Xiao Zhang, Theft of Trade Secrets, Massachusetts 2021

Boston Businessman Accused of Stealing Trade Secrets

BOSTON – Xiao Zhang, a 33-year-old citizen of the People’s Republic of China, has been indicted by a federal grand jury in Boston for allegedly stealing trade secrets from his employer, a global investment management firm, while working in Massachusetts in 2021.

According to the indictment, Zhang allegedly utilized a virtual private network (VPN) to access his employer’s network from the PRC, which enabled him to circumvent the company’s controls. Zhang then allegedly made copies of his employer’s code, projects, and research, and sent the copies through a PRC-based file-sharing application, enabling him to again evade his employer’s controls.

It is alleged that Zhang then utilized the stolen items with the intent of establishing his own investment firm in the PRC. The charge of theft of trade secrets provides for a sentence of up to 10 years in prison, three years supervised release, and a fine of up to $250,000.

Zhang currently remains at large overseas, and the U.S. Attorney’s Office is working closely with international authorities to apprehend the defendant.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division, made the announcement. Assistant U.S. Attorney Timothy H. Kistner of the National Security Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The case is a reminder of the importance of protecting intellectual property and trade secrets in the business community. The U.S. Attorney’s Office will continue to work tirelessly to investigate and prosecute cases of theft of trade secrets and other forms of economic espionage.

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