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State of Michigan Charges Computer Software Salesman Gregg Wysocki With Computer Intrusion, Embezzlement And Use of a Computer to Commit a Crime.

Business Editors, High Tech and Legal Writers

DETROIT--(BUSINESS WIRE)--May 7, 2002

Issued by PC Treasures, Inc.:

NOTE: The legal case described in the following news release is of interest to all businesses in the computer age. Following the release is the text of the criminal complaint.

Gregg Wysocki, of Rochester, Mich., has been arraigned in Michigan's 40th Circuit Court, in Lapeer, Mich., charged with stealing valuable and confidential information from his former employer, PC Treasures, Inc., of Oxford, Mich., which bundles software for builders and resellers of non-branded personal computers.

The court scheduled arguments on motions in the case, Michigan vs. Wysocki, for June 10, following a pretrial hearing April 29. Wysocki is free on a $50,000 personal bond.

The criminal complaint alleges computer intrusion, embezzlement, and use of a computer to commit a crime--felonies carrying potential sentences totaling 35 years in prison and fines up to $35,000.

The complaint alleges that Wysocki had copied onto a CD-ROM valuable sensitive and proprietary company documents, many of them in restricted areas under password protection. These documents included a complete set of PC Treasures' accounting records, contracts with software suppliers, profit-and-loss analyses of products, customer and prospect lists, and correspondence with corporate counsel.

According to the criminal complaint, Wysocki used the information taken from PC Treasures to market himself to a competitor of PC Treasures, e-mailing them a proposal that indicated he would bring them 80,000 prospective customers as resources in the development of his sales base for them and outlined how he would increase their profits by capturing the "white-box market"--the same target market in which PC Treasures had established a strong foothold.

PC Treasures has filed a civil suit against Wysocki, its former national sales director, and the competitor Wysocki contacted and joined. Brian Austin, PC Treasures' president, said discovery of the computer crimes came after suspicions were raised by Wysocki's abrupt resignation without prior notice.

An examination of his company-owned computer by PC Treasures' technical services director revealed the copying and an attempt to delete the records related to Wysocki's copying. It also revealed multiple contacts with PC Treasures' competitor, including its president and vice president.

Interviewed by special agents of the High-Tech Crime Unit of the Michigan Attorney General's Office, with his attorney present, Wysocki admitted that he had copied the company records, including the marketing information, the mailing list, accounting data, and contact databases from sales territories outside his jurisdiction. Subsequently, in court in connection with the civil action, he admitted under oath to taking financial information from the company, customer databases, and documents regarding a pending legal action against a prior employee of the company.

For further information, contact Gabe Werba at 313/961-8899 or werba@ddwpr.com, or David Adrian at 313/961-5508 or adrian@ddwpr.com.


COMPLAINT

STATE OF MICHIGAN
71A Judicial District
40th Judicial Circuit

DC#: 01-3780
CTN#: 96-01-000102-01
District Ct. ORI: MI440025J
Circuit Court ORI: MI440015J
AG ORI: MI330025A

THE PEOPLE OF THE STATE OF MICHIGAN
V
GREGG WYSOCKI
1636 Crossbow
Rochester Hills, MI 48306

Defendant DOB:
August 9, 1961

City/Twp./Village: Metamora
County: Lapeer

Victim/Complainant:
People of the State of Michigan

Complaining Witness:
Investigator Robert Peplinski

Charges:
Count One: COMPUTER INTRUSION-MCL 752.795(a) (752.7972A)
Count Two: EMBEZZLEMENT-MCL 750.174 (750.1745A)
Count Three: USE OF A COMPUTER TO COMMIT A CRIME-MCL 752.796(752.796A)

Count One: Felony - up to 5 years and/or $10,000
Count Two: Felony - up to 10 years and/or $15,000
Count Three: Felony - up to 20 years and/or $20,000

Witnesses: Special Agent Robert Peplinski, Special Agent Ives
Potrafka, Les Thomas, Brian Austin, Colleen Downs, Kelly Oliver,
Dep. Steve Law, Lt. Brian Albright, Trooper Derrick Carroll,
Sgt. James May, Chris Carey, John M. Foster

STATE OF MICHIGAN, COUNTY OF LAPEER

The complaining witness, on information and belief, says:

GENERAL ALLEGATIONS

1. GREGG WYSOCKI was employed as a sales representative for PC
Treasures, a Metamora-based computer software vendor which packages
software and bundles it for computer manufacturing companies. On July
27, 2001, WYSOCKI left employment with PC Treasures and took a job as
a sales representative for Microgistix. Microgistix is a competitor of
PC Treasures.

2. While employed as a sales representative for PC Treasures, WYSOCKI
was given a company laptop to use. After WYSOCKI left his position
with PC Treasures, Chris Carey, the systems manager for PC Treasures,
discovered evidence on WYSOCKI'S laptop which showed that on July 12,
2001 at 8:10 p.m., WYSOCKI copied numerous sensitive PC Treasures
documents on to a CD-ROM from the company's network. According to
Carey, WYSOCKI had borrowed a PC Treasures CD burner earlier that same
week. WYSOCKI had requested the CD burner for personal reasons and had
no work-related need to use a CD burner. However, WYSOCKI interviewed
with Microgistix in Minneapolis, Minnesota on July 13, 2001, the day
after the sensitive PC Treasures documents were copied on to a CD.

