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Grimy Times Exclusive: Software License Scandal Rocks Oklahoma
Three defendants have been charged in a massive software license piracy scheme that netted over $88 million in stolen Avaya Direct International (ADI) software licenses.
According to an indictment unsealed in the Western District of Oklahoma, Raymond Bradley Pearce, aka Brad Pearce, 46, of Tuttle, Oklahoma; Dusti O. Pearce, 44, of Tuttle, Oklahoma; and Jason M. Hines, aka Joe Brown, aka Chad Johnson, aka Justin Albaum, 42, of Caldwell, New Jersey, were charged with violating federal wire fraud and money laundering statutes.
The indictment alleges that Brad Pearce, a long-time customer service employee at Avaya, used his system administrator privileges to generate tens of millions of dollars of ADI software license keys that he sold to Hines and other customers, who in turn sold them to resellers and end users around the globe.
The retail value of each Avaya software license ranged from under $100 to thousands of dollars.
As set forth in the indictment, Brad Pearce also allegedly employed his system administrator privileges to hijack the accounts of former Avaya employees to generate additional ADI software license keys.
The Pearces and Hines allegedly prevented Avaya from making any money on its stolen intellectual property and undercut the global market in Avaya ADI software licenses.
Brad Pearce allegedly told Hines that the Pearces’ customers could not obtain same-day ADI software licenses from anyone else for anything even close to the Pearces’ prices.
The Pearces and Hines allegedly reaped millions of dollars from the fraud, with the Pearces handling the financial side of the operation and Hines operating Direct Business Services International (DBSI), a de-authorized Avaya reseller.
The indictment charges the defendants with the following counts:
- Conspiracy to commit wire fraud
- 13 counts of wire fraud
- Conspiracy to commit money laundering
- Money laundering
Defendant Information:
- Raymond Bradley Pearce (a.k.a. Brad Pearce)
- Real full name: Raymond Bradley Pearce
- Criminal charges: Conspiracy to commit wire fraud, 13 counts of wire fraud, conspiracy to commit money laundering, money laundering
- City and state: Tuttle, Oklahoma
- Exact date: April 30, 2024
- Sentence or outcome: Currently pending
- Dollar amounts: Over $88 million in stolen ADI software licenses
Key Facts
- State: Oklahoma
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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