New York City Federal Theft of Trade Secrets Lawyer
Trade secrets prosecutions at the federal level have become one of the fastest-growing categories of white-collar criminal enforcement. What once might have resolved as a civil business dispute now lands in federal court as a criminal indictment under the Economic Espionage Act or the Defend Trade Secrets Act, carrying penalties that include years in federal prison, massive fines, and reputational damage that outlasts any sentence. A company’s former employee, a research scientist, a software engineer, or a corporate executive can find themselves the target of a grand jury investigation based on files they downloaded, emails they forwarded, or a job they accepted with a competitor. The cases move quickly, and the government builds them for months before anyone is formally charged. If you or your company is in the crosshairs of a New York City federal theft of trade secrets lawyer, the gap between early intervention and late reaction can define the entire outcome.
Federal trade secrets cases in New York are typically prosecuted by the United States Attorney’s Office for the Southern District of New York or the Eastern District, both of which have dedicated units for sophisticated economic crimes. The SDNY, based in Manhattan, has a particularly active history with technology theft, corporate espionage, and cases involving foreign state-sponsored actors. The investigations involve FBI agents, often working alongside the Department of Justice’s National Security Division when there is an international angle. They are methodical. By the time a target is aware of the investigation, prosecutors often have emails, cloud storage records, device forensics, and cooperating witnesses already assembled. That is precisely why representation by a federal criminal defense attorney in New York City matters so much, and why it matters immediately.
This page addresses the legal landscape surrounding federal trade secrets charges in New York City, from the statutes that drive prosecutions to the strategic defense considerations that can determine whether a case gets resolved before indictment or goes to trial.
What Federal Trade Secrets Prosecutions Actually Look Like in New York
The two primary federal statutes at play are the Economic Espionage Act of 1996, which criminalizes both domestic trade secret theft and theft that benefits foreign governments, and the criminal provisions embedded within the Defend Trade Secrets Act. These laws cast a wide net. A “trade secret” under federal law includes formulas, programs, methods, techniques, processes, or financial data that a company has taken reasonable steps to keep confidential and that derives independent economic value from that secrecy. That definition covers an enormous range of proprietary information, from pharmaceutical research to trading algorithms to customer pricing models.
What distinguishes federal prosecution from a civil lawsuit is the intent element. Prosecutors must show that a defendant acted with intent to convert the trade secret, knowing that the act would benefit someone other than the owner or injure the owner. The government does not need to prove the defendant succeeded in profiting from the theft, only that they intended to misappropriate. That standard gets applied aggressively, and seemingly innocent conduct, like saving work files to a personal drive before leaving a job, can be framed as willful misappropriation when prosecutors are motivated.
New York City generates a disproportionate share of these cases because of its concentration of industries built on proprietary advantage: finance, technology, media, pharmaceuticals, fashion, and international trade. Wall Street trading firms, biotech companies, fintech startups, and major media corporations all hold trade secrets of significant value. When employees transition between firms, or when a startup’s founders have backgrounds at established competitors, these cases often arise. The government is also increasingly targeting conduct with alleged connections to foreign governments, particularly China, which brings counterintelligence resources and national security designations into what might otherwise be a straightforward employment dispute.
Under 18 U.S.C. § 1832 , it is a federal crime to intentionally steal, copy, or knowingly receive a trade secret with intent to economically benefit anyone other than its rightful owner. For a person charged with Theft of Trade Secrets, this can lead to a sentence of up to 10 years in federal prison and a $250,000 fine. Criminal Forfeiture: Under 18 U.S.C. § 1834, the government will seize any property, proceeds, or financial profits the defendant derived from the crime, as well as any equipment (like servers or computers) used to commit the offense.
Federal Trade Secrets Charges: The Core Issues in These Cases
- Economic Espionage Act prosecutions: Cases brought under this statute that involve alleged benefits to a foreign government or its agents carry heavier penalties than purely domestic theft and often trigger FBI counterintelligence involvement, which changes the character of the investigation entirely.
