Taiwan-based smartphone manufacturer HTC Corp said today that its business operations remained normal after several of its senior designers were arrested on suspicion of embezzlement and theft of commercial secrets.

The Taipei District Court Saturday ordered the detention of Vice-General Manager of Research, Thomas Chih-lin Chien, and Research and Development Director Chien-hung Wu. A third, Design Team Senior Manager Justin Hung-yi Huang, was released on bail.

According to the court, HTC made the initial complaint in August, saying Chien, Wu, and Huang may have leaked business secrets and made fraudulent expense claims.

HTC refused to comment on the Police investigation, saying only that its business operations were unaffected by the case.

“Protecting the company’s proprietary and intellectual properties, privacy and security is a core fundamental responsibility of every employee,” said a company statement.

According to Taiwan’s Central News Agency, Chien was intending to leave the company to launch a mobile design firm offering services in both Taiwan and China. The three senior HTC staff members were suspected of planning to cooperate with Chinese counterparts and transfer HTC technology to China, prosecutors said.

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