Two Charged with Defrauding Cisco of $27M
A federal grand jury indicts two men on charges of tricking Cisco Systems into accepting counterfeit networking equipment in exchange for legitimate merchandise under the guise of a warranty.Two men have been indicted on federal charges of defrauding Cisco Systems of more than $27 million in equipment. According to a June 2 news release from the Department of Justice, Robert Kendrick Chambliss, 36, of Henrico, Va., and Iheanyi Frank Chinasa, 38, of Gaithersburg, Md., have been charged with "a single count of conspiring to commit mail fraud and nine counts of mail fraud" in connection with a scheme to trick Cisco into swapping legitimate merchandise for counterfeit goods.
Authorities believe "Chinasa manufactured counterfeit networking and telecommunications equipment" and tried to pass it off as legitimate products covered by Cisco's warranty. Contacting Cisco, Chinasa or Chambliss would "falsely [claim] that they were having trouble with a Cisco product," prompting Cisco to offer replacement parts in exchange for the supposedly defective product, the DOJ said.