Engineer Accused of High-Tech Thievery
A Redondo Beach engineer who has hopscotched from job to job has been charged with stealing trade secrets from two high-technology companies and attempting to extort money from another.
Jack Edward Paris pleaded not guilty in South Bay Municipal Court to charges that he stole more than 100 computer disks from ESC Inc. in Hawthorne, and an engineering manual from Electro Adaptors Inc. in Chatsworth. Both companies manufacture electrical equipment.
Paris, 37, also is facing trial on a charge that he attempted to extort money from Matrix Science Corp. in Torrance after he obtained a prototype of an electrical connector made by the company and threatened to sell it to a competitors.
Twice Arrested
Prosecutors said the charges followed arrests of Paris in April and again last week prompted by company complaints.
The computer disks and manual contain secret research and development data that, if it wound up in the hands of a rival, could seriously damage the companies, prosecutors said Thursday. But it has not been determined whether competitors got hold of the information.
“The thefts easily could cost these companies millions of dollars,” Los Angeles County Deputy Dist. Atty. Bob Schuit said.
Ray Fish, the owner of Electro Adaptors, said that his company’s engineering manual has been recovered, but that photocopies might have been produced. The firm could lose $2 million if rivals obtained such copies, he said.
All three companies have done work for the federal government at various times. However, Fish and an ESC spokesman said the material taken from them was not classified and would only be valuable to other companies. Matrix officials declined to comment.
Paris, who was arraigned on the theft charges Wednesday, faces a preliminary hearing Sept. 8. He has been held in County Jail since last Friday, when he was arrested in the ESC disk thefts. Bail was set at $150,000.
Neither Paris nor his attorney could be reached Thursday for comment.
Paris worked as an engineer at Matrix for a year beginning in October, 1985, according to Deputy Dist. Atty. Charles Boag. After that, he went to work for Electro Adaptor and then ESC, where he was employed until last month.
Suspected of Stealing
Boag said prosecutors are uncertain why Paris left Matrix, but that he resigned from Electro Adaptors after company officials suspected him of stealing.
While still at ESC in April, Paris allegedly contacted Matrix officials and told them he had a prototype of the electrical connector, a small, cylindrical device for which the company was recently awarded a patent.
“He negotiates with the company,” Boag said. “He basically says, ‘I am going to offer it to the highest bidder. If you don’t buy it, I’ll offer it to one of your competitors.’ ”
Matrix officials contacted police and then agreed to meet Paris behind a Torrance restaurant, Boag said. Paris was arrested there after he exchanged the prototype for a $2,600 check.
ESC officials declined to comment on details of Paris’ employment, but prosecutors said he continued to work at the firm for three months after his first arrest. Last week, however, ESC notified Paris by telegram that he was being fired for chronic absenteeism, Boag said.
The following day, Paris went to ESC and took more than 100 computer disks containing the company’s research and development data, the prosecutor said.
Company officials suspected that Paris had stolen the disks and contacted him, threatening to withhold his severence pay unless he returned them, Boag said.
Paris was arrested by Hawthorne police when he came to the company with several of the disks, Boag said. Later, he said, a large number of disks were recovered at Paris’ home, along with the manual belonging to Electro Adaptors. It has not been determined if all the disks were recovered.
“The motive appears to be greed,” Boag said. “And we are concerned that he was able to move so freely through all these high-tech companies and have access to this kind of information.”
Boag said that Paris had worked for several other high-technology companies before joining the three named in the charges, and apparently went quickly from one firm to another.
Fish of Electro Adaptor said that Paris had worked for his company once before the latest stint, and had been thought of as a good worker.
