Ohio man pleads guilty to defrauding Compaq of millions of dollars - Cleveland 19 News Cleveland, OH

Ohio man pleads guilty to defrauding Compaq of millions of dollars

BOSTON (AP) - An Ohio man pleaded guilty in federal court Tuesday to attempting to defraud Compaq Computer Corp. of $2.5 million.

Leroy Anthony Sallee, 44, of Ashtabula, Ohio, pleaded guilty in U.S. District Court to charges of mail fraud, wire fraud and interstate and foreign shipment of stolen goods.

Federal prosecutors said Sallee and three co-defendants submitted a purchase order to Compaq for equipment with a retail value of more than $5 million in February 2002.

They said the purchase was on behalf of Case Western Reserve University, which would use the equipment in a clinical trial of a new drug. This enabled the defendants to negotiate about $2 million in educational discounts, prosecutors said.

Instead, Sallee intended to resell the equipment outside the country.

Sallee rented a warehouse in Tewksbury to store the computer shipment and later reshipped it to customers in Canada and England.

Co-defendents Janice Douglas, 60, of Bratenahl, Ohio; Herbert H. Cates, 45, of Kansas City, Kan., and Dennis P. McIntosh, 50, of Lee's Summit, Mo., are to stand trial in federal court in Boston on July 28.

At his sentencing, scheduled for Oct. 21, Sallee faces as much as five years in prison and a $250,000 fine on each fraud count.

The interstate shipment charge carries a maximum prison sentence of 10 years.

(Copyright 2003 by The Associated Press. All Rights Reserved.)

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