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Palo Alto engineer pleads guilty to fraud conspiracy

Original post made on May 7, 2012

A Palo Alto systems engineer pleaded guilty in federal court Monday, May 7, to one count of conspiracy to commit mail fraud, United States Attorney Melinda Haag announced.

Read the full story here Web Link posted Monday, May 7, 2012, 5:41 PM

Comments (18)

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Posted by rebates are scams
a resident of Adobe-Meadows
on May 7, 2012 at 6:18 pm

When are the Feds going to crack down on the companies offering these rebates? Half the time, they find some excuse to deny your rebate and the retailer won't accept returns after you tried and failed to submit the rebate. I do not blame these people for trying to scam the scammers back.


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Posted by Sharon
a resident of Midtown
on May 7, 2012 at 7:19 pm



" Sheng Qiang, who is also known as Becky Sheng Qiang, admitted to committing a sophisticated rebate fraud scheme with her husband, co-defendant Yezhou Zhao.

He also goes by the names Jake Zhao and Jake Chao, according to the U.S. Attorney's office."

What was the role of Chinese spies in this scam?

Industrial, commercial and security spying in pervasive by Chinese agents in the US academic, technology, defense and financial communities.

Computer hardware made in China has backdoor that enable spying according to the DIA

-which is why they will not allow any Lenovo computers in any security agency or environment.


 +   Like this comment
Posted by Shar mom
a resident of Midtown
on May 7, 2012 at 7:38 pm

The writing style is typical

One line paragraphs tersely written

-with sudden hyphens

-but more typical are the blanket claims that boggle the mind.

Let's bring up a question about Chinese spies?

-then claim knowledge of internal security matters without any proof.


 +   Like this comment
Posted by Shar mom
a resident of Midtown
on May 7, 2012 at 7:39 pm

Do a print screen quick.

-deletion is soon


 +   Like this comment
Posted by Chinese-Spies-Are-Everywhere
a resident of Another Palo Alto neighborhood
on May 7, 2012 at 8:42 pm

Chinese Spies Are Catching Up:
Web Link

Even the New York Times is talking about Chinese spies in the US. This case may not involve spying, but the next one probably will.


 +   Like this comment
Posted by Sharon
a resident of Midtown
on May 7, 2012 at 10:13 pm

Chinese commercial and industrial spying is rampant-that is reality

What are we going to do about it?


 +   Like this comment
Posted by amherst
a resident of Midtown
on May 8, 2012 at 7:15 am

The U.S. Government is already so thoroughly infiltrated by Chineese and Russian Communists (Kleptocrats) that there are essentially no 'big' diplomatic or technological 'secrets.' The US remains on top only temporarily thanks to the US victory in World War II which left the rest of the world in ruins. Though it was a long time ago the US accrued the spoils of war, world markets, the center of world finance, the world's currency, industrial and military might to back it all up and enforce it. But the 'traitors' are legion. Like Rome, the leadership of the US has succumbed to vanity, narcissism, greed. Lobbyists write all the laws. Politicians vote the laws 'in' as instructed. Example: Obamacare. Which Congressmen actually sat down and wrote that law out? Which Congressmen submitted the 300 page ammendments that were submitted the night before the Obamacare vote? Answer: NONE. Lobbyists, drug, healthcare and insurance companies wrote that bill. Lobbyists write all the bills. Thomas Jefferson wrote and warned about this turn of events 200 years ago. Now, the corruption is total and complete. The people have been intentionally dumbed down by the Departments of Education and public education in general. The nation has become ignorant, cowardly, weak and selfish, trading 'hand outs' for 'dignity and self reliance.' The only thing that gives the US an edge is the pace of innovation, and a military force that spans the globe. This too will collapse into the coming nightmare of the 'Brave New World....... order.' People can not handle freedom. People are herd animals. They just need to be part of a system, it doesn't matter how corrupt, so long as they can 'belong.' They will even betray and slaughter each other, so long as they get recognition for a 'job well done.'


 +   Like this comment
Posted by musical
a resident of Palo Verde
on May 8, 2012 at 7:32 am

I'm laughing all the way to the bank.


 +   Like this comment
Posted by Onions
a resident of Old Palo Alto
on May 8, 2012 at 9:41 am

This is hilarious!

Did I miss something in the article? It was about fraud. Sharon warped it into FEAR OF CHINESE SPIES - BE VERY AFRAID simply because of their names and the bank account. And then it's off to the races, facs be damned!

-at least Shar Mom got Sharon to avoid her hyphens in the last post

-pretty funny


 +   Like this comment
Posted by Question Everything
a resident of Another Palo Alto neighborhood
on May 8, 2012 at 10:32 am

> Did I miss something in the article?

What you missed was living in California (and the US) for the past 100 years, and paying attention to the massive spy networks, that have cost the US taxpayers trillions of dollars over the years, and put the US at risk, from a national security point-of-view.

During WWI, WWII and thereafter, espionage has been on-going in this country because we don't seem to want to believe that the "other guys" are bad. During WWI, the Germans conned the US into allowing them to use our trans-Atlantic Cable to pass messages back to Berlin that involved espionage activities here in the US. A German espionage group set up a fake arms factory in the US, and conned the British and French governments into fronting money for arms that were never manufactured. This money disappeared into the German governments war machine.

During WWII, the Germans managed to steal the plans for the Norden Bomb site, making improvements on it over our version of this necessary equipment needed for precision bombing. And then there was all of the theft of atomic secrets by people who believed that the Soviet Union was the "government for the future".

Have you forgotten the massive military, and industrial, spying that has put our country at risk?

What you have missed is asking the crucial question--is there anything going on underneath this "fraud" that is really espionage?


 +   Like this comment
Posted by Beebee
a resident of Old Palo Alto
on May 8, 2012 at 1:02 pm

Looks like Sheng got a deal, from 25 counts down to 1 count, could have been a lot worse for her. Hopefully she will learn from this, and have a happy life in China after she is released from prison in a few years and is deported back to her homeland.


 +   Like this comment
Posted by Onions
a resident of Old Palo Alto
on May 8, 2012 at 1:19 pm

"Have you forgotten the massive military, and industrial, spying that has put our country at risk?"

/snore

"What you missed was living in California (and the US) for the past 100 years, and paying attention to the massive spy networks, that have cost the US taxpayers trillions of dollars over the years, and put the US at risk, from a national security point-of-view."

Geez, for a hundred years. I missed the memo. As did my pop. And my grandpop. And his pop.

"During WWI, WWII and thereafter, espionage has been on-going in this country .... During WWI, the Germans conned the US into allowing them to use our trans-Atlantic Cable .... A German espionage group set up a fake arms factory in the US..."

So relevant!

"because we don't seem to want to believe that the "other guys" are bad. "

Bull-pucky. We are constantly reminded that we should FEAR the bad guys, and constantly make up new bad guys so we can spend more money and be in greater FEAR of the new bad guys.

The commies (who we trade with now), Grenada, Nicaragua, Iraq, Afghanistan, Vietnam (again, trading) Iran, N Korea, the war on teh-ruhr, and on and on and on.

Let's go back

-is there a SHRED of evidence that these criminals are spies?





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Posted by Tom N.
a resident of Midtown
on May 8, 2012 at 2:45 pm

At the time the defendants committed fraud they lived in Milpitas. They "made" enough money to move to Palo Alto, although $600K would not buy you even a shack. They must have a bigger scheme that has not been detected by the US government.


 +   Like this comment
Posted by Question Everything
a resident of Another Palo Alto neighborhood
on May 8, 2012 at 4:05 pm

> Geez, for a hundred years. I missed the memo. As did my
> pop. And my grandpop. And his pop.

No surprise .. reading through your ridiculous response to events in American history that might not be so well known, but none-the-less have demonstrated a callousness to how stupid Americans, and particularly American government, has been with American technology, and taxpayer dollars.

Pearl Harbor was predicted by officers in Naval Staff College as early as 1927. Anyone studying the Pacific, would have come to that conclusion. Yet, the American government did not have that large Naval installation on alert, even though the New York Times had printed in a very large headline (maybe 24 pt) "Stimson Says: War Imminent" during the last week of November, 1941. Claims by the Roosevelt Administration that they were "totally surprised" was not true--although they clearly did not know that this fleet was en route to Hawaii during the first week of December.

There were Japanese spies all over Hawaii at the time, and during the previous months and years. Yet, we Americans didn't have the foresight to do anything about it.

Fast forwarding to today--we've got the case of Wikileaks, and the massive hole in the security of US diplomatic traffic. Clearly we have learned nothing from the past. With people who are as clueless as this poster, we probably will never learn how to protect our secrets, or be concerned enough to be alert to people acting suspiciously.

Next time, it won't be an attack on a remote Naval base. Next time, it will be an attack on a large American city.

Maybe these two aren't spies. But the government should be looking very deep into the possibility.


 +   Like this comment
Posted by Onions
a resident of Old Palo Alto
on May 8, 2012 at 4:33 pm

Omigosh, 'Question Everything', thank you, thank you, thank you!!

We American People are so stupid, as you said!

Why, without your Superior Intellect, why, gosh, I never would have known the font size of a headline from...

...SEVENTY YEARS AGO.

Want to see something more relevant, at least chronologically, than Sharon's unsubstantiated fantasy that these two criminals are spies?

Web Link

What's the point size on the title the President ignored, and then stayed on vacation without addressing national security? "Bin Ladin Determined To Strike in US" Is that 16 point, or maybe only 14?

How are they related with your fear of Chinese spies? The National Security Adviser at the time was a self claimed expert on our big bad enemy of the time - the USSR (already devolved by the time she showed up, to Russia.) How did all that expertise work out?

But hey, according to you, Americans are stupid and I am clueless.

Thanks again for the font size from 70 years ago. You are sooooooo suh-mart!




 +   Like this comment
Posted by Ross
a resident of Downtown North
on May 9, 2012 at 7:28 pm

This news dated back to 2009, and the money involved was less than 90k. Such a liar.


 +   Like this comment
Posted by Hmmm
a resident of East Palo Alto
on May 9, 2012 at 7:57 pm

Ross - who's lying? Can you say where you got your info?


 +   Like this comment
Posted by Get it right
a resident of Midtown
on May 9, 2012 at 11:48 pm

I am not sure why the reporter did not offer complete information, before publishing it to mislead the readers.

- 3com has been a Chinese company for well, maybe over ten years. The Chinese company was who HP bought.

- while I have to admit the crime involved Is pretty creative (at least for me), this has little to do with Americans or American companies, or their trade secret, if any.

- communication equipment is becoming more and more like commodity, with two or three silicon vendors offering independent, but similar, designs to customers around the globe...

So, this case has nothing to do with stealing intelligence, nor anything to do with Americans...


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