Cisco VP charged with embezzlement
By The Associated Press
Last Update: 2:02 AM ET Apr 24, 2001
SAN JOSE, Calif. (AP) -- An executive at Cisco Systems Inc., the world's leading maker of Internet equipment, has been arrested and accused of embezzling more than $10 million, the company confirmed Monday.
Robert S. Gordon, a vice president of business development at Cisco (CSCO: news, msgs, alerts) , is alleged in an FBI affidavit of having fraudulently acquired more than 30,000 shares of stock in Internet Security Services Group Inc (ISSX: news, msgs, alerts) .
The affidavit alleges Gordon sold those shares after transferring them into a company he started in the Bahamas.
"We brought this situation to the attention of law enforcement authorities. We are assisting their investigation and support their prosecution efforts," Cisco said in a statement released Monday.
A Cisco spokesman said Gordon no longer works there and the company would not provide phone numbers for the former employee.
Gordon allegedly took the proceeds from the shares he sold and invested much of it into Spanlink Communication Inc., a communications company partnered with Cisco.
The affidavit alleges Gordon doubled his investment in Spanlink, receiving $10 million on his $5 million investment. He faces a $250,000 and five years in prison for fraud in interstate commerce. |
