24 April 2017
visit nextgenbanking.co.uk

FBI arrests CME software engineer on code theft charges

07 July 2011  |  9531 views  |  0 Chicago skyline

The FBI has arrested a senior software engineer with the Chicago Mercantile Exchange on charges that he stole and handed over proprietary software code to a Chinese futures exchange start-up.

49-year-old Chunlai Yang, who is a naturalised US citizen and had worked at the exchange for 11 years, was arrested at his desk at the CME's Chicago HQ.

The arrest followed an internal investigation by the CME which discovered that Yang had downloaded and copied thousands of files to his computer and removable storage devices.

"Many of the downloaded files were critical to the operation of the CME group and are considered proprietary in nature and contain protected source code," says the FBI.

Subsequent investigation by the FBI determined that Yang had also been in e-mail contact with the assistant director of the Logistics and Trade Bureau for the Zhangiagang Free Trade Zone. One of the e-mails sent by Yang contained an attachment, which was a CME document containing protected source code and proprietary information.

Yang, who had booked a one-way flight to China, scheduled to depart from O'Hare Airport on 7 July, had also been in contact with two individuals who were the sole shareholders and officers of East China Technology Innovation Park Company, a Hong Kong firm in which Yang had invested $118,182.

The e-mails show that the company wanted to set up a futures exchange in China and sell trading software.

If found guilty, Yang faces a possible sentence of up to 10 years' incarceration, a $250,000 fine, and three years of supervised release.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Ex-Goldman programmer jailed for eight years over HFT code theft

Ex-Goldman programmer jailed for eight years over HFT code theft

21 March 2011  |  9133 views  |  0 comments
SocGen trader goes on trial for HFT code theft

SocGen trader goes on trial for HFT code theft

10 November 2010  |  7736 views  |  0 comments
UBS algo trading code theft case dropped

UBS algo trading code theft case dropped

15 February 2010  |  11505 views  |  0 comments
Citadel sues ex-staff for contract breach; raises code-theft spectre

Citadel sues ex-staff for contract breach; raises code-theft spectre

10 July 2009  |  5990 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit dh.comVisit capgemini.com

Top topics

Most viewed Most shared
hands typing furiouslyDoes the Buck Stop with GameStop?
10514 views 0 | 3 tweets | 14 linkedin
BBVA runs live funds transfers over RippleBBVA runs live funds transfers over Ripple
10007 views comments | 28 tweets | 18 linkedin
Alipay and WeChat near $3 trillion payments milestoneAlipay and WeChat near $3 trillion payment...
8755 views comments | 35 tweets | 38 linkedin
Western Union and MoneyGram unveil Facebook Messenger bots; Mastercard and Amex pile inWestern Union and MoneyGram unveil Faceboo...
8395 views comments | 17 tweets | 17 linkedin
Dutch banks back all-in-one mobile payments tech from INGDutch banks back all-in-one mobile payment...
7315 views comments | 18 tweets | 20 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job