Fair Use Act Quotation

http://ap.tbo.com/ap/breaking/MGA5XHT7XLC.html

[First two fellas in the accounting, and now a Veep]
[What do they know that we don't, considering their salaries and stock options there was no reason for this level of greed.]

Vice President at Cisco Systems Arrested for Alleged Multimillion Dollar Embezzlement Scheme

The Associated Press

Tuesday, April 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, is alleged in an FBI affidavit of having fraudulently acquired more than 30,000 shares of stock in Internet Security Services Group Inc.

The affidavit alleges Gordon sold those shares after transferring them into a company he started in the Bahamas.

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the following is from an email group I'm on.

Fred's info on Cisco [just dumped all employees in one city - some had been laid off 6 months prior by another firm] was terrific too. The company has gotta have seen something that spooked them like that. Let's put together what we know, their finance guy had some kind of deal to loot the company.

I don't know about you but if I had a job that paid those big bucks, stock options, etc. I'd be happy to get the paycheck and wouldn't be working a scam. It's like he saw something so bad that he went over to the dark side.

I knew two guys, highschool chums, who started a company in the 1970's. They did pretty well for a few years but in the 1980's, when the economy went bad, their company fell on hard times. At the end, it turned out that one of the guys was embezzeling from the other.

I knew them both and was surprised when it came out. I figure that the guy who went bad was fearful and desperate.

We know that Cisco's sales are off and that a bunch of their product is for sale on eBay for pennies on the dollar. We know that their CEO is working for a dollar a year, hoping to keep his job and that things will get better.

Cisco was a high-flyer. Those of you who aren't in the computer biz may not know them but they are a real company with a quality product. Something horrible is happening. Fred knows people who are getting the heave-ho from Cisco.

This is very strange. Cisco specialists were in great demand. We're talking about people who commanded salaries of $100K-$140K, no problem. This is salaries with benefits, not burdened billing rates. Those rates are much higher. The fact that Cisco is laying them off means that they don't think they'll need the people in 2 months, 6 months, maybe for years.

Deep in the heart of Cisco, someone saw something so dark, so bad that they are dismanteling the company to save it. I can't imagine what else explains their actions.

Weigh Cisco against PSI-Net that paid $100 million to put a sign on the Raven's stadium and is now bankrupt.

OK, give me a minute to mull this over. PSI-Net pays a $100 million for a sign and goes bankrupt. Cisco's finance guy loots the company, Cisco's CEO decides to work for a dollar a year, used Cisco iron is selling on eBay for pennies on the dollar, Cisco stock has plunged to pennies on the dollar, Cisco lays off hard-to-hire personnel in bulk.

Don't rush me now. We (all of us on this list) thought there might be economic problems after the 1999->2000 rollover.

The pollies say we're idiot doomers. Could someone tell me how this works?

Is this, like, a coincidence?

Anyway gang, please keep the grass-roots, what you see and hear, reports flowing.

You're all doing great.

-- (perry@ofuzzy1.com), April 26, 2001

Answers

The above was from http://groups.yahoo.com/group/dc-y2k-WRP

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Fair Use Act quotation

http://abcnews.go.com/wire/Business/ap20010424_159.html

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, is alleged in an FBI affidavit of having fraudulently acquired more than 30,000 shares of stock in Internet Security Services Group Inc.

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.

-- (perry@ofuzzy1.com), April 26, 2001.