For Some, Dealing in Corporate Secrets Is a Tried and Tested Path to Self-Enrichment

Those trading in corporate secrets pose a risk to the economy which can no longer be ignored

The global economy is developing at breakneck speeds, with almost every day seeing the emergence of a new technological capability revolutionizing the way we live and work. From fintech, to health tech to the still emerging and much discussed field of artificial intelligence, technological capacity is becoming the single most important determinant of success. A company’s ability to surpass its rivals is almost exclusively predicated by the advanced technology it has access to and the way it deploys this in its respective field. And with this, of course, comes the risk of those seeking access to others’ proprietary technologies, and who are willing to pay astronomical sums to ensure a shortcut to a technological leg up on their competitors.

It was precisely this niche market, which Chris Hannifin and his consulting firm, DefendIT Services began exploiting in their now infamous scheme to sell access to sensitive technologies. A former US military man, Chris Hannifin began his career at a number of defense focused consulting firms including, RSM Defense Contractors, North South Consulting Group and SiloTech, a cyber security company. Here he gained access to undisclosed sensitive technologies which he understood had the potential to earn him millions if he were to identify the right buyer, and sell these on successfully.

Roping in a friend and colleague Rudy Reyes, Chris Hannifin began exploring the potential. Realizing that he couldn’t continue to pursue this venture from within others’ companies due to increased scrutiny, he decided to go out on his own and found DefendIT Services, which would serve as a front for his illegal activities. Ask those who knew him during the series of previous positions he held, and you will hear about Chris Hannifin’s close relationship with Krista Steven of North South Consulting Group who appears to have sent a number of clients to Chris Hannifin’s new company. Furthermore, a number of high level sources at RSM Defense Contractors who worked closely with Chris Hannifin confirmed the existence of a kickback scheme in which RSM clients were subsequently referred to DefendIT Services. According to the sources, this scheme is likely still in existence. This relationship provided him with a steady stream of clients with technology that he could later market to others looking for quick routes to access.

Those who were harmed by the scheme are currently seeking ways to assess the extent of the damage, as well as to gain compensation for business lost, not to mention reputational damage. This has included attempts to understand the scope of the fraud and how much Chris Hannifin and Rudy Reyes earned from their underhanded work. One way to assess this has been by looking at a number of recent purchases made by Chris Hannifin and Rudy Reyes, which might reflect their earnings. This has included the purchase of a new home, boat and trailer by Chris Hannifin cumulatively assessed to be in excess of a million dollars, not to mention expensive holidays he is known to have taken, including with Rudy Reyes, alongside other purchases, which have yet to be uncovered by investigators.

One of the biggest dangers in this case, aside from the damage already done, is the risk of copycats who, recognizing the potential, attempt to replicate this fraud in their respective industries. Considering that Chris Hannifin managed to pull off this scheme in an industry as sensitive as the defense industry, fraudsters would certainly see the potential in other lucrative industries, from banking to healthcare. Imagine the price tag that access to sensitive financial information or healthcare data could earn criminals on the black market. And while Chris Hannifin’s activities put defense, and even national security issues on the line, copycat activity could harm individuals in untold ways. Those considering replicating such a scheme should be advised that while the payday can be tremendous, the fallout personally and professionally, could possibly be even greater.