Oklahoma couple plead guilty in large-scale international phone software scheme
A computer system administrator and his wife pleaded guilty this week in Oklahoma City federal court to a large-scale international scheme to make millions off pirated telephone system software.
Prosecutors accused Raymond Bradley Pearce, 48, and Dusti O. Pearce, 45, both of Tuttle, of conspiring with a New Jersey man, Jason M. Hines, to commit wire fraud in a scheme that involved generating and then selling unauthorized Avaya Direct International software licenses with a retail value of more than $88 million.
The ADI software licenses were used to unlock features of a popular telephone system used by thousands of companies around the world, prosecutors said.
The ADI software licensing system has since been decommissioned, according to court documents.
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California-based Avaya Holdings Corp. is a multinational business communications company that sold a product called IP Office, a telephone system used by midsize and small businesses in the United States and across the globe.
How the scam worked, according to prosecutors
Prosecutors said Bradley Pearce was an Oklahoma City-based Avaya customer service employee who used his system administrator privileges to generate tens of thousands of ADI software license keys that he sold to Hines and other customers.
Those customers then sold the software license keys to resellers and end users around the world, prosecutors said.
Pearce is accused of using a personal laptop and cell phone, a wireless hotspot, a prepaid phone card and a paper ledger at his Avaya workstation to facilitate the scheme and prevent his employer from detecting his activity.
Avaya did not allow the use of personal electronic items.
Pearce kept the items hidden and locked in his work desk or took them home at night, prosecutors said.
He sometimes stole and sold Avaya internal use software license keys while he was at home on medical leave and not working, prosecutors alleged.
Pearce and his wife are accused of using the illegally gained money to buy large quantities of gold bullion and other valuable items.
Prosecutors said Hines, the New Jersey man, was the Pearces’ biggest customer.
Hines purchased millions of dollars' worth of stolen software license keys, which he resold to his own customers, prosecutors said.
He operated Direct Business Services International, a deauthorized Avaya reseller, in New Jersey, according to prosecutors.
Prosecutors said the illegal operation prevented Avaya from making money on its stolen intellectual property and also undercut the global market in Avaya ADI software licenses because the Pearces and Hines sold licenses for significantly below the wholesale price.
The Pearces entered plea agreements of being guilty of conspiracy to commit wire fraud.
They both face a maximum penalty of 20 years in prison and must forfeit a money judgment of at least $4 million as well as cash, gold, silver, collectible coins, cryptocurrency and a vehicle.
Full restitution also must be paid to their victims.
In July, Hines pleaded guilty to conspiring with the Pearces. He also faces up to 20 years in prison.
This article originally appeared on Oklahoman: Oklahoma couple plead guilty in scheme to sell illegal Avaya licenses
