SAN JOSE — The owner of a successful reseller of Cisco (CSCO) network equipment was arrested Thursday after being indicted on charges of knowingly buying counterfeit or stolen products and passing them on to customers after altering serial number while running Network Genesis, which brought in $37 million during the period under investigation, according to federal officials.
A federal grand jury indictment filed Wednesday states that Cuong Cao Dang, also known as Calvin Dang, operated Network Genesis, a company located in North San Jose that bought and resold used Cisco equipment to customers primarily in Southern California and other states. Dang, 43, is charged with buying purloined or fake Cisco items such as processors costing thousands of dollars, then “altering the external serial numbers to make the items more difficult to trace,” according to the U.S. Department of Justice.
It states that he purchased the goods from employees at Cisco.
The indictment holds that Network Genesis had more than $37 million in sales revenue between 2006 and 2012, when the fraud was believed to be happening. It says the money was used to buy 11 commercial and residential properties in San Jose, luxury automobiles including a $100,000 Mercedes-Benz and a Lotus, as well as fund college savings accounts for Dang’s four children. If convicted, Dang faces forfeiture of all those assets, as well as funds in various bank accounts and computer gear seized during searches of Network Genesis last January.
A listed number for Network Genesis was disconnected when called on Thursday.
Dang is being charged with conspiracy to commit mail fraud, six counts of mail fraud and money laundering. The counts come with the possibility of a long prison sentence, restitution to victims, and fines tied to the gross gain from the offense.
Dang remains in jail pending bail proceedings. His next appearance in federal court is at 1:30 p.m. Friday