Fergie's Tech Blog

Pair Accused of Bilking Cisco Systems of $1.4M

An AP newswire article, via SFGate.com, reports that:

Two people were arrested on suspicion that they bilked $1.4 million from Cisco Systems Inc. by billing for executive headhunting services that were never performed, authorities said.

Gail Lavonne Morales, 49, of San Jose, pleaded not guilty to a felony grand theft charge Thursday in Santa Clara County Superior Court, said prosecutor Joseph Reader. The Cisco human resources administrator is accused of being an inside accomplice in the scheme.

Morales' alleged partner in the plot, Martin Duane Smith, 36, of Dublin, was taken into custody on a $1 million arrest warrant Wednesday at the Walnut Creek telemarketing firm where he worked, prosecutors said.

Smith faces more than 22 years in prison on 20 counts of money laundering including grand theft enhancements, Reader said.

posted by Fergie @ 3/17/2006 01:12:00 PM