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Former AMX VP Pleads Guilty to Spying on Crestron Rep

David Goldenberg, former customer of Crestron rep firm Sapphire, listened in on phone calls, guessed employee passwords and forwarded confidential emails to himself.
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David Goldenberg admits to intercepting emails and teleconferences from Crestron rep firm Sapphire. AMX is “surprised and stunned.”

The AMX VP charged with spying on a Crestron rep firm pleaded guilty Monday of felony wire tapping.

Sentencing for David Goldenberg is scheduled for June 26. While his crimes could land him in jail for five years, the state recommended only probation.

Goldenberg was a former Crestron customer who specified automation systems in court rooms for Doar Litigation Consulting (ironically). He did business with the Woodcliff Lake, N.J., Crestron rep firm Sapphire Marketing.

Later, Goldenberg joined competitor AMX and -- apparently from his guilty plea -- stole Sapphire's competitive information.

Sapphire owner Marla Suttenberg says she knew something was fishy during the nine months Goldenberg allegedly intercepted the rep firm's emails and telephone conferences.

"For months, he just knew too much about what was going on in our area," Suttenberg says. "He knew our [job] quotes and tried to undercut us on our bids. I had to offer discounts because AMX kept coming in lower."

As it turns out, Goldenberg was forwarding emails to himself from four Sapphire employees. "He just guessed their passwords," Suttenberg says.

So, for nine months or so, Goldenberg mined the emails of these unfortunate souls, learning their business strategies as well as their most personal thoughts.

"It makes you cringe," says Suttenberg, noting that the invaded employees are "humiliated and devastated."

Sapphire and Crestron claim Goldenberg's activities cost their companies millions in lost jobs and slashed bids.

AMX denies any knowledge of Goldenberg's actions. CEO Rashid Skaf has said he was "surprised and stunned" by the accusations and would never tolerate such behavior at AMX.

Even so, AMX apparently did well by Goldenberg's crimes. He was promoted to VP shortly after he was hired to run AMX's East Coast operations in 2007.

"AMX Corporation has benefited from this illegally acquired information," says Crestron VP Randy Klein. "The full damage caused by our chief competitor illegally obtaining this information is immeasurable and has seriously impacted our past, present and future business."

Crestron and Sapphire estimate damages in the millions of dollars, but Suttenberg calls the losses "immeasurable."

Sensitive material including sales proposals, commission statements, pricing, sales reports, personnel records and new technology plans were compromised. Worse, the privacy of several individuals was violated.

Will Crestron and Sapphire recoup any of the financial losses?

Not as a result of the criminal case, but the two companies are not commenting on the possibility of a civil suit.

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Article Topics

News · Legal · Legal · All topics

About the Author

Julie Jacobson, Editor-at-large, CE Pro
As a co-founder of EH Publishing in 1994, Julie has edited and contributed to all of the company's publications at one time or another. An authority on home automation, networking, integration, digital convergence and the CE pro channel, Julie speaks often about these subjects at industry events. She graduated with a B.A. in Economics from the University of Michigan, and received an MBA from the University of Texas at Austin. Julie is a washed-up Ultimate Frisbee player.

17 Comments

Posted by Jeremy Burkhardt  on  05/13  at  08:09 PM

Just like the Bush-Cheny admin and other liers of freedom in the administration if what you say is true this guy was only out for himself and his capitol gain, Goldberg you suck Anyone can accomplish anything without deception if you keep to yourself and get it done.  Cheating is cheating you, for a dollar, come on dude what is going on?  I know how motivated Crestron is as a company and they pull together but for the shame of one fallen man to bring them down is a joke.  George runs a great company and I say disregard this as a rogue dork.  Crestron paved our ways as innovators and idea breakers. Thanks for exposing or what we think you did as the law and our country still has the last word.

Posted by Jeremy Burkhardt  on  05/13  at  08:12 PM

To be clear AMX has the issue not Crestron and again blaim the soldier.

Posted by Harald Steindl  on  05/14  at  12:00 AM

If you care about a German Version of this story and some background feel free to visit my blog at http://steindls.blogspot.com

Posted by John Anderson  on  05/14  at  04:24 AM

This is a Federal Offense, and probation is rediculous.  We must crack down on anyone using the Internet for devious purposes; the Internet will never becume Secure, until we take positive action to prosecute each and every individual using the Internet for Unlawful purposes!

I need to have the feeling that the Internet is comletely secure, and that my information is private!

John J. Anderson

Posted by Dave Stevens  on  05/14  at  04:53 AM

There’s no question that Goldenberg is a thief and should be prosecuted to the fullest extent of the law. I agree that the damage he has caused due to his theft is immeasurable, and probation is total Bull S**t.

However, I’ve heard through the grapevine that Goldenberg’s defense attorney is claiming that Crestron stole his hair and is seeking damages for that immeasurable theft.

