Herbie Morrow, 39, of Richmond Heights, Mo. and formerly of Nashville, pleaded guilty Friday to federal fraud and conspiracy charges, according David Rivera, U.S. attorney for the Middle District of Tennessee.
Morrow was charged March 7 with two counts of accessing a protected computer in furtherance of fraud and one count of conspiring to access a protected computer in furtherance of fraud.
At a plea hearing, Morrow, a former employee of Dell, admitted to conspiring with another former Dell employee to defraud Dell by using corporate computers to create fraudulent discounts.
Morrow also acknowledged conspiring to access Dell account websites in order to use the fraudulent discounts to purchase more than $293,000 worth of Dell merchandise, including laptop computers and computer accessories, at substantially reduced prices or for free.
Morrow admitted that a co-conspirator sold the fraudulently obtained merchandise via a company known as Tech Geek Sales, and split the resulting profits with Morrow.
U.S. District Court Chief Judge William J. Haynes Jr. scheduled a sentencing hearing for June 9. Morrow faces a maximum sentence of five years in prison and a maximum fine of up to $250,000 on each count. In addition, Morrow will forfeit the proceeds of the fraud and pay restitution to Dell.
Marcus Culver, 31, of Nashville, also a former Dell employee, was also charged in the case and is currently awaiting trial. The information charging Culver is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.
The U.S. Secret Service investigated the case, and assistant U.S. attorney William F. Abely is serving as prosecutor.