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Ex-JHL Executives Sentenced for Wire Fraud and Trade Secret Theft

Two former executives of JHL Biotech were sentenced for their plot to steal trade secrets from Genetech in a $101 million scheme. Racho Jordanov, former CEO of JHL Biotech Inc. and former chief operating officer Rose Lin were sentenced to a year and a day each in federal prison, the U.S. attorney’s office said.

JHL Biotech, Inc., which last year changed its name to Eden Biologics, Inc., is a biopharmaceutical startup based in Zhubei City in Taiwan’s Hsinchu County. According to the plea agreement, between 2011 and 2019, Jordanov hired former Genentech employees who provided confidential and proprietary documents from the company to speed up and reduce the costs of making generic versions of Genentech products.

The documents provided by the former Genentech employees enabled JHL Biotech “to cheat, cut corners, solve problems, provide examples, avoid further experimentation, eliminate costs, lend scientific assurance, and otherwise help JHL Biotech,” according to the U.S. Attorney’s Office. Between 2014 and 2018, Jordanov personally used and instructed others to use Genentech’s confidential documents and information on its technology transfer procedures and processes to build a manufacturing facility in Wuhan, China.

In 2014, Lin arranged for Xanthe Lam, a principal scientist working full-time at Genentech, to secretly work as the head of formulation for JHL Biotech without signing a contract. Lin helped to conceal the fact that Lam was working for JHL Biotech by paying a consultancy fee through her husband, Allan Lam, and directing staff to communicate with Xanthe via Allan’s email.

In 2016, Jordanov and Lin signed a partnership agreement with French pharmaceutical company Sanofi S.A., which agreed to invest $101 million in JHL Biotech. According to prosecutors, the two falsely told the French firm that JHL Biotech had lawfully obtained intellectual property that it had, in fact, “(stolen) or received without authorization.”

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This entry was posted on Wednesday, March 23rd, 2022 at 12:29 pm. Both comments and pings are currently closed.