Former Cisco VP banged up

An ex-Cisco executive has pleaded guilty to defrauding the company of US$50 million. Robert Gordon admitted two counts of wire fraud and one count of insider trading.

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By  Neil Denslow Published  August 1, 2002

An ex-Cisco executive has pleaded guilty to defrauding the company of US$50 million. Robert Gordon admitted two counts of wire fraud and one count of insider trading.

"The maximum penalties would be 10 years for wire fraud and 10 for insider trading," Assistant U.S. Attorney Matthew Jacobs told Reuters.

However, when Gordon is sentenced on 29th October, he is expected to receive a shorter term because of federal sentencing guidelines.

Gordon was accused of exploiting his position as a company VP to illegally transfer more than 30,000 shares in Internet Security Services Group, a company that Cisco took over, into an offshore account in the Bahamas.

He was also accused of fraudulently inducing Cisco to put US15 million into Spanlink, a Cisco affiliated start-up, in a deal which would have allegedly made him a personal profit of US$10 million.

The disgraced exec was fired by Cisco in April 2001 following an internal investigation and was indicted a month later. He was also accused of illegally trading stock using inside information.

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