Former Dell man facing prison over discount scam

US man admits using corporate computers to obtain nearly $300,000 in heavily discounted equipment

A former Dell US employee is reportedly facing five years in jail for using fraudulent discounts to obtain Dell equipment on the cheap.

According to local press reports, Herbie Morrow pleaded guilty in the US District Court in Nashville on Friday to fraud and conspiracy against Dell.

Morrow admitted his part in a scam that involved the purchase and sale of nearly $300,000 (£182,000) worth of heavily discounted or free Dell equipment.

According to the Lebanon Democrat News, Morrow admitted to conspiring with another former Dell employee to defraud the vendor by creating fraudulent discounts using corporate computers. He also acknowledged conspiring to access Dell account websites to use these discounts to buy more than $293,000 of Dell equipment, including laptops and accessories, at "substantially reduced prices or for free".

Missouri-based Morrow also admitted splitting the profits with a co-conspirator, who sold the merchandise via a company known as Tech Geek Sales, the report added.

He faces up to five years in prison and a $250,000 fine and must also pay restitution to Dell. He will be sentenced on 9 June.

Another former Dell employee, Marcus Culver, has also been charged and is awaiting trial.