Ex-Intel Engineer Accused Of Stealing $1 Billion In Trade Secrets - InformationWeek
IoT
IoT
IT Leadership // IT Strategy
News
11/7/2008
01:25 PM
50%
50%
RELATED EVENTS
IP Intelligence: The Utility Player for Your Online Business
Aug 31, 2017
Join us as we explore the many benefits of IP Intelligence, and how you can use IPI to improve you ...Read More>>

Ex-Intel Engineer Accused Of Stealing $1 Billion In Trade Secrets

Biswamohan Pani was indicted Wednesday for allegedly downloading more than a dozen confidential Intel documents after he had been hired by AMD.

A former Intel engineer who left the chipmaker to work for rival Advanced Micro Devices has been indicted on federal charges accusing him of stealing $1 billion worth of trade secrets from Intel.

Biswamohan Pani, 33, was indicted Wednesday by a federal grand jury in Massachusetts on four counts of wire fraud, which were added to charges of trade-secret theft filed against the defendant in August in U.S. District Court in Boston. If convicted, the Worcester, Mass., engineer would face up to 10 years in prison for the theft charge and a maximum of 20 years for each wire fraud charge. Pani was free on $100,000 bail.

Pani worked as a design engineer at Intel's Hudson, Mass., chipmaking plant when he was hired by AMD in June. Pani, however, didn't tell his Intel supervisors that he was resigning to join the competitor, and remained on Intel's payroll while he burned unused vacation time, The Associated Press reported. During a four-day stretch, Pani allegedly downloaded from Intel's computers in California more than a dozen confidential documents.

The information allegedly stolen from Intel included details about the company's processes for designing its latest generation of microprocessors, the Worcester Telegram & Gazette reported. The indictment alleges the documents were worth $1 billion in research and development costs.

Federal prosecutors say Pani planned to use the information at his new job at AMD, the newspaper reported. Pani, however, told investigators that the documents were for his wife, who is an Intel employee. AMD did not know about Pani's alleged theft and did not benefit from the information, prosecutors said.

Pani's lawyer, B. Bradford Bailey of Boston, told the Worcester Telegram that the indictment was not a surprise. "We knew it was coming. We will enter a plea of not guilty when an arraignment date is set, and he will vigorously contest the charges because he is innocent," the lawyer said.

In the third quarter, Intel accounted for 80% of the worldwide market for microprocessors and AMD 12%. Competition between the two companies is fierce, and design information is a closely guarded secret.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll