A federal grand jury has indicted Xanthe Lam, a 66-year-old resident of South San Francisco, California, on charges of theft of trade secrets, conspiracy to commit theft of trade secrets, computer fraud and abuse, and conspiracy to commit computer fraud and abuse. The indictment, handed down on October 25, 2018, and unsealed today, alleges that Lam stole confidential Genentech information to help a company in Taiwan create and sell drugs similar to those created by Genentech.
Lam worked for Genentech as a Principal Scientist from 1986 until 2017. Her husband, Allen Lam, and James Quach, both were former Genentech employees who, along with John Chan, became consultants for JHL Biotech, Inc. JHL is a company based in Zhubei, Taiwan, that develops ‘biosimilars.’ Biosimilars are roughly the equivalent of a ‘generic’ chemical drug, i.e., designed to have properties similar to a biopharmaceutical that previously was approved by a regulatory agency, such as the Food and Drug Administration.
The indictment alleges that Lam conspired with Allen Lam and John Chan to steal the company’s trade secrets related to biopharmaceuticals Pulmozyme, Rituxan, Herceptin, and Avastin. Lam allegedly downloaded, collected, and transferred to Allen Lam and others at JHL certain confidential Genentech documents relating to the processes by which the company formulated drugs and managed raw materials. Lam also allegedly secretly consulted for JHL while still employed at Genentech.
The indictment also alleges that Lam conspired with former Genentech employee James Quach to illegally use her computer credentials. Specifically, she allowed Quach to gain access to Genentech’s secure document repository and, once he had access to the repository, Quach stole the company’s proprietary manufacturing protocols.
The defendant are charged with the following crimes and, if found guilty, they are subject to the following maximum statutory penalties:
- Xanthe Lam: 10 years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
- Allen Lam: 10 years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
- John Chan: 10 years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
- James Quach: 5 years of imprisonment; $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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