Bernd D. Appleby TERiX CEO Gets 2
Years for Oracle IP Fraud
April 09, 2018
The co-owner and CEO of TERiX
Computer Company, Inc. was sentenced in U.S. District Court today for
his role in fraudulently obtaining more than $10 million worth of
intellectual property. Bernd D. Appleby, 66, of San Jose, Calif., was
sentenced to 24 months in prison and two years of supervised release and
ordered to pay a $100,000 fine.
TERiX – located in Sunnyvale, Calif. and Dublin, Ohio – used the
intellectual property belonging to Sun Microsystems, Inc. and Oracle
Corporation to support its customers nationwide and internationally.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and
Angela L. Byers, Special Agent in Charge, Federal Bureau of
Investigation (FBI), Cincinnati Division, announced the sentence imposed
today by Senior U.S. District Judge James L. Graham.
Appleby was one of four TERiX executives who pleaded guilty in August
2017 to one count of conspiracy to commit wire fraud. The others have
also been sentenced and include:
•TERiX co-owner and COO James A.
Olding, 52, of Dublin, Ohio, who was sentenced to 12 months and one day
in prison, three years of supervised release and a $50,000 fine;
•Director of Sales Lawrence E. Quinn,
Jr., 58, of Hilliard, Ohio, who was sentenced to one day in prison, two
years of supervised release and a $5,000 fine; and
•Director of Technical Services Jason
T. Joyce. 47, of Dublin, Ohio, who was sentenced to 24 months of
probation and a $5,000 fine.
According to court documents, the four conspired to set up three fake
companies using aliases – which they supported using bogus email
addresses and addresses, pre-paid telephones and pre-paid credit cards –
to enter into service support contracts with Sun and Oracle for a single
The support contracts gave the four defendants credentials for Sun’s and
Oracle’s databases, and allowed them to download Sun’s and Oracle’s
intellectual property without detection. The intellectual property
included firmware patches and updates for various Sun or Oracle hardware
products, or operating system patches and updates for various versions
of Sun’s and Oracle’s Solaris operating system.
four used the fraudulently obtained intellectual property to support at
least 500 TERiX customers, who did not know about the fraud. A statement
of facts filed with the plea agreements cites more than 2,700 separate
downloaded pieces of intellectual property between 2010 and 2014.
The primary purpose of the conspiracy was to fraudulently obtain
intellectual property worth millions of dollars and then use the
intellectual property to support unwitting TERiX customers, and for
their own personal benefit.
“As the head of TERiX’s executive management team and 70 percent
co-owner of the company, Appleby was responsible for all aspects of the
business,” U.S. Attorney Glassman said. “He designed the conspiracy and
its evolution over almost 10 years, and understood and directed all
aspects of the criminal activity. As the scheme was uncovered, he
instructed other company employees to devise ways to avoid detection.”
Glassman commended the investigation by the FBI and Assistant United
States Attorney Jessica H. Kim who is representing the United States in