Caught! Backdoored Deals Leads to Handcuffs

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arrest snapshot

Above: A female employee (different from the one arrested last year) is led out in handcuffs by police last week

A case of sneaking deals out the backdoor has resulted in another arrest at Yellowstone Capital.

According to someone familiar with the arrest and the events leading up to it, an employee was led out in handcuffs by police officers last week after Yellowstone’s management discovered she was diverting company deals to an outside party.

Yellowstone Capital would not offer comment on the matter, though last September, CEO Isaac Stern had told deBanked that “Yellowstone is investing tons of time, money, and effort to prevent data theft. We are doing everything in our power, everything, to address it, and we have even enlisted the assistance of an outside security firm.”

At that time, deBanked had obtained a photo of a female employee being led out by Stern and several police officers. That employee is said to have pled guilty to a felony theft charge after being busted for transmitting sensitive company deal data to a third party. It was the second such conviction deBanked is aware of that involved backdooring deals.

Though funding companies are generally reluctant to share the extent of their security methods, deBanked has learned that the level of technology being used by some players to detect data theft would probably come as a surprise to many perpetrators. Chances are that if you have engaged in it, it has been tracked or recorded.

“They think we don’t know, but we know the industry,” Stern told deBanked last year in reference to questions about security. “Ultimately we will catch you.”

Last modified: April 20, 2019

Category: Industry News

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