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Ex-Microsoft Employee Receives Jail For Gift Card Fraud
Former Microsoft engineer, 26-year-old Ukrainian citizen Volodymyr Kvashuk, who stole more than $ 10 million in digital currency from his employer, was sentenced to nine years in prison. Among other things, using funds stolen during his work at the company, Kvashuk bought a house for $ 1.6 million and a Tesla electric car for $ 160 thousand.
According to available data, Kvashuk worked at Microsoft from 2021 to 20221 and was involved in testing the corporation’s online sales platform. At the same time, he abused his access, using his account and test accounts of other employees to steal prepaid digital currency funds (mainly gift cards and certificates) with the aim of their subsequent resale.
To conceal his activities, Kvashuk used not only the accounts of his colleagues, but also special Internet services that allowed him to buy cryptocurrency and perform various operations using it. In just seven months of illegal activity, Kvashuk’s bank and investment accounts received $ 2.8 million worth of bitcoins. Moreover, this amount was entered in the tax return, where it was stated that the entire cryptocurrency was a gift from one of Kvashuk’s relatives.
The fraud was uncovered in May 20221, after which Kvashuk was fired and then taken into custody. During the proceedings, a former Microsoft employee denied that he tried to defraud the employer. Instead, he stated that he was working on a “special project for the benefit of the company.”. Ultimately, Kvashuk was found guilty on multiple charges, including electronic fraud, money laundering, filing a fake tax return, identity theft, and more. Former Microsoft employee will spend next nine years behind bars.
“Stealing from your employer is bad, but stealing and making it appear that your colleagues are to blame for everything increases the damage that goes beyond material funds. This case required sophisticated technical skills in the investigation and prosecution process, and I am pleased that our law enforcement and prosecutorial partners have the skills necessary to bring such criminals to justice, ”said US Attorney Brian Moran.