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AMX VP Arrested for Alleged Cybercrime
AMX vice president David Goldenberg was charged with three crimes relating to accessing computer systems.
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AMX VP David Goldenberg was arrested without incident on March 28 on allegations of cybercrime.


03.31.2008 — Sapphire Marketing, a manufacturer's rep in Paramus, N.J. for Crestron Electronics, alleges that its email system was breached and confidential information was reportedly stolen by an apparently rogue employee of AMX.

AMX vice president David Goldenberg was arrested without incident on March 28 and charged with Unlawful Access of a Computer System/Network-3rd Degree, Unlawful Access of Computer Data/Theft of Data-2nd Degree, and Conducting an Illegal Wiretap-3rd Degree.

Goldenberg's arrest follows an investigation by the Bergen County New Jersey Prosecutors Office, Computer Crimes unit, which uncovered the scheme by which Goldenberg allegedly stole thousands of proprietary and confidential emails through unauthorized access into Sapphire's secure email server.

AMX president and CEO Rashid M. Skaf was "surprised and stunned" by the accusations.

"It is the clear and unambiguous policy of AMX that every employee act with the highest moral and ethical standards, and to obey the law in all respects. We have always stressed fair and honest competition, and in no way do we condone any unethical or unlawful behavior."

Skaf says that Goldenberg has been placed on a leave of absence, effective immediately, while the matter is investigated.

"Entering our 26th year of business, we at AMX are proud of our high moral standing in the industry and the strength of character of our more than 650 people focused on supporting our customers worldwide. We look forward to continuing this tradition over the next 26 years," adds Skaf.

Goldenberg, who joined AMX in 2007, allegedly penetrated and downloaded business intelligence from several Sapphire employees, including information about sales proposals, commission statements, pricing, sales reports, personnel records, dealer and consultant and end-user lists among other private and confidential correspondence.

Marla Suttenberg, owner of Sapphire Marketing, says, "I am shocked by the corrupt sense of entitlement and indifference towards the privacy rights of Sapphire Marketing's clients and employees. It is a disgrace and embarrassment to our industry that a competitor would resort to these kinds of tactics to gain an unfair advantage."

According to the Bergen County Prosecutor's Office, an investigation revealed that Goldenberg had engineered the passwords protecting several email accounts. And, for a period of time, Goldenberg allegedly intercepted and read e-mails that related to potential contracts.

He then reportedly established a free email account that he had control over, and created an automatic forward of a Sapphire employee's email so that the emails would be sent to him directly. Sapphire Marketing estimates the loss in revenue from Goldenberg's actions to exceed $1 million.

Goldenberg was arrested without incident on March 28.

EDITOR'S NOTE: A comment in response to this story made allegations that we are unable to verify. Because of the murky legal precedent related to content publishers (us) and whether or not they are liable for user comments, we have decided to close the comment and look further into the situation. We appreciate your support and absolutely respect your right to comment, but need to verify the liability before we re-open the comment. -- Jason Unger

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Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. Jason graduated from the University of Southern California.
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Comments

Posted by Lee Distad  on  03/31  at  12:32 PM

It’s not every day that we get a juicy scandal in CE.  This isn’t Wall St. after all.

Sometimes this material just writes itself:

http://businessopinions.blogspot.com/2008/03/amx-exec-charged-with-cyber-crime-which.html

Posted by Harald Steindl  on  04/01  at  12:15 AM

Just for your info I try to cover this “event” on my Blog in German language.
http://steindls.blogspot.com/

Posted by Richard Roher  on  04/01  at  09:20 AM

While I understand Ms. Suttenberberg’s outrage, she’s wrong to call the trangression an industry embarassment.  The “industry” has nothing to do with this, and regrettably criminal acts can and do occur in any industry.

This is the act of rogue employee engaging in behavior that was likely neither learned nor encouraged by our industry.

Posted by Julie Jacobson  on  04/01  at  10:35 AM

Right on, Richard. Although let’s not convict Goldenberg yet—innocent until proven guilty—this type of espionage happens in every industry and says nothing about our own.

Posted by Lee Distad  on  04/01  at  01:51 PM

Suttenberg is just playing up the violins to the media, as you would expect her to do.

As I said on my personal blog, this is reminiscent of WestJet’s scandal four years ago, where their co-founder was accessing Air Canada’s intranet to gain a hyooge competitive advantage.  There’s nothing here that’s really new or unique.

And indeed, he’s still innocent until proven guilty.

Posted by Jeff Davis  on  04/01  at  04:29 PM

This type of espionage does not happen, where personal info and payroll records and contracts were taken by a competitor.  I hardly think that this is a minor issue. 

Prosecutors don’t generally bring charges for “minor” offenses or one’s that they don’t have a good case. 

It will be interesting to see who, if anyone else, at AMX are aware of.

Posted by Ranger Home  on  04/01  at  06:42 PM

Many have it INCORRECT, its not “INNOCENT until proven guilty”, its “PRESUMED innocent until proven guilty.” Otherwise, it suggests guilty parties are innocent and we all know that is not the case. You can be guilty but must be PRESUMED innocent until proven otherwise.

Posted by Ranger Home  on  04/07  at  04:22 PM

Bill, good point. I imagine there are more GUILTY parties, LOL.

Posted by Ralph  on  04/08  at  03:53 AM

One comment I think needs to be added to this mess is that EVERYBODY should take a step back and wait for all the information to come out. IF he did what they claim he and anybody else involved with pay the price.

BUT I think people who don’t know the long and pathetic history between the management of Crestron and AMX, at least the old management of AMX, is filled with under handed and very questionably things nothing should surprise anybody.

I remember one story I was told goes back a few years but an employee of Crestron was paid to get information from a “boy friend” who was a successful AMX dealer about a project. So there has been actions on both sides that could be questioned for ethics all day long.

That being said the one item that still stinks to me is that Goldenberg came from a smart integrator, and he has been in this technology for years. The simple items listed make me wonder how in the world could he have done something so dumb, visible and easily traced? Either one of two things are true.

1) He’s an idiot and didn’t understand how PC’s work at all????? Very questionable…

2) There is MUCH MORE to this story that hasn’t come out becuase there are other things, people or plan at play here.

Just some devil’s advocate thoughts. Am I crazy? Love to here back from forum.

Posted by Ranger Home  on  04/08  at  08:49 AM

Ralph, in agreement with you. IMO, its not likely he acted alone in doing something so incredibly stupid and traceable. It was likely some type of agreement between mulitiple parties whereby they:

1) Thought it was fun
2) Didnt think it was a big deal
3) Its a “one-up” in the long standing “game” between the two companies
4) Just yet another play with more to follow - “Ball is in your court now” sorta

A combination of the above or other reasons, who knows. It will actually be an interesting story to watch unfold as I imagine there is alot that has yet to come out. The bad part is it will likely put egg on both companies face and neither will when in the court of public opinion. All just opinion here of course.

Posted by Industry Veteran  on  04/13  at  06:19 PM

This is a huge deal.  Both companies compete for military, FBI, Local Goverment, etc contracts that are all in question now.

What is the likelyhood that the VP wasn’t sharing this info with the President either knowingly or unknowingly?

Avarice, Greed, Ego…the whole package…

Presumed innocent…of course..but if you have to lay your money somewhere…

Posted by cory22  on  05/07  at  10:24 AM

I have worked with David for a number of years in a junior position. THE IMPRESSION I got that he was a very smart person, however I didn’t think he was that dumb. good luck on you case dave.

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