Feeds

Cough up $27m, appeals court orders disgraced Cisco exec

The Great Stock and Roll Swindle

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

A disgraced former Cisco exec has failed in his bid from behind bars to reduce the amount he will have to repay for swindling his former employers.

A federal appeals court last week upheld most of the $27.4m restitution order against Robert Gordon imposed when he was jailed for five and a half years in 2003 for masterminding an elaborate fraud against Cisco. The scam involved diverting $50m of Cisco-owned stock through overseas accounts controlled by Gordon.

Gordon paid Cisco $18m, and around $7m in fines and restitution to the US government prior to his January 2003 sentencing hearing. He saved taxpayers the costs of an expensive trial by pleading guilty to two counts of wire fraud, and one charge of using inside information to make an illicit profit from stock deals. But that failed to cut much ice with US District Judge Jeremy Fogel who imposed a tough prison sentence and restitution order against the wayward executive.

Gordon appealed against the amount he has to pay Cisco arguing that its losses had been overstated. Although the appeal court ordered a recalculation of estimated interest charges of $2.4m, it upheld the $27.4m charge imposed by the lower court.

"This case presents the disappointing story of a promising federal appellate law clerk gone bad," the 9th U.S. Circuit Court of Appeals wrote in its decision (PDF). Gordon worked as a law clerk for a judge prior to joining Cisco, where he rose through the ranks to become the network giant's vice president of business development prior to his dramatic fall from grace. ®

Related stories

Disgraced Cisco exec gets five years jail
Cisco exec pleads guilty to $50m fraud
FBI hunts ex-Cisco exec

Security for virtualized datacentres

More from The Register

next story
Every billionaire needs a PANZER TANK, right? STOP THERE, Paul Allen
Angry Microsoftie hauls auctioneers to court over stalled Pzkw. IV 'deal'
WRISTJOB LOVE BONANZA: justWatch sex app promises blind date hookups
Mankind shuffles into the future, five fingers at a time
Apple's Mr Havisham: Tim Cook says dead Steve Jobs' office has remained untouched
'I literally think about him every day' says biz baron's old friend
Flaming drone batteries ground commercial flight before takeoff
Passenger had Something To Declare, instead fiddled while plane burned
Cops apologise for leaving EXPLOSIVES in suitcase at airport
'Canine training exercise' SNAFU sees woman take home booming baggage
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.