Former Alpharetta Verizon Wireless Engineer Accused of Fraud

A Ball Ground man who worked for Verizon Wireless in Alpharetta has been indicted on 30 counts of fraud under an indictment that accuses him of a scheme to steal millions of dollars in high-value network communications equipment. He's accused of using the money from sales of the equipment to buy personal luxury items such as jewelry, cars, international travel and cosmetic surgeries for his girlfriend.

Michael W. Baxter, 62, of Ball Ground, was arraigned on the federal charges today before United States Magistrate Judge E. Clayton Scofield III. He was released on a $50,000 unsecured bond.

According to U.S. Attorney Sally Quinlan Yates, the charges, and other information presented in court: Between 1994 and 2010, Baxter was employed as a network engineer at the southeastern regional headquarters Verizon Wireless in Alpharetta. During that period, Verizon Wireless purchased “extended warranty” contracts on network communications equipment bought from Cisco Systems, such as processors and cards. Some of the parts were valued at as much as $40,000.

Beginning at least as early as December 2006 and continuing until he was terminated by Verizon Wireless in May 2010, Baxter allegedly submitted hundreds of fraudulent service requests that caused Cisco Systems to ship millions of dollars in parts to him at Verizon. No parts needed to be replaced. The indictment says that instead of placing the replacement parts into service in Verizon Wireless’ network, Baxter took them home and sold them to third-party re-sellers for his own profit.

He then allegedly used the illicit proceeds to buy jewelry, cars, extravagant international travel, and other personal luxury goods and services, including multiple cosmetic surgeries for his girlfriend.

Cisco Systems and Verizon Wireless are cooperating in the investigation.

"This defendant allegedly found to a way to rip off a company that provided high-dollar network communications equipment to Verizon. His scheme, like so many others before it, ultimately was uncovered,” said U.S. Attorney Yates. 

Baxter was indicted by a federal grand jury on Dec. 6 on 15 counts of mail fraud and 15 counts of wire fraud.  The charges carry a maximum sentence of 20 years in prison and a fine of up to $250,000 on each count. 

Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt at trial.