Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Ex-Microsoft employee pleads guilty to trade secret theft

Gregg Keizer | April 2, 2014
Former Microsoft employee Alex Kibkalo, who two weeks ago was charged with stealing — then leaking — company secrets, pleaded guilty on Monday in a Seattle federal court.

Kibkalo's requirement to pay Microsoft $22,500 in restitution was based on Microsoft's estimate of its production costs, which it pegged as more than $15,000 but less than $30,000. The $22,500 was thus a split of the difference.

"The value of the SDK is substantial because to Microsoft it prevents software piracy across the line of Microsoft products," the plea agreement stated. "Therefore, the value is significantly greater than the time invested in the SDK's development and creation. However, because there is no external market for the SDK, it is not easily appraised."

One mystery in the case is how Kibkalo, who was working in Russia for 5nine, a virtualization management and security company with offices in St. Petersburg and Moscow, was enticed to come to the U.S.

According to Kibkalo's arrest warrant, he was arrested by the FBI on March 19 in Bellevue, Wash., a town east of Seattle across Lake Washington that abuts Redmond, Wash., where Microsoft is headquartered. Microsoft also has offices in Bellevue.

Kibkalo's sentencing was scheduled for July 1. Until then, he will remain in federal custody, where he has been detained since a court hearing last month judged him a flight risk.

 

Previous Page  1  2 

Sign up for CIO Asia eNewsletters.