Brains behind scheme that defrauded Cisco gets prison sentence

Part in warranty fraud scheme targeting Cisco earns US man seven-year sentence

A second US man has been given a prison sentence relating to a scheme defrauding Cisco Systems.

Iheanyi Frank Chinasa, 39, of Gaithersburg, Maryland, was sentenced to seven years in prison on Thursday in US District Court for the Eastern District of Virginia for his part in a multimillion-dollar warranty fraud scheme targeting the networking vendor.

Chinasa and partner Robert Kendrick Chambliss submitted 414 equipment return requests to Cisco from 2007 to 2010, with the pair sending counterfeit equipment to Cisco in exchange for replacements, according to court documents.

Chambliss was sentenced to a year's prison last month.

Cisco returned more than 950 pieces of equipment to Chinasa and Chambliss, worth about US$27 million, according to the DOJ's complaint in the case. Chinasa built the counterfeit computer networking and telecom equipment the pair returned to Cisco, the DOJ said in a press release.

Chief Judge James Spencer ordered Chinasa and Chambliss to pay nearly $18.8 million in restitution. Chinasa was convicted on Feb. 7 of one count of conspiracy to commit mail and wire fraud, eight counts of mail fraud, one count of wire fraud and one count of obstruction of an official proceeding.

Chinasa paid Chambliss $10,000 to $15,000 a month to help with the warranty fraud scheme, the DoJ said in its complaint.

Join the newsletter!

Error: Please check your email address.

Tags Cisco Systems

Show Comments
[]