Two Plead Guilty To Trying To Steal Trade Secrets From Company Bidding On U.S. GSA Building Contracts

San Diego, CA (AHN) - A man and his son who broke into his former employer's offices to see what it bid on a government project pleaded guilty in federal court Nov. 6, according to an FBI statement released Monday.

John Norris, 63, pleaded guilty to one count of conspiracy to steal trade secrets from The Imperial Group, which he was employed from September 1996 until November 2004.

Norris' son, Matthew, 33, also pleaded guilty to one count of conspiracy to steal trade secrets from The Imperial Group.

The Imperial Group, located in La Jolla, Calif., is in the business of bidding on United States General Services Administration (GSA) building projects.

After leaving The Imperial Group, John Norris established his own competing business, John Norris and Company, and employed his son Matthew. John's company and The Imperial Group submitted competing bids to build and manage a structure to house an office of the Department of Homeland Security, Immigration and Customs Enforcement, in El Centro, Calif.

In his plea, John Norris admitted that sometime on or before March 23, he decided to break into his former employer's offices to determine what they had bid on the project. He also convinced his son Matthew to assist him.

On March 23, John and Matthew Norris conducted a practice run. With Matthew standing outside the building keeping watch, John Norris took a master key from the janitor's closet servicing The Imperial Group's offices and determined that it did work in The Imperial Group's door.

On April 8, again with Matthew standing guard outside, John Norris used the master key to enter the offices of The Imperial Group and searched for the records of The Imperial Group's bid.

According to court documents, the practice run on March 23 was captured on a hallway surveillance camera designed to monitor performance by janitorial staff.

The janitorial supervisor viewed the practice break-in and reported it to The Imperial Group. In response, The Imperial Group removed the documents of its pending bid from its offices and installed its own surveillance system.

On April 8, the hallway camera captured John Norris entering the hallway and the janitor's closet, but he shielded his face with a piece of cardboard. The Imperial Group's surveillance system, however, captured him rifling their files.

John Norris will be sentenced on Jan. 28, 2008, by United States District Judge M. James Lorenz. He faces a maximum Penalty of 10 years in a federal prison and a $250,000 fine.

The plea agreement with Matthew Norris provides that the entry of his guilty plea will be deferred for a period of twelve months. If, during that twelve month period, Matthew Norris complies with the conditions of the agreement, the case against him will be dismissed. If he violates the agreement, his plea of guilty will be entered, and he will be sentenced in accordance with law.