Citizen of the People's Republic of China Indicted for Theft of Trade Secrets

BOSTON - A citizen of the People's Republic of China (PRC) 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.

Xiao Zhang, 33, of Shanghai, China, was indicted on one count of theft of trade secrets. Zhang currently remains at large overseas.

According to the indictment, in 2021, 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

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.