Aug 31 AT 10:02 AM Nick Gray 30 Comments

Top members of HTC’s design team arrested for fraud, stealing trade secrets

htc-one-sketch-640x305

The internal drama at HTC continues as a handful of HTC’s employees were arrested earlier today on charges of fraudulent expenses and stealing trade secrets. The most notable names among those arrested are Thomas Chien (Vice President of Product Design,  Wu Chien Hung Director of R&D and senior design team manager Justin Huang (responsible for the design of the HTC One).

The arrests were made following a personal complain by HTC’s chairwoman Cher Wang. Those arrested had recently resigned from HTC after claiming their mid-year bonuses this week. The group of designers was in the process of setting up their own mobile design firm under the name “Xiaoyu” in mainland China. The complaint alleges the three men listed above contracted an external design firm to bill HTC for US$334,000 worth of commission fees for the design of the HTC One even though the phone was designed in-house. The money was collected between May and June of this year and split between the three. Thomas Chien is also accused of downloading files for HTC’s upcoming Sense 6 UI and distributing them via e-mail to external contacts.

Due to the nature of the investigation, HTC doesn’t have much to say on the matter at this time. We’ll sure new details will come to light over the comings days or weeks.

The matter is under investigation by relevant authorities. We therefore refrain from further comments.HTC

No matter what the final outcome is, we doubt Thomas Chien, Wu Chien Hung and Justin Huang will have much luck with their mobile design firm or gaining employment at any other smartphone OEM. Hopefully, HTC’s upcoming products will not be effected much by this setback, but we’re sure it’ll take quite some time the replace the design talent that HTC has lost.

Source: Engadget

Nick is a tech enthusiast who has a soft spot for HTC and its devices. He started HTCsource.com (the first HTC blog) back in 2007 and later joined the Android and Me family in the summer of 2010.

    Most Tweeted This Week

  • redraider133

    Man seems like nothing is going right for HTC right now. Hope this doesn’t turn into something major and they can continue to try and get back on the right track.

    • Hom0ncruse

      final nail in the coffin for HTC

      • you cant trust asians

        Yes, its imminent and inevitable. This company has to go out of business asap.

      • kiki.utena

        How many times gave you now claimed it’s the final nail? I wonder if there’s any spare wood left on the coffin for yet another final nail.

    • Abdullah

      HTC has become arrogant and non caring some years back. I had HTC Desire then with a battery issue. I wrote to them. In response I got a call from Taiwan Headquarters and the guy bluntly told me that this was not HTC problem cuz I had bought through Orange. In Pakistan I have no way of contacting Orange UK, to which he said that wasn’t HTC problem either. I told him that this still was bad for their image and he didn’t care at all. I retorted to shift to Samsung and he encouraged me to shift.
      So I have shifted to Samsung and love their after sales service. In Pakistan at least it is fantastic. HTC sucks big time. With such bad management, it is not surprising they are getting into such trouble.

      Regards
      Abdullah
      Pakistan

      • SGB101

        One thing Samsung does well is aftercare.

        I have a Samsung licenced service shop, it’s actually a Nokia place but does Samsung.

        The Samsung devices all have 2month warranties (as long as stock), my wife had a sgs1 that developed issues. I dropped it off, seven days later I picked it up working. They basically swapped out the innereds.

        Only had one dealing with HTC, well it was 12 dealings, when the sensation xe came out it had a heat issue. My lad had one and sent it off and got it replaced. He noticed a lot was on eBay at stupid cheap prices, so he got one, and sent it to HTC, a replacement returned, in the end including his original he ‘fixed’ 12, and made a small fortune. He was 15 at the time.

        I would be proud of him, but he has an iPhone now!

      • Gucci

        GTFO Paki

        • SGB101

          More like GTFO you ignorant racist wanker!

          Why would the ‘paki’ need to GTFO of Pakistan anyway?

    • ken1

      my neighbor’s aunt makes $80/hour on the internet. She has been out of work for eight months but last month her income was $21788 just working on the internet for a few hours. pop over to this web-site………. http://gg.gg/ge92

  • redraider133

    Trying to collect after they left the company..

