AMX Executive Arrested

Manufacturer's vice president is accused of e-mail system breach of Sapphire Marketing in New Jersey.
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Paramus, NJ -- Sapphire Marketing, the Northeast U.S. sale representative for Crestron, announced on Friday that a vice president of AMX Corporation had been arrested for unlawfully hacking into Sapphires e-mail system and stealing confidential information.
David Goldenberg
AMX vice president, David Goldenberg, has been charged with unlawful access of a computer system/network-third degree, unlawful access of computer data/theft of data-second degree, and conducting an illegal wiretap-third degree. Goldenbergs arrest follows an investigation by the Bergen County New Jersey prosecutors office.

Goldenberg joined AMX as regional sales director in June of 2007 and was later promoted to AMX vice president. He is being accused of unlawfully penetrating and downloading 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.

Sapphire Marketing claims that the stolen property enabled Goldenberg to unfairly compete with manufacturers such as Crestron, presumably on commercial AV installation projects, where the bid process is more common.

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

In response to the arrest, AMX president and CEO, Rashid M. Skaf released this statement: "As you may have heard, there have been accusations made against David Goldenberg. We are surprised and stunned by this news. 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."

According to the statement, AMX has placed Goldenberg on a leave of absence, effective immediately, while the arrest is investigated. AMX vice president of U.S. sales, Alan Stoddard, will be acting in his role until further notice.

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