News and Press Releases

Long Island Corporate Executive Pleads Guilty to Destroying a Competitor's Trade Secret Formula

August 01 , 2007

Roslynn R. Mauskopf, United States Attorney for the Eastern District of New York, announced the guilty plea of ROBERT A. SCHETTY III, a vice-president of Technic, Inc., to conspiring to destroy trade secrets of a competitor, in violation of Title18, United States Code, Section 1832. SCHETTY entered his guilty plea today before United States District Judge Sandra J. Feuerstein at the U.S. Courthouse in Central Islip, New York

While employed at Technic’s Advanced Technology Division in Plainview, Long Island, SCHETTY supervised research, development, and marketing of Technic’s electroplating products. In 2004, Technic sold an electroplating solution to the Intel Corporation, one of the world’s largest manufacturers of microchips, for use in the microchip coating process. Intel, in turn, used a subcontractor, Amkor Technology, to assemble and package Intel’s microchips, and to test the chemicals used in the electroplating process at its facility in the Philippines.

In January 2005, Intel began qualification testing at Amkor’s Philippines facility for a new electroplating solution, ST380, a “trade secret” formula developed by one of Technic’s primary competitors, Rohm and Haas, Co. Fearing that Technic would lose its electroplating business with Intel, SCHETTY admitted today that he and others sabotaged the qualification testing by contaminating and destroying two baths of ST380 during the testing process.

“Destruction of commercial trade secrets is a serious offense, and can result in significant commercial injury,” stated United States Attorney Mauskopf. Ms. Mauskopf thanked the Federal Bureau of Investigation, the agency responsible for conducting the government’s investigation.

SCHETTY faces a maximum sentence of ten years imprisonment, three years of supervised release, and a $250,000 fine. In addition, pursuant to a plea agreement with the government, SCHETTY has agreed to make restitution to Rohm and Haas in the amount of $15,536.

The government’s case was prosecuted by Assistant United States Attorney James G. McGovern.

The Defendant:

Age: 42