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Two Arrested for Trying to Steal Sarine’s IP

Jul 24, 2017 8:27 AM   By Rapaport News
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Sarine Technologies, a manufacturer of technology products for processing diamonds, said two men were arrested in Tel Aviv, Israel, on suspicion of attempting to obtain Sarine's intellectual property.

Two months ago Sarine employees reported to management that they had been approached by a third party offering to buy intellectual property relating to Sarine's diamond-manufacturing products.

Sarine hired a private investigator who, posing as a Sarine employee, corresponded with the third party. A meeting took place in Tel Aviv in June between the private investigator and two Indian nationals.

The terms of the proposed deal were agreed upon and a second meeting was set up in Tel Aviv last week. During this meeting one of the suspects and a relative handed over $100,000 in cash as an advance payment against an agreed $1 million, to be paid in exchange for Sarine’s GalaxyTM system schematics, list of parts and vendors, and software source code. The relative is an Indian living in Israel, who owns a company dealing in rough diamonds and is a member of the Israel Diamond Bourse, Sarine said.

After the exchange, police arrested the suspects and took them into custody. The suspects were brought before the Tel Aviv Magistrate's Court and the primary suspect was remanded into custody for six days pending further investigation.

The suspect's relative was released, while a third suspect, who also attended the June meeting, remains at large and is being sought by the police for questioning.

“Sarine will aggressively defend its intellectual property in all places and at all times, with all the means that are necessary and appropriate,” said Sarine CEO David Block.

* Picture of Sarine's Galaxy system
Tags: diamonds, Israel Diamond Exchange, Rapaport News, Sarine
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