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Former Executive Admits to Stealing Trade Secrets from NJ-Based Manufacturer
Ex-Vice President Pleads Guilty to Possessing Proprietary Formulas Intended for Competitors
NEWARK, N.J. – Andrew Blum, 63, former vice president of product development for a major New Jersey-based flavor and oil product manufacturer, admitted to charges of possessing and conspiring to possess stolen trade secrets, U.S. Attorney Philip R. Sellinger announced November 13, 2024.
Blum pleaded guilty before U.S. District Judge Susan D. Wigenton on Nov. 12, 2024, to conspiring to obtain proprietary formulas belonging to his former employer, one of the world’s largest producers of oils, flavors, and byproducts.
“A company’s intellectual property – its proprietary materials and trade secrets – have enormous value to the companies that develop them, sometimes constituting their most valuable assets. Stealing them is a crime. This defendant admitted stealing trade secrets, including a secret formula used in one of the most recognizable names in the global soft drink industry. Our office will prosecute cases like this with the same vigor as any other theft," said U.S. Attorney Philip R. Sellinger.
Blum, a North Brunswick resident, served with the company from 2013 to 2018. His role granted him access to highly confidential formulas essential to the company’s flavor production for leading beverage companies.
However, in December 2018, the company’s IT department discovered that a colleague had used a personal email account to forward 82 files containing proprietary formulas to Blum’s personal account. These files included almost all formulas used in Blum’s department and included formulas outside of Blum’s work scope, such as a proprietary recipe for a globally recognized soft drink brand.
Further investigation uncovered that Blum and the colleague had shared plans to leave the company and join competitors, carrying confidential product data with them. Law enforcement later found additional trade secret information at Blum’s home and on his cloud-based storage account, including handwritten notes linked to a product used by a major soda brand in Asia.
“Blum admits he stole his employer's trade secrets and hoped to use the information so he could get a job across the street,” FBI – Newark Acting Special Agent in Charge Nelson I. Delgado said. “Protecting the proverbial keys to the castle is essential for companies to remain in business and stay competitive. It’s even common for corporations to house formulas and recipes in literal vaults to keep them from being stolen. One of the FBI’s priorities is protecting companies from these types of crimes and holding accountable anyone who tries to sneak out the back door.”
Blum’s charges—conspiracy to possess stolen trade secrets and possession of stolen trade secrets—each carry a maximum sentence of 10 years in prison and a fine of up to $250,000, or double the financial impact of the offense, whichever is greater. Sentencing is scheduled for March 20, 2025.
U.S. Attorney Sellinger acknowledged the FBI’s Newark office for its investigation, led by Acting Special Agent in Charge Nelson I. Delgado. Assistant U.S. Attorney Benjamin Levin of the General Crimes Unit, with support from the National Security Unit, represents the government in this case.
