Feeds

MS worker ‘ran’ $17m software racket

62 counts of fraud

  • alert
  • submit to reddit

A Microsoft worker has been charged with stealing $17 million of software from Microsoft's internal store in the second case of its type in recent months.

Richard Gregg, 43, and a Windows program co-ordinator, has pleaded not guilty to 62 counts of mail and computer fraud, The Seattle Times reports. Each mail fraud charge can be punished by up to 20 years imprisonment and a fine of up to $250,000. Gregg, who denies the charges, has been released on bail.

From January to October 2002, Gregg allegedly ordered 5,436 copies of software such as Windows XP, SQL Server, Exchange and Office with retail prices over $17 million which he subsequently resold, The Seattle Times reports.

According to the paper, Microsoft fired Gregg last December after mounting an investigation into how some workers were making money on the side by running a black-market software racket out of Microsoft's own Redmond campus.

This investigation began when another Redmond worker, Daniel Feussner, was charged with stealing $9 million in software, which he allegedly used to fund a lavish lifestyle, including buying a private yacht and a Ferrari. Feussner died in February after the 32-old programmer swallowed antifreeze.

Investigators are not linking the two cases. A Microsoft spokeswoman held out the possibility that other people might be charged.

Meanwhile Microsoft has introduced tougher internal procedures that mean workers need management approval before ordering software. ®

Related Stories

MS staffer accused of $9m software for Ferraris scam
One Click Fraud: more MS scammers likely

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.