Guilty plea over $41m Microsoft scam
A FORMER Microsoft worker has pleaded guilty to participating in a software sales scheme that cost the company of more than $US32 million ($41 million).
Finn W. Contini, 36, of Redmond, pleaded guilty in the US Federal Court to one count of conspiracy to commit mail fraud and four counts of money laundering. Contini admitted ordering 2,700 pieces of software worth $US7 million through an internal Microsoft program, then sold it for a personal profit of $US2.3 million.
Contini and three other former employees were charged in November 2004 with conspiracy, mail fraud and money laundering. Two of the other defendants are to enter pleas Friday in US District Court.
According to prosecutors, they used an internet-based system in which Microsoft employees could order software, for business purposes, at no personal cost. They then manipulated the system to prevent email notices of their orders from being sent to their supervisors or managers, according to investigators.
Prosecutors say then resold the software, which included SQL Server 2000, which retails for $US15,000, and SQL Enterprise Server 7.0, at $US29,000. The buyers included small software distributors in Oregon and Virginia.