- Departing employee scenarios: A significant percentage of federal trade secrets investigations begin when a company notices an employee downloaded large volumes of files near the time of resignation, often just before joining a competitor or launching a competing venture.
- Corporate insider threats: Executives, engineers, and researchers who copy databases, transfer code repositories, or email proprietary documents to personal accounts create the kind of digital paper trail that federal investigators find easy to reconstruct from cloud and device forensics.
- Startup founder cases: Founders who previously worked at established companies sometimes face allegations that products or platforms they built incorporate proprietary concepts, processes, or code from their former employer, resulting in parallel civil and criminal proceedings.
- Vendor and contractor exposure: Third-party vendors, consultants, and contractors who access proprietary systems as part of a business relationship can face misappropriation allegations if they retain, copy, or exploit information beyond the scope of their engagement.
- International and cross-border cases: New York’s role as a global financial and commercial hub means that many trade secrets cases involve conduct that crosses national borders, triggering additional charges, Mutual Legal Assistance Treaty complications, and coordination with foreign law enforcement agencies.
- Computer Fraud and Abuse Act overlap: Federal trade secrets charges are frequently bundled with CFAA violations, since the act of accessing a computer system to retrieve proprietary information can simultaneously violate both statutes, compounding exposure and giving prosecutors additional leverage.
Fines : A fine of up to $250,000, or up to twice the gross financial gain or loss resulting from the offense (whichever is greater). Examples and Related Cases One recent case drawing attention under 18 U.S.C. § 1832 (the federal theft of trade secrets statute) involved Haoyang Yu, a former employee of Analog Devices, Inc.
Why The Law Offices of Jason Goldman for Federal Trade Secrets Defense
Federal white-collar prosecutions in New York demand a specific combination of skills that not every criminal defense attorney possesses. Jason Goldman began his career as a Brooklyn prosecutor, which gave him direct insight into how government investigations are built, how cooperating witnesses are developed, and how prosecutors evaluate their cases before bringing charges. That prosecutorial background translates into a genuine understanding of where federal trade secrets investigations are vulnerable, where the evidence is weakest, and when pre-indictment engagement with the government is likely to change the trajectory of a case.
Mr. Goldman has been recognized by the New York Post, Fox 5, and WABC for his work on high-profile matters, and his firm has secured results in significant cases including dismissed charges and a $25 million wrongful conviction claim. He is admitted to practice in the Southern and Eastern Districts of New York, the precise courts where federal trade secrets cases in New York City are prosecuted. He holds memberships in the National Association of Criminal Defense Lawyers, the New York State Association of Criminal Defense Lawyers, the New York City Bar Association where he serves on the Criminal Courts Committee, and the New York City Criminal Bar Association. His practice spans investigations, trials, and appellate work, meaning that representation does not stop if a case proceeds to sentencing or post-conviction review.
Federal trade secrets matters also require the ability to manage the narrative outside the courtroom. Many of these cases involve companies, executives, and individuals with significant public profiles. Mr. Goldman is recognized as a trusted strategic advisor who knows when to engage the media and when to keep clients completely out of the public eye, tapping his network of public relations professionals and crisis communications specialists when the situation calls for it. For corporate executives and high-profile professionals facing trade secrets allegations, that capacity is not a luxury. It is often as important as what happens inside the courtroom.
What to Do If You Are a Target or Subject of a Federal Trade Secrets Investigation
The first and most important step is to stop communicating about the subject matter of the investigation with anyone who is not your attorney. That means no emails, no Slack messages, no texts, and no conversations with former colleagues who may themselves be cooperating with investigators. Federal obstruction statutes are broad, and well-intentioned attempts to explain yourself or coordinate with others can rapidly create new criminal exposure layered on top of the underlying trade secrets allegations.
Preserve everything. Do not delete files, emails, or communications. Destruction of evidence after a federal investigation begins is itself a federal crime. Even if you believe certain materials are embarrassing or unhelpful, the decision about what to preserve and what is protected by attorney-client privilege belongs to your lawyer, not to you.
