Cisco top brass arrested in bizarre investigation

The retribution of a fired employee (fourth paragraph, 2nd sentence) has led to the seizure of a commercial jet, 18 automobiles, large sum of cash, a sizeable cache of Cisco networking equipment and the arrest of the Latin American top brass employed by Cisco. According to Brazilian sources, the arrested Cisco executives have so far refused to answer questions from Brazilian police and prosecutors, indicating that they will only speak when brought to court (updated Cisco response).

Carlos Carnevali
Carlos Carnevali - a former vice president of Cisco Latin America is confirmed as having been arrested by the Brazilian Federal Police. Formerly, Carnevali provided leadership for Cisco in all Latin American countries, from Mexico to Argentina and the Caribbean. Previously, he served as CEO of Cisco Brazil which included under his leadership the operation of Cisco Chile, Argentina, Peru, Bolivia, Uruguay and Paraguay, LAS.

Carnevali joined Cisco in 1994 and has always been able to keep pace with the international growth of Cisco, managing to show results above average. An Electronic Engineer who graduated from Santos (Sao Paulo, Brazil), he holds the degree of Manager Businesses awarded by the University Mackenzie (Sao Paulo, Brazil), as well as a specialization in marketing and an MBA from Stanford University (USA). Carnevali began his career in the field of telecommunications in 1968, serving as a planner with Plessey Telecommunications UK, the largest British company in the telecommunications sector and traffic control systems. After 10 years in Brazil, Carnevali was transferred to England, where he served as a business consultant and was responsible for the international business of the company in the markets of Asia and Latin America. After his work in England, Carnevali was transferred to Colombia where he launched the first factory of public communications systems outside Brazil. During the 80s, he became a partner in Coselle Brazilian, a company with activities in the United States and Latin America, and a pioneer in the distribution of high-tech products and value-added services for CAD/CAM. At the start of the 90s, Carnevali took the helm of commercial DF Vasconcelos, a company dedicated to the production of optical components for scientific and military applications and that subsequently became one of the most important companies in that area of telecommunications.

Pedro Ripper
Pedro Ripper - president of Cisco Brazil is also confirmed as having been arrested by the Brazilian Federal Police. Pedro joined Cisco in 2003 as the leader of strategy for the Service Provider market in South America. A year later, he took over leadership of sales for the Service Provider market in Brazil. Before Cisco, Pedro held positions as director-general of Promon and IP-executive director of the Group Promon, one of the largest partners of Cisco in the area of Service Providers.

He also worked in Europe as director of the Diamond Cluster, a consultancy firm specializing in Telecom, and as entrepreneur in the United States, where he was cofounder of a successful software company. Pedro holds a degree in Computer Engineering from the PUC-RJ and earned a Masters degree at the MIT (Massachusetts Institute of Technology) Media Lab, in the United States.

The absolutely bizarre consequences of this unfolding Cisco scandal are quite a contrast to the elated victory Cisco enjoyed on August 7th, when it announced 4th Quarter and Fiscal Year 2007 Earnings. Napoleon - Emperor of France and Conqueror of Europe perhaps stated it most succinctly: "Victory is the most dangerous moment."

How much of a distraction do you think this unfolding Cisco scandal will eventually become to John Chambers and Cisco's top management? Could it potentially harm Cisco's ability to create high growth in emerging markets? Related stories:

Contact Brad Reese

Join the Network World communities on Facebook and LinkedIn to comment on topics that are top of mind.

Copyright © 2007 IDG Communications, Inc.

SD-WAN buyers guide: Key questions to ask vendors (and yourself)