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Los Angeles County prosecutors have accused the CEO of a small Michigan software company of compromising the personal information of hundreds of county elections employees.
Eugene Yu, 51, was arrested early Tuesday just outside of Lansing, Mich., after prosecutors alleged he improperly stored the information on servers in China, according to Los Angeles County Dist. Atty. George Gascón. Yu, who is the chief executive officer of a company named Konnech, is expected to be extradited to Los Angeles in the coming days, Gascón said.
Los Angeles County awarded Konnech a contract in 2020 to store employee payroll and scheduling data using its PollChief software, according to Gascón. Under the five-year contract valued at nearly $3 million, Konnech was not supposed to store information outside the U.S., Gascón said.
“Konnech allegedly violated its contract by storing critical information that the workers provided on servers in China,” Gascón said. “We intend to hold all those responsible for this breach accountable.”