caltradesecrets.com

Chemist Pleads Guilty to Theft of Trade Secrets After Allegedly Downloading Technical Materials Before Leaving to Work for an Overseas Competitor

In Breaking News, Criminal Theft of Trade Secrets on September 3, 2010 at 8:32 am
Seal of the United States Department of Justice
Image via Wikipedia

The Sun-Times Media Wire reports that a former chemist and technical director for Valspar Corporation’s architectural coatings group pleaded guilty on Wednesday for stealing formulas and other trade secrets worth up to $20 million as he prepared to go to work for Nippon Paint, an overseas competitor.  The defendant was charged with five counts of theft of trade secrets in violation of the federal Economic Espionage Act in an indictment returned by a federal grand jury.

According to a release from the U.S. Attorney’s office, “Between November 2008 and March 2009, [the Defendant] allegedly downloaded technical documents and materials, including trade secrets belonging to Valspar from Valspar’s secure internal computer network, and removed numerous documents and other materials from Valspar’s offices in Wheeling.”  The defendant allegedly purchased a ticket to Shanghai for a flight scheduled to leave on March 27, and on March 16, he resigned his employment at Valspar.  Defendant allegedly downloaded data and trade secrets to two external thumb drives.

The Defendant pled guilty to one count of theft of trade secrets.  U.S. District Judge Robert Gettleman set sentencing for Nov. 23, when he faces a maximum of 10 years in prison and a $250,000 fine. A written plea agreement calls for a sentence of 57 to 71 months in prison and the Court to order mandatory restitution.

By CHARLES H. JUNG

Enhanced by Zemanta
About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: