$4.3M Fraud By Verizon Employee

(12/11/2011) On Friday (12/9/11), Michael Baxter, former Verizon employee, was charged with multiple counts of fraud involving the theft and re-sale of $4.5 million in equipment. The alleged scheme involved extended warranties purchased by Verizon from Cisco Systems. The warranties required Cisco to replace a malfunctioning item, some of which were valued at as much as $40,000 apiece. Between 2006 and 2010, Mr. Baxter submitted hundreds of fraudulent servce request, and instead of placing the new part into service, he took them home and told them to third party re-sellers for his own profit. Call MIHI Advisory Group today if you need assistance detecting or investigating internal theft, schemes to defraud or supply chain issues. (813) 579-7422.