Kim

AMENDED MEMORANDUM AND ORDER

INTRODUCTION

This case presents the interesting question of whether it is a criminal act for a member of a club to violate confidences which he has pledged to keep. The government contends that a special “fiduciary-like” relationship among club members creates this obligation. The Court, however, disagrees. While members of a club may feel a special bond, there is nothing so special about their relationship, as alleged in the indictment, that it gives rise to a legal duty not to trade on confidential information. Violation of confidences under these circumstances may warrant expulsion from the club, and even shunning by fellow members, but it does not fall within the criminal laws of the United States.

BACKGROUND

In March 1999, defendant, Keith Joon Kim, was Chief Executive Officer (“CEO”) of Granny Goose Foods, Inc. He was also a member of the Young Presidents Organization (“YPO”), a national organization of company presidents under 50 years old. The YPO is organized into regional chapters, and further divided into small forums. Defendant was a member of the 1917 Forum in Northern California.

As alleged in the indictment, the “Forum Principles”…