Originally Posted - December 5, 2006




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Ex-Netsoft Employee Charged With Theft Of Data

MANHATTAN---Louis Giuffre, 45, of Lake Grove faces charges relating to unauthorized computer access and theft of proprietary and confidential data from his former employer, Netsoft USA, Inc.

Federal prosecutors say that in 2005, Giuffre was hired by Netsoft as a senior sales representative. Among other services, Netsoft provides information technology consulting services in the area of IT application development, infrastructure development, and e-commerce and knowledge management for companies that use Microsoft computer systems. As a senior sales representative, Giuffre was responsible for obtaining new clients and selling additional consulting services to existing clients on behalf of Netsoft. In his position, he had access to Netsoft's proprietary business information as well as the computer systems on which that information was electronically stored.

During the course of his employment, Giuffre was bound by an employment agreement with Netsoft which obligated him not to disclose confidential Netsoft business information to unauthorized persons or entities or to compete with Netsoft in any business substantially similar to Netsoft's.

Following his termination, Netsoft officials learned that Giuffre had e-mailed several proprietary and confidential Netsoft documents to the president of a competitor of Netsoft based in midtown Manhattan. In addition, prior to leaving Netsoft, Giuffre had a secretary deliver his Netsoft laptop to the midtown company's offices. According to Netsoft officials, data on the laptop included confidential and proprietary business information belonging to Netsoft. Examination of the laptop, which Giuffre returned to Netsoft prior to leaving the company, showed that the entire contents of the laptop had been copied.

Giuffre also allegedly emailed the president of the midtown company that he was providing the "tools". to help the company obtain a contract with a prospective client. Prosecutors said Giuffre's e-mail to the president contained an attachment, which Giuffre said "arm[ed]" the president "with whatever you need" to obtain the contract with the prospective client. At the time, Netsoft was also negotiating to perform services for the prospective client. Ultimately, the prospective client selected the midtown company for the job.

Giuffre was charged with one count of conspiracy to transport stolen property interstate and one count of unauthorized computer access. If convicted, he faces a total maximum sentence of six years' imprisonment and a fine of the greatest of $250,000, twice the gross gain from the offense, or twice the gross loss to the victim. 12-05-06

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© 2006 North Country Gazette


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