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ITMG Insider Threat Cases – February 14, 2022

Hytera Trade Secrets Theft Indictment and the Insider Threat Risk

On February 7, 2022, a federal indictment was unsealed in the Northern District of Illinois charging PRC-based Hytera Communications Corporation, Ltd. (“Hytera”), and former employees of Motorola (the “Individual Defendants”) with conspiracy to commit theft of trade secrets. The charging document spells out a long-running and systematic scheme by Hytera to recruit, hire, and direct the Individual Defendants to steal propriety and trade secret information concerning digital mobile radio (DMR) technology from Motorola for Hytera’s benefit. According to the charging documents, Hytera and the Individual Defendants unlawfully obtained and used Motorola’s proprietary and trade secret information to develop and sell Hytera’s DMR products throughout the world.

Chip Lithography Giant ASML Claims Chinese Rival DongFang Could be Infringing its Trade Secrets

The world’s largest chip lithography company ASML has warned that a Chinese rival is marketing products that may infringe on its intellectual property rights, after claiming its trade secrets were stolen.

“Early in 2021, we became aware of reports that a company associated with XTAL Inc., against which ASML had obtained a damage award for trade secret misappropriation in 2019 in the USA, was actively marketing products in China that could potentially infringe on ASML’s IP rights,” the Dutch company said in its latest annual report released on Wednesday.

Lawsuit Settled Over Leaked Trade Secrets to Officials at Roanoke Airport

An aviation services company has reached a legal agreement with a former executive who it had accused in a lawsuit of leaking its trade secrets to officials at the Roanoke-Blacksburg Regional Airport.

Signature claimed in a lawsuit filed in December 2020 that Carroll gave internal company figures and reports to airport officials in violation of a non-disclosure agreement.

At the time, the airport was preparing to seek bids from companies to provide airfield services. A contract with Signature, a Florida-based company that has done business with the airport for decades, was due to expire in November 2021.

Prominent Real Estate Agents Arrested on Charges of Racketeering, Fraud, and Theft of Trade Secrets

Local commercial real estate agents Daniel James Drotos, 34, and Michael Steven Ryals, 65, were arrested on charges of fraud, racketeering, and theft of trade secrets and intellectual property.

The criminal case goes back to a sworn complaint filed on August 19, 2021, that laid out probable cause against four former Bosshardt Realty Employees: Drotos, Ryals, Lauren Edwards, and Rory Causseaux; and Colliers International employee Christian Oldenburg, all of whom were working for Colliers International at the time of the sworn complaint. The sworn complaint alleges that on March 4, 2019, Drotos, Ryals, Edwards, and Causseaux (also known as Drotos Ryals Group) terminated their employment with Bosshardt Realty; the complaint says that “before resigning on March 4” (but without a specific date), the four joined Colliers International.

Former Minnehaha County Engineer Charged with Embezzlement Takes Plea Deal

Forty-one-year-old Duane Buthe pleaded guilty to grand theft by embezzlement on Thursday, according to the Brookings County States Attorney. As part of the agreement, Buthe is required to pay $99,550 in combined restitution to the two agencies.

Officials say Buthe worked as the Minnehaha County Highway Superintendent from 2013 through 2020, while also serving with the state Association of County Highway Superintendents. The Division of Criminal Investigation began looking into Buthe’s financial involvement with the agencies last May. Investigators determined he misappropriated thousands of dollars from the agencies to personally benefit himself.

Pair Charged with Embezzling Nearly $850,000 from Pella Windows

Matthews was the retail installation manager at Pella, a division of Green Bay-based VerHalen, Inc., from 2014 to 2019. He selected and hired subcontractors to install windows and approved payments for completed work.

Around April 2016, Matthews began approving payments to Veshi’s companies, Home Pro Exteriors and Advanced Construction Services, purportedly for checking job sites for lead safety after installations were done. “The lead safe post inspection charges were entirely fictitious,” according to the complaint. “When subcontractors initially completed the work, they would check the work site for lead safety. There was no reason to ever conduct a post inspection test and that was not a service VerHalen would provide.”

This entry was posted on Monday, February 14th, 2022 at 6:56 pm. Both comments and pings are currently closed.