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A Chinese national spent five years stealing proprietary corn seeds worth $30-40 million from DuPont and Monsanto. His case reveals how China systematically targets American agricultural innovation.
From January 2007 to December 2012, Mo Hailong led a conspiracy to steal proprietary inbred corn seeds from DuPont Pioneer and Monsanto—two of the world's largest agricultural companies.
Unlike common hybrid seeds sold to farmers, inbred (parent) seeds are exceptionally valuable because they can be replanted year after year. Stealing parent seeds essentially steals the entire product line.
Why Inbred Seeds Matter
Hybrid seeds (what farmers buy) are sterile after one generation. But inbred parent seeds can be crossed to create new hybrids indefinitely— representing decades of breeding research and billions in investment.
A DuPont Pioneer field manager was driving near Tama, Iowa when he spotted something unusual: an Asian male on his knees, digging in an unmarked research field that had been planted just two days earlier.
When confronted, the man claimed to work for a local university. Then he hurriedly drove away through a ditch as the field manager noted his license plate.
Mo Hailong caught digging in unmarked Iowa cornfield; flees through ditch when confronted.
During routine liaison visit to DuPont Pioneer, company mentions incident. FBI identifies Mo from rental car license plate.
FBI obtains warrants for GPS tracking devices on suspects' vehicles and phone surveillance.
Mo and two others attempt to ship five boxes (125 pounds) of seed to Hong Kong. FBI intercepts at Memphis hub.
US Customs searches checked bags of conspirators and finds seeds hidden in bulk microwave popcorn boxes, wrapped in napkins, and concealed in pockets.
Federal agents arrest Mo; five co-conspirators indicted, including his sister Mo Yun.
Mo sentenced to 3 years federal prison, 3 years supervised release, and ordered to forfeit two farms in Iowa and Illinois.
When customs agents searched the conspirators' luggage in September 2012, they discovered creative concealment methods:
Seeds hidden in bulk microwave popcorn boxes, concealed beneath actual popcorn packages.
Kernels of corn wrapped individually in napkins and placed throughout luggage.
Corn kernels hidden in jacket and pants pockets, scattered among personal items.
The FedEx Shipment
In May 2012, the conspirators attempted to ship 125 pounds of stolen seeds (five boxes) to Hong Kong via FedEx. The FBI intercepted the shipment at the Memphis hub before it could leave the country.
Primary target
The field where Mo was caught belonged to DuPont Pioneer, one of the world's largest seed companies. Their proprietary inbred corn seeds represented decades of breeding research.
Security Response:
Also targeted
The conspiracy also targeted Monsanto's proprietary seeds. Both companies' parent lines were being stolen simultaneously to benefit DBN Group in China.
Impact:
Served in federal custody
Post-incarceration monitoring
Properties in Iowa and Illinois purchased to support criminal activities
Five others were indicted alongside Mo Hailong, including his sister Mo Yun. The conspiracy involved multiple Chinese nationals with connections to DBN Group.
DBN Group (Beijing Dabeinong Technology Group) is one of China's largest agricultural technology companies. Mo Hailong served as Director of International Business—his seed theft was to benefit Chinese agricultural development.
"Theft of trade secrets is a serious federal crime as it harms victim companies that have invested millions of dollars and years of work toward the development of proprietary technology. The theft of agricultural trade secrets and other intellectual property poses a grave threat to our national economic security."
— U.S. Attorney Kevin VanderSchel
Mo was caught because a field manager noticed something unusual and acted on it. Train employees to report suspicious activity.
DuPont Pioneer's relationship with the FBI enabled rapid investigation. The FBI has specific agricultural IP protection programs.
Unmarked research fields are still targets. Chinese operatives know where to look—assume your operations are being watched.
The conspirators had accomplices with knowledge of field locations. Vet employees and contractors with access to proprietary information.
Xiang Haitao stole Monsanto's Nutrient Optimizer algorithm after 9 years of employment—intercepted at the airport with a one-way ticket to China.
Read Case Study →When theft fails, China buys. Smithfield Foods ($4.72B) and Syngenta ($43B) are now Chinese-owned—legally acquired American agricultural assets.
View Acquisitions →Take our free security audit to assess your exposure to agricultural espionage threats and get personalized protection recommendations.