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Hewlett-Packard recovered more than $1.8 million in a civil case tied to a computer-sales scheme that began before HP merged with Compaq, according to an August 15, 2003, report by EE Times. The report describes a guilty plea—not a jury verdict—and says a separate civil complaint filed by Compaq remained pending.
How the reported scheme worked
EE Times reported that Leroy Anthony Sallee, owner of S-Systems Inc., used Compaq’s education discount to obtain more than $5.7 million worth of computer equipment for $3.1 million. The equipment was then resold through unauthorized channels, including brokers or independent distributors.
The report says Compaq uncovered the activity in late February 2002 after receiving a purchase order on Case Western Reserve University letterhead for approximately $5 million in products. When Compaq checked with the university, it learned that the university had not issued the order. Investigators later found evidence at S-Systems’ Massachusetts warehouse. The report says Sallee sold some of the equipment and transferred funds to bank accounts in Ohio.
What Sallee pleaded guilty to
According to the 2003 EE Times account, Sallee pleaded guilty on July 22, 2003, in U.S. District Court in Boston to 14 counts of mail and wire fraud and one count involving the interstate and foreign shipment of stolen goods. The report characterizes this as a guilty plea, not a jury verdict.
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How the civil cases differed
Compaq filed suit in May 2002 to recover money and property damages. After the merger, HP recovered more than $1.8 million in a civil lawsuit against S-Systems and Sallee, the trade-press report says. It does not specify the legal mechanism or how the recovered amount was allocated.
The report says HP’s Ohio civil recovery case closed, while Compaq’s original civil complaint in Middlesex County remained pending. These are distinct civil proceedings; the reported recovery did not mean that every related civil claim had been resolved.
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What the report establishes—and what it does not
- Reported recovery: more than $1.8 million, attributed to HP by EE Times in 2003.
- Reported equipment value and cost: more than $5.7 million in product obtained for $3.1 million, according to the same account.
- Reported trigger for discovery: a roughly $5 million purchase order that the university said it had not issued.
- Unspecified details: the report does not explain the legal mechanism for the recovery, its allocation, or the eventual outcome of the Middlesex County complaint.
The dollar amounts are case-specific figures reported in 2003; they are not general estimates of fraud losses or recovery rates.
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- This Certified Refurbished product is tested and certified to look and work like new. The refurbishing process includes functionality testing, basic cleaning, inspection, and repackaging. The product ships with all relevant accessories, a minimum 90-day warranty, and may arrive in a generic box. Only select sellers who maintain a high-performance bar may offer Certified Refurbished products on Amazon.com.
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