  • Nate B.

    Not that I want it to, I think HTC will soon implode.

  • kazahani

    This is horrible. I feel really bad for HTC and I hope these criminals get what they deserve.

  • Michelle Eaton

    Can’t trust anyone

    • you cant trust asians

      and htc in particular -quod erat demonstrandum

  • Invalidlinks

    Those 3 can forget about making another company or joining one. Horrible

    • you cant trust asians

      They could join Samung. Samsung stole all of their designs from Apple, iirc. They got punished by Apple lawyers badly.

      • Abdullah

        Dude many try to copy something and then modify or innovate from there. Applehas been uusing a lot of patents belonging to Samsung and Motorola. So why is Apple crying about Samsung? They should focus more on improving the very things they created but are still giving problems – Imaps, ITV, ITunes. Many apple users still find iTunes unfriendly and wish Apple would just get rid of it.
        Imaps sacked so much, in many cities it got banned and finally Apple had to allow Google Maps back. ITV never took off.
        Apple only excels in laptops and MACs. It should stop wasting time in courts and face competition in their labs.

        Regards
        Abdullah
        Pakistan

  • you cant trust asians

    htc is such a horrendous company run by criminals (high tech criminals), they deserve to go bankrupt!!!!

    htchapter 11 incoming….

  • Richard Yarrell

    Internal problems such as these are usually the final nail in the coffin. Like it or not Htc is definitely in there final days.

    • Orion78

      Funny, you were worshiping htc just a few years ago. Now you just worship Samsung.

      • kiki.utena

        Yep he’s the definition of a fickle fanboi.

    • squiddy20

      1. The correct word you are looking for is “their”. Try going back to grade school.
      2. Only members of the design team were arrested. Sure, it’s hard to replace almost an entire design team, but not impossible. Additionally, just because a few members of a company are arrested does not mean the company is about to tank.

    • Max.Steel

      Learn to spell properly, you dope.

  • www.phonewbie.com

    Hey NIck, can you translate the video for us?? just kidding.

  • Zeljko

    According to my contacts inside HTC, One&Co from San Francisco is responsible for design of HTC One, and some upcoming products. A bit more in this topic in my article here: http://www.insidehw.com/editorials/events/7612-what-is-in-common-for-htc-one-kindle-fire-and-microsoft-arc

  • Paul Atreides

    It’s Chou’s fault trust me.

  • Winston Rigsby

    I love my HTC One. But once my contract is up (if not sooner), I’m going Samsung, specifically the Note. All of this drama is really turning me off.

  • DR SAMSUNG – CEO OF BETRAYAL AND CUSTOMER GENOCIDE

    RATS ARE LEAVING THE SINKING SHIP….

  • Nathan D.

    In desperate times people do stupid things, and I’m disappointed in the design team.

    • donger

      Ex-design team now.

  1. Man seems like nothing is going right for HTC right now. Hope this doesn’t turn into something major and they can continue to try and get back on the right track.

    • Hom0ncruseGuest 2 years ago

      final nail in the coffin for HTC

      • you cant trust asiansGuest 2 years ago

        Yes, its imminent and inevitable. This company has to go out of business asap.

      • kiki.utenaGuest 2 years ago

        How many times gave you now claimed it’s the final nail? I wonder if there’s any spare wood left on the coffin for yet another final nail.

    • AbdullahGuest 2 years ago

      HTC has become arrogant and non caring some years back. I had HTC Desire then with a battery issue. I wrote to them. In response I got a call from Taiwan Headquarters and the guy bluntly told me that this was not HTC problem cuz I had bought through Orange. In Pakistan I have no way of contacting Orange UK, to which he said that wasn’t HTC problem either. I told him that this still was bad for their image and he didn’t care at all. I retorted to shift to Samsung and he encouraged me to shift.
      So I have shifted to Samsung and love their after sales service. In Pakistan at least it is fantastic. HTC sucks big time. With such bad management, it is not surprising they are getting into such trouble.

      Regards
      Abdullah
      Pakistan

      • One thing Samsung does well is aftercare.

