Cisco's Brazilian Offices Raided
Cisco officials did not immediately return a call from Light Reading this morning, but news sources are saying Cisco is cooperating with Brazilian authorities' investigation.
Reports say 40 people were arrested; the Associated Press counts three "acting senior executives" and the former president of Cisco's Brazilian subsidiary among them.
The rest weren't necessarily Cisco employees -- the FT lists four tax inspectors and three customs agents among those arrested.
Reports say Cisco officials are cooperating with the investigation. But it is claimed that Cisco did benefit from the alleged tax-evasion scheme, which involved shipping Cisco gear to Brazil via countries like the Bahamas, the British Virgin Islands, and Panama. News reports cite Brazilian authorities who said $500 million worth of gear was involved during the last five years.
Officials reportedly seized a commercial jet and 18 vehicles along with $10 million in "merchandise" -- it's unclear whether that means Cisco equipment -- and $400,000 in Brazilian and U.S. currency.
— Craig Matsumoto, Senior Editor, Light Reading