MELVILLE, NY – Three principals at a Long Island IT firm are facing the music after admitting to a years-long scheme to skirt software licensing fees. Michael Calabria, Joseph Keegan and Casey Silver all pleaded guilty yesterday in federal court in Central Islip to criminal copyright infringement, a high-tech theft that cheated software companies out of legitimate revenue.
The trio allegedly ran the operation through Constructure Technologies, LLC, located in Melville, New York. Calabria and Keegan served as principals, while Silver was a key employee. According to court filings, Constructure provided IT services to small and medium-sized businesses, including the installation and management of various software programs. But instead of purchasing proper licenses, the company opted for a cheaper, illegal route: using “cracking” programs and “key generators” to activate copies of the software without paying a dime.
From 2011 to 2018, Constructure sold, installed, and serviced copyrighted software from companies including VMWare, a major player in cloud computing. Legitimate users purchase licenses – and the accompanying “keys” – to activate the programs. Constructure, however, allegedly bypassed this system, installing unlicensed versions for their clients. The scheme allowed Constructure to pocket the difference between legitimate license costs and the price they charged customers, boosting profits at the expense of intellectual property rights.
The feds aren’t just coming after the individuals. Constructure itself is charged with a felony violation of the Digital Millennium Copyright Act (DMCA), specifically for circumventing copyright protection systems. As part of a deferred prosecution agreement with the U.S. Attorney’s Office for the Eastern District of New York, the company has agreed to pay a $60,000 fine. This isn’t just about money, though. It’s about protecting the integrity of software security.
“Users paying for security software should be able to rely on the legitimacy of it,” stated Michael J. Driscoll, Assistant Director-in-Charge of the FBI’s New York Field Office. The sentiment underscores the broader implications of software piracy – compromised security and a weakened digital ecosystem. Acting U.S. Attorney Jacquelyn M. Kasulis added that her office will continue to aggressively investigate and prosecute those who “ignore those rights for their own profit.”
The investigation received assistance from the Suffolk County Police Department and VMWare. While sentencing dates for Calabria, Keegan, and Silver haven’t been announced, this case sends a clear message: cutting corners on software licensing isn’t a victimless crime. It’s a federal offense with real consequences, and the Grimy Times will be watching to see how the courts respond.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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