Two Accused of Defrauding Cisco of $27 Million
Henrico Man and Co-Conspirator Indicted for Alleged Warranty Fraud Scheme
|U.S. Attorney’s Office June 02, 2010|
RICHMOND, VA—Robert Kendrick Chambliss, 36, of Henrico, Virginia and Iheanyi Frank Chinasa, 38, of Gaithersburg, Maryland have been indicted by a federal grand jury for defrauding Cisco Systems, Inc., of computer equipment valued at more than $27 million.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Michael Morehart, Special Agent in Charge of the FBI Richmond Field Office, made the announcement after the indictment was returned.
“Any attempt to defraud a company of millions in assets must face serious consequences,” said U.S. Attorney MacBride. “We are grateful for Cisco’s cooperation with the FBI to investigate this alleged scheme.”
The indictment charges Chinasa and Chambliss with a single count of conspiring to commit mail fraud and nine counts of mail fraud. The maximum penalty for the conspiracy count and each mail fraud count is 20 years’ of imprisonment, a $250,000 fine, full restitution, and three years of supervised release upon completion of any prison sentence.
The indictment alleges a scheme in which Chinasa manufactured counterfeit computer networking and telecommunications equipment. Chinasa or Chambliss would then contact Cisco, falsely claiming that they were having trouble with a Cisco product covered by a warranty. Cisco would issue replacement parts, but its warranty required return of the allegedly defective product. Chinasa and Chambliss would send counterfeit product to Cisco to satisfy the return policy. According to the indictment, the scheme defrauded Cisco of more than $27 million in computer equipment.
The case is being investigated by the White Collar and Cyber Crime squads of the FBI Richmond Field Office and the FBI office in Rockville, Maryland with assistance from Cisco Systems, Inc. Assistant United States Attorney Michael C. Moore is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.