Feeds

Cisco exec pleads guilty to $50m fraud

Go straight to jail

  • alert
  • submit to reddit

The essential guide to IT transformation

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

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
'Aaaah FFS, 'amazeballs' has made it into the OXFORD DICTIONARY'
Plus: 'EE, how shocking, ANOTHER problem I face with your service'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.