David Newman, a former trader for a Chicago-based proprietary trading firm (believed to be WH Trading LLC), was sentenced to 12 months and 1 day imprisonment and a fine of US $100,000 for stealing his former employer’s trading software and source code. He was indicted for this offense in December 2014, and pleaded guilty to his charges in April 2016.  According to his indictment, Mr. Newman was alleged to have copied computer files of his former employer on three occasions in 2013 and 2014 for use by a new company he established (NTF LLC) to access the CME Group in order to speculate in futures markets. Mr. Newman’s plea declaration acknowledged that he engaged in such theft although his former employer “took reasonable steps to keep its proprietary trade secrets secret,” including requiring Mr. Newman to execute a document where he agreed not use the firm’s trade secrets without its “express authorization.” (Click here for further background on Mr. Newman’s indictment in the article, “Futures Trader Charged With Stealing Proprietary Trading Code From Former Trading Firm” in the December 7, 2014 edition of Bridging the Week.)