Case Results

Theft of Trade Secrets, Unlawful Competition, and Industrial Espionage Result in Criminal Conviction and Settlement

It’s a long way from New Jersey, but two lawyers from Maggs & McDermott spent eight years chasing down corporate pirates based in California’s Silicon Valley. Their efforts paid off when these pirates were sentenced for conspiring to steal blue prints and selling bootleg semiconductor parts. The client was MEC Technology, Inc., a Toms River Company that made replacement parts for the semiconductors computer industry.

Earlier, MEC Technology had learned that one of its competitors, Semiconductor Spares, was unfairly competing in the market place by using engineering drawings wrongfully obtained from the original manufacturer, Applied Materials Corp.

Based upon information obtained and developed by Maggs & McDermott, the FBI raided the competitor’s offices, removed its files and padlocked its doors. A day later, MEC Technology filed suit in Federal Court in NJ. MEC settled its case for a confidential but “extremely favorable” amount.

Another suspected bootlegger, McDowell & Co., was later added as a defendant based upon information obtained and developed by the attorneys of Maggs & McDermott. Mr. Maggs and Mr. McDermott learned that within days of the earlier FBI raid, McDowell’s President, Rusty McDowell, ordered McDowell’s employees to start shredding documents out of fear that his company would be next on the FBI’s list. Mr. Maggs worked with a former employee of McDowell who had kept copies of crucial documents misappropriated from Applied Materials. These documents were turned over to the FBI and criminal prosecution was initiated against officers and employees of McDowell & Co.

Thereafter, Mr. Maggs and Mr. McDermott traveled to both California and Texas in pursuit of the civil litigation which was venued in Federal Court in the Northern District of Dallas, Texas.

This litigation was ultimately settled. Given the highly confidential nature of the misappropriated documents and information, the terms of this settlement were sealed and remain confidential, although MEC was extremely pleased with the results. According to MEC’s President, Richard Kulkasi, “The determination and aggressive tactics of Jim Maggs and Jack McDermott put people in jail who were illegally and unfairly competing with our business. They were able to work with the federal authorities in the criminal investigation and, at the same time, obtain a great settlement for our company to compensate us for our lost profits.”

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