Lahai Charles Sentenced for Cisco Equipment Fraud

An Oak Park engineer used his access and IT know-how to pull off a 15-month wire fraud scheme that netted him over $400,000 in stolen Cisco computer equipment. Lahai Charles, 36, was sentenced yesterday to 21 months in federal prison after admitting to defrauding Cisco Systems, Inc., a major tech provider, by exploiting corporate support channels for personal gain.

U.S. Attorney Barbara L. McQuade announced the sentencing, confirming that Charles, a former IT networking engineer for Federal-Mogul Corporation in Southfield, abused his position to fraudulently request high-value networking gear from Cisco. The equipment, meant for corporate clients, was rerouted through false claims and then sold on the secondary market. Charles personally pocketed the proceeds, using some to fund multiple trips to South America.

U.S. District Judge Robert H. Cleland handed down the 21-month sentence and added a two-year term of supervised release. Charles was also ordered to pay $414,000 in restitution to Cisco Systems, Inc., and $3,100 to Federal-Mogul, the company he betrayed from within. He pleaded guilty in June to one count of wire fraud, a felony charge carrying serious federal penalties.

Court records show Charles managed network switches across Federal-Mogul’s North and South American offices, giving him trusted access to Cisco’s corporate IT support programs. He leveraged that access to make false statements and repeatedly obtain routers, switches, and other high-end hardware under the guise of legitimate maintenance and upgrades. Instead of installing the gear, he shipped it out and sold it through brokers.

The FBI’s Detroit Field Office led the investigation, with Special Agent in Charge David P. Gelios stating that corporate insiders who exploit their access for personal profit will be held accountable. Investigators emphasized that cooperation from Cisco Systems and Federal-Mogul was critical in tracing the fraudulent orders and building the case against Charles.

Assistant U.S. Attorney Stephen Hiyama prosecuted the case, underscoring that even white-collar theft targeting tech infrastructure carries real prison time. The sentencing sends a message: trusted positions come with scrutiny, and federal authorities are watching those who turn corporate trust into criminal opportunity.