STAMFORD RESIDENT PLEADS GUILTY TO RUNNING $800,000 FRAUDULENT COMPUTER NETWORKING PARTS SCHEME
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CRAIG A. STANLAND, 40, of Stamford, waived his right to indictment and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of mail fraud arising from a scheme in which STANLAND obtained hundreds of computer networking parts from Cisco Systems, Inc. through the use of multiple aliases, business entities, and post office boxes and shipping addresses.
According to court documents and statements made in court, from October 2012 until he was arrested on October 1, 2013, STANLAND operated a service contract fraud scheme in which he purchased or controlled approximately 18 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.
STANLAND sold the new parts to third parties to enrich himself. Although he was supposed to return the allegedly defective part to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.
Through this scheme, STANLAND fraudulently obtained nearly 600 parts from Cisco. The retail cost of the parts ranged from approximately $500 to $8,600, and the total loss to Cisco was approximately $834,307.
STANLAND is scheduled to be sentenced by Judge Arterton on April 21, 2014, at which time he faces a maximum term of imprisonment of 20 years. He has been released on a $100,000 bond since his arrest on October 1, 2013.
This case was 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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