If federal agents or prosecutors contact you directly, whether by phone, at your home, or through a target letter, you have the right to decline to speak with them until you have counsel. A target letter from the Department of Justice is a formal notification that you are the subject of a grand jury investigation. Receiving one does not mean indictment is inevitable, but it signals that prosecutors have reached a significant stage in their case-building. Pre-indictment representation by a federal trade secrets defense attorney in New York City can sometimes result in the government declining to prosecute, pursuing a civil resolution instead, or narrowing the scope of charges significantly before an information or indictment is filed.
Cases in the SDNY are handled through the United States District Court for the Southern District of New York, located at 500 Pearl Street in Manhattan. EDNY matters are heard at the United States District Court for the Eastern District of New York in Brooklyn. Both courts have sophisticated judges with extensive experience managing complex white-collar matters. The federal criminal process, from initial appearance through arraignment, discovery, pretrial motions, and trial, moves on a different timeline than state court proceedings, and understanding what each stage actually demands is essential for building an effective defense from day one.
Questions People Ask About Federal Trade Secrets Cases in New York
What exactly qualifies as a “trade secret” under federal law?
Federal law defines trade secrets broadly to include any form of financial, business, scientific, technical, economic, or engineering information, whether it is a formula, pattern, compilation, program, device, method, technique, process, or procedure, provided that the owner has taken reasonable measures to keep it secret and the information derives value from not being generally known. The definition covers customer lists, pricing strategies, source code, research data, manufacturing processes, and much more. Whether a given piece of information qualifies is a legal and factual question that often becomes a central dispute in litigation.
Can I be prosecuted for emailing work files to my personal account before I left my job?
Yes. This is one of the most common fact patterns in federal trade secrets cases. Prosecutors and investigators view pre-resignation data transfers as evidence of intent to misappropriate. Even if you felt you were saving personal work product or needed files to complete a project from home, the government may characterize the conduct as willful theft. The full context, what was taken, what you did with it, whether you disclosed it to a competitor, and whether the information actually qualified as a trade secret, all matter for the defense analysis.
What is the difference between criminal and civil trade secrets cases?
Civil trade secrets claims under the Defend Trade Secrets Act allow a company to sue for injunctive relief, damages, and seizure of misappropriated materials. Criminal prosecution, by contrast, is brought by the government and can result in prison time, criminal fines, and a felony record. A person or company can simultaneously face both a civil lawsuit from the alleged victim and a criminal investigation by federal prosecutors. The two tracks proceed on different standards of proof and through different legal processes, and what you say in civil proceedings can potentially be used against you in the criminal case.
What are the federal penalties for trade secrets theft?
Penalties under the Economic Espionage Act vary based on the nature of the offense and whether foreign government benefit is alleged. Sentences can range from several years to over a decade in federal prison for the most serious violations, with fines that can reach into the millions of dollars. Organizations can face even larger fines. Federal sentencing guidelines for these offenses take into account the value of the trade secrets, the defendant’s role, and whether the conduct was part of a broader scheme.
If my former employer is suing me civilly, does that mean federal criminal charges are also coming?
Not necessarily. Civil litigation and criminal prosecution are separate tracks. Many trade secrets disputes resolve exclusively through civil litigation. However, civil complaints sometimes prompt companies to refer matters to law enforcement, and the FBI has also opened investigations parallel to or independently of civil proceedings. If you are a defendant in a civil trade secrets case and there is any possibility of criminal exposure, that possibility should be treated as real and addressed through counsel immediately.
Can a company itself be prosecuted for trade secrets theft, not just individual employees?
Yes. Both individuals and corporate entities can be criminally charged under federal trade secrets statutes. Companies that directed, facilitated, or knowingly benefited from the misappropriation of a competitor’s trade secrets face significant criminal and civil exposure. Individual employees who carried out the theft, supervisors who directed it, and corporate officers who knew and approved the conduct can all face charges. Cases involving corporate defendants often result in parallel prosecutions of the entity and key individuals.
