System admin and wife plead guilty to "massive" pirated software licensing scam

[Cal Jeffrey]

In a nutshell: A system administrator and his wife pleaded guilty to charges stemming from a "massive international scheme" to sell pirated telephone system software. The US Department of Justice said the couple and a co-conspirator sold bogus licenses worth more than $88 million.

Brad and Dusti Pearce of Tuttle, Oklahoma, conspired with Jason Hines of Caldwell, New Jersey, to commit wire fraud in an illegal business venture selling unauthorized software licenses for Avaya Direct International (ADI). Avaya sold a telephone system called "IP Office" to small and mid-sized firms worldwide. The DoD notes the software provides voice mail, VoIP, and other telephonic features. Buyers could unlock these features with a license code.

Mr. Pearce is a former customer service agent for ADI with system administrator privileges. Pearce used his access to generate tens of thousands of IP Office licenses. The value of licensing varied from $100 to thousands of dollars.

Hines operated a business called Direct Business Services International (DBSI), an authorized ADI software reseller. Hines bought most of Pearce's pirated licenses (about 55 percent) and sold them well below wholesale to his many business contacts. Avaya has since de-authorized DBSI.

Computer System Administrator and Spouse Plead Guilty in Massive Scheme to Sell Pirated Business Telephone System Software Licenseshttps://t.co/n9FYdc6qmK

– Criminal Division (@DOJCrimDiv) September 19, 2023

Pearce also sold to other resellers, but those businesses remain unnamed, and it's unclear if more indictments are forthcoming. However, the DoJ did say the FBI is still investigating aspects of the case.

Mrs. Pearce handled the financial aspects of the illegal operation. She funneled money through a PayPal account under a false name to hide the unlawful sales and then dispersed it to several bank accounts. She then distributed those transfers to even more banks and investments, including gold, silver, cryptocurrency, and collectible coins.

Although the licenses had a retail value of over $88 million, they were sold below wholesale. So, exactly how much money the illegal enterprise raked in is unclear. In their plea deal, the Pearces agreed to forfeit at least $4 million in assets, including a car and all the illegal investments. The Pearces pleaded guilty to conspiracy to commit wire fraud. They each face up to 20 years in prison. They must also make full restitution to their victims. Hines accepted a similar plea deal back in July.

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https://www.techspot.com/news/100257-system-admin-wife-plead-guilty-massive-pirated-software.html

 

[VitalyT]

The world is consumed by lawyers and criminals. It is often hard to tell which one is which, but they surely do keep each other very busy, the symbiosis of prosperity for both parties.

 

[BuckarooBonzaii]

Seems that crimes like this carries higher penalties than regular street crimes which proliferates faster than anything else. I guess we can't have crimes that affects corporate profits, and there is no money to be made by lawyers with regular street crimes.

 

[Destined]

Seems that crimes like this carries higher penalties than regular street crimes which proliferates faster than anything else. I guess we can't have crimes that affects corporate profits, and there is no money to be made by lawyers with regular street crimes.

weird world we live in huh?

 

[Uncle Al]

Here's a different approach. If convicted, ban them from ever again owning or using any device capable of accessing the internet. Hard to enforce? As a secondary rider, if they are ever caught, even for a "minor infraction" they go to prison for life. That will give them something to think about every day for the rest of their life .....

 

[thelatestmodel]

20 years for this is ridiculous. Not saying it was a smart or a morally good thing to do, obviously they should be punished, but 20 YEARS for software piracy is way, way beyond anything I would have considered appropriate.

 

[Cal Jeffrey]

20 years for this is ridiculous. Not saying it was a smart or a morally good thing to do, obviously they should be punished, but 20 YEARS for software piracy is way, way beyond anything I would have considered appropriate.

Yes, but this was about way more than just pirating software for personal use. These people were falsely representing a software company (fraud) and selling stolen licenses (theft) to the tune of millions of dollars. They had stolen "tens of thousands" of licenses. If prosecutors wanted to pursue on a per-count basis, it could have been more, which might even be why the couple took the plea bargain.

 

[Hotlynx16]

We had Avaya phones at the company I used to work for, it was a billion dollar company!

 

[thelatestmodel]

Yes, but this was about way more than just pirating software for personal use. These people were falsely representing a software company (fraud) and selling stolen licenses (theft) to the tune of millions of dollars. They had stolen "tens of thousands" of licenses. If prosecutors wanted to pursue on a per-count basis, it could have been more, which might even be why the couple took the plea bargain.

So jail them for like 5 or 6 years (max) and confiscate all their money? I did say they should be punished. But 20 years is insane. It's not an appropriate or just punishment, they're not dangerous people or anything. 20 years of your life is massive. I stand by my comment, this is excessive.