Glaxosmithkline pharmaceuticals headquarters in Brentford, west London.
Photo: Willy Barton/Shutterstock.com

A federal judge has rescinded an order granting temporary release amid the COVID-19 pandemic to a Chinese national accused of participating in a conspiracy to steal trade secrets from GlaxoSmithKline valued at $550 million.

In a May 8 ruling, U.S. District Judge Joel Slomsky of the Eastern District of Pennsylvania overturned a magistrate judge's grant of bail to defendant Gongda Xue while he awaits trial. Slomsky said that Xue posed a significant flight risk and noted that Xue's sister had already pleaded guilty to related charges.

Xue's lawyer, Barry Coburn, declined to comment.

The U.S. Attorney's Office for the Eastern District didn't respond to a request for comment.

Xue is a Chinese citizen and a resident of Switzerland who was indicted on 12 counts related to the alleged conspiracy. He sought bail claiming that his health was at higher risk in prison due to the potential spread of the coronavirus while incarcerated. The government argued that Xue was a "substantial flight risk" and should be kept behind bars.

However, a magistrate judge ruled in Xue's favor and ordered his release April 10.

The government appealed, arguing that Xue, who claimed to have a history of respiratory issues, did not show he'd be at a lower risk outside of prison. Slomsky sided with the government, agreeing that Xue was a flight risk.

"The nature and circumstances of the offense and the evidence against defendant support his continued detainment. He faces serious charges found by the grand jury to be supported by probable cause and the evidence against him appears to be strong," Slomsky said.

"Defendant is named in a 12-count indictment alleging that he conspired with family members to steal trade secrets from GlaxoSmithKline … and the Friedrich Miescher Institute for Biomedical Research and profit from the stolen information by creating a competing pharmaceutical company in China. The government values the stolen information in excess of $550 million, although this amount may be contested," Slomsky added.

Slomsky also said that Xue's wealth and history of international travel points to his risk of fleeing the country.

"Defendant is a man of considerable means with extensive international ties. He has a Bachelor of Science in biology from the Henan University of Technology in China, a Master of Science in Chinese medicine from the China Academy of Chinese Medicine, and a Doctorate in natural sciences from the University of Zurich," Slomsky said. "Prior to his extradition, he was a researcher at ABBA Therapeutics, a leading biopharmaceutical company located in Basil, Switzerland. He is a Chinese citizen and legal permanent resident of Switzerland. Over the past five years, he has traveled to China, Germany, and France, in addition residing in Switzerland. He also previously lived for a short period in the Czech Republic. Given his extensive international travel and personal resources, he has the wealth and connections which make him a serious risk of flight."