U.S. Attorney Damian Williams | U.S. Department of Justice
Edward Y. Kim, Acting United States Attorney for the Southern District of New York, and James E. Dennehy, Assistant Director in Charge of the FBI's New York Field Office, have announced the unsealing of an indictment against Cheuk Fung Richard Ho. The charges involve theft and attempted theft of trade secrets from his former employer, a global quantitative trading firm referred to as "Firm-1." Ho was apprehended in Los Angeles and is set to appear before Magistrate Judge Joel Richlin in the U.S. District Court for the Middle District of California.
Acting U.S. Attorney Edward Kim stated: "As alleged, Cheuk Fung Richard Ho abused the trust his former employer placed in him and stole trade secrets to use at his own quantitative trading firm. Ho allegedly tried to cover his tracks by lying to his former employer repeatedly and asking his employees to delete evidence. Thanks to the FBI, Ho is now in custody."
FBI Assistant Director James E. Dennehy commented: "Cheuk Fung Richard Ho allegedly stole and unlawfully shared private proprietary information to clandestinely develop his own firm in collaboration with his employer’s competitors. The defendant allegedly abused his trusted position by breaching company confidentiality agreements to the detriment of his former firm. The FBI will continue to apprehend any individual who attempts to garner success through manipulative and dishonest business strategies."
The indictment alleges that between July 2019 and August 2021, Ho worked as a research developer and quantitative trader at Firm-1. During this time, he had access to Firm-1's proprietary source code—a critical component developed over years at a cost exceeding one billion dollars—and took measures intended to protect its confidentiality.
In spring 2021, while still employed at Firm-1, Ho allegedly founded another trading entity known as "Firm-2," partnering with one of Firm-1's competitors called "Firm-3." Utilizing nearly complete access granted by his role at Firm-1, he purportedly misappropriated valuable trade secrets such as foundational elements ("Atoms") and predictive formulas ("Alphas") for use in developing Firm-2’s source code.
Despite knowing that these actions could harm Firm-1, it is claimed that Ho misled them about post-employment plans by omitting details regarding Firm-2 or connections with Firm-3 when questioned by Firm-1 officials. Once aware of suspicions surrounding him starting Firm-2 himself after leaving their employment—Ho reportedly instructed staff members under him there too—to erase internal communications alongside deleting records related specifically towards history documenting development processes behind creating codes used within operations run out from newly established business venture; however said instructions went unheeded according reports received thus far.
At age 36 living currently located within Los Angeles area California resident faces charge encompassing both stealing attempting obtain illicitly gathered sensitive data belonging previous workplace mentioned above herein context outlined previously which if convicted carries potential maximum penalty equating ten-year incarceration period imposed under statutory guidelines laid down congressional mandate existing solely provide informational reference point given ultimate determination regarding sentencing rests solely discretion presiding judicial authority overseeing proceedings involved hereunder noted explicitly affirming innocence presumption applicable until proven otherwise court law applicable jurisdiction governing matter discussed today press release issued accordingly reflects same principles justice system operates universally basis fairness impartiality towards all parties concerned involved respective capacities roles fulfilled throughout process adjudication resolution 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