Texas man indicted in reference to tech guarantee scheme
A Texas man has been indicted on federal charges related to a warranty fraud scheme using products from technology giant Cisco.
The case is going through U.S. District Court for Eastern Pennsylvania and includes an allegtiaon that equipment was delivered to a Wilmington address.
Jerel Andre Williams of Mansfield, was charged in March with nine counts of mail fraud and two counts of filing a false tax return.
It is alleged that Williams, states that Williams and a partner obtained serial numbers for products manufactured by Cisco.
He then allegedly used false email addresses and false names to submit false warranty claims to Cisco using the serial numbers. Williams claimed he owned Cisco products that were under warranty and were not functioning.
Next, Williams provided Cisco customer service representatives with descriptions of the non-existent defects that he knew could not be solved by troubleshooting and would, require replacement with new products. Cisco shipped the replacement products to Williams and his associates on the expectation that the defective products would be returned.
The charges allege that Williams and his co-accomplice successfully obtained 157 warranty replacement products from Cisco each with a retail value of between $3,693 and $34,500.
They had the products shipped to addresses throughout the United States, including in Wynnewood, PA; Cherry Hill, NJ; Wilmington; Las Vegas, NV, and Dallas, TX.
The product shipped to Wilmington was valued at more than $12,000.
Williams and an unnamed individual then traveled to these addresses, picked up the products, and resold them to computer resellers.
In addition, the information also alleges that the defendant filed false tax returns for tax years 2015 and 2016 in which he underreported his gross receipts by $284,741 and $349,177, respectively.