Feeds

Rogue IT troubleshooter pleads guilty to scamming Cisco

The old bait and port trick

Security for virtualized datacentres

A former city contractor from New Jersey is pleading guilty to pilfering nearly $6.9m by exploiting Cisco's part replacement program.

Cisco logoMichael Kyereme worked as a network troubleshooter for the city of Newark between 2002 and 2007. His job involved assisting city employees with IT troubles and ordering replacement networking kit should the need arise.

At the time, Newark had a service contract with Cisco which required the company to provide customer service for faulty gear and to replace any pieces pushing up digital daisies.

Because Newark is trying to run a city, the service contract entitled "advance replacement" of defective parts to help minimize network disruption. Defective parts were to be replaced upon the city's request — so long as the dead kit was sent home to Cisco within ten days of receiving the replacement.

Kyereme is accused of ordering replacements for expensive networking gear the city never had (some costing upwards of $250,000) as well as replacing parts that were in working order. He later admitted to holding the Cisco gear at his home for several days before shipping the hardware to an unnamed, out-of-state reseller and pocketing the profits.

According to the criminal complaint, Kyereme had requested 280 items from Cisco's replacement service. He allegedly returned faulty parts a mere 132 times, of which only 33 matched the replacement part he received. In one cited case, the IT fella requested a $260,000 optical card only to send Cisco back a $2,000 eight-port adapter.

By the time FBI arrested him on March 2, 2007, Kyereme had stashed approximately $3m in Cisco components in his home and car.

Kyereme complained to authorities that he found the money offered to order and pawn the products as "overwhelming."

Kyereme agreed to a guilty plea last week in US District Court of New Jersey. The charges against him included one count of mail fraud and one count of tax evasion in connection to $1.24m in unreported income from reselling the Cisco parts.

His charges carry a maximum of 25 years in prison and fines of $350,000. In addition, Kyereme agreed to make full restitution of losses to Cisco to a tune that will be determined by the court. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.