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Nikhil Nilesh Shah, Computer Code Tampering, North Carolina 2015

A former information technology manager has pleaded guilty to sending damaging computer code to his former employer’s servers, causing at least $5,000 in damage and deleting much of the company’s intellectual property.

Nikhil Nilesh Shah, 33, of Union, New Jersey, pleaded guilty to one felony count of causing the transmission of computer code and, as a result, damaging computers and causing loss of at least $5,000 in value. He is scheduled to be sentenced on December 8, 2015.

According to the indictment, Shah was an information technology manager at Smart Online Inc., a company located in Durham, North Carolina, from 2007 to March 2012. After leaving Smart Online, Shah sent malicious computer code to the company’s computer servers in Durham and Raleigh, North Carolina, on June 28, 2012.

The case was investigated by the FBI’s Raleigh, North Carolina, Field Office. The case is being prosecuted by Senior Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Thomas B. Murphy and Adam Hulbig of the U.S. Attorney’s Office of the Eastern District of North Carolina.

Shah’s guilty plea brings an end to a case that highlighted the potential dangers of cyber attacks on businesses. The case serves as a reminder to companies to take measures to protect themselves from such threats.

The indictment charged Shah with one felony count of causing the transmission of computer code and, as a result, damaging computers and causing loss of at least $5,000 in value.

The case is a serious reminder of the need for businesses to take cybersecurity seriously and to take measures to prevent such attacks.

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