Tuesday, April 1, 2008

Corporate Espionage Arrest - AMX Corp. V.P.

Short version: AMX Corporation's Vice President, David Goldenberg, was "arrested for allegedly participating in corporate espionage practices against a competing manufacturer's representative firm."

The following is from the Bergen County (NJ) Prosecutor's press release...
NJ - Bergen County Prosecutor John L. Molinelli announced the arrest of David A. Goldenberg, D.O.B. 05/18/1962, of 432 Golf Dr., Oceanside NY. Goldenberg was arrested on March 28, 2008, on charges of Unlawful Access of a Computer System / Network (2C:20-25b); Unlawful Access of Computer Data / Theft of Data (2C:20-25c); and Conducting an Illegal Wiretap (2A:156A-27)...


The arrest stemmed from an investigation concerning the following: The Paramus Police Department received a complaint from a Paramus based corporation known as Sapphire Marketing, who specializes in high-end audio/visual systems. Representatives of Sapphire reported that they were being suspiciously and consistently underbid for contracts by a competitor for whom David Goldenberg works. They expressed suspicion of corporate espionage. Based on anomalies that the complainant noticed within their computer network and more specifically their electronic mail (e-mail) system, they suspected that the company’s e-mail system had been compromised and that e-mail was being intercepted. The Paramus Police Department (a member of the Computer Crimes Task Force) and the Bergen County Prosecutor’s Office Computer Crimes Unit initiated an investigation.

The investigation revealed that Mr. Goldenberg had engineered the passwords protecting several of the complainant’s e-mail accounts. For a period of time, Mr. Goldenberg was intercepting and reading e-mails that related to potential contracts. Mr. Goldenberg then established a free e-mail account that he had control over, and created an automatic forward of the victim’s e-mail so that they would be sent to him directly. This afforded Mr. Goldenberg advanced knowledge of Sapphire’s customers and bid prices, thus further affording him an opportunity to underbid Sapphire. Sapphire Marketing estimates the loss in revenue from Mr. Goldenberg’s actions to exceed one-million dollars. Mr. Goldenberg was arrested without incident on this date. (more) (more - scroll down)

Goldenberg was hired by AMX June 11, 2007
...
“David has a proven track record of satisfying the needs of his customers while boosting sales and profitability. He is also an aggressive marketer focused on value creation,” said Rashid Skaf, AMX president and CEO. “David is a dynamic leader who has proven that he can successfully manage and motivate a diverse team of individuals. I am confident that he will fit well into the AMX culture and accomplish great things with our company.” (more)