Ex-Cisco exec took $50 million in fraud

A former Cisco Systems executive has pleaded guilty to illegally transferring some $50 million in company stock and funds to an offshore shell account in the Bahamas, federal law enforcement officials said Wednesday.

Assistant U.S. Attorney Matthew Jacobs said Robert Gordon pleaded guilty Tuesday to two counts of wire fraud and one count of insider trading in the scheme that defrauded the networking giant out of tens of millions of dollars.

Gordon faces up to 20 years in prison but will likely receive a shorter term because of federal sentencing guidelines, Jacobs added. Sentencing is scheduled for Oct. 29.

"The maximum penalties would be 10 years for wire fraud and 10 for insider trading," Jacobs said.

Gordon was indicted in May 2001 in connection with an alleged 1999 stock scheme in which he used his position as vice president to illegally transfer Cisco-owned stock and funds to an offshore shell account.

News source: ZDnet

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