OSU Surplus Fraud Case Highlights the Importance of Secure Data Destruction

CHATTANOOGA, Tenn. - July 25, 2025 - PRLog -- A recent high-profile fraud case at The Ohio State University (OSU) has once again spotlighted the serious consequences of mishandling retired electronics—especially when it comes to protecting sensitive data. Following guilty pleas from multiple individuals involved in a scheme to improperly resell surplus IT equipment, Resource 1 Tier 3 Data Security is calling on businesses and institutions to rethink how they manage IT asset disposition (ITAD).
As reported by E-Scrap News on July 24, 2025, the fraud involved former OSU surplus manager Michael Brammer, along with Robert Howard of ME Electronics and Abraham Amira of Mar Z and Ohio Surplus. Together, they conspired to undervalue reusable equipment—labeling it as scrap—to divert it for resale at market rates. In return, Brammer received cash kickbacks. This scheme resulted in an estimated $650,000 loss for the university and raised red flags over potential exposure of sensitive data from improperly handled devices.
"Data destruction is not just a best practice—it's a legal and ethical responsibility," said Chuck McDonald Jr., President of Resource 1 Tier 3 Data Security. "This case makes it clear: equipment should never be resold or repurposed with hard drives or data-bearing components still intact."
Unlike the vendors implicated in the OSU incident, Resource 1 never resells electronics to the public. Instead, we ensure that every data-bearing device—such as hard drives, SSDs, and backup tapes—is permanently destroyed through NAID AAA Certified processes. Our clients receive documented, auditable Certificates of Destruction and the peace of mind that their sensitive information has been completely eradicated.
What sets Resource 1 apart is our commitment to on-site destruction—eliminating risks associated with transportation, third-party handling, or warehouse sorting. We believe that data protection must happen in real-time, in the field, and under supervision. Anything less invites vulnerability.
The OSU scheme included falsified invoices and covert communication via WhatsApp, with equipment once valued at thousands of dollars sold as "scrap" for a fraction of its worth. In one example, a $243 invoice covered high-value items that were later resold for much more. All three defendants have since pleaded guilty to federal program fraud.
"This case is a reminder that a certificate on the wall isn't enough," added McDonald. "Execution matters. Oversight matters. And data security must be non-negotiable."
At Resource 1, we maintain a zero-tolerance policy for data remnants and a zero-landfill commitment for environmental responsibility. Our mission is clear: eliminate data risk before it becomes a breach.
For organizations handling retired IT assets—especially those in education, healthcare, government, and finance—the OSU case should serve as a wake-up call. Vet your ITAD provider. Demand accountability. And never assume that "recycling" means "secure."