JUNEAU, Alaska – Perhaps you know that sinking feeling when a single keystroke accidentally destroys hours of work. Now imagine wiping out a disk drive containing an account worth $38 billion.

And the only backup was the paperwork itself — stored in more than 300 cardboard boxes.
Where did my 38billion go?

Now we all partly understand why Cisco gear is a bit more expensive, others taking advantage of top notch service. I have heard of such cases previously but have never seen it publicized so widely with so much network equipment and money being stolen. Cisco often speaks about counterfeit equipment being sold on ebay and cutting into their profits as well.

SAN JOSE, Calif. (AP) – A Massachusetts businessman who resold Cisco Systems Inc. networking gear was arrested on charges he defrauded the technology company out of millions of dollars by cheating its program to replace broken or defective hardware.

Michael Daly, 53, of Danvers, Mass., was arrested Tuesday and was scheduled to be arraigned Wednesday in Boston federal court, according to federal prosecutors. After preliminary hearings in Boston, his case will be moved to San Jose, prosecutors said.

San Jose-based Cisco makes the routers and switches that direct data traffic over computer networks, and the parts Daly obtained were worth between $995 to $25,000 each, prosecutors said. Some of the proceeds were used to buy classic cars.
Cisco Fraud Case