Former Nationwide researcher sentenced
A former researcher at Nationwide Children's Hospital in Columbus was sentenced Monday in federal court in Columbus to 33 months in prison for stealing trade secrets from local lab work.
Yu Zhou, 51, formerly of Dublin, pleaded guilty late last year to conspiracy to commit wire fraud and conspiracy to commit theft of trade secrets. His wife, Li Chen, 48, earlier admitted to the same counts and was sentenced in February to 30 months.
The couple also were ordered to make restitution of more than $2.6 million, including forfeiting cash and shares in two companies.
U.S. District Judge Sarah D. Morrison announced the sentence Monday afternoon after overruling several objections from Zhou's attorneys concerning factors used in determining the ultimate penalty for the crimes involved.
“Dr. Zhou was in a position of trust, at the forefront of cutting-edge exosome research...,” Morrison said. “Dr. Zhou used resources, data and technology belonging to the hospital to share confidential, proprietary information with scientists in China for his own personal gain. He chose to monetize the ideas and research, setting up multiple corporations and taking patents in China based on the research.”
According to court documents, Zhou and Chen worked for about 10 years in separate laboratories at the Nationwide Children's Hospital Research Institute. Their work focused on the identification and treatment of different diseases using exosome, “small membrane-bound sacs produced by human cells” that are “crucial to the identification and treatment of a range of medical conditions,” according to court documents.
Zhou and Chen left Nationwide in 2017 and 2018, respectively, and relocated to California. A subsequent investigation determined they worked together to steal trade secrets, including starting a company in China, according to documents. They were indicted in federal court in Columbus in 2019.
Prosecutors sought a sentence of 36 months for Zhou, noting the seriousness of the offense. In pre-sentence court filings, they argued that he “stole sensitive, cutting-edge research that (Nationwide) took years to develop and extensive measures to keep secret. In doing so, he willingly took part in the Chinese government's long-term efforts to steal American intellectual property. And in doing so, acted behind the hospital's back, used hospital resources and property, and violated the hospital's trust, all to enrich himself to the detriment of the hospital's research interests and reputation.”
Zhou sought a sentence of no more than 24 months, with a portion served under home confinement or a halfway house, and no restitution. In court documents, he argued that one of the trade secrets involved in the case “does not even work. The value of an ineffective and nonviable exosome isolation method is zero.”
Prior to his sentence being announced, Zhou “deeply” apologized to the court, his family, the United States and others affected by his wrongdoing. mkovac@dispatch.com @Ohiocapitalblog