Las Vegas Review-Journal

Tesla ignored drug dealing, spied, fired employee tells SEC

- By Rex Crum The Mercury News

A former Tesla employee alleges in a filing with the Securities and Exchange Commission that the electric carmaker hacked and wiretapped cellphones and computers of current and former employees, and failed to report to federal authoritie­s possible drug dealing at its Northern Nevada Gigafactor­y.

The former employee, Karl Hansen, worked in the company’s internal security department and investigat­ions division until he was dismissed on July 16. Hansen alleges his dismissal was because he raised concerns about the wiretappin­g, hacking and drug dealing, and presented evidence to Tesla about the theft of $37 million worth of copper and other raw materials from the Gigafactor­y.

Hansen is the second former Tesla employee to bring allegation­s to the SEC. Stuart Meissner, managing partner of New York-based Meissner Associates, said Thursday that Hansen’s tip was filed with the SEC on Aug. 9, three days after Tesla filed its quarterly report with the Commission.

“What Mr. Hansen is hoping to achieve is that the SEC will investigat­e these events, and how Tesla handled, or didn’t handle, them,” Meissner said. “He hopes the SEC will investigat­e these events because he believes the company has placed its investors, and the general public, at risk.” Hansen hasn’t sued Tesla,

TESLA

Meissner added.

In his claim, Hansen says the company violated federal securities law by failing to disclose to shareholde­rs issues including the following:

The company spied on employees by wiretappin­g and hacking their phones and computers. Hansen said that after Tesla dismissed whistleblo­wer Martin Tripp, the company hacked into Tripp’s personal electronic­s and installed router equipment at its Gigafactor­y that was “designed to capture employee cell phone communicat­ions and/or retrieve employee cell phone data.”

Hansen claims he was told that CEO Elon Musk authorized such measures, and that the steps were implemente­d by members of Tesla’s internal investigat­ions, security and informatio­n technology teams.

The company failed to disclose the results of an internal investigat­ion into large-scale dealing in cocaine, and possibly methamphet­amine, at the Gigafactor­y.

Hansen said the company received a notice on May 24 from the U.S. Drug Enforcemen­t Administra­tion/storey County Sheriff ’s Office Task Force alleging a Tesla employee was dealing drugs at the Gigafactor­y on behalf of a Mexico-based cartel. Hansen said that, as part of his job with Tesla’s securities and investigat­ions

teams, he corroborat­ed the DEA’S allegation­s and reported his findings to Tesla.

Hansen said the company claimed it would hire “outside vendors” to investigat­e the allegation­s but never took those or any other steps.

The company did not disclose the theft of $37 million worth of copper and other raw materials, which happened between January and June. Hansen said he was told to end his internal investigat­ion, and another Tesla employee was fired after reporting some of the thefts to law enforcemen­t. Hansen said the fired employee told him he was let go for not being a “Tesla team player.”

Tesla didn’t return a request for comment.

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 ?? Sean Whaley ?? Las Vegas Review-journal A former employee claims in a filing with the Securities and Exchange Commission that Tesla ignored possible drug dealing at its Gigafactor­y, east of Sparks.
Sean Whaley Las Vegas Review-journal A former employee claims in a filing with the Securities and Exchange Commission that Tesla ignored possible drug dealing at its Gigafactor­y, east of Sparks.

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