Three Former Metaldyne Execs Plead Guilty in Trade Secrets Case - aftermarketNews

Three Former Metaldyne Execs Plead Guilty in Trade Secrets Case

Two years after being indicted, a former Metaldyne VP and two former senior executives from the parts supplier pled guilty Monday to federal charges of theft of trade secrets.

DETROIT — Two years after being indicted, a former Metaldyne VP and two former senior executives from the parts supplier pled guilty Monday to federal charges of theft of trade secrets.

Anne Lockwood, former vice president of Metaldyne, and Fuping Liu, a former Metaldyne metallurgist, pled guilty in U.S. District Court to conspiring to commit interstate transportation of stolen property. Lockwood’s husband and former senior engineer at the company, Michael Haehnel pleaded guilty to a misdemeanor count of accessing electronic records illegally, according to a report from the Detroit Free Press.

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, Mich. 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.

The Free Press report says Lockwood faces up to 33 months in prison and a $60,000 fine; Liu, 18 months and a $30,000 fine; and Haehnel, up to 1 year in custody and a $5,000 fine. They are to be sentenced Jan. 15.

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