A former Cisco Systems executive has pleaded guilty to charges he diverted about $50 million of company-owned stock and funds into personal accounts in the Bahamas.
Robert Gordon, 43, of Palo Alto, Calif., pleaded guilty before U.S. District Judge Jeremy Fogel in San Jose, Calif., to two counts of wire fraud and one count of insider trading in connection with the multimillion-dollar embezzling scheme.
Gordon could face up to 20 years in prison when he is sentenced on Oct. 29, but as part of a plea agreement, prosecutors and defense attorneys indicated they will seek a five- to nine-year term allowed under federal sentencing guidelines.
Authorities indicted Gordon last year on charges he transferred 30,206 shares of stock in Internet Security Services into a Bahamian shell company he created called “Cisco Systems Inc. Bahamas.” Cisco fired him.
Prosecutors said Gordon, a five-year employee who became a vice president of business development, transferred that stock, as well as thousands of shares of other Cisco-owned stock without Cisco’s permission.
Prosecutors said Gordon also illegally traded stocks on inside information, personally investing in companies in which Cisco was also pursuing an investment.
Gordon, who had been free on bail, had attempted suicide when he disappeared earlier this year while negotiating a plea deal. He now is under federal custody in a psychiatric ward at a Mountain View hospital.
