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Verizon Wireless Engineer Gets 4 Year Jail Sentence for Cisco Fraud
Published on:
A former Verizon Wireless engineer has been sentenced to four years in federal prison after being convicted of stealing millions of dollars in network communications equipment from Cisco Systems and his employer.
Michael W. Baxter, 62, of Ball Ground, Georgia was employed as a network engineer for Verizon between 2000 and 2010.
According to United States Attorney Yates, beginning at least as early as 2001 and continuing until he was terminated by Verizon Wireless in May 2010, Baxter submitted hundreds of fraudulent service requests on behalf of Verizon Wireless via Cisco Systems' online customer service database. In response, Cisco Systems shipped millions of dollars in parts to Baxter at Verizon Wireless from various Cisco Systems distribution centers throughout the United States.
The service requests were fraudulent in that no parts needed to be replaced. Instead of placing the replacement parts into service in Verizon Wireless' network, Baxter simply took them home and sold them to third-party re-sellers for his own profit. The investigation also revealed that, apart from the Cisco Systems product warranty program, between 2000 and 2009, Baxter fraudulently caused Verizon Wireless to purchase nearly a half-million dollars in expensive network communications equipment from Cisco Systems outright, which Baxter also took home and sold to third-party re-sellers for his own profit.
Baxter then used the illicit proceeds from the sale of this equipment to buy jewelry, cars, extravagant international travel, and other personal luxury goods and services, including multiple cosmetic surgeries for his girlfriend.
Baxter was sentenced to four years in prison, to be followed by three years of supervised release, and ordered to pay $2.3 million to Cisco Systems and $462,828 to Verizon. There is no parole in the federal system.
Tags: [verizon wireless] [USA]
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