×

Ex-employee to pay $139K for inventory sold on eBay

A former technician for an Altoona-based communications equipment company has been ordered to pay more than $139,000 for inventory he took from his employer for resale on eBay.

Judge Timothy M. Sullivan, after a civil trial, found that Matthew W. Brungard of State College, a former technician for Compros Inc., took more than $178,000 in inventory during his 15 years with the company.

But Sullivan reduced the amount Brungard owed the company by $40,000 — the amount of restitution Brungard paid as the result of a 2013 state police prosecution in Centre County on charges of theft by unlawful taking and receiving stolen property.

In addition to the restitution, Centre County Judge Jonathan D. Grine sentenced Brungard to five years’ probation.

Two other charges filed by state police in October 2013 were dismissed as the result of Brungard’s guilty pleas.

Two years ago, Compros — which has offices on Altoona, State College and Chambersburg — filed civil charges against Brungard asking that he be ordered to pay the remaining $139,864 the company said he owed.

Sullivan conducted a civil trial in which the owners of Compros, Jeffrey P. MacAlarney and Susan McDowell Johnston, testified.

According to the testimony, Compros is an authorized dealer for Motorola in 23 area counties, and the company provides industrial and public safety dispatch equipment and consoles for 911, police, fire and emergency management agencies.

It also has sister companies in the Altoona area: Wireless Holdings, Hilltop Tower Leasing and Gregg Electronics.

Brungard was a technician in the State College office and was considered a good employee, according to MacAlarney.

The Compros owner testified he never received any customer complaints and that Brungard “seemed to have a good rapport with his customers and that he knew his customer base.”

According to the testimony, MacAlarney said in early 2013 he noticed Brungard seemed to be “constantly on eBay.”

He also noticed that inventory such as test equipment, rental items and stock such as batteries, speakers and microphones seemed to be missing.

He could not find documentation for the suspected missing items, despite the company having a system of tracking its equipment from the moment it entered the stores until it was sold.

MacAlarney concluded the missing inventory was going out of the “State College shop.”

The evidence pointed toward Brungard, but MacAlarney said he “couldn’t believe it” because of the technician’s lengthy service to Compros.

A customer advised MacAlarney that many of the items he sold were being posted on eBay for a much cheaper price, and upon searching the internet marketplace, he discovered the alleged cheaper items were being sold through an email address identified as “Motorola Matt.”

He contacted the state police at Hollidaysburg, yet he was still not convinced his longtime employee was involved.

After installing cameras and monitors in the State College shop, he said he was able to put “two and two” together.

The investigation by state police took many weeks, and MacAlarney said it took his own employees six to seven weeks to complete the inventory of missing items.

Brungard contended that parts and items he sold on eBay came from third-party sources, not from the company stock, and he denied liability.

He presented several witnesses who said they gave him many items that were being replaced.

Sullivan reported that L. Stuart Neff, a 51-year employee of the Penn State Police Department, who was responsible for maintenance of the university’s 20 police vehicles, said he gave items to Brungard, a man he knew for years.

Donald Reed, retired from the Penn State Police Department after 38 years of service, testified he “could have given” Brungard parts over the years.

A retired State College Police Department employee, John Shoemaker, responsible for the maintenance of the borough’s fleet of cars, said he would leave discarded parts for Brungard “to do with as he desired.”

Testifying by telephone during the trial, Francis Shriner of the Alpha Fire Company, said over the years he gave Brungard two-way radio repeaters used in fire trucks. That equipment had been scrapped.

Despite the defense testimony, Sullivan found Compros, represented by attorney Larry D. Lashinsky of Hollidaysburg, had “met its burden of proof in establishing the defendant, without right or permission, systematically took inventory and equipment of (Compros) while working as an employee … and sold it on eBay.”

Defense attorney Anthony G. DeBoef of State College argued during trial that the civil complaint should have been dismissed because the statute of limitations had expired.

Sullivan rejected the request, pointing out that a statute of limitations defense should have been raised during the early phases of the case and cannot be raised on the first day of trial.

NEWSLETTER

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *
   

COMMENTS

Starting at $4.39/week.

Subscribe Today