Wednesday, July 02, 2008, 7/02/2008 08:56:00 AM

Former HP Exec Says to FBI "Okay, I Did It" in Criminal Trade Secrets Theft Matter

By Todd
The Silicon Valley edition of The Mercury News is reporting that a former Hewlett-Packard executive has agreed not to contest federal charges that he stole trade secrets from his previous employer, IBM, and attempted to pass the information to colleagues at HP.

Atul Malhotra was a vice president for printing services at IBM when he obtained confidential pricing information in March 2006, according to charges filed Friday in San Jose's U.S. District Court.

Prosecutors said Malhotra went to work for HP's printing division that May, and in July 2006, he sent e-mails to other HP executives with the confidential IBM information, marked "for your eyes only."

HP said it responded to the attempt by launching an internal investigation, which led to the executive's firing in September 2006, and to HP notifying law enforcement authorities and IBM.

Malhotra's attorney, John Vandevelde, said Tuesday that his client is "an honorable man with an impeccable history" who "made one mistake in transitioning from one high-tech job to another."

Malhotra faces up to 10 years in prison and a $250,000 fine, but Vandevelde said his client has agreed to plead guilty or no contest in the case. Such an agreement could result in a lower sentence.
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