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Dumb “Corporate” Criminals
By John | July 12, 2008
We have all seen the clips on TV about dumb criminals. The guy who tries to rob a bank using the drive through window. How about the guys that try to rob a video camera store that has live cameras from every conceivable angle. There were two teenagers who tried to rob a police station – “A Police Station.” They actually handed the police receptionist a note that said give us all your money. There was also a burglar who fell a sleep in his getaway car in the driveway of the house he was robbing.
Well boys step aside for Atul Malhotra a former IBM sales director who was nabbed for stealing trade secrets from IBM. Malhorta worked for IBM in Armonk for almost 10 years before he took a VP postilion with HP in Palo Alto, About two weeks before Malhorta left IBM he asked for, via email, a report of confidential IBM product costs and materials. I guess he figured they wouldn’t notice even thought he was gong to work for one of IBM’s fiercest competitors. In fact he was specifically warned that the data was not to be distributed. Then when this idiot gets to HP he sends an unsolicited email, titled “For Your Eyes Only – Confidential”, to his superiors with the attached confidential data. He goes on in the email explaining that the data will give HP’s an edge over IBM. The good news is that HP, no stranger to corporate scandle, did the right thing by firing the idiot and handing the matter over to police. Not that I condone corporate espionage; however, I think there are some juicy takeaways from this story:
- If you are going to steal corporate secrets from a company IBM is probally the worst possible candiate. They have a legal departement that is larger than most medium sized law firms.
- Email is the root of all “good” when it comes to any type of criminal activity. You might as well draw up your crime as a power point presentation and send it to the police before you plan on committing the crime.
- Don’t ask for confidential data two weeks before you plan on going to work for your biggest competitor.
- You should probably know that the company you work for has been deeply embroiled in a corporate scandal before you send out an email titled “For Your Eyes Only – Confidential.”
- Last but not least, when you sign an agreement that says you will honor all trade secrets and confidential data – Honor it.
Molhorta pleaded nolo contendere and faces 10 years in prison. Maybe he can get a cell with those idiots who tried to rob the police station and they can all work on their next big caper together.
It is only by dealing honestly and fairly in all things that real success is attainable.
George H. Mead
Topics: hp, ibm | 1 Comment »


July 17th, 2008 at 1:43 pm
That’s exactly why a good E-Discovery process is sooo important. Just goes to show you.
With tens of thousands of staff memebers sending dozens of emails and attatchments every day… I can’t even imagine how complex the search must’ve been for their laywers.