Warranty fraud scheme busted
Last modified on Saturday, 08 September 2007 13:05
Nortel Networks Corporation won a judgment yesterday for claims it filed against two American companies that apparently were operating businesses in the State of Oklahoma for fraudulent purposes.
The businesses claimed to be legitimate Nortel network warranty parts providers, and as such received warranty parts at no charge from Nortel. In fact, the companies were reselling the free warranty parts they had received from Nortel under a warranty fraud scheme.
Nortel sued both companies, SMC Electronics LLC and Allied Solution Technical Center LLC, for fraud, trademark infringement, breach of contract and for deceptive acts and practices and won. The Judge awarded Nortel a $10 million judgment against both companies.