May 27, 2003

Avnet VP resigns amid fraud allegations

Exec was allegedly involved in parts scheme

A supply-chain management vice president at distributor Avnet resigned Friday after a lawsuit was filed two weeks ago claiming the company used counterfeit parts in PCs sold by the former Compaq.

The resignation of Bob Nail, formerly Avnet Computer Marketing's senior vice president for supply-chain management worldwide, was accepted by Rick Hamada, president of Avnet Computer Marketing, on Friday, according to an internal memo obtained by IDG News Service.

In a lawsuit filed by a former Avnet employee, Nail was alleged to have participated in a scheme to replace Compaq-approved components with cheaper components obtained from a German company in order for Avnet to increase its margins on every PC it assembled for Compaq. The extra money would then be used to enhance Avnet Computer Marketing's bottom line each month, according to the lawsuit.

A company spokesman confirmed Nail's departure, but declined to comment on the circumstances surrounding the resignation, citing a company policy on commenting about employee activity. Nail had worked for Avnet for 28 years, according to the memo. Avnet is based in Phoenix.

A message left for Nail with his assistant was not immediately returned.

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