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Corporate Espionage, E-mail Break-in Case Zaps Electronics Industry

Executive from electronics manufacturer AMX Corp. broke into the e-mail system of the marketing firm working for a competitor to steal sensitive business information

By Ellen Messmer, Network World (US)

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The revelation that Goldenberg was the source of the e-mail break-in was particularly devastating because Suttenberg knew Goldenberg and his family personally. Prior to working at AMX, Goldenberg had been a client of Sapphire's buying Crestron products. Crestron says Goldenberg applied for a job at Crestron in 2007 but wasn't hired but was hired by AMX.

Goldenberg also knew Crestron Electronics executive vice president Randy Klein, who states "the full damage caused by our chief competitor illegally obtaining this information is immeasurable and has seriously impacted our past, present and future business."

According to Singer, Crestron believes Goldenberg, via Sapphire e-mail, obtained information about customers and pricing, upcoming contractual negotiations with dealers, and future product plans.

Singer may have also gotten access to weekly conference calls where Crestron sales and marketing strategies were discussed, due to his illegal access to Crestron e-mail.

Singer said there were times that AMX—which has said Goldenberg acted alone—seemed to know pricing and discount information that undercut Crestron in bidding situations.

In one episode, "our main competition knew what prices we were offering before the dealer did," Singer asserts. Whether Crestron will press a civil-court case against Goldenberg or AMX remains to be seen, but is a possibility.

However, Crestron, which may have suffered millions of dollars in losses due to Goldenberg's e-mail break-in of Sapphire marketing, also wants to move on past the distressing event. "We don't want to be distracted," Singer says, noting the firm has a new line of products out that makes it feel positive about the future.