IP Theft Investigation: $15M Trade Secret Misappropriation by Departing Executive
The Challenge
A VP of Engineering resigned to join a direct competitor. Client suspected theft of proprietary manufacturing processes, customer lists, and confidential pricing information. Employee had deleted files and cleared browser history before departing, attempting to conceal evidence. Emergency TRO hearing scheduled in 72 hours requiring immediate forensic evidence.
Our Approach
Emergency 24-hour forensic response with on-site imaging of employee laptop and workstation
USB device history analysis identifying all external storage devices connected to computers
Deleted file recovery from unallocated disk space and volume shadow copies
Email forensics revealing forwarding of proprietary documents to personal Gmail account
Cloud storage analysis showing uploads of confidential files to personal Dropbox account
Timeline correlation between trade secret access, competitor contact, and data exfiltration
Browser history recovery despite clearing attempts, revealing webmail usage and job search activity
Expert testimony supporting preliminary injunction motion with detailed forensic findings report delivered in 48 hours
Key Forensic Findings
USB device logs showed 15 external drive connections in final 2 weeks, with 127 GB transferred
Recovered deleted emails showing employee forwarding 847 confidential documents to personal account
Dropbox sync logs documented upload of entire "Customer Database" and "Manufacturing Processes" folders totaling 3,200 files
Browser history showed daily access to competitor's job portal and communications via webmail during work hours
File access logs revealed systematic downloading of documents outside normal job responsibilities (sales data when role was engineering)
Timeline showed trade secret access on Day 1, competitor contact on Day 3, mass data exfiltration Days 5-18, resignation Day 20
Forensic evidence proved deliberate deletion of 2,100 files and clearing of browser history on final day, demonstrating consciousness of guilt
The Outcome
Court granted preliminary injunction prohibiting defendant from using trade secrets or working for competitor in same capacity. Forensic evidence was determinative, showing systematic data theft over final 3 weeks of employment. Case settled with $2.1M payment to plaintiff, return of all misappropriated materials, and 5-year non-compete agreement. Criminal referral resulted in federal charges under Economic Espionage Act.
Case Impact
Services Utilized
Emergency Forensic Response
Computer & Mobile Forensics
USB Device Analysis
Cloud Storage Forensics
Email Analysis
Deleted Data Recovery
Expert Witness Testimony