Secrets involving chip design worth up to $1 billion were taken in a round of corporate espionage by AMD operatives in a bold strike. What Panis supervisors didnt know then is that instead of taking the time to investigate a hedge fund job Pani claimed he was considering, he had actually started working for AMD and for a brief period was on both companies payrolls.

Prosecutors say AMD had no knowledge of Panis actions and did not benefit. But they say the information Pani downloaded was worth more than $1 billion in research and development costs, and included details about methods for designing microprocessors.

The indictment alleges that Pani “planned to use this information to advance his career at AMD or elsewhere by drawing on it when the opportunity arose, whether with his employers knowledge or not.”

Pani told investigators he had no intention of harming Intel, and was going to give the information to his wife, who also worked for Intel.

Panis lawyer, Brad Bailey, declined to comment on specifics of the case. He said that Pani denies the allegations and that they plan to take the case to trial.

AMD said Pani is no longer an employee. The company is cooperating with investigators.

“AMD has not been accused of wrongdoing, and the FBI has stated that there is no evidence that AMD had any involvement in or awareness of Mr. Panis alleged actions,” the Sunnyvale, Calif.-based company said in a statement.

Intel owns 80 percent of the worldwide market for microprocessors, the electronic brains of personal computers. AMD has the rest. Chip designs are among the companies most closely guarded secrets. An Intel spokesman wouldnt comment.

Pani, who worked at an Intel facility in Hudson, Mass., had been charged with one count of theft of trade secrets in a criminal complaint filed in August in U.S. District Court in Boston. An indictment handed up to the court on Wednesday adds four new counts of wire fraud.

Pani faces a maximum of 10 years in prison if convicted for theft of trade secrets, and up to 20 years on each wire fraud charge.

Source: wvec