Federal prosecutors have issued a warrant for the arrest of a former Cisco Systems vice president who has been charged with a multimillion-dollar fraud scheme that included phoney stock deals and offshore bank accounts.
The FBI claims that Robert S Gordon, the 42-year-old former vice president of business development at Cisco, has disappeared. According to the bureau, Gordon missed a court hearing on Tuesday to discuss the progress of plea negotiations and did not check in with authorities last week as required.
Federal prosecutors said Gordon violated his bail terms by failing to report to federal pretrial officials and as a result a San Jose federal judge issued a warrant for his arrest.
The US attorney's office has moved to seize a $5m bond Gordon posted with the court last year and the government intends to seize his Silicon Valley home, valued last year at $1.6m and used as collateral on the bond.
Gordon's attorney, Richard Beada, told reporters that everyone is trying to figure out why he did not call in. He said the attorneys have no idea what Gordon's status is at this point but they remain hopeful the case can still be settled.
A federal grand jury indicted Gordon last year on two counts of wire fraud. The accused allegedly transferred 30,026 shares of stock in Internet Security Services Group, which has since been acquired by Cisco, into financial accounts in the name of Cisco Systems Inc in the Bahamas, which had no affiliation with San Jose's Cisco, according to court records.
The second fraud charge arose from a complex arrangement involving a startup called Spanlink.
Other executives at Cisco Systems knew nothing of the transfers, according to the indictment. Cisco fired Gordon in April 2001 after investigations led to the stock transaction irregularities.
The court records claim that Gordon had accumulated a personal fortune of more than $30m through investments before his arrest.
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