Man Gets 2 Years in Jail for Computer Parts Fraud Scheme

A Stamford man was sentenced to two years in jail for his role in operating a fraudulent scheme to obtain hundreds of computer networking parts from Cisco Systems, Inc., defrauding more than $800,000 from the company.

United States Attorney for Connecticut Deirdre M. Daly announced that Craig A. Stanlund, 40, of Stamford, was sentenced Tuesday by U.S. District Judge Janet Bond Arterton to 24 months of imprisonment, followed by three years of supervised release.

According to court documents and statements made in court, from October 2012 until he was arrested on Oct. 1, 2013, Stanlund 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, Stanlund – 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 Stanlund'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.

Stanlund sold the new parts to third parties to enrich himself. Although he was supposed to return the allegedly defective parts to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.

Through this scheme, Stanlund 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. 

The investigation revealed that Stanlund spent some of the money he stole at various high-end restaurants in Fairfield County and New York.

Stanlund was ordered to make full restitution to Cisco.

On Jan. 22, 2014, Stanlund waived his right to indictment and pleaded guilty to one count of mail fraud.

This case was investigated by the Federal Bureau of Investigation and the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney David T. Huang.