THREE PEOPLE CONVICTED OF COMPUTER PARTS THEFT FROM DIGITAL EQUIPMENT
BOSTON, Nov. 30 ~PRNewswire~ -- Two persons charged with selling more than $6 million in computer boards which had been stolen from the Digital Equipment Corporation were convicted of racketeering, money laundering and shipment of stolen property charges today after a 37 day trial. Additionally, the warehouse supervisor who accepted bribes in exchange for stealing computer products from the Digital Equipment Corporation was sentenced to a year and a day in prison. U.S. Attorney A. John Pappalardo announced that Fred P. Kleinerman, 40, and formerly of Canton, Mass., and Darrell Pierro, of London, England, formerly of Redondo Beach, Calif., were convicted today after a 37-day trial on all charges. Kleinerman was convicted of racketeering and conspiracy to commit racketeering, in violation of 18 U.S.C. SS1962(c) and (d) and 15 counts of interstate transportation of stolen property, in violation of 18 U.S.C. S2314.
Pierro was convicted of racketeering and conspiracy to commit racketeering, and eight counts of laundering of monetary instruments, in violation of 18 U.S.C. S1956(a) (1) (A). In a separate forfeiture trial following the verdicts, the jury found that Kleinerman had a 100 percent ownership interest in property at 10 Sheffield Dr. in Canton, Mass., which he had acquired with the proceeds from the sale of the stolen computers. After the verdicts, U.S. Judge Douglas P. Woodlock ordered Kleinerman held without bail and scheduled sentencing for Feb. 1, 1993 for both defendants. At sentencing, Kleinerman faces a maximum sentence of 115 years, $3,250,000 in fines and Pierro faces a maximum sentence of 200 years and $2.5 million in fines.
In a separate hearing following the jury's verdict, Judge Woodlock sentenced Joseph McGee, 45 of Leominster, Mass., to a year and a day in jail for his role in the conspiracy. According to evidence that has been introduced at the trial, a codefendent Philip Mario Carnovale, along with Edward F. Desmond, masterminded a group of at least 16 persons who embarked in January 1989 on a multi-million dollar scheme to steal computer boards and products from the Digital Equipment Corporation and to launder the proceeds from the sales of those stolen products. These persons included two employees of Digital Equipment Corporation, including McGee, the warehouse supervisor, two persons formerly employed at Digital warehouses, an accountant in Charlestown, a real estate agent in Boston, and Michael Edwards, the owner of a bookkeeping service in Boston. The scheme involved the bribery of DEC employees to allow access to DEC warehouses, the bribery of DEC employees, including McGee, the Warehouse Supervisor of DEC's Athol warehouse, to steal DEC products, the positioning of one defendant as an employee of a security company so that he would be in charge of plant security at DEC's Athol plant on the weekends and thus be in a position to allow other defendants to enter the plant and steal DEC's products, and the theft from DEC's warehouse in Athol, Mass., of products on a daily basis from early 1989 through June 1990. The defendants shipped over $3.5 million of the stolen products by air freight and tractor trailer to Darrell Pierro's company, The Moore Group, in southern California. Another $2.4 million of the stolen boards were sold by Kleinerman. During the course of the conspiracy, Kleinerman gave over $800,000 in wire transfers and $390,000 in cash to Carnovale for the stolen boards, directing an employee to pay Carnovale to pay Carnovale in restaurants, and bank lobbies. Pierro directed the wire transfer of more than $4 million to Desmond and Carnovale, in part through a bookkeeping service run by Edwards on Commercial Street in Boston, to pay for the stolen boards. Edwards, in turn had more than 15 people cash checks, all for under $10,000, on more than 100 occasions and thereafter gave more than $530,000 in cash to Carnovale and Desmond. With the convictions today, 12 persons have been convicted in this scheme. Trials for five more defendants will take place early next year. The case has been investigated by Special Agents of the Federal Bureau of Investigation and Special Agents of the Criminal Investigations Division of the Internal Revenue Service. Digital Equipment Corporation provided assistance during the investigation. The case has been prosecuted by Assistant U.S. Attorney Michael K. Loucks. -0- 11~30~92 ~CONTACT: U.S. Attorney's press office, 617-223-9445~
CO: ST: Massachusetts IN: SU:
DH -- NE018 -- 2147 11~30~92 19:11 EST
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|Date:||Nov 30, 1992|
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