Business Maverick: Uber’s former security chief convicted of data hack coverup

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Uber Technologies’s former security chief was convicted of concealing a massive data breach in a case that prosecutors tied to the company’s troubled past under its original leadership.

Joe Sullivan was found guilty in San Francisco federal court on Wednesday by a jury which rejected his claim that other executives at the ride-hailing giant were aware of the 2016 hack and were responsible for it not being disclosed to regulators for more than a year.

Sullivan, a former federal prosecutor who previously headed security for Facebook, is well-known for his expertise in the field in Silicon Valley. He faces as long as eight years in prison, though his sentence will likely be far less. “Sullivan affirmatively worked to hide the data breach from the Federal Trade Commission and took steps to prevent the hackers from being caught,” Stephanie Hinds, US attorney for San Francisco, said in an emailed statement. “We will not tolerate concealment of important information from the public by corporate executives more interested in protecting their reputation and that of their employers than in protecting users.

Khosrowshahi testified that after discovering inconsistencies in Sullivan’s account of what happened, he decided it was time to replace his security chief. “I couldn’t trust his judgment anymore,” he said. “Remember, Mr Kalanick is the top person at Uber,” Angeli said at closing arguments. “Mr Sullivan could not have reported this to someone higher up at the company.”

 

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