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Cisco gold partner with history of SMARTnet fraud awarded new $578 million Cisco SMARTnet contract by U.S. Army

Less than a year ago, the FBI reported that a Cisco gold partner payed $2.3 million to resolve fraud allegations under the False Claims Act. Last month, that same Cisco gold partner was awarded a new contract valued at more than half a billion dollars to provide Cisco SMARTnet services covering 790,464 pieces of Cisco equipment valued at $4.2 billion (view the entire list) installed in U.S. Army networks.

Sun, 7/15/12 - 11:59pm    View comments

CiscoU.S. Army7-months ago, the former President of a Cisco gold partner was sentenced to 3-years in prison for wire fraud and conversion of government funds that involved Cisco SMARTnet fraud on a U.S. Army contract. Additionally, the Cisco gold partner was forced to pay $2.3 million to resolve allegations that its conduct violated the civil False Claims Act.

Remarkably and most distasteful to me, it now appears that SMARTnet fraud by a Cisco gold partner has been rewarded!

How so?

Well, last month the U.S. Army awarded to the same Cisco gold partner with a history of SMARTnet fraud a new SMARTnet contract valued at $578,178,569.17

Hummer Winblad Venture PartnersInterestingly, this Cisco gold partner is now owned by FusionStorm Global, which according to filings made with the U.S. Securities and Exchange Commission is a portfolio company of Hummer Winblad Venture Partners.

Mark GorenbergIn June 2008, Atlantic Magazine revealed how Hummber Winblad Managing Director - Mark Gorenberg, became one of President Barack Obama's biggest and most successful presidential campaign fundraisers:

The Amazing Money Machine

"When Gorenberg joined Obama's national finance committee, he was pleased to discover an institutional culture eager to embrace new ideas about building user-generated networks. The organizing principle behind Obama's Web site, in other words, is the approach Mark Gorenberg used with such success--only scaled to such a degree that it has created an army of more than a million donors and raisers."

In my personal opinion, this new U.S. Army half a billion dollar SMARTnet contract awarded to a Cisco gold partner with a history of SMARTnet fraud appears to be a financial payback to Mark Gorenberg, one of President Barack Obama's biggest and most successful presidential campaign fundraisers!

Alarmingly today, the Washington Post also revealed a similar opinion:

Obama's political payoffs

"The president has been a 'typical politician' and has demonstrated 'systematic favoritism' toward top campaign fundraisers by lavishing them with federal appointments and their companies with taxpayer money and special government deals."

Details of the $578 million Cisco SMARTnet contract awarded by the U.S. Army to a Cisco gold partner with a history of SMARTnet fraud:

What's your take?

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