Comments on: Trouble in Telco Land: Cisco Brazil Raided, Ericsson Blows Up

By: Middleware market braces for growth « Get inked

Middleware market braces for growth « Get inked — Wed, 25 Jun 2008 12:31:56 +0000

[...] Trouble in Telco Land: Cisco Brazil Raided, Ericsson Blows Up [via Zemanta] No Comments Leave a Commenttrackback addressThere was an error with your comment, please try again. name (required)email (will not be published) (required)url [...]

By: Ericsson Expects Mass LTE Deployment in 2012 - GigaOM

Ericsson Expects Mass LTE Deployment in 2012 - GigaOM — Wed, 20 Feb 2008 14:00:08 +0000

[...] market in the U.S. thanks to carrier consolidation and new competitors from the Chinese. The company’s finances have suffered while waiting for the injection of capital spending that a network upgrade cycle brings, although [...]

By: Roberto Trevino

Roberto Trevino — Thu, 01 Nov 2007 21:59:42 +0000

Does anyone know what other Cisco Distributors/resellers in Brasil are being investigated?

By: Ulan Ude

Ulan Ude — Mon, 29 Oct 2007 14:42:47 +0000

Wrong comment Luciano. First of all is Steinhauser, not Steinberger. Secondly, I was in Las Vegas (Cisco Sales meeting for FY07) when Steinhauser harassed a couple of brazilian employees. He was way too drunk and everybody noticed it. Don´t get me wrong, Carnevali is known everywhere as a gangster, but Steinhauser is no lamb either…

By: luciano

luciano — Fri, 19 Oct 2007 21:54:21 +0000

Rafael Steinberger is problably the deepthroat in the case of Cisco. He was fired a year ago in an obscure event and Carlos Carnevale, LatinAmerican chief executive, spraied out that that Rafael was fired after a case of aharassment. Everybody that knows Rafael is convinced that he will never envolved in a aharassment event or frauds. Carnevale is in jail. Rafael is problably assisting the investigations.

By: Roberto Trevino

Roberto Trevino — Fri, 19 Oct 2007 15:15:42 +0000

I am a former Cisco employee and previously worked for Carlos Carnevali, the MD for Latin America. It was a well known fact that Carlos had ownership in MUDE, the exclusive Cisco distributor in Brasil.

In fact, when Carlos entered Cisco in 1994 there were multiple Distribution channels in Brasil. Carlos cancelled these contracts and moved all to distribution through an unknown company called "Uniao Digital", where he had ownership. Uniao Digital became a $300M distributor, and later changed its name to MUDE. It was always well known in the industry in Brasil that Carlos had ownership in MUDE; what was not known was the extent to which he would go to save $$ by avoiding importation taxes.

In fact, under the umbrella of Cisco, Carlos was essentially increasing the margins for MUDE for his own benefit. Cisco US most likely had no idea what Carlos was doing, as product is typically purchased FOB California or FOB Miami and Cisco US never has any involvement in the export process. Cisco do Brasil should also have no involvement in the import process, as the product is imported by the Distributor MUDE.

Bottom line, anyone who has worked closely with Carlos knows that he is a very corrupt businessman. In the end, it was probably his mistreatment of a current or former employee that took him down.

By: elefante Branco

elefante Branco — Wed, 17 Oct 2007 23:39:28 +0000

The important misssing link between Cisco y Mude is Carlos Carnevali who is parcero at Mude and was Mude stock Holder while been part of Cisco in Brasil and LATAM. Follow the link……

By: healtheland

healtheland — Wed, 17 Oct 2007 21:39:37 +0000

The Three Step Salvation Plan

By: Cisco Brazil Scandal: Official Statement and Relevant Facts « GigaOM

Cisco Brazil Scandal: Official Statement and Relevant Facts « GigaOM — Wed, 17 Oct 2007 15:49:39 +0000

[...] Om Malik Wednesday, October 17, 2007 at 8:21 AM PT | No comments In the time that elapsed since we first posted about Cisco Systems’ (CSCO) run-in with the Brazilian tax authorities, many of you have sent [...]

By: Julio Vasconcellos

Julio Vasconcellos — Wed, 17 Oct 2007 15:24:29 +0000

Looks like the news made a big splash on the Brazilian papers. It’s on the cover of all the major paper. I uploaded some pictures of the print editions today – all with the news front page center. You can check them out here:

http://vasconcj.blogs.experienceproject.com/

By: Allan Garcia

Allan Garcia — Wed, 17 Oct 2007 14:59:46 +0000

This issue with Cisco Brazil is really serious, as you can see at:

http://g1.globo.com/Noticias/SaoPaulo/0,,MUL151436-5605,00-PF+PRENDE+PRESIDENTE+E+EXPRESIDENTE+DA+CISCO+DO+BRASIL.html

The taxes in Brazil is very complicated, but this is not a reason to steal from the government and from the brazilians people.

Allan Garcia Brazilian TI Company Owner

By: Brazil

Brazil — Wed, 17 Oct 2007 14:42:17 +0000

For me its interesting how some people think about this situation. When Enron or Arthur Andersen had an accounting fraud, they were filed for bankruptcy. Now that Cisco is under investigation for corruption in Brazil, people like Alex on October 16th, 2007 think the problem is the Brazilian tax laws… In my oppinion the Tax laws can be complex and can be a barriew for innovation in the country, but that is not the problem. The problem is that it seems that Cisco was not doing business according to the country’s laws, and the fact is that 40 Cisco employees were arrested. I hope it was a big mistake from the police, but it’s hard to believe that after 2 years of investigation, the police did something wrong…

By: John

John — Wed, 17 Oct 2007 13:41:37 +0000

Posting Cisco’s latest official statements on the situation in Brazil. This was made available late last night.

http://newsroom.cisco.com/dlls/2007/corp_101607b.html

By: brazilian

brazilian — Wed, 17 Oct 2007 13:23:29 +0000

I was in another website and someone wondered "how come 500milions made 833milions in taxes:

In this 833 milions it's included: TAXES, but over the 5 years that went by (meaning: if they didn't pay the tax in 2002, for example, in 2007 the present value it's not the same...), and the FINE as well.

So, 833mi = FINE + TAXES + "CORRECTION" (don't know if this words existis in english) of the Present Value over 5 years

By: Hipocrates

Hipocrates — Wed, 17 Oct 2007 11:34:19 +0000

What the Police says is that Cisco scheme was indeed BASED on using Third-party VARs with the sole purpose of evading importing Taxes. In this way, through “false” importers and third-party companies they were understating Product Prices and falsifying procesdures to grant Importing Tax reduction benefits (i.e. Local manufacturing). They used those third-parties Distributors in Brazil and several Tax Haven Countries.

By: Julio Vasconcellos

Julio Vasconcellos — Wed, 17 Oct 2007 05:45:56 +0000

I just personally translated an article from one of Brazil’s biggest papers. You can see it here:

http://vasconcj.blogs.experienceproject.com/10055.html