3. The documents burned to a CD included a complete set of PC
Treasures' accounting records, contracts with suppliers of software,
profit and loss analysis of products, correspondence with corporate
counsel, and other records. Employees of PC Treasures had computers
that were connected in a network that allowed each user to access
files on any computer connected to that network, provided that the
user was authorized to access such files. Data was not generally
stored in a single central computer, it was distributed on each user's
computer, which connected to the network.

4. Some of the files taken from the network and burned to a CD-ROM
using WYSOCKI's laptop were password-protected. GREGG WYSOCKI was not
authorized or given permission to access a portion of this data. He
did not have permission to make or keep copies of any of this data.

5. An examination of GREGG WYSOCKI's laptop revealed that he had
accessed files belonging to Brian Austin, the company president. Brian
Austin indicated that GREGG WYSOCKI had no permission or reason to
access any documents, which were stored on his computer. Further,
Austin never gave WYSOCKI permission to copy those documents, or to
retain them for any purpose.

6. On August 22, 2001, WYSOCKI was interviewed by Special Agents
of the Department of Attorney General, High Tech Crime Unit. After
being advised of his Miranda Rights, and with his attorney present,
WYSOCKI admitted to the agents that he had copied company records
through the network. He used his laptop and copied them to a CD-ROM.
The documents WYSOCKI admitted copying included marketing information,
the mailing list, accounting data, contact data bases from the East
coast and West coast sales.

7. PC Treasures subsequently filed a civil action against GREGG
WYSOCKI. In court, under oath, GREGG WYSOCKI admitted to taking
financial information from the company, customer databases and
documents regarding a pending legal action against a prior employee of
the company. Under oath, in the civil action, WYSOCKI further admitted
that he copied this data to a CD-ROM because the laptop belonged to PC
Treasures.

8. WYSOCKI returned the laptop upon termination, but he kept the
CD-ROM.

9. On August 2, 2001, a search warrant was executed on the residence
of GREGG WYSOCKI. Numerous items, including the hard drive to
WYSOCKI's computer, and the CD-ROM containing all the information
described above, taken from PC Treasures' network, was retrieved from
WYSOCKI's home. A search warrant was also executed on WYSOCKI's e-mail
account with America Online (AOL). A forensic evaluation of the
computer hard drive revealed additional evidence as did the contents
of his AOL e-mail account.

10. Accountants for PC Treasures estimate that the value of the
customer databases and financial information taken by WYSOCKI would be
over $100,000 on the open market.

11. WYSOCKI used the information taken from PC Treasures to market
himself to Microgistix. WYSOCKI e-mailed a document entitled White-Box
Channel Proposal to Microgistix. That proposal indicates that WYSOCKI
brings 80,000 prospective customers as resources in the development of
his sales base for Microgistix. The proposal outlined how he would
increase Microgistix profits by capturing the "white-box market"--the
same target market as PC Treasures.

12. Microgistix finalized their offer to GREGG WYSOCKI on July 27,
2001. He began work for Microgistix on August 1, 2001. His base salary
for Microgistix was three times what he was making when he left PC
Treasures.

COUNT I

COMPUTER INTRUSION

GREGG WYSOCKI did on or about July 12, 2001 in the City of Metamora,
Lapeer County, intentionally, and without authorization or by
exceeding valid authorization access or cause access to be made to a
computer program, computer, computer system or computer network to
acquire property or otherwise use the service of a computer program,
computer, computer system, or computer network in violation of MCL
752.795(a) and MCL 752.797(1)(2)(a). (752.7972A)

Penalty - FELONY up to 5 years and/or a fine up to $10,000.

COUNT II

EMBEZZLEMENT

GREGG WYSOCKI did on or about July 12, 2001 in the City of Metamora in
Lapeer County being an agent, servant or employee of PC Treasures did
dispose of or convert to his use, or take or secrete with the intent
to convert to his own use without the consent of his principal,
personal property to wit: customer lists, financial and other
proprietary information valued in excess of $20,000 of his principal,
PC Treasures, that came to his possession or that was under his charge
or control by virtue of his being an agent, servant, employee,
trustee, bailee, or custodian in violation of MCL 750.174(1) and (5).
(750.1745A)

Penalty - FELONY up to 10 years and/or a fine up to $15,000.

COUNT III

USE OF A COMPUTER TO COMMIT A CRIME

GREGG WYSOCKI did on or about July 12, 2001 in the City of Metamora in
Lapeer County, use a computer program, computer, computer system, or
computer network to commit, attempt to commit, conspire to commit or
solicit another person to commit a crime to wit: embezzlement (MCL
750.174(1) in violation of MCL 752.796. (752.796A)

Penalty - FELONY up to 20 years and/or a fine up to $20,000.

WHEREFORE, Complainant prays that the Defendant be apprehended and
dealt with according to law.

(Signed by) Robert Peplinski
Special Investigator
High Tech Crime Unit

Taken as subscribed before me this 7th day of Dec. 2001.

(Signed by) District Judge Magistrate

Complaint and Warrant authorized on 11-27-01 by:


(Signed by) WILLIAM J. RICHARDS, DEPUTY ATTORNEY GENERAL

Prosecution to be handled by:

Sheila Phillips (51656)
Assistant Attorney General
High Tech Crime Unit, Criminal Division
18050 Deering Road
Livonia, MI 48152
(734) 525-4151
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