Hardwarehouse founder also convicted on money laundering
charge
The US Attorneys Office in Eastern California has
secured a conviction against a founder of what was the biggest HP
3000 broker in the US, as Richard Adamson was proven guilty of
defrauding HP while buying and selling HP 3000 systems.
Adamsons 11-day trial in Sacramento featured
testimony from four other principals in the conspiracy to illegally use HPs
SS_CONFIG software to steal 3000 user licenses during 1997 and 1998.
Two of the prosecutions witnesses were former HP employees who
aided Adamson in the fraud, while another was Adamsons brother
and partner John Adamson.
A
jury found Rich Adamson guilty of eight counts of wire fraud and one
count of money laundering. Twenty-three other counts of honest
services wire fraud the instances where Adamson allegedly
bribed HP employees Deborah Balon and Marc Loriau resulted in
a hung jury.
The jury heard testimony that both Adamson brothers
secretly bought a pirated copy
of SS_CONFIG, which
allowed [Richard] Adamson to illegally upgrade used computer servers
he received from Hewlett-Packard. He then defrauded HP by causing the
company to transfer licenses on those servers in its upgraded state,
without ever paying Hewlett-Packard for those upgrades.
The US Attorneys Office press release reported that
Richard Adamson took elaborate steps to conceal this crime
following a search warrant at Hardwarehouse
He met with his
employees at bars and restaurants to coordinate their stories.
Testimony offered at the trial included a story that Adamson frisked
his employees in a restaurant bathroom before talking with them,
then wrote notes to them on a napkin, which he ate after
showing it to them.
Judge Garland Burrell commented at the trials end
that Richard Adamson, who testified in his own defense, had committed
perjury and obstructed justice.
Judge Burrell remanded Richard Adamson into custody
following the July 21 verdict, and ordered a sentencing hearing for
October 6. Adamson faces a total of 11 years in prison. Sentencing on
the four others who participated in the fraud, then signed guilty
plea agreements and testified against Adamson, was scheduled for
August 18.