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Oak Park Man Sentenced for $400,000 Cisco Scam
An Oak Park engineer has been sentenced to 21 months in prison for his role in a wire fraud scheme that netted him $400,000 in computer equipment from Cisco Systems.
Lahai Charles, 36, a former employee of Federal-Mogul Corporation, was sentenced yesterday by U.S. District Judge Robert H. Cleland, who also imposed a two-year term of supervised release and ordered Charles to pay $414,000 in restitution to Cisco Systems, Inc. and $3,100 to Federal-Mogul.
According to court records, Charles used his position as an IT networking engineer at Federal-Mogul to exploit Cisco’s programs and obtain IT equipment through a series of false statements. He then sold the equipment to third parties through a secondary market broker, spending some of the funds on personal trips to South America.
The case was investigated by the FBI, with assistance from Cisco Systems and Federal-Mogul. Assistant U.S. Attorney Stephen Hiyama prosecuted the case, which involved a 15-month period during which Charles committed the fraud.
U.S. Attorney Barbara L. McQuade announced the sentencing, joined by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Charles pleaded guilty to one count of wire fraud in June, admitting to his role in the scheme. The sentencing marks the end of a lengthy investigation into Charles’ activities, which were uncovered through a collaboration between the FBI, Cisco Systems, and Federal-Mogul.
In a statement, McQuade praised the investigative efforts of the FBI and its partners, saying that the sentencing sends a strong message about the consequences of white-collar crime.
Key Facts
- State: Michigan
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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