Businessman who defrauded computer equipment companies sentenced to 6 months in jail

MarketsAssociated Press

A Pennsylvania businessman who used phony documents and straw buyers to fraudulently secure millions of dollars in discounted computer equipment from two companies has been sentenced to six months in prison.

Andrew Silverman pleaded guilty to wire fraud in federal court in Trenton, New Jersey, in February. The Gladwyne resident had faced up to 20 years in prison, but was sentenced Thursday to six months and another six months of home confinement.

Continue Reading Below

He was also ordered to repay the $2.5 million he made from the scheme and a $75,000 fine.

Silverman exploited Hewlett-Packard and Cisco discount programs from 2008 to 2012 that provided reduced prices on products used locally within a certain country and were not resold.

Silverman wasn't eligible to receive the discounts, so he recruited others to pose as buyers who were.