Posted by JoeAV  on  05/14  at  06:19 AM

Simple truth for Goldberg is that he’s a piece of CRAP. I’m not a Crestron fan and know many people who have had issues with them over the years. BUT that is different that this garbage.

All he did was make AMX look even worse for his own gain! If all he gets is probation then the problems within this country are still alive and strong.

No employee working hard to make a living and produce for their employer or rep firm deserves to have this garbage done to them.

Even during the height of the AMX-Crestron wars back in the day when Scott and crew were in charge was anything like this ever an issue. Goldberg is a single minded, greedy piece of SH*T. It would be bad enough to steal somebody’s email with private thoughts, communications and plans. But to take it to a business level where your taking earning potential from people is the same as breaking into their home and stealing all their valuables. That gets time in jail doesn’t it!!!!!

Posted by Lee Distad  on  05/14  at  09:03 AM

There was an extremely similar case here five years ago, where a WestJet executive hacked in to Air Canada’s logistics system, and used their data to undercut their seat prices.  The resolution was similar: he was forced to leave the company in disgrace, but the criminal punishment was fairly light.

I’d be interested in knowing if Crestron intends to seek redress via civil court.

Posted by K Gossen  on  05/14  at  09:05 AM

You steal untold amounts of money and do considerable damage to a company and employee’s and get recommended probation??? Get caught with a couple joints and it’s jail time. There’s something so wrong with this.

I wonder how long it’ll take him to find a new job in the industry. Some smuck CEO is going to appreciate his initiative!!!

Posted by Craig Speirer  on  05/14  at  09:33 AM

Wow!!! I can’t believe what I read, or maybe I just can’t comprehend it.

Posted by mary  on  05/14  at  10:25 AM

I might be one of those people who wonder if we ever landed on the moon, more than one person acted with Lee Harvey and many other things, but if he’s only looking at probation then I wonder if there isn’t MUCH more to this story than we see right now. Somebody had told me some rumors that this wasn’t as cut and dry. Of course this could just be our industry BS but it does seem odd to me that if people lost revenue and he did the things they describe he would be getting more than probation…

Posted by 39 Cent Stamp  on  05/14  at  12:19 PM

How disgusting, and probation is his punishment? It doesn’t suprise me that the “we dont want to hear about it anymore” parent of Phast, employed this slime ball. A perfect fit IMO.

Posted by Lee Distad  on  05/14  at  02:45 PM

To be honest, when it comes to white collar crime, and industrial espionage is precisely that, sentencing is typically very, very light, unless there is an overwhelming political motivation to make an example of the accused: Enron execs, Conrad Black, Patti Dunn from HP, not to mention Martha’s obstruction charge. The feds will drop the hammer in a high profile case to look like they’re being tough on crime. 

Apparently, the automation/integration channel doesn’t generate the political imperatives that being splashed on the front page of the WSJ does.

Posted by Ranger Home  on  05/15  at  07:04 AM

Jeremy I am glad you agree the “administration” is a bunch of liars, the current one of course. Not to mention unqualified and taking us down a path of destruction. Freedom is something you work for, its not just given. Looks like this schmuck Goldenburg will be “given” freedom just like the current administration while the sheep follow with sparkles in their eyes.

Posted by ray casey  on  05/15  at  07:19 AM

hopefuly this little scandle will signle the end of the “bad boys” and “good old boy” ugly underbelly of this industry.  reminds me of the saying desperate men doing desperate things…  as this industry transforms toward a more pc centic paradigm u will see much higher standards for professionalism as ironically information security and privacy will become much hotter topics for integrators and customers re securing;protecting and monitoring digital assets and pipelines (content and networks).  this will force vendors, integrators and individual employees to project a more corporate and refined professional image as a brand vs. the playboy/bad boy/thug branding that is rampant in this industry and the “no holds barred” approach to sales/promotion.  one other irony in the category of “do not judge a book by the cover”, thanks to jeremy for your new branding focused on ideas, innovation, creativy and passion.  hard to associate those guiding principle with bad behavior no matter what the packaging may look like smile  So Jeremy when are u going to start promoting the PC centric side of this industry vs. just the peripherals?  And content vs. form?  smile

Posted by 39 Cent Stamp  on  05/15  at  11:59 PM

Move over bad boys… hello Charmed Quark! smile


“Type the 3rd letter of the word “woofer”:”

LOL who came up with this verification system anyway?

Posted by Confused by Comment  on  06/03  at  08:46 AM

Jeremy, what does the Bush admin have to do with this case? Are you blinded by your mis placed hatred? Get some help!

Posted by J. Behar  on  06/04  at  05:12 AM

I think Confused by Comment’s true identity is Elizabeth Hasselbeck from “The View.”

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