TAMPA -- The United States Attorney announced today that JOLENE HILDA NEAT RECTOR and STEVEN MICHAEL SNYDER were both sentenced Friday afternoon by District Court Judge James S. Moody, Jr., after having entered guilty pleas to a two count indictment charging them with conspiracy to convey trade secrets and the substantive offense of conveying trade secrets, a case of first impression in the Middle District of Florida. RECTOR was sentenced to 14 months confinement (seven months to be served in a community correctional center), two years supervised release, and a special assessment of $200. A fine was waived in her case. She had entered her guilty pleas before Magistrate Judge Jenkins on March 13, 200l. SNYDER was sentenced to 10 months confinement (five months to be served in a community correctional center), two years supervised release, and a special assessment of $200. A fine was also waived in his case. He had entered his guilty pleas before Magistrate Judge Jenkins on March 2, 2001.

RECTOR, age 45, and SNYDER, age 36, each were convicted of conspiring to convey trade secrets, in violation of 18 U.S.C. § 1832(a)(5), and conveying trade secrets, in violation of 18 U.S.C. §§ 1832(a)(2) and 2. Both offenses are crimes under the Economic Espionage Act of 1996 (EEA) and the prosecution of these offenses constitute the first ever prosecution under this statute in the Middle District of Florida, one of a growing number of prosecutions under this statute nation-wide since the statute was enacted in October of 1996. This case has national significance because it reenforces the impact Congress desired to make in limiting the damage industrial espionage causes United States companies, both here and abroad.

The facts, as agreed to by both defendants in their plea agreements with the United States, establish that at some time prior to August 20, 1999, the defendant, JOLENE HILDA NEAT RECTOR, obtained numerous pieces of proprietary information owned by R.P.Scherer, Inc. (RPS) from a friend(s) in Florida. This information included gel formulas, fill formulas, shell weights, and experimental production order (EPO) data. This information was known by the defendant to be proprietary information and trade secrets of RPS. RPS is a leading international developer and manufacturer of drug, supplement, cosmetic and recreational product delivery systems. RPS’s proprietary advanced drug delivery systems improve the efficacy of drugs by regulating their dosage, rate of absorption and place of release. RPS customers include global and regional manufacturers of prescription and over-the-counter pharmaceutical products, nutritional supplements, cosmetics and recreational products such as paint balls. RPS products are produced for and placed in interstate and foreign commerce.

Both RECTOR and SNYDER admitted that the gel formulas, fill formulas, and EPOs were proprietary trade secrets of RPS, developed by them and used by them in the production of drug, nutrient supplement and paint ball delivery systems (capsules) as well as the fill material inside the capsules.

The investigation of this case was accomplished through the collaborative efforts of Special Agents of the Federal Bureau of Investigation in Michigan, Nevada, and here in the Middle District of Florida. This case also demonstrates a situation where a competitor corporation (NPB) actively cooperated with federal authorities and the victim corporation (RPS). Without the assistance of this competitor corporation, the successful prosecution of this case would not have been possible.

The case was prosecuted by Assistant United States Attorney Donald L. Hansen, Computer Technology Crimes Coordinator for the Tampa Division of the United States Attorney's Office.

• More information on:  Defendants' Plea
• More information on:  EEA Prosecutions and Press Releases
• More information on:  Economic Espionage

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