Menu
NEC account manager charged in Cisco replacement parts fraud

NEC account manager charged in Cisco replacement parts fraud

The man is accused of using aliases to obtain replacement Cisco parts worth between $500 and $8,600

A 40-year-old NEC account manager has been charged with mail fraud for allegedly obtaining replacement networking parts from Cisco using bogus names, the U.S. Department of Justice said Wednesday.

Craig A. Stanland of Stamford, Connecticut, is accused of making hundreds of false warranty claims online to Cisco to replace supposedly defective networking parts, which cost between $500 and $8,600. He was arrested on Oct. 1, and a criminal complaint was unsealed on Monday, the DOJ said in a news release.

Stanland is believed to be an enterprise account manager for NEC, a Cisco partner, who helped NEC customers with service contracts, including obtaining new parts, according to an FBI affidavit in Stanland's court file. Most of the Cisco products that were part of the investigation were originally sold to NEC, according to the document.

"As an NEC account manager, Stanland would have had access to those covered parts' serial numbers (here, the chassis serial numbers), which are necessary in order to purchase the service contract," the affidavit reads.

Stanland allegedly made between one and 10 claims a day between three and five days a week. Cisco shipped more than 400 parts to two post office boxes in Greenwich as well as Stanland's home and his wife's business in Brooklyn, prosecutors allege.

Stanland, who is accused of running the fraud for about a year, controlled 14 service contracts for Cisco networking parts. The aliases he used included Alan Johnston of Opex Solutions, Kyle Booker of KLB Networks, Steve Jones of SHO Networks, Robert Johnson of Adaptations and Paul Smith of PS Solutions, the DOJ said.

He was expected to return defective parts to Cisco in exchange for new ones, but instead sent back off-brand third-party parts or none at all, the DOJ alleged. Cisco usually shipped the replacement parts before receiving the defective ones, according to the affidavit.

Stanland, who is free on a US$100,000 bond, could face a maximum of 20 years in prison if convicted of mail fraud.

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags CriminalCisco SystemslegalNEC

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments