Robert Gordon, a former vice president and director of business development at Cisco Systems, has pleaded guilty to fraud and insider dealing charges.
Gordon admitted to conducting a deliberate scam, which included diverting $50 million of company-owned stock through accounts he controlled overseas. He was fired in April 2001, after an internal investigation by Cisco, and the following month was indicted by a Grand Jury for stealing $20 million from the company, which he initially denied.
After missing a court hearing last April, he was eventually, caught by the FBI, who had issued a warrant for his arrest, at Santa Barbara hospital, where he attempted to commit suicide. He remains under federal custody in a psychiatric unit at a Mountain View hospital.
On July 30, 2002, Gordon appeared before US District Judge Jeremy Fogel, to plead guilty to two counts of wire fraud, and one count of using inside information to make an illegal profit from stock deals. He has already paid $18 million to Cisco, and approximately $7 million in fines and restitution to the US government. He is expected to receive a five to nine year stint in jail, at his sentencing hearing on October 29.