        I have a Samsung licenced service shop, it’s actually a Nokia place but does Samsung.

        The Samsung devices all have 2month warranties (as long as stock), my wife had a sgs1 that developed issues. I dropped it off, seven days later I picked it up working. They basically swapped out the innereds.

        Only had one dealing with HTC, well it was 12 dealings, when the sensation xe came out it had a heat issue. My lad had one and sent it off and got it replaced. He noticed a lot was on eBay at stupid cheap prices, so he got one, and sent it to HTC, a replacement returned, in the end including his original he ‘fixed’ 12, and made a small fortune. He was 15 at the time.

        I would be proud of him, but he has an iPhone now!

      • GucciGuest 2 years ago

        GTFO Paki

        • More like GTFO you ignorant racist wanker!

          Why would the ‘paki’ need to GTFO of Pakistan anyway?

    • my neighbor’s aunt makes $80/hour on the internet. She has been out of work for eight months but last month her income was $21788 just working on the internet for a few hours. pop over to this web-site………. http://gg.gg/ge92

  2. Trying to collect after they left the company..

  3. Not that I want it to, I think HTC will soon implode.

  4. This is horrible. I feel really bad for HTC and I hope these criminals get what they deserve.

  5. Michelle EatonGuest 2 years ago

    Can’t trust anyone

    • you cant trust asiansGuest 2 years ago

      and htc in particular -quod erat demonstrandum

  6. InvalidlinksGuest 2 years ago

    Those 3 can forget about making another company or joining one. Horrible

    • you cant trust asiansGuest 2 years ago

      They could join Samung. Samsung stole all of their designs from Apple, iirc. They got punished by Apple lawyers badly.

      • AbdullahGuest 2 years ago

        Dude many try to copy something and then modify or innovate from there. Applehas been uusing a lot of patents belonging to Samsung and Motorola. So why is Apple crying about Samsung? They should focus more on improving the very things they created but are still giving problems – Imaps, ITV, ITunes. Many apple users still find iTunes unfriendly and wish Apple would just get rid of it.
        Imaps sacked so much, in many cities it got banned and finally Apple had to allow Google Maps back. ITV never took off.
        Apple only excels in laptops and MACs. It should stop wasting time in courts and face competition in their labs.

        Regards
        Abdullah
        Pakistan

  7. you cant trust asiansGuest 2 years ago

    htc is such a horrendous company run by criminals (high tech criminals), they deserve to go bankrupt!!!!

    htchapter 11 incoming….

  8. Internal problems such as these are usually the final nail in the coffin. Like it or not Htc is definitely in there final days.

    • Funny, you were worshiping htc just a few years ago. Now you just worship Samsung.

      • kiki.utenaGuest 2 years ago

        Yep he’s the definition of a fickle fanboi.

    • squiddy20Guest 2 years ago

      1. The correct word you are looking for is “their”. Try going back to grade school.
      2. Only members of the design team were arrested. Sure, it’s hard to replace almost an entire design team, but not impossible. Additionally, just because a few members of a company are arrested does not mean the company is about to tank.

    • Learn to spell properly, you dope.

  9. Hey NIck, can you translate the video for us?? just kidding.

  10. ZeljkoGuest 2 years ago

    According to my contacts inside HTC, One&Co from San Francisco is responsible for design of HTC One, and some upcoming products. A bit more in this topic in my article here: http://www.insidehw.com/editorials/events/7612-what-is-in-common-for-htc-one-kindle-fire-and-microsoft-arc

  11. Paul AtreidesGuest 2 years ago

    It’s Chou’s fault trust me.

  12. Winston RigsbyGuest 2 years ago

    I love my HTC One. But once my contract is up (if not sooner), I’m going Samsung, specifically the Note. All of this drama is really turning me off.

  13. DR SAMSUNG - CEO OF BETRAYAL AND CUSTOMER GENOCIDEGuest 2 years ago

    RATS ARE LEAVING THE SINKING SHIP….

  14. In desperate times people do stupid things, and I’m disappointed in the design team.