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Cisco suffers two alleged frauds

Two incidents of alleged fraud against the networking equipment vendor have led to arrests in the last week
Written by Colin Barker, Contributor on

A computer helpdesk technician has been charged with trying to defraud Cisco of more than $10m (£5.18m).

Michael Kyereme was arrested on Friday on charges of trying to defraud Cisco by cheating one of the company's programs that replaces broken or defective parts free of charge.

Kyereme worked as a third-party contractor at the City of Newark in New Jersey, helping local authority employees with network queries. According to the charges brought by police in New Jersey, he ordered about 280 parts from Cisco over a period of five years worth around $10m. An article written by the Associated Press says he is now being held in custody, awaiting trial.

In a search of Kyereme's home, investigators allegedly uncovered more than $3m worth of parts.

In another incident involving Cisco, Michael Daly, a 53-year-old Massachusetts man, was arrested on Tuesday, accused of fraud after he allegedly used false identities to order replacement parts from Cisco on at least 700 occasions. The scheme involved pretending to be a customer, then ordering parts from the company to "replace" Cisco parts that had broken. The supposedly broken parts were sold on the open market. On occasions when he was challenged, Daly allegedly returned worthless parts.

Cisco declined to comment.

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