Bookmark this page on your mobile

QR Code image

What is this?

Daily Court Reporter - News Co-owner & CEO of computer company sentenced for conspiring to steal intellectual property

 

Co-owner & CEO of computer company sentenced for conspiring to steal intellectual property

The co-owner and CEO of TERiX Computer Company, Inc. was sentenced in U.S. District Court today for his role in fraudulently obtaining more than $10 million worth of intellectual property. Bernd D. Appleby, 66, of San Jose, Calif., was sentenced to 24 months in prison and two years of supervised release and ordered to pay a $100,000 fine.

TERiX – located in Sunnyvale, Calif. and Dublin, Ohio – used the intellectual property belonging to Sun Microsystems, Inc. and Oracle Corporation to support its customers nationwide and internationally.

U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by Senior U.S. District Judge James L. Graham.

Appleby was one of four TERiX executives who pleaded guilty in August 2017 to one count of conspiracy to commit wire fraud. The others have also been sentenced and include:

• TERiX co-owner and COO James A. Olding, 52, of Dublin, Ohio, who was sentenced to 12 months and one day in prison, three years of supervised release and a $50,000 fine;

• Director of Sales Lawrence E. Quinn, Jr., 58, of Hilliard, Ohio, who was sentenced to one day in prison, two years of supervised release and a $5,000 fine; and

• Director of Technical Services Jason T. Joyce. 47, of Dublin, Ohio, who was sentenced to 24 months of probation and a $5,000 fine.

According to court documents, the four conspired to set up three fake companies using aliases – which they supported using bogus email addresses and addresses, pre-paid telephones and pre-paid credit cards – to enter into service support contracts with Sun and Oracle for a single server.

The support contracts gave the four defendants credentials for Sun’s and Oracle’s databases, and allowed them to download Sun’s and Oracle’s intellectual property without detection. The intellectual property included firmware patches and updates for various Sun or Oracle hardware products, or operating system patches and updates for various versions of Sun’s and Oracle’s Solaris operating system.

The four used the fraudulently obtained intellectual property to support at least 500 TERiX customers, who did not know about the fraud. A statement of facts filed with the plea agreements cites more than 2,700 separate downloaded pieces of intellectual property between 2010 and 2014.

The primary purpose of the conspiracy was to fraudulently obtain intellectual property worth millions of dollars and then use the intellectual property to support unwitting TERiX customers, and for their own personal benefit.

“As the head of TERiX’s executive management team and 70 percent co-owner of the company, Appleby was responsible for all aspects of the business,” U.S. Attorney Glassman said. “He designed the conspiracy and its evolution over almost 10 years, and understood and directed all aspects of the criminal activity. As the scheme was uncovered, he instructed other company employees to devise ways to avoid detection.”

Glassman commended the investigation by the FBI and Assistant United States Attorney Jessica H. Kim who is representing the United States in the case.

Date Published: April 20, 2018

 

The United States Attorneys Office Southern District of Ohio

 

Three men plead guilty to concealing sending money to Anwar Al-Awlaki

Three men pleaded guilty to their roles in concealing the provision of thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.

Problem gambling: Know when to stop before you start

(BPT) The bright lights. The energy and laughter that fills the room. Casinos are fun and exciting to the vast majority of people but for some, they can be problematic.

Another substitute bill for affirmative self-defense proposal is proposed

A House committee recently adopted another substitute bill that further tinkers with legislation originally devised to codify an affirmative claim of self defense for Ohioans.

Some small steps can lead to businesses being more green

More companies are becoming more sustainable and eco-friendly each year.

Owner of payroll company indicted for stealing $914,000 from clients

A Putnam County woman was indicted on seven counts of bank fraud after she stole more than $900,000 from her clients, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.

Four people indicted for preparing hundreds of false tax returns

Four people from Ohio were named in a 31-count indictment for their roles in a conspiracy in which they filed more than 800 tax returns annually between 2012 and 2015 resulting in approximately $15 million in refunds being issued, a portion of which neither they nor their clients were entitled.

Let the power of compound interest help your 529 plan take off

If you’ve been to the movies, or watched a multitude of TV series recently, you’ve seen many, many superhero stories. These champions always stretch themselves to overcome obstacles and to come to others’ aid. There’s a superhero in the financial world as well, a college savings superhero – compound interest. Its super powers can really make your Ohio 529 college savings plan soar!

Assistance available to promote fruits, vegetables, flowers and nut crops in Ohio

State agriculture officials are looking forward to a new crop of specialty crop grant proposals in the coming weeks.

Bill designed to boost telemedicine in Ohio

Committee members in the Ohio House of Representatives took up a bill recently that would raise the profile of telemedicine services with regard to health benefit plans of Ohioans.

Naloxone rebate extended, more than $730,000 saved

Ohio Attorney General Mike DeWine announced recently that a rebate agreement that has saved Ohio agencies more than $730,000 on the cost of naloxone has been extended for another year.

Statewide dispute over traffic cameras continues at Supreme Court of Ohio

The Ohio Supreme Court on Tuesday, April 24th, heard four oral arguments, including a dispute between the state and the city of Toledo over traffic cameras.

Report: Ohio in top 10 for business growth

Ohio's year-over-year growth and new companies starting among 18 major industries last year placed it among the top 10 states for business creation.

Akron man and Barberton woman charged for defrauding insurance company

Two people were charged in federal court with mail fraud for defrauding an insurance company.

Ohio EPA updates findings on sources of nutrients impacting Ohio waters

As required by state legislation signed in 2015 (House Bill 64), Ohio EPA has completed its second statewide study identifying sources and estimating the annual amount of phosphorus and other nutrients flowing from the state’s watersheds into Lake Erie and the Ohio River. The study covers the Maumee, Portage, Sandusky, Vermilion, Cuyahoga, Great Miami, Scioto and Muskingum watersheds, and includes some direct tributaries to Lake Erie, which collectively represent surface water quality from 66 percent of the entire state.

Proposal would allow bystanders to sue police if an officer damages their smartphone

A Senate committee recently heard testimony of a Columbus lawmaker who wants to bolster protection of citizens’ free-speech rights as they pertain to recording the actions of law enforcement officers while on the job.

Tax breaks proposed for pro bono work

A bill proposing tax breaks for attorneys for pro bono legal services has gained little traction since its introduction in the Ohio House of Representatives nearly a year ago.

Attorney General DeWine announces applications now accepted for Teen Ambassador Board

Ohio Attorney General Mike DeWine recently announced that his office is now accepting applications for its Teen Ambassador Board.

New Albany man started making 3-D printed prosthetics in high school

Aaron Westbrook has gotten better tying his shoes with a single hand.

Housing authorities develop and operate low-income housing in Ohio

April 2018 was the 50th anniversary of National Fair Housing Month which celebrates the passage of the Fair Housing Act, signed into law by President Lyndon B. Johnson. The federal law was groundbreaking legislation and, half a decade later, public housing programs still work to eliminate discrimination and create equal opportunity in every community.

Dayton area tax preparer pleads guilty to filing false income tax returns with the IRS

David D. Hill, 34, of Dayton, Ohio, pleaded guilty to two counts of filing a false income tax return with the Internal Revenue Service (IRS).