Former Rackspace Employee Gets Probation and Fine for Wire Fraud

The defendant, David John Whitman, pleaded guilty back in May to two counts of wire fraud, admitting that he submitted fake service orders with the intent of earning higher commissions.Originally facing up to a year in prison for each count, Whitman was granted two years of probation and a $1,000 fine by US District Judge Orlando Garcia.Whitman chances were improved by the fact that he brought to court a $5,000 check to apply for restitution and apologized for the trust of my former employer. US Attorney Judith Patton was not opposed to the probation terms and said Rackspace was not looking for restitution for Whitman offense.Subscribe to WHIR Newsletters Get Our Exclusive Report on "The Hosting Infrastructure Ecosystem".His plea agreement said that Whitman worked as a Rackspace salesperson, remotely from his Missouri home office, from the period of August 2005 to February 2007.Whitman was supposed to contact prospective customers in his sales region, either in person or by email, and fill out order forms once the individuals agreed to purchase Rackspace hosting services.During the period between March 2006 and January 2007, Whitman sent to Rackspace 14 account forms via email and fax, where he included fake account information.

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