Barber, Boey sentenced in Enterasys fraud
A second Enterasys executive received a long prison sentence Friday afternoon on charges of fraud and a conspiracy to inflate the high-tech company’s revenue.
Earlier in the day, David Boey, sales director at Enterasys Networks’ Asia Pacific Division was sentenced to 36 months in prison.
In U.S. District Court in Concord, Judge Paul Barbadoro sentenced Robert Barber, a consultant who worked on the company’s investment committee and a former Cabletron Systems employee, to 97 months in prison and ordered him to pay a $25,000 fine for his involvement.
Barber’s sentence came after he reached an agreement with prosecutors to waive his right to appeal the sentence.
At the sentencing, Barbadoro told Barber that the final sentence – which amounts to eight years and one month – was “somewhat less than I was thinking of” imposing if the deal weren’t reached.
Barber told the court he agreed to waive his right to appeal after he “weighed the risks and benefits,” adding, “I think this is a satisfactory arrangement.”
He also said, “I deeply regret the harm I caused my friends and my family.”
Earlier in the day, David Boey, sales director at Enterasys Networks’ Asia Pacific Division was sentenced to 36 months in prison.
In imposing Boey’s sentence, Barbadoro said that Boey was akin to being the low man on the totem pole in the conspiracy, and gave him a sentence that was lower than the suggested minimum under federal sentencing guidelines.
He said Boey was under intense pressure from higher-ups to participate in the conspiracy, adding that Boey was “going to dance to the tune or be gone tomorrow.”
The judge also said that the most culpable person in the conspiracy was Enterasys’ former chief executive officer, Enrique “Henry” Fiallo, who cooperated with prosecutors and in October is expected to be sentenced to five years as part of a plea bargain.
Barbadoro said it was “disturbing” that Fiallo will receive a five-year sentence while other defendants who went to trial will receive more severe punishments.
The judge was scheduled to begin the sentencing hearing for Bruce Kay, former vice president of finance at the firm, and conclude with the sentencing of Robert Gagalis, the former chief financial officer.
