A Former Executive Administrative Assistant to Coca-Cola S Global Brand Director, Joya

May 28, 2007

A former executive administrative assistant to Coca-Cola’s global brand director, Joya Williams (42), was sentenced to eight years in prison for her role in an attempt to sell confidential materials to Pepsi. Working with Ibrahim Dimson (31) and Edmund Duhaney (43), the three hatched a plan to make money by selling the confidential materials. A man named “Dirk” sent a letter to Pepsi headquarters in May 2006 offering secrets for sale. The “secrets for sale” included recipes for some Coca-Cola products and details of future promotions (these two bits were selling for $15,000) as well as the formula for a new beverage ($75,000).

When Pepsi got the letter, it contacted Coke. Coke then called the FBI to set up a sting operation that included videotaping Ms. Williams. Ms. Williams was observed on the videotape putting the confidential materials, including bottles of prototype beverages identified by their 8-oz. size and plain white labels, into her personal handbag. Also as part of the sting operation, an undercover FBI agent met the infamous “Dirk,” who turned out to be Dimson, on June 16, 2006, at Atlanta's Hartsfield-Jackson Airport. Dimson handed over some of the documents and a beverage sample. The documents included 14 pages of Coca Cola document logo-marked “Classified - Confidential” and “CLASSIFIED - Highly Restricted.” Coke later confirmed that these documents were valid and highly confidential and contained highly classified proprietary information - trade secrets. The undercover agent gave Dimson $30,000 in cash (in $50 and $100 bills) that was in a Girl Scout cookie box. The undercover agent told Dimson that the cash was a down payment with the remainder to come after the items were authenticated. The two then agreed that there would be more secrets coming for a total price of $1.5 million. According to FBI press releases, Dimson later e-mailed the undercover agent the following: “I must see some type of seriousness on their part, if I'm to maintain the faith to continue with you guys, or if I need to look towards another entity that will be interested in a relationship with me. I have the capability of obtaining information per request. I have information that's all classified and extremely confidential, that only a handful of the top execs at my company have seen. I can even provide actual products and packaging of certain products, that no eye has seen, outside of maybe 5 top execs. I need to know today, if I have a serious partner or not. If the good faith money is in my account by Monday, that will be an indication of your seriousness.”

After leaving, Dimson met in a rental car with Edmund Duhaney and they drove to Duhaney’s home in Decatur, Georgia. Call records showed that Duhaney was in contact with Dimson and Williams on that day. Following these events, the undercover agent arranged for a July 5, 2007 meeting to transfer documents and $1.5 million. Following that meeting, the three were arrested.

When news of the arrests were made public, Pepsi released a statement that included the following, "Competition can be fierce, but must also be fair and legal."1 1 Kathleen Kingsbury, “You Can’t Beat the Real Thing,” TIME, July 9, 2006, www. time.com. Williams’ sentence is two years longer than prosecutors recommended (although two years shorter than the possible ten years) because the federal judge J. Owen Forrester said, “I can’t think of another case in 25 years that there’s been so much obstruction of justice.”2 Judge Forrester also added, "The guidelines (referring to the sentencing guidelines) as they are written don't begin to approach the seriousness of this case."

The prosecutor indicated that Ms. Williams chose to go to trial, a trial that lasted 7 days, and that she lied on the stand. “Choices have consequences, and she made those choices.”3 Ms. Williams testified that Dimson and Duhaney took the information from her home without her knowledge. However, the videotape of her at the company contradicted her testimony. Williams testified that she had a habit of just “hording” company documents and e-mails. There was also, however, a recorded tape of her accomplices deciding how to divvy up the money among the three of them. The day after the Girl Scout cookie box handover (also on video tape), Ms. Williams deposited $4,000 into her checking account. She testified that the $4,000 was a loan from a friend. However, the friend did not testify. Duhaney created an account the next day in the name of Noblehouse Group, LLC, with the address used on the account being Duhaney's Decatur residence. Bizarrely, Williams’ residence was destroyed by fire in February 2007 within one hour following her conviction that same day.

Both Dimson and Duhaney entered guilty pleas and Duhaney testified against Williams at her trial. Dimson was sentenced to 5 years in prison and both Dimson and Williams were ordered to pay $40,000 in restitution. Duhaney’s sentence has been postponed because of his lawyer’s schedule and also because of his 15-year-old daughter’s surgery. Duhaney and Williams had been friends for many years. Duhaney has been in prison since his arrest, but was released for a few days to be with his daughter.

At her sentencing hearing, Ms. Williams offered the following, “Your honor, I have expanded my consciousness through this devastating experience. This has been a very defining moment in my life I have become infamous when I never wanted to become famous. . . . I am sorry to Coke and I’m sorry to my boss and to you and to my family as well.”4 She also added, "Punishment is the memories and the moments that I'm going to miss. Punishment is never having a family of my own."5

Following the Dimson and Williams sentencings, the U.S. attorney issued the following statement,

“As the market becomes more global, the need to protect intellectual property becomes even more vital to protecting American companies and our economic growth. This case is an example of good corporate citizenship leading to a successful prosecution, and

2 “Ex-Secretary Gets 8-Year Term In Coca-Cola Secrets Case,” New York Times, May 24, 2007, p. C3. 3 Id. 4 Id. 5 FBI press release. www.fbi.com. that unlawfully gaining a competitive advantage by stealing another’s trade secrets can lead straight to federal prison.”6

Discuss trade secrets and how they are protected. What crimes do you think were committed here? Describe the role of trust with employees at all levels.

6 From FBI press release, www.fbi.gov.