2 Ex-Lucent Scientists Indicted for Conspiracy

Two scientists fired from Lucent Technologies Inc. and a business partner were indicted on federal charges of passing stolen company secrets to a Chinese government-owned telecommunications firm.

The indictment alleges that the three men, who were arrested May 4, stole Lucent voice and data technology and intended to use it in a joint venture with Datang Telecom Technologies Co.

Prosecutors have said the three men intended to use Murray Hill, N.J.-based Lucent’s PathStar software system--which aids phone and Internet companies in the transmission of voice and text data--to create a public company in China and the U.S.

The indictment by a federal grand jury in Newark, N.J., charges the two scientists, Hai Lin, 30, and Kai Xu, 33, with conspiracy to steal trade secrets and to possess stolen trade secrets. It also charges Yong-Qing Cheng, 37, a vice president for an optical networking vendor, with the same offenses.

Xu’s attorney had no comment on the indictment.

Prosecutors disclosed the charges May 4, when the FBI searched the homes of the three men. All are U.S. residents from China with doctoral degrees.

If convicted, the men face up to 10 years in prison and a $250,000 fine.