Apr 13, 2011 08:34 GMT  ·  By

A former Microsoft director of business development was charged with wire fraud after allegedly abusing his position to steal over $515,000 from the software giant.

The man was arrested on Tuesday and had criminal charges filed against him in Seattle. Microsoft sued its former employee for damages back in January.

According to the lawsuit, Robert D. Curry, worked as a director of business development for Microsoft’s Strategic Partnerships Team in the Online Audience Business Group.

His job description involved negotiating contracts and approving payments to distribution partners, responsibilities which he exploited to defraud his employer.

According to court documents, the fraud began in April 2010 when Curry asked the owner of Pentad Solutions, a Microsoft partner, to settle a $49,800 invoice for audio equipment allegedly required for an Xbox 360 tradeshow.

Pentad made the payment and was later reimbursed by Microsoft. The audio equipment was actually for Curry's personal use, but by routing the payment through a known distribution partner, the business director managed avoided raising suspicion.

The same trick was repeated in August with a $26,400 payment, but pressed by a need for cash Curry devised another plan which he put into action in November.

He convinced his manager to pay Pentad Solutions for managing two alleged Bing Toolbar distribution partners called Blue Games LLC and Resolution Audio.

The companies were not really distributing any toolbar, but this fact was hidden from Pentad, who paid the two companies based on information supplied by Curry.

Blue Games was registered by Curry himself and Resolution Audio was a company he had invested into. The money received from Microsoft through Pentad was used by the fraudster to pay for vacations and settle credit card bills.

Curry was fired on January 13, 2011, when his scheme was discovered. According to the Seattle P-I, the former Microsoft business director was charged with three counts of wire fraud.