Two charged in computer piracy case

Two men face five counts each of grand theft and two counts of selling counterfeit goods.

By CHRIS TISCH

© St. Petersburg Times,
published September 16, 2001

In what is perhaps the first and certainly the largest computer piracy case in Pinellas County history, two Clearwater businessmen have been arrested on charges they sold more than $360,000 in counterfeit Microsoft computer programs.

Timothy Andras, 41, and Andrew Acevedo, 29, were charged late last week with five counts each of grand theft and two counts of selling counterfeit goods. The pair own Proline Technologies Inc., 13770 58th St. N., where sales of counterfeit programs allegedly occurred for about a year, beginning in May 1998.

A 45-page arrest affidavit says the pair sold counterfeit versions of Microsoft's Office 97 Professional Edition from their business, which at the time operated as a telemarketing business that offered computer application programs and tutorial software.

The pair sold 3,705 sets of the program, which generated $361,894 in revenues for their business and resulted in $874,846 in losses for Microsoft, the world's largest computer software company.

"They made quite a bit of money in a year," said Telly Sands, an agent with the Florida Department of Law Enforcement.

Andras and Acevedo were booked into the Pinellas County Jail in lieu of $35,000 bail each. They could not be reached for comment.

Sands said she thinks this is the first time someone has been arrested in connection with a piracy operation in Pinellas County. If not, it is certainly the largest, though Sands said a case she is investigating in Pinellas and other counties could reach into the millions.

Andras and Acevedo are accused of receiving some of the counterfeit programs from a Los Angeles company that apparently was shipping the programs to other businesses, as well. That company was producing the counterfeit programs, Sands said.

She said an investigation of that company by the Los Angeles Police Department, the U.S. Customs Service and the FBI is in progress.

"Apparently it was a pretty sophisticated operation," she said of the California business.

The arrest affidavit states the programs were fitted with forged or counterfeit trademark labels but did not include manuals. Consumers wouldn't know the difference, normally, but some of the programs had problems and complaints were made, Sands said.

Microsoft investigators began an undercover investigation of Proline, then informed authorities, who also went undercover to buy the counterfeit programs, the arrest affidavit states.

Agents later served a search warrant at the business and seized corporate records. While Acevedo did not cooperate with investigators, Andras did and acknowledged selling the programs, Sands said.

He denied knowing they were counterfeit, but Sands says prosecutors can prove he did. She said Andras thought sales of the programs made up about 25 percent of their business, but Sands said she thinks it made up more than half of their sales that year.

"By looking at the annual reports, it was a big chunk of their business," she said.

Officials from Microsoft could not be reached for comment.

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