Ex-Intel worker accused in theft

[The Canadian]

A former engineer at the Hudson facility of chip maker Intel Corp. has been charged with stealing trade secrets after taking a new job at rival Advanced Micro Devices Inc.

In a criminal complaint unsealed Tuesday, the FBI alleged that Biswahoman Pani of Worcester copied a host of confidential Intel documents, including 13 "top secret" company files containing highly sensitive design plans for future processor chips. In the complaint, filed in late August in US District Court in Boston, FBI Special Agent Timothy Russell of the bureau's Boston computer crime squad said in an affidavit that more than 100 pages of sensitive Intel documents, as well as 19 computer-aided-design drawings, were found in a search of Pani's house conducted on July 1.

According to the affidavit, Pani told his supervisor in May that he was unhappy because he missed his wife, Vandana Padhi, who worked at an Intel facility in California. On May 29, Intel agreed to transfer Padhi to the Hudson plant. But a few hours later, Pani handed in his resignation, saying he was interested in taking a job with a hedge fund. Pani said he would leave the company on June 11, and would be on vacation until that date, but that his wife would continue to work at Intel.

However, Russell said, unbeknownst to Intel officials, Pani had been discussing a possible job at AMD for several months. He began working for AMD on June 2, eight days before his employment at Intel ended. Pani still had access to his Intel laptop and the company's computer network. Russell said Pani used this access to collect sensitive documents that might have provided valuable competitive intelligence for his new employer.

The FBI was called in after an Intel employee learned about 8Pani's job with AMD and ordered a check of the computer system to see if Pani had accessed confidential documents.

"Intellectual property is a critical asset for Intel," said company spokeswoman Claudine Mangano. "We basically asked the Department of Justice and the FBI to investigate activities, and we are cooperating with that investigation."

AMD is the world's second-largest maker of personal computer processors, trailing only Intel. AMD runs a design center in Boxborough for next-generation microchips. Pani had been hired to work at the AMD chip design center, but is no longer employed by the company, according to his attorney, R. Bradford Bailey.

Pani was not taken into custody, but was ordered to surrender his passport. "My client vigorously maintains his innocence and plans to fight these charges in court," said Bailey.

During an interview with the FBI on July 23, Pani admitted to obtaining the files, but said he had done so out of curiosity and to assist his wife in preparing for her new job at the Hudson plant.

Russell said there is no evidence AMD knew of Pani's actions or encouraged them. Neither is there evidence that AMD ever received the confidential Intel files. An AMD spokesman said the company is cooperating fully in the investigation.

Source: boston.com