Two men have have been indicted by a federal grand jury for defrauding Cisco Systems, Inc., of computer equipment valued at more than $27 million.
The indictment charges Robert Kendrick Chambliss of Henrico, Virginia and Iheanyi Frank Chinasa, of Gaithersburg, Maryland with a single count of conspiring to commit mail fraud and nine counts of mail fraud.
The indictment alleges a scheme in which Chinasa manufactured counterfeit computer networking and telecommunications equipment. Chinasa or Chambliss would then contact Cisco, falsely claiming that 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. Chinasa and Chambliss would send counterfeit product to Cisco to satisfy the return policy. According to the indictment, the scheme defrauded Cisco of more than $27 million in computer equipment.