Former AMX VP Pleads Guilty to Spying on Crestron Rep

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.