NEC Account Manager Charged With Running 'Fraud Scheme' To Acquire Thousands In Cisco Gear

A man believed to be an NEC account manager is facing charges from the Department of Justice this week for allegedly sending "hundreds" of false service requests to Cisco in order to receive replacement parts for gear he fraudulently claimed was defective.

Craig A. Stanland, 40, of Stamford, Conn., was allegedly operating this service contract scheme for roughly one year before he was arrested on Oct. 1. During that time, it is believed Stanland obtained more than 400 parts from Cisco, the retail costs of which range between $500 and $6,800.

According to an FBI affidavit, Stanland is "believed to be" an enterprise account manager for NEC, a role in which he would help NEC customers obtain new Cisco parts and services under their service contracts. Stanland, whose LinkedIn profile also states he's an account manager at NEC, was allegedly logging onto a Cisco online portal to make what appeared to be legitimate part replacement requests on behalf of NEC's customers.

[Related: Collaboration Craze: 6 New Products Cisco Says Will Push The Envelope ]

NEC and Cisco did not immediately respond to CRN's request for comment.

According to a statement from the DOJ, Stanland purchased and controlled approximately 14 different service contracts for Cisco. Throughout the scheme, he allegedly used bogus names, including Alan Johnston of Opex Solutions, Kyle Booker of KLB Networks, Steve Jones of SHO Networks, Robert Johnson of Adaptations and Paul Smith of PS Solutions, among others.

Based on Stanland's requests, Cisco shipped replacement parts to various addresses, including to his home in Stamford, his wife’s business in Brooklyn, N.Y., and two post office boxes in Greenwich, Conn., according to the DOJ.

Stanland was supposed to return each allegedly defective part to Cisco, but either sent nothing or sent back "third-party, off-brand" parts, the DOJ said.

Stanland is currently free on a $100,000 bond. If found guilty of the mail fraud charges he faces, the maximum sentence for Stanland would be 20 years, according to the DOJ.

NEC's communications-focused arm, NEC Unified Solutions, is a Cisco Gold Partner, according to NEC's website.

Stanland's case isn't the first in which Cisco gear has been acquired or sold through fraudulent means. In June, Cuong Cao "Calvin" Dang, owner of San Jose, Calif.-based Cisco reseller Network Genesis, was arrested after allegedly selling millions in bogus Cisco gear and then using that money to buy 11 pieces of real estate and five luxury cars.

In March, Quin Rudin, the head of CGC Digital, faced charges of wire fraud and identity theft after allegedly bilking Cisco out of $2 million, as well as equipment, by having Cisco believe he had a contract to lease, install and service the gear.

PUBLISHED OCT. 24, 2013