Maryland Man Sentenced To Prison For Defrauding Cisco Systems

PRESS RELEASE

WASHINGTON – Iheanyi Frank Chinasa, 39, of Gaithersburg, Md., was sentenced today to 84 months in prison for his participation in a scheme to defraud Cisco Systems Inc., announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and Michael Morehart, Special Agent in Charge of the FBI Richmond, Va., Field Office.

Chinasa also was ordered by Chief U.S. District Judge James R. Spencer to pay restitution of $18,761,825, jointly and severally with co-defendant Robert Kendrick Chambliss, and to serve three years of supervised release following his prison term. Chinasa was convicted on Feb. 7, 2011, by a federal jury in Richmond of one count of conspiracy to commit mail and wire fraud, eight counts of mail fraud, one count of wire fraud and one count of obstruction of an official proceeding.

Chinasa and Chambliss, 31, of Henrico, Va., were indicted on Aug. 18, 2010. Chambliss pleaded guilty on Jan. 12, 2011, to conspiring to commit mail fraud and wire fraud. Chambliss was sentenced on April 13, 2011, to 12 months and one day in prison and ordered to pay $18,761,825 in restitution.

According to court records and evidence at trial, Chinasa and Chambliss engaged in a scheme to defraud Cisco. As part of the scheme, Chinasa manufactured counterfeit computer networking and telecommunications equipment. He or Chambliss would then contact Cisco, falsely claiming that they were having trouble with a Cisco product covered by a warranty. Cisco would issue replacement parts, but its warranty required return of the allegedly defective product. To satisfy that return policy, Chinasa and Chambliss would send their counterfeit product to Cisco.

The case was prosecuted by Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia and Trial Attorney Kevin B. Muhlendorf of the Criminal Division’s Fraud Section. The case was investigated by the FBI.