A Gaithersburg, Md., man received a seven-year prison sentence for engaging in a scheme to defraud Cisco Systems Inc., the Justice Department announced.
Iheanyi Frank Chinasa, 39, also was ordered to pay restitution of $18,761,825 with co-defendant Robert Kendrick Chambliss, 31, and to serve three years of supervised release following his prison term. Chinasa was convicted in February of conspiracy to commit mail and wire fraud; mail fraud; wire fraud; and obstruction of an official proceeding.
Chambliss pleaded guilty earlier this year to conspiring to commit mail fraud and wire fraud. He was sentenced last month to 366 days in prison and ordered to pay restitution.
As part of Chinasa and Chambliss’ scheme, the men manufactured counterfeit computer networking and telecommunications equipment. They would then contact Cisco, claiming 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. To satisfy that return policy, Chinasa and Chambliss would send their counterfeit product to Cisco.