Feeds

Rogue IT troubleshooter pleads guilty to scamming Cisco

The old bait and port trick

Next gen security for virtualised 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. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
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
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
VMware vaporises vCHS hybrid cloud service
AnD yEt mOre cRazy cAps to dEal wIth
prev story

Whitepapers

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.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?