Cisco reseller nets 37 million; arrested on fraud charges

The owner of a successful reseller of Cisco (CSCO) network equipment was arrested Thursday after being indicted on charges of knowingly buying counterfeit or stolen products and passing them on to customers after altering serial number while running Network Genesis, which brought in $37 million during the period under investigation, according to federal officials via Mercury News.

uong Cao Dang, also known as Calvin Dang, operated Network Genesis, a company located in North San Jose that bought and resold used Cisco equipment to customers primarily in Southern California and other states. Dang, 43, is charged with buying purloined or fake Cisco items such as processors costing thousands of dollars, then "altering the external serial numbers to make the items more difficult to trace," according to the U.S. Department of Justice.

Dang is being charged with conspiracy to commit mail fraud, six counts of mail fraud and money laundering. The counts come with the possibility of a long prison sentence, restitution to victims, and fines tied to the gross gain from the offense.