Business Espionage: HTC - Cell Phone Company Takes a Hit

Taiwan -- Investigators stormed into HTC yesterday to investigate some of the company's design staff, who are suspected of stealing trade secrets and defrauding HTC of nearly NT$10 million.

Ironic HTC homepage.

HTC accused three of its senior design professionals of fraud. The suspects were alleged to have set up new businesses on their own. Investigators started interrogating the suspects and searching their homes and offices yesterday afternoon.

The Bureau of Investigations said that it had received a complaint from HTC saying that three senior employees in the design development department were suspected of designing cellphone cases and lying about it being contract work. The suspects allegedly conspired with a manufacturer to issue fake invoices amounting to nearly NT$10 million for performing design work. Upon receiving the money from HTC, the manufacturer allegedly transferred it to the suspects. (more)