Feeds

Ex-HP veep pleads guilty to passing on IBM trade secrets

You're only charged twice

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

A former Hewlett-Packard executive has pleaded guilty today for attempting to pass trade secrets from his previous employer, IBM.

Atul Malhotra is charged with a single count of theft of trade secrets, and faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He entered his plea at the US District Court in San Jose, California.

Between 1997 and 2006, Malhotra worked as director of sales and business development within IBM's Global Services Division.

Prosecutors claim about two months before he left for a new job as vice president of HP's imaging and printing services, he requested an IBM internal pricing document called CC Calibration Metrics.

According to court documents, the material was marked "IBM Confidential," on each page and Malhotra was also specifically instructed to not distribute the sensitive information.

Shortly upon arriving at HP, Malhotra allegedly sent the data in an e-mail to an unnamed senior veep at HP with the subject line, "For Your Eyes Only." Two days later, Malhotra sent a similar e-mail containing the data to another unnamed HP executive.

HP said it took swift action against Malhotra's alleged misconduct.

"HP detected this activity, conducted an internal investigation, terminated Malhotra from his employment, and self-reported the activity to all appropriate enforcement agencies and to IBM. HP has cooperated fully with the government’s investigation," said the company in a statement.

Sentencing is scheduled for October 29.®

Boost IT visibility and business value

More from The Register

next story
Just TWO climate committee MPs contradict IPCC: The two with SCIENCE degrees
'Greenhouse effect is real, but as for the rest of it ...'
Adam Afriyie MP: Smart meters are NOT so smart
Mega-costly gas 'n' 'leccy totting-up tech not worth it - Tory MP
'Blow it up': Plods pop round for chat with Commonwealth Games tweeter
You'd better not be talking about the council's housing plans
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
ONE EMAIL costs mining company $300 MEEELION
Environmental activist walks free after hoax sent share price over a cliff
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
Apple smacked with privacy sueball over Location Services
Class action launched on behalf of 100 million iPhone owners
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.