Feeds

Silicon Valley Cisco reseller charged with $37 million fraud

Staff claimed to have sold kit to fund buying spree

Top 5 reasons to deploy VMware with Tegile

The boss of Silicon Valley Cisco reseller Network Genesis has been indicted for selling counterfeit kit and sub-price products bought by the networking company's staff.

According to the federal grand jury indictment, Cuong Cao Dang, sometimes known as Calvin Dang, bought counterfeit hardware for his San Jose reseller business and altered the external serial numbers to make it look like branded Cisco kit. He also bought Cisco products from staff at the company and used their office discount as a partial profit margin, the documents state.

According to the San Jose Mercury News the funds were used to purchase an 11-property commercial and residential portfolio in San Jose, four college funds for Dang's children, and a $100,000 Mercedes-Benz purchase and Lotus sports car.

Dang is being charged with conspiracy to commit six charges of mail fraud and money laundering. Prosecutors are asking for serious jail time and full forfeiture of the $37 million in sales revenue Network Genesis made between 2006 and 2012.

The website for Network Genesis is down, and its phone number disconnected.

"As always, Cisco will cooperate with this investigation as necessary. Beyond this we don't have any comment," a Cisco spokeswoman told El Reg. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.