What if I genuinely did not know the information I used was protected?
Good faith belief that information was not a trade secret, or that you had legitimate authorization to use it, is directly relevant to the intent analysis. Federal statutes require that the defendant acted knowingly and with intent to misappropriate. A defendant who had a reasonable basis to believe the information was general industry knowledge, already publicly available, or that they had proper authorization to retain it, raises a genuine defense that must be developed carefully with supporting evidence and, where appropriate, expert testimony about the nature of the information at issue.
My company is being investigated and agents have asked to interview me as a witness. Do I need my own attorney separate from company counsel?
Almost certainly, yes. Company counsel represents the company’s interests, which may or may not align with yours. If investigators are asking to speak with you, your interests as a potential witness or subject may diverge significantly from the interests of your employer. Having your own independent federal criminal defense attorney before any interview with government agents protects your rights and ensures that the advice you receive is focused entirely on your individual situation, not the company’s.
How does the government typically build these cases before indictment?
Federal trade secrets investigations typically involve subpoenas to third parties including email providers, cloud storage services, and employers; analysis of network logs and device forensics; review of financial records if the alleged theft involved compensation from a competitor; and development of cooperating witnesses among former colleagues. The government often has a detailed evidentiary picture well before any charges are filed. This is why pre-indictment representation matters so much. An attorney who engages with prosecutors early, before they have finalized their charging decisions, has tools and leverage that disappear once an indictment is returned.
Are federal trade secrets cases in New York City typically resolved through plea or trial?
Like most federal criminal cases, a significant portion resolve through negotiated pleas rather than trial. However, the negotiated outcome in a trade secrets case depends heavily on the strength of the defense built during the investigation and pretrial phase. Pre-indictment dispositions, deferred prosecution agreements, civil resolutions instead of criminal charges, and favorable plea structures are all possibilities in the right case with the right representation. For defendants with strong factual or legal defenses, trial remains a genuine option, and the credibility of counsel’s willingness and ability to take the case to verdict is itself a factor in how prosecutors approach negotiations.
Federal Trade Secrets Defense Across New York City and the Surrounding Region
The Law Offices of Jason Goldman represents clients in federal trade secrets and economic espionage matters throughout New York City and the broader metropolitan region. In Manhattan, the firm serves clients in Midtown, the Financial District, Tribeca, SoHo, the Upper East Side, and Hudson Yards, neighborhoods dense with financial services firms, technology companies, and media organizations that generate these cases. The firm also represents clients from Brooklyn, including Red Hook, DUMBO, Downtown Brooklyn, and Park Slope, as well as clients from Queens neighborhoods including Long Island City, Flushing, and Jamaica, where international business communities sometimes intersect with trade secrets investigations involving foreign-state actors.
Beyond the five boroughs, the firm serves clients in Westchester County, including White Plains, Yonkers, and Scarsdale; Nassau County communities including Garden City, Great Neck, and Mineola; and Suffolk County, including Melville, Huntington, and Hauppauge, areas home to corporate campuses and research facilities where trade secrets disputes arise. New Jersey clients in Hudson County, Essex County, and Bergen County whose cases are prosecuted in New York federal courts also receive representation. Across this entire region, the firm handles matters in both the Southern and Eastern Districts of New York, and Mr. Goldman is available for pro hac vice admission in other jurisdictions when cases require it.
Speak With a New York City Federal Trade Secrets Attorney Before the Investigation Gets Ahead of You
Federal trade secrets cases do not wait. The investigation that seems distant today can produce an indictment or a target letter within weeks. A New York City federal trade secrets attorney who gets involved at the investigation stage can shape the entire trajectory of a case in ways that are simply not available once charges are filed. Whether you are an individual employee who received a call from the FBI, an executive whose company is under scrutiny, or a business navigating parallel civil and criminal exposure, the conversation you have now with qualified federal criminal defense counsel may be the most consequential decision you make. Contact The Law Offices of Jason Goldman to discuss your situation directly with Mr. Goldman.
