- Heidi Richards of Trinity Software Distribution fined $50k and sentenced to 22 months in prison
- Prosecutors wanted to get Richards to cough up $242,000 in proceeds
- Certificate of authenticity labels aren't meant to be sold separately
A 52-year-old Florida resident has been sentenced to 22 months in federal prison and ordered to pay a $50,000 fine as a result of her ties to ecommerce company Trinity Software Distribution.
A court found the company, and Heidi Richards, guilty of trafficking Microsoft certificate of authenticity (COA) labels, which contained the product keys that are required to activate Office software and Windows operating systems.
The US Attorney's Office for the Middle District of Florida noted Richards, "paid co-conspirators millions of dollars for thousands of genuine, standalone Microsoft COA labels at prices significantly lower than the retail price of the associated software."
Jailed for reselling Microsoft COA labels
The indictment details how Richards purchased tens of thousands of genuine COA labels from a Texas-based supplier between 2018 and 2023 for well below the retail value, before reselling them in bulk to customers globally without the licensed software.
"COA labels are not to be sold separately from the license and hardware that they are intended to accompany, and they hold no independent commercial value," the US Attorney's Office wrote.
Richards was found to have wired $5,148,181.50 to the unnamed Texas company during the scheme's operation. Some examples include the purchase of 800 Windows 10 COA labels in July 2018 for $22,100 (under $28 each) and a further 10,000 Windows 10 Pro COA labels in December 2022 for $200,000 ($20 each).
Ultimately fined $50,000 and given a near-two-year sentence, prosecutors had sought to get Richards to pay $242,000, "which represents the proceeds obtained from the offenses."
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