On January 7, 2010, Army Sergeant First Class, Earl Smith and Army Sergeant First Class, Harold Grady entered negotiated guilty pleas to one felony count each of Title 18, United States Code, Section 641, Theft of Government Property, in Federal District Court, Northern District of Georgia for their role in a fraudulent scheme to obtain and sell hundreds of surplus Government computers to computer retailers and private individuals.
On January 14, 2010, Sergeant First Class, Gregory Murray, entered a negotiated guilty plea to one felony count of Title 18, United States Code, Section 641, Theft of Government Property, in the Northern District of Georgia for his role in the fraud scheme. Sentencing is scheduled for all defendants on March 24, 2010.
Smith, Grady and Murray falsely represented to Government agencies that they were collecting surplus computer equipment for a legitimate Army program. The defendants used this fraudulent scheme in several states to obtain surplus Government computers through the GSA surplus property program and directly from Government agencies over a five year period. Investigative agencies were able to recover a significant number of the computers that were sold to private entities.
