On June 5, 2017, David J. Newman was sentenced to a year and a day in prison for stealing his employer’s proprietary trading code, a sentence he received in addition to a $100,000 fine and an order prohibiting him from using or disclosing the stolen trade secrets.  Over the course of five months, Newman downloaded and stole all of the proprietary computer code and trading software that belonged to his employer, WH Trading LLC, and which comprised more than 400,000 electronic files.  After stealing this data—including codes used to price futures and options contracts, execute trades on various exchanges, analyze the risk of trades, and interpret exchange market data—Newman resigned from WH Trading LLC and established his own trading firm called NTF LLC, where he intended to use the data to compete against his former employer.  The data stolen by Newman took more than fifteen years to develop at a cost of over $20 million.  United States v. Newman, 1:14-cr-704 (N.D. Ill.).

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