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Near North sues ex-employees over computer hacking incident. (Companies).


Broker Near North National Group is suing three former employees for allegedly hacking See hack and hacker.  into Near North's computer system.

The company is suing to recoup recoup

To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss.
 $645,000 it spent to investigate and remedy the security breach.

Near North, which earlier this year sued three former employees it claimed violated noncompete agreements A contract limiting a party from competing with a business after termination of employment or completion of a business sale.

Found in some business contracts, noncompete agreements are designed to protect a business owner's investment by restricting potential competition.
, said it filed a civil action under the federal Computer Fraud and Abuse Act The Computer Fraud and Abuse Act is a law passed by the United States Congress in 1986 intended to reduce "hacking" of computer systems. It was amended in 1994, 1996 and in 2001 by the USA PATRIOT Act.  against three former technology employees who allegedly used insider knowledge of the company's computers to hack into the system, read company e-mail and conceal their actions. Kitty Kurth, a spokeswoman for Near North, said the company is hoping to find out what the alleged hackers did with the information and whether the hacking could be connected to events that led to Near North filing the first lawsuit.

The new lawsuit--filed against former employees David K. Cheley, Douglas Sikora and Craig Jongsman-- accuses the three of industrial espionage industrial espionage

Acquisition of trade secrets from business competitors. Industrial spying is a reaction to the efforts of many businesses to keep secret their designs, formulas, manufacturing processes, research, and future plans.
 between August 2001 and April 2002. While employed at Near North, each of the employees worked on "highly confidential and proprietary Near North technology," the company said in a statement.

While no confidential client records were infiltrated, Cheley alone allegedly accessed more than 20,000 Near North e-mails by scanning for messages marked "important, confidential and urgent," Near North said.
COPYRIGHT 2002 A.M. Best Company, Inc.
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Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Comment:Near North sues ex-employees over computer hacking incident. (Companies).
Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Aug 1, 2002
Words:211
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