Feeds

Cisco exec pleads guilty to $50m fraud

Go straight to jail

  • alert
  • submit to reddit

Mobile application security vulnerability report

Disgraced former Cisco Systems executive Robert Gordon has pleaded guilty to fraud and insider dealing charges.

Gordon, 43, a former vice president and director of business development at Cisco, has admitted conducting an elaborate scam which involved diverting $50 million of Cisco-owned stock through overseas accounts he controlled.

After an internal investigation, Cisco fired him in April 2001, and a month later he was indicted by a Grand Jury accused of stealing $20 million from Cisco. Gordon initially denied all the charges against him.

Last April, he went on the run for a month after missing a court hearing.

Hunted by the FBI (who issued a warrant for his arrest), Gordon was eventually arrested at Santa Barbara hospital after a failed suicide attempt. He was transferred to a psychiatric unit at a Mountain View hospital, where he remains under federal custody.

Yesterday Gordon appeared before US District Judge Jeremy Fogel in San Jose, where he pleaded guilty to two counts of wire fraud, and one charge of using inside information to make an illicit profit from stock deals.

Gordon has paid Cisco $18 million and around $7 million in fines and restitution to the US government.

A sentencing hearing is scheduled for October 29, where he expected to receive a sentence of between five and nine years in jail, after a plea-bargaining arrangement between defence attorneys and prosecutors. ®

Related stories:
Prison suicide watch for ex Cisco exec
FBI hunts ex Cisco exec

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.