Lab CEO Admits Sabotaging Competitor in Corporate Espionage

ByEthan Pineridge

A New York laboratory executive has pleaded guilty to an elaborate scheme of corporate sabotage after admitting he impersonated a technician to gain access to a competitor’s facility, where he destroyed equipment and stole critical data storage devices. The case highlights the extreme measures taken in what prosecutors describe as a calculated act of business sabotage.

Eric Leykin, 33, of Brooklyn, the owner and CEO of RDx Bioscience in Kenilworth, New Jersey, entered a guilty plea to wire fraud charges before U.S. District Judge Esther Salas in Newark federal court. According to U.S. Attorney John Giordano, Leykin now faces up to 20 years in prison and significant financial penalties when sentenced on July 22.

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Elaborate Deception to Access Competitor’s Facility

Court documents reveal that Leykin purchased a prepaid mobile phone on June 30, 2022, specifically to execute his plan. Using this phone, he called an employee at a competing laboratory in Millburn, New Jersey, falsely claiming to be a technician employed by one of their equipment service vendors.

After successfully arranging a service appointment for the following day, Leykin arrived at the competitor’s laboratory on July 1, 2022, where he gained entry by continuing his impersonation scheme. Once inside, according to the indictment, Leykin embarked on a systematic campaign of destruction and theft.

“This was not a momentary lapse in judgment, but a calculated effort to sabotage a business competitor through deception and destruction,” a law enforcement source familiar with the case told reporters. “The level of planning involved demonstrates the premeditated nature of these actions.”

Trail of Destruction Left Behind

According to NJ 101.5, the damage Leykin inflicted was extensive and potentially catastrophic for the victim laboratory. He unplugged a backup generator, removed at least four hard drives from servers that contained patients’ personally identifying information, and damaged at least three additional computers by removing and destroying their hard drives.

The sabotage continued with Leykin cutting wiring throughout the building, including disabling the surveillance system, and causing significant damage to other laboratory equipment. The full extent of the physical damage and potential data loss has not been publicly quantified, but sources indicate the financial impact to the victim laboratory was substantial.

Authorities have not disclosed the name of the victim laboratory or whether sensitive patient information was compromised during the incident. However, the theft of storage devices containing patient data raises serious concerns about potential privacy violations and regulatory compliance issues.

Pattern of Legal Problems

This criminal case follows earlier legal troubles for Leykin and his laboratory operation. Last year, Leykin and RDx Bioscience reached a substantial settlement with federal and state authorities over allegations of healthcare fraud.

The company agreed to pay $10 million to the federal government and an additional $3 million to the state of New Jersey to resolve allegations involving illegal kickbacks and performing medically unnecessary laboratory testing. These settlements did not include an admission of wrongdoing at that time.

The current criminal case, however, involves a direct admission of guilt to serious federal charges. The wire fraud count carries a maximum potential penalty of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.

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Multi-Agency Investigation

U.S. Attorney Giordano credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with leading the investigation that resulted in Leykin’s guilty plea. The case also involved substantial assistance from the Essex County Prosecutor’s Office and the Millburn Police Department.

“This guilty plea demonstrates that we will not tolerate underhanded tactics that seek to gain competitive advantage through illegal means,” Giordano stated. “The integrity of our business environment depends on fair competition, not sabotage and destruction.”

The government is represented by Assistant U.S. Attorneys Andrew M. Trombly, Deputy Chief of the Cybercrime Unit, and Chana Y. Zuckier of the Bank Integrity, Recovery, and Money Laundering Unit.

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