STAMFORD RESIDENT CHARGED WITH RUNNING FRAUD SCHEME TO OBTAIN HUNDREDS OF COMPUTER NETWORKING PARTS
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that CRAIG A. STANLAND, 40, of Stamford, has been charged by criminal complaint with operating a scheme through which he fraudulently obtained hundreds of computer networking parts from Cisco Systems, Inc.
STANLAND was arrested on October 1, 2013. Following his arrest, he appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $100,000 bond. The criminal complaint was unsealed on October 21.
According to the criminal complaint, STANLAND operated a service contract fraud scheme for approximately a year leading up to his arrest. As alleged, STANLAND purchased or controlled approximately 14 service contracts for Cisco networking parts. Pursuant to these service contracts, STANLAND – using the aliases Alan Johnston of Opex Solutions, Kyle Booker of KLB Networks, Steve Jones of SHO Networks, Robert Johnson of Adaptations, and Paul Smith of PS Solutions, among others – made hundreds of false service requests to Cisco to replace purportedly defective computer networking parts. Based on these requests, Cisco shipped replacement parts to various addresses at STANLAND’s direction, including to his home in Stamford, to his wife’s business in Brooklyn, N.Y., and to two post office boxes in Greenwich. Although STANLAND was supposed to return each allegedly defective part to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.
It is alleged that STANLAND fraudulently obtained more than 400 parts from Cisco through this scheme. The retail cost of the parts ranged from approximately $500 to $8,600.
The criminal complaint charges STANLAND with mail fraud, which carries a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation with valuable assistance from the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
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