldyne; her husband, Michael Haehnel, 51, formerly a senior engineer at Metaldyne, both of Rockwood, MI; and Fuping Liu, 42, a former metallurgist for Metaldyne, of Westland, MI. Liu worked out of Metaldyne's Shanghai office until April 2004.

According to the indictment, after Lockwood left her position at Metaldyne in early 2004, she began planning with Fuping Liu to develop Chinese powdered metal manufacturers that could displace Metaldyne as the supplier of various kinds of powdered-metal manufactured parts, including connecting rods, to U.S. auto and equipment manufacturers. A company set up by Lockwood, and also involving Fuping Liu and Michael Haehnel, was to receive commissions based on the expected sales by the Chinese companies.

While Lockwood and Fuping Liu negotiated with Chinese competitors, Michael Haehnel, Lockwood's husband, remained employed as a senior engineer with Metaldyne. According to the indictment, Haehnel used his position there to gain access to hundreds of confidential Metaldyne files, and copied them to compact discs for Lockwood.

The indictment alleges that both Lockwood and Liu forwarded confidential Metaldyne information pertaining to its costs, designs and processes for manufacturing parts from powdered metal to the Chinese manufacturer, Chongqing Huafu Industry Co., Ltd. After Fuping Liu left Metaldyne in April 2004, he began working for GKN Sinter Metals' Shanghai office. GKN Sinter Metals also manufactures powdered metal parts, and is located in Auburn Hills, MI. The indictment also alleges that Fuping Liu provided confidential information belonging to GKN Sinter Metals to Lockwood, as well as to another Chinese auto parts manufacturer, the Liaoning Shuguang Automotive Corp.

In announcing the indictment, U.S. Attorney Stephen J. Murphy commended the work of the Special Agents of the "Cyber Squad" of the Detroit Field Office of the FBI. The prosecution is being handled by First Assistant United States Attorney Terrence Berg. An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

_______________________________________

Click here to view the rest of today's headlines.