Executive Fraud Blog

Michael A. Daly of Danvers, Mass. has recently been arrested for using false identities to fradulently receive replacement computer networking equipment from Cisco Systems. Between the 700 instances of fraud in 39 states and federal wire fraud charges, Daly is facing a maximum of 20 years in prison and up to a $250,000 fine.

This technology fraud was perpetrated by using Cisco's SMARTnet program that allows customers to received replacement parts prior to returning the broken ones. The listing price of these parts ranged from $995-25,000 and total damages from the fraud are estimated to be in the millions.

The unfortunate ends to these fraud schemes are higher prices for consumers and the possibility of ending programs such as SMARTnet for smaller companies. This can result in longer system downtime and overall costs for business operations.