Kwan Woo Lee, 29, of Wyncote, was charged Wednesday, Attorney General Dave Sunday said.
He is facing charges of corrupt organizations, theft by unlawful taking, receiving stolen property, access device fraud, and related offenses.
For more than a year, the Office of Attorney General says Lee bought hard drives from Seagate Technology, claimed they were damaged, and sought a replacement.
Seagate’s policy required him to send back the original device, but the Attorney General’s Office alleges he didn’t. Seagate then would normally charge the full value of a new drive to the customer’s credit card, but Lee’s was a prepaid card, the office alleges.
The Attorney General’s office says dozens of the drives were resold by Lee, totaling $250,000.
“This defendant took advantage of a company’s warranty program to intentionally defraud the company and make money — that is theft,” Sunday said. “Thanks to the hard work of my Financial Crimes Section, we were able to stop this defendant from continuing on with this scheme.”
Lee received over 400 hard drives at 18 different addresses in Montgomery and Butler counties, the office says, and used prepaid cards to facilitate 30 fraudulent returns.
Email addresses and phone numbers used for the warranty claims were traced back to Lee, the office said.
He was arraigned Wednesday, and bail was set at $50,000 unsecured. He is free, awaiting a preliminary hearing set for July 10.
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