Cisco former employee accused of stock scam

A former top executive with Cisco Systems has been indicted by a Federal grand jury for allegedly running a multi-million dollar stock scam.

Cisco's former business development director, Robert Gordon, is accused of setting up a bogus bank account in the Bahamas called Cisco Systems Inc, Bahamas.

It is alleged that Gordon then began transferring more than $10m - that's the equivalent of £7.03m - in stocks and cash from Cisco to the accounts.

The indictment also claims that Gordon set up a bogus venture capital investment in a telecommunications company called Spanlink.

The prosecution says he diverted another $10m from a Cisco Spanlink investment into his Bahamas account.

The US Attorney's Office in San Francisco says Gordon, 42, faces two counts of wire fraud, each punishable by up to five years in prison and a fine of $250,000 (£175,000).

Gordon, who was fired on April 6 and appeared voluntarily in front of a magistrate on April 23, is free on a $5m (£3.52m) cash bond.