Fergie's Tech Blog

Brazilian Judge Keeps Cisco Suspects in Custody

Jonathan Wheatley writes on FT.com:

A Brazilian judge has extended a term of temporary custody for six people connected with Cisco, the US technology giant accused of tax fraud, and imprisoned a further three people accused of involvement in the alleged scheme.

Some 40 people were arrested on October 16 after a two-year investigation involving police, public prosecutors and tax authorities. A former president and three serving senior executives of Cisco in Brazil, including its president, were held for five days. The former president was among six people retained in custody after the initial period and is among those held again on Friday.

Authorities say Cisco and its agents constructed a complex system of real and phantom companies to avoid import duties and other taxes amounting to R$1.5bn over the past five years.

posted by Fergie @ 10/28/2007 02:34:00 PM