POCATELLO — In an unusual circumstance a local man charged with felony computer crime, accused of stealing trade secrets from Premier Technology, could see that charge dismissed if he adheres to certain requirements over the next five years.

Jeffrey Byron Schutte was charged earlier this year, accused of stealing the electronic data from Premier for the purpose of defrauding the company.

During his arraignment on Monday, Schutte’s attorney, Aaron Thompson, told Sixth District Judge Robert Naftz of the tentative agreement between his client and prosecutors. Thompson also revealed that Schutte’s waiver of his preliminary hearing last week was based the agreement that is still being finalized.

Thompson said that under the “deferred prosecution” agreement, prosecutors would agree to defer prosecution of the felony computer crime charge for a period of five years. During that five years, Schutte is not allowed to apply for or receive any kind of security clearance and must not commit any other crimes or similar incidents.

As part of the agreement, should Schutte be found to have garnered or applied for a security clearance or commit any transgression included in the agreement, he would have to plead guilty to the charge, which carries a maximum penalty of five years in prison and a $50,000 fine.

That deal in the works is being negotiated with Jared Johnson, a deputy prosecutor in the Bannock County Prosecutor’s Office. The deputy prosecutor handling Monday’s hearing, however, was Ashley Graham, who told Naftz she was not given such detailed information by Johnson when discussing the case.

Graham told Naftz that Johnson conveyed that he and Thompson were in negotiations for a plea agreement but she knew of no agreement that was in place.

That’s when Thompson told Naftz the tentative agreement was put on the record when Schutte waived his preliminary hearing last week. He also said that hearing was waived on the stipulation that the agreement be finalized. Thompson said they are in the process of doing just that and a written agreement should be forthcoming.

Naftz accepted Schutte’s not guilty plea and set a hearing for Oct. 1, during which the judge said he expects to see a finalized agreement or he will move forward with the case, setting it for trial.

Schutte and Chad Ray Orr were both top level managers at Premier Technology in Blackfoot in August of 2007 when both men resigned their positions. There was almost immediate cause for concern when Premier officials realized both men were going to work for Petersen Inc., in Pocatello, one of Premier’s top competitors.

In a civil trial, a jury found both Orr and Schutte had taken data containing company secrets and violated the Idaho Trade Secret Act, Premier’s attorney, Craig Hogan of Salt Lake City, told the Journal in December. The jury brought back a $1.08 million judgment against Schutte and a $723,000 judgment against Orr. Both were found to have breached their respective fiduciary duties.