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Verizon Tech Given 4-year Federal Prison Sentence For $4.5M Equipment Scam
McGruber writes "Michael Baxter, the network engineer at the southeastern regional headquarters of Verizon Wireless who submitted hundreds of fraudulent service requests to Cisco, has been sentenced to four years in federal prison, followed by three years of supervised release. Baxter was also ordered to pay $2.3 million in restitution to Cisco Systems, and $462,828 in restitution to Verizon. Instead of placing the replacement parts into service in the Verizon Wireless network, Baxter took the parts home and sold them to third-party re-sellers for his own profit. He used the money to buy cars, jewelry and multiple cosmetic surgeries for his girlfriend."
a white collar or pound me in the a$$ prison?
So when an employee does something great using the company's resources, the company gets the money. But when an employee does something illegal on the company resources, the company doesn't suffer?
I understand that guy getting something. But Cisco should be suing Verizon, not the person. Verizon would then sue their former employee.
He is a living proof that crime pays.
He got millions of dollars and a great lifestyle for years and now he basicaly got free home and free meals for a number of years.
Then he simply would've received a harshly worded letter or speech from congress. Eh, like everything else, when it comes to 'justice', it all depends on who you are.
“He’s not deformed, he’s just drunk!”
...incidentally, I don't mean the theft part, which is pretty dumb on its own. What I mean is, he should have been socking that money into Cayman Island accounts (or maybe Venezuelan bank accounts and such), then get out of dodge once he hit the $2m mark or so. Get enough scratch and live in a 3rd-world country that doesn't do extradition, and you can get an entire flock of local women instead of having to throw a ton of money on just one.
Then again, dunno how much money he himself got, as the $4.5m figure could be what Cisco values the parts to be, which given Cisco's pricing could be as little as three fans and a 6509 power supply w/ SmartNet support. :p
I am curious as to WTF these guys think when they start pulling stunts like this, however. I mean, if you're gonna flirt with PMITA Prison time, you'd best be damned smart about it, do at least some research, and get your shit planned in advance...
Quo usque tandem abutere, Nimbus, patientia nostra?
We had a Department of Corrections employee (for the state) who bought $123,000 worth of IT equipment then sold it on eBay for $54,000.
Obviously he was caught when the audit was done. So far, no comment from his attorney.
We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
cosmetic surgeries for his girlfriend
Just HOW MUCH does it cost to modify a blow-up doll?
I think the Cisco folks are entitled to some action, since they can get their money back on this specific situation.
He gets 4 years in a Fed pen for contributing to the economy??
Something wrong here.
Operation Guillotine is in effect.
Boob job, nose job, vaginoplasty?
Probably all three. She should have to "return" them as well if she knew about the fraud or spend time in jail.
"I believe in Karma. That means I can do bad things to people all day long and I assume they deserve it." : Dogbert
What no pictures of the girlfriend?
Two of my imaginary friends reproduced once
Pics or it didn't happen.
Pics or it didn't happen!
I am not your blowing wind, I am the lightning.
reason to put someone in prison.
There are better ways to punish and develop corrective measures.
The Kruger Dunning explains most post on
Cisco Unified Breast Augmentation
...win stupid prizes.
Yep, he did just that.
I didn't know him well but it absolutely doesn't surprise me it could take that company nine years to notice $4.5M worth of missing equipment. I ran what was supposed to be the asset tracking system at one point but there was absolutely zero enforcement on compliance! engineering would say: "our job is to build cell sites! we don't have time to scan bar codes!" & accounting's position was: "well, that's balance sheet & non-cash so it doesn't really matter...". can't vouch for this 100% but there was a story that in '92 we had a retail store have its power turned off b/c A/P didn't know it existed... luckily I got the opportunity to learn oracle & got the hell out of dodge!
I have been doing this same procedure with Cisco for years an years, When a card breaks in the feild and you do a RMA on that part (which can happen allot if you have lots of gear) you get the new replacement part in the mail right away, you then have a certain amount of time to return the old bad part.
If Cisco does not receive that part in a certain amount of time they will be contacting your boss or someone until they get that part back.
I have had Cisco say I did not return a part that I did return and finally figure out where it was later, but its a big deal to them, these cards I replace are atleast 40K a card. Since then I started keeping all receipts from UPS to cover myself.
Also who can you sell these cards too anyway? they all have built in serial numbers and small companies would normaly not need them, its mostly only used in equipment used by bigger companies. These type of companies would normaly not buy something they can not open a Cisco trouble ticket on because when they see that serial number a flag is going to go up right way I would think.
Exactly - the problem with prison time isn't just the prison time, it's wearing the scarlet letter of "FELON" for the rest of your life.
Is this the life to which you aspire?
As opposed to half of recent college grads being unable to find full time work, according to a Rutgers University study? http://www.heldrichpodcasts.com/Chasing_American_Dream_Report.pdf
The problem isn't "The Scarlet FELON", it's that the jobs just aren't there for anyone, unless they have in-demand skill sets. Convicted felons and half of all recent college graduates typically don't have them.
On the flip side, half of recent college graduates do have full time jobs, and convicted felons can get jobs; in both cases, they have to have in-demand skill sets.
A $4.5 million dollar scam. Restitution of $2.3 million to Cisco, $462,828 to Verizon. So that makes his net profit approximately $1.75 million. He'll be in prison for 4 years. Probably out in 2 with good behavior but let's say he does the full 4. That's $1.75 million / 4 = $435,000 a year. Not bad.
I'd hardly call that a deterrent to crime. Hell, he's currently more profitable than the company I work for.
Weaselmancer
rediculous.
Verizon has been targeted many times. They would steal network equipment, then call Cisco to get an advance replacement RMA, which would take their stolen equipment and double it. Then they would sell the gear on the 'Grey Market' for Cisco hardware. They focused primarily on Cisco 12000 line cards, where an individual card sells for $100k+ and are installed in a redundant fashion.
Then they started just getting serial numbers for equipment and starting RMA's for that, and selling it on the Grey market. When Cisco called to get the status on the return... Verizon would reply with "what return".
I helped track one of these cats back in early 2000's - once he found we were hot on his trail, he abandoned his Bentley, and his Mansion and fled back home to Russia - where he lives currently. Interestingly, this same type of scam popped up in eastern Europe shortly after his relocation.
Our suspect had a friend who worked in security at one of the Verizon data centers. He would grant 'back-door' access to a facility, and permit the theft of the hardware. Stories abound of this guy being too poor to buy gas one day, borrowing $50 from friends in order to make to to the airport to fly out to New York then from New York to California, then California back home - pulling a massive roll of C notes from his pocket and repaying the $50 loan + a couple of C-notes to show his gratitude.
Perhaps the reason we hear about this happening with Verizon was that they became aware of the scam early, then kept tracking the perps until they were finally able to catch them. Kudos to Verizon Security for being able to close the loop on this one. These cases are extremely hard to track and crack.
http://www.nytimes.com/2004/11/27/nyregion/27theft.html?_r=2&ex=1152936000&en=28ee4e10417b8e50&ei=5070&oref=login
http://www.zdnet.com/level-3-falls-victim-to-data-centre-robbery-3039284520/
Good security is based upon reality and common sense. Common sense is a function of having common knowledge.
Or will she go find another Sugar Daddy?
When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
If you have an extra $10,000, buy your girlfriend new boobs.
If you have an extra $1,000,000, get a hotter girlfriend.
paintball
...was doing this outside a CEO position.
What do I know, I'm just an idiot, right?
multiple cosmetic surgeries for his girlfriend
It would probably have been cheaper to just get a better looking girlfriend.
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The Slashdot title says $4.5M, but the article it links to says $2.8M
The prison time is only PART of the sentence! " Baxter was sentenced to 4 years in prison to be followed by 3 years of supervised release, and ordered to pay $2.33 million in restitution to Cisco Systems, and $462,828 in restitution to Verizon."
Nearly $2.8 million to pay back off of the $2.8 million they say he stole. I am guessing that he doesn't have ALL of the proceeds from his caper.
IF he gets minimum security Federal Prision Camp, he will likely go closest to home. FCP Montgomery. http://www.bop.gov/locations/institutions/mon/MON_aohandbook.pdf
Don't sound like 4 years of fun to me. In any institution or camp there is going to be a heirarchy. This guy is none of the things that are going to make his life in "camp" fun. He is not rich! He may be a tough bird, but he is an old bird at 62. All those ailments that get treated outside of "camp" are going to go untreated. No more private doctors. Dentists that only pull teeth. Hey, maybe he can get one of the best jobs there and make $1.46/hour.
Neither Cisco or Verizon lost their lives or were even traumatized by his actions. However, they need a sentence that works as a deterrent, which this is.
Punishment fits the crime.
For every benefit you receive a tax is levied. - Ralph Waldo Emerson
So you can take that cookie, and stick it in yo yehhh
I have seen different $ amounts reported of his haul. $4.5 and $2.8 I don't know which is more accurate. Suffice it to say that they got all his property and accounts. Maybe that Cayman Islands or Isle of Man account survived, but I doubt it.
For every benefit you receive a tax is levied. - Ralph Waldo Emerson
So, are there pics of the girlfriend, or what?
If he had been the company president and a big political contributor, some poor tech way down the ladder would be facing charges instead.
If you are going to claim that how do you know it did not happen in this case and he isn't the "poor tech way down the ladder"? You claim this as a viable possibility and then immediately dismiss it out of hand for this case which suggests that you don't really believe it is a sensible possibility (which I would tend to agree with). There is clearly a problem with accountability at the top of large corporations, especially the banks, but they seem to get away with their behaviour because nobody holds them accountable for it not by framing someone else lower down.
Then his probably 39 year old gf is gonna be needing alot of plastic surgery, moving forward.
The guy is simply a visionary, saw the future, and did what needed to be done. She'll still look hot when he gets out of prison.
Verizon called. They want their boobs back.
paintball
FYI, that study doesn't say half of college grads are out of work, many of them have jobs but are underemployed. People with philosophy degrees flipping burgers for example.
I refer you to the part of my post where I specifically stated "in-demand skill sets".
A lot of people would dearly like to be paid to do things which society simply does not value. I know at least one tone-deaf singer who'd like to be paid to sing, but I'm pretty sure Yoko Ono has cornered the market on that, unless you count autotuning as singing, in which case I'd say the market is larger than I initially thought, but she's probably still not going to get paid. Personally, I'd like it to be my job to live in amazing house in an amazing place, and cash a very very large check once a month, while I spend my time writing and working on things I think need to be worked on rather than what someone thinks will give them a good ROI on a short fiscal horizon. I am not holding my breath.
Getting a degree in something you value but which society doesn't means you will be stuck doing something for which you have skills which society does value enough in order to trade you money for exercising those skills, e.g. flipping burgers, and you will be paid commensurate with the apportioned value which society places on that role.
If you think you can change what society values, you are invited to do so.
Meanwhile, back on topic: if your skills are in-demand, you can get work, and your employer will overlook a multitude of sins and still be glad to have you.
His girlfriend so ugly that he had to steal money to get her cosmetic surgeries ?
If he goes FPC Montgomery, then I'll likely see him out cutting the grass or emptying trash cans as my office is about 500 yards from the entrance to the camp here on Maxwell AFB. Prisoners do all the grounds and building maintenance on base. Consequently, this place is immaculate -- hardly a blade of grass out of place.
They live in open bay barracks (so they tell me) and cannot have money, outside food & drink, cell phones and many other electronics (They've recently been allowed to have MP3 players). One of the prisoners who's been here since 1999 and works in our building was curious about my iphone as he had never seen one in person. They have a fair amount of freedom (for prisoners) and are very well behaved because they know if they screw up then it's straight to a "pound me in the ass" facility for the rest of their sentence.