January 10, 2011, 12:56 PM — A former EMC employee faces as long as 32 years in jail after pleading guilty to the theft of almost $1 million worth of hardware from EMC's facility in Apex, N.C. over the course of nine years.
Kevin Kelly, 32, of Sanford, N.C., admitted walking out with a total of $929,891 worth hard drives, controllers and other small parts tucked into gym or duffel bags between 2000 and 2009, according to the Dept. of Homeland Security.
Kelly was charged with wire fraud, interstate transport of stolen goods and aggravated identity theft for selling the stolen parts online using the identity of a friend, who was unaware of the scheme.
U.S. attorneys have also charged EMC reseller BL Trading LLC in Hanover, Mass. with receiving and reselling the stolen goods under a deal between Kelly and a BL Trading employee who has since died. The charges have not yet come to trial.
DHS also charges BL Trading was reselling $140,000 worth of parts stolen by Mark Rothfuss, 47, of Brockton, Mass. while he was working in EMC call centers in the Boston area between 2007 and 2009.
Kelly faces as long as 32 years in jail, three years of supervised release and hundreds of thousands in restitution. Rothfuss faces 30 years
DHS agreed to dismiss the charges against BL Trading in two years in exchange for full cooperation with prosecutors, payment of restitution and strict adherence to "a corporate compliance program designed to ensure that it does not purchase or sell stolen equipment and does not update used equipment without the manufacturer's agreement," according to the agency's release.
As many as 40 percent of employees steal from employers according to the U.S. Dept. of Commerce, which estimates total value of those thefts to be close to $50 billion.