Japanscam

Hitachi pleads guilty

Last June, Hitachi Senior Engineer Kenji Hayashi and two colleagues walked into the Santa Clara offices of Glenmar Associates, purportedly a California consulting firm, to collect IBM documents giving crucial details of the company's newest computer technology. Hitachi had made payments totaling $622,000 to get the information. To Hayashi's surprise, he was confronted by a gaggle of FBI agents, who had set an Abscam-like trap to catch Hayashi and his friends.

In a federal court in San Francisco last week, Hitachi pleaded guilty to conspiring to transport stolen IBM secrets to Japan. The company was fined $10,000, Hayashi $10,000 and...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!