Chicago trader gets 1 year in prison for stealing ex-employer's computer code

A former longtime worker at WH Tradinghas been sentenced to a year and a day in federal prison for stealing secrets from the Chicago-based firm.

Over five months in late 2013 and early 2014, David J. Newman stole all of the securities trading firm's computer code and trading software, downloading more than 400,000 electronic files to multiple thumb drives.

Newman, 34, had worked for WH Trading since 2004 and resigned from the business in March 2014 after starting his own firm, NTF, through which he planned to use the stolen trade secrets to compete with WH Trading.

Newman, who pleaded guilty last year in federal court in Chicago to one count of theft of trade secrets, was also fined $100,000 at sentencing Thursday and was ordered to not use or disclose the secrets, which took WH Trading mathematicians, statisticians and other employees more than 15 years and $20 million to develop.

Read more: http://www.chicagotribune.com/business/ct-chicago-trader-sentenced-0606-biz-20170605-story.html