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By Nate Raymond

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NEW YORK (Reuters) – A above software architect for IBM Corp in China has been arrested by U.S. authorities for allegedly burglary proprietary antecedent cipher from his above employer, prosecutors appear on Tuesday.

Jiaqiang Xu, 29, was answerable in a bent complaint filed in federal cloister in White Plains, New York, with one calculation of annexation of a barter secret, as prosecutors accused him of aggravating to advertise the baseborn cipher to added companies.

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He was arrested on Monday afterwards affair with an clandestine administrator at a White Plains hotel, area authorities said he was recorded adage he acclimated the cipher to accomplish software to advertise to customers.

“Theft of barter secrets of the blazon declared adjoin Xu drains the aspect of addition and competition, and is accurately a austere federal crime,” Manhattan U.S. Attorney Preet Bharara said in a statement.

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IBM was not articular by name in the complaint. But a LinkedIn contour for Xu said he was active as a arrangement software developer at IBM during the aeon in question.

An IBM abettor beneath comment.

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Prosecutors said the antecedent cipher at affair was accompanying to proprietary software the aggregation developed for a amassed book system, which facilitates faster computer performance.

Xu, who began alive at IBM in China in 2010, had abounding admission to the antecedent cipher afore voluntarily resigning in May 2014, prosecutors said.

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According to the complaint, the Federal Bureau of Investigation in 2014 accustomed a address that addition in China was claiming to accept admission to the cipher and application it for business ventures.

An clandestine law administration administrator assuming as an broker gluttonous to alpha a abstracts accumulator aggregation afterwards contacted Xu, the complaint said.

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In March, Xu, afterwards beforehand sending the declared broker his resume, emailed the administrator and addition clandestine abettor about his accomplished acquaintance with the proprietary software and absorbed some sample cipher from his above-mentioned job.

Xu after told one of the clandestine admiral he was accommodating to accede accouterment his aggregation the cipher to acquiesce it to advance its own abstracts accumulator system, prosecutors said.

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After Xu offered to accidentally install the proprietary software, the FBI in August abiding for a computer arrangement to be set up to his blueprint to do so. Files uploaded to it independent a activity archetype of the software, prosecutors said.

The case is U.S. v. Xu, U.S. District Court, Southern District of New York, No. 15-mj-4388.

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(Reporting by Nate Raymond in New York; Editing by Tom Brown)

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