Brazil raids Cisco, collars 40 including senior executives

ROUTER HEAVYWEIGHT Cisco Systems' offices were raided by Brazilian authorities yesterday and 40 employees, including senior executives, were arrested, Reuters and Network World reported.

Brazil alleges that Cisco imported telecom and network equipment worth $500 million over the past five years without paying full import duties. It claims Cisco owes taxes, fines and interest of $826.4 million. In addition those arrested in country, Brazil asked US authorities to arrest five other suspects believed to be in the United States.

Cisco allegedly shipped artificially undervalued equipment from tax havens in the Caribbean and Central America to its Brazilian customers in order to evade Brazilian import duties.

The raids and arrests by 650 police and tax agents reportedly executed 93 search warrants and came at the end of a two year investigation. Cisco is reportedly cooperating in the US. µ

L'INQ
Network World