On August 31st, five of HTC’s top designers in Taipei were arrested under suspicion of expense fraud and the theft of trade secrets. Those arrested and interrogated included Vice President of Product Design, the design team senior manager, and the R&D director. Two of the five were taken into custody, including the Vice President, and the other three were released on bail.
The five people in question are planning on leaving to start up their own mobile design firm in Taiwan and China. Reports indicate that at least three of the five people interrogated have already registered their new company in China and were planning to resign after receiving their mid-year bonuses on the 30th.