Newark Computer Contractor Pleads Guilty To Defrauding Cisco
Wow, can the taxpayers of Newark sue this guy for their money back, too?
A Newark, N.J., city contractor pleaded guilty to bilking Cisco Systems Inc. ( CSCO) out of $6.9 million in replacement parts, which he then resold at a profit, and then evading taxes on the sales.
The contractor, Michael Kyereme, 40 years old, of Piscataway, N.J., pleaded to charges of mail fraud and tax evasion for the scheme, after being arrested by the Federal Bureau of Investigation on March 2, 2007, with $3 million in Cisco components in his home and car.
As a contractor handling computer troubleshooting for the city of Newark, Kyereme was authorized to order replacement parts for the city’s computer system. Starting in January 2003, Kyereme used that authority to order replacements for system parts that hadn’t failed, and then resold them to a third party in California.