In a five-page indictment, Yung-Hsun Lin, also known as Andy Lin, 50, of Montville, N.J., was charged with two counts of intending to cause fraudulent, unauthorized changes to computer systems in violation of U.S. laws. Each count is punishable by up to 10 years in prison and up to a US$250,000 fine. A federal grand jury handed down the indictment.

Lin was arrested Tuesday by FBI agents and made an initial appearance before a federal magistrate. He is scheduled for arraignment on the indictment on Jan. 3.

In a statement, U.S. Attorney Christopher J. Christie in Newark alleged that Lin planted the logic bomb in HP Unix servers at Medco Health Solutions Inc. The bomb could have destroyed critical customer prescription data, payroll information and other records stored on more than 70 servers used by the Franklin Lakes, N.J.-based company.

Lin, who worked in Medco's Fair Lawn offices, apparently inserted the logic bomb into Medco's IT systems in October 2003 because he feared losing his job. Lin learned that his IT group was being merged with another group inside the company after it was spun off from pharmaceutical company Merck & Co., according to the indictment.

Instead, Lin was spared a layoff while four colleagues lost their jobs, according to the U.S. attorney's statement.