Pentium thief pleads guilty

Scott M. Weiner, 30, admitted to stealing 5,040 Pentium processors worth $300 to $400 each, according to The Portland Oregonian. According to prosecutors, Weiner forwarded many of the chips to his father for safekeeping.

Under federal sentencing guidelines, Weiner faces a maximum of 10 years in federal prison. Gary Y. Sussman, assistant U.S. Attorney, predicts a much lower sentence, however.

Sentencing is scheduled for May 4 in Portland, Ore.

Chuck Mulloy, an Intel (INTC) spokesperson, said the company is happy to have some closure on the case, and is pleased with the restitution.

Despite the plethora of security breaches by hackers and disgruntled former employees, Intel claims to have a clean record. "We have a very secure system," he said. "Our closed system assures that our assets are protected."

This is the first incident in which a third-party vendor created a hole in their system, Mulloy said. Intel was tipped off to the theft in the summer of 1996 when a small vendor called and requested additional equipment for use with a stolen chip.