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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Lynn who wrote (74315)	10/16/2007 11:30:23 PM
From: elmatador	Respond to of 77400

Lula increase the budget to the Federal Police and they are working hard! They catching politicians every day! In this type of business once an employee moves from one company to another he blows the whistle, perhaps that was just that: someone blew the whistle.

To: Lynn who wrote (74315)	10/17/2007 10:48:55 AM
From: Lynn	Read Replies (1) \| Respond to of 77400

Cisco executives arrested in Brazil By Jonathan Wheatley in São Paulo Wednesday Oct 17 2007 09:55 Brazilian police have arrested 40 people including three acting senior executives and one former president in Brazil of Cisco Systems, the US technology giant, for alleged tax fraud and other crimes involving evasion of up to R$1.5bn ($800m) in import duties and other taxes. The operation followed a two year investigation and involved 650 officials from police, tax authorities and the public prosecution service. Police said those arrested would be held for five days while agents investigated documents and other evidence seized from 93 locations in the states of São Paulo, Rio de Janeiro and Bahia. An official at Cisco in São Paulo said employees were not authorised to comment and that the company would make a statement "in the next few days". News agencies quoted other Cisco officials saying the company was "trying to find out exactly what had happened and was cooperating with investigations". Brazilian police have begun the process of asking US authoriites to arrest five Brazilian citizens in the US. A police official said the five did not work for Cisco. The police and judiciary also said the operation had uncovered a complex network of companies in Brazil and overseas used to import hardware and software at fraudulent valuations. They said the main beneficiaries of the alleged fraud were Cisco Systems Inc (NASDAQ:CSCO) and its subsidiary Cisco do Brasil, Mude Comércio e Serviços, a Brazilian import and export agent, and "other American and Brazilian companies, real and phantom, that were used as intermediaries". Officials said that over the past five years about 50 tons of goods had been imported each month under the scheme at a declared total value of $500m. They said initial estimates put the amount of tax evaded at about R$1.5bn. As well as company employees, those arrested included four tax inspectors, three customs agents and a former president of Cisco do Brasil. A tax official said a former employee of Cisco had helped in the investigation and that further information was likely to emerge as the investigation continued on the involvement of other companies and amounts of money. During the operation on Tuesday, officials apprehended $250,000 in cash and R$240,000 also in cash along with goods worth about R$63m. us.ft.com