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Justice News

Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE
Thursday, May 8, 2014

Quincy Man Charged With Stealing Former Employer’s Intellectual Property

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BOSTON – A Quincy man was charged yesterday in connection with a scheme to steal valuable intellectual property from his former employer, Daedalus Software, Inc., of Cambridge.

Nabeel Memon, 29, of Quincy, was indicted today on wire fraud.

According to the indictment, in 2011, Memon worked for Daedalus as a software developer while living in Pakistan, and again in 2013 at Daedalus’s Cambridge office. Daedalus provides the health care industry with software that manages the storage and analysis of biological samples. In December 2013, Memon copied the source code for Daedalus’s product, called “BTM Research,” onto a personally-owned hard drive. When asked by Daedalus’s CEO if he was copying any company information, he lied and said that he was not.

The indictment alleges that the next day, Memon quit his job at Daedalus and went to work for a company, identified in the indictment only as Company A, that is not a competitor of Daedalus’s but also designs software for analysis of large volumes of data. Daedalus’s source code could allegedly be extremely valuable to a software designer at Company A. When an attorney for Daedalus sent Memon a letter demanding that he return all Daedalus information in his possession, he responded by falsely stating, in an e-mail, that he no longer had any Daedalus information. In fact, he continued to possess the entire BTM Research source code months after he quit his job at Daedalus.

If convicted, Memon faces a statutory maximum penalty of 20 years in prison and three years of supervised release.

United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case is being prosecuted by Assistant United States Attorney Adam J. Bookbinder of Ortiz’s Cybercrime Unit. The U.S. Attorney’s office thanks Daedalus for cooperating with the investigation.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.