Ending Soon! Save 33% on All Access

Former Uber Security Chief Avoids Jail Time for Data Breach Scandal, Gets Probation Joseph Sullivan was charged with obstruction of justice in 2020 and found guilty in October.

By Madeline Garfinkle Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg | Getty Images
Uber headquarters in San Francisco, California.

Joseph Sullivan, former security chief for Uber, was sentenced to three years probation and 200 hours of community service for crimes related to a data breach scandal seven years ago.

In 2016, two hackers accessed the personal data of nearly 57 million Uber users and drivers. After emailing Sullivan about the security breach, the hackers demanded $100,000 for their silence — which Sullivan paid in Bitcoin from the company's bug bounty program.

Related: Uber Got Hacked and Paid the Hackers to Keep It Secret

"The criminal complaint alleges that Sullivan took deliberate steps to conceal, deflect, and mislead the Federal Trade Commission about the breach," the U.S. Attorney's Office for the Northern District of California wrote in a 2020 press release after Sullivan was charged with obstruction of justice. Sullivan was ultimately found guilty in October.

Prior to the sentencing on Thursday, federal prosecutors recommended between 24 to 30 months of jail time for Sullivan. However, San Francisco district judge William Orrick granted Sullivan leniency due to the "unusual nature" of the case, Sullivan's character and that the crime was the first of its kind, The Wall Street Journal reported. However, Orrick noted that future offenders shouldn't expect as much grace.

"If there are more, people should expect to spend time in custody, regardless of anything, and I hope everybody here recognizes that," he said, per the WSJ.

Orrick was also encouraged not to sentence Sullivan to prison in a letter signed by nearly 50 former and current chief security officers from companies including Netflix, Blackstone and the U.S. government.

The individuals argued that the position requires making "nuanced judgment calls in a largely unregulated environment, which has few explicit rules and regulations, including rules about disclosing data security incidents to the government," the letter stated, per Bloomberg.

Related: 8 Ways a Data Breach Could Take Out Your Company Tomorrow

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Now that OpenAI's Superalignment Team Has Been Disbanded, Who's Preventing AI from Going Rogue?

We spoke to an AI expert who says safety and innovation are not separate things that must be balanced; they go hand in hand.

Franchise

What Franchising Can Teach The NFL About The Impact of Private Equity

The NFL is smart to take a thoughtful approach before approving institutional capital's investment in teams.

Employee Experience & Recruiting

Beyond the Great Resignation — How to Attract Freelancers and Independent Talent Back to Traditional Work

Discussing the recent workplace exit of employees in search of more meaningful work and ways companies can attract that talent back.

Business News

Scarlett Johansson 'Shocked' That OpenAI Used a Voice 'So Eerily Similar' to Hers After Already Telling the Company 'No'

Johansson asked OpenAI how they created the AI voice that her "closest friends and news outlets could not tell the difference."

Business Ideas

Struggling to Balance Your Business and Your Relationship? This Company Says It Has a Solution.

Jessica Holton, co-founder and CEO of Ours, says her company is on a mission to destigmatize couples therapy so that people can be proactive about relationship health.

Marketing

Marketing Campaigns Must Do More than Drive Clicks — Here's How to Craft Landing Pages That Convert Clicks into Customers

Following fundamental design principles will ensure that your landing pages lead potential customers from clicking on an ad to completing a purchase.