Law Office of Thomas A. Johnson Federal and State Criminal Defense Attorney
Available 24/7 - call now
916-248-8598
Menu emailContact Us View Blog Categories

Federal government cracks down on California fraud scheme


Federal crimes involving fraud encompass a broad range of offenses. While there are many different fraud offenses, a federal offense involving fraud always includes some form of deceitful conduct, false statement or misrepresentation for the purpose of gaining something of value. Penalties for federal crimes involving fraudulent acts may include substantial fines, asset forfeiture, jail sentences, probation or all of the above.

A California man was arrested the other week on charges of buying and selling counterfeit or stolen Cisco equipment. Federal prosecutors claim that the San Jose man purchased the stolen equipment from Cisco employees and then resold them at his business Network Genesis. Prosecutors further claim that the man altered the serial numbers on the equipment before selling them in order to make it more difficult to track.

The federal criminal complaint alleges the suspect made approximately $37 million through the purchase and sale of the stolen Cisco merchandise. Before collecting payment, federal prosecutors claim the suspect had his customers send payment to co-conspirators who deposited the money in their own bank accounts before funneling it back. The man is currently charged with conspiracy, mail fraud and money laundering.

In general, there are several essential elements in fraud claims. First, there must be a material misrepresentation of fact made by a person who knows or believes the misrepresentation to be false. In addition, the misrepresentation must be made to a person who reasonably relies on the misrepresentation. Finally, the person's reliance on the misrepresentation must result in loss or injury. If a criminal defense attorney can disprove any of the elements, a defendant cannot be found guilty in a federal case for the crime of fraud.

Source: San Jose Mercury News, "CA man charged in $37M Cisco resale fraud scheme," July 25, 2013

No Comments

Leave a comment
Comment Information
Available 24/7 - Call Now

Contact Thomas A. Johnson

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Law Office of Thomas A. Johnson | 400 Capitol Mall, Suite 1620 | Sacramento, CA 95814 | Toll Free: 866-974-4316 | Phone: 916-248-8598 | Fax: 916-442-4262 | Sacramento Law Office Map

Review Us