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Editor's Blog and Industry Comments

Senior AMX executive on espionage charge

02 April, 2008
In a case which could prove very costly for US office automation company AMX, one of their vice presidents has been arrested for hacking a competitor's sales office computer system.
Industrial espionage is nothing new and the objectives have never changed, only the methods. The Bergen County charge sheet lists charges relating to unlawful computer and network access, data theft and illegal wiretapping levied on 45 year old David Goldenberg, a vice president of AMX after his arrest a few days ago.

The arrest came after an investigation by the Paramus police computer crimes division which revealed that Goldenberg had compromised system passwords at his competitors office and re-directed sales and bid related e-mails to an account he'd set up. The competitor, Crestron Electronics, became suspicious because of the unusually high number of contracts they were losing due to AMX bids being lower.

The US is a lot hotter than many countries in relation to computer crime and the AMX executive could face a prison term if found guilty. The implications for AMX are severe with potential loss of reputation and compensation for losses currently estimated by Crestron at over a million dollars.

AMX has been around for over 25 years and has built up a solid reputation as a supplier of electronic office equipment. Keen to be seen as a community organisation with good employment practices and neighbourhood integration policies, corporate scandal was never part of the plan. By using cyber-crime to gain competitive edge, whether knowingly or not, AMX will have touched a particularly raw nerve in American society if Goldenberg is found guilty. To recover from that, they will need a lot more than simply a denial of involvement.
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