Deloitte-Sagitec Trade Secret Case Delays Jobless Aid Fixes (1)

The federal indictments of key executives at technology company Sagitec Solutions could delay or derail state efforts to modernize unemployment insurance systems, including in Kentucky, Ohio, and Texas.

Two Sagitec executives—David Gerald Minkkinen and Sivaraman Sambasivam—face federal charges alleging they took trade secrets from the UI processing system at Deloitte LLP, where they previously worked, used them to build Sagitec’s UI products, and lied to federal investigators about it.

The legal woes complicate modernization efforts after many state UI systems struggled to meet the challenges of the Covid-19 pandemic and the huge wave of unemployment claims that began in ...