CONCORD, N.H. (AP) – The former chief executive officer of Enterasys Networks Inc., pleaded guilty to a federal charge of conspiracy to commit securities, mail and wire fraud in U.S. District Court Wednesday.

Prosecutors said Enrique “Henry” Fiallo participated in an accounting fraud that cost the company at least $20 million.

The Andover, Mass., firm was based in Rochester at the time of the scheme, designed to inflate the company’s revenues to meet Wall Street projections, authorities said.

Fiallo is scheduled to be sentenced Dec. 17. He could receive up to five years in prison and a $250,000 fine. He is the fourth former company executive to plead guilty this year.

Gail Spence Luacaw, a former company vice president, pleaded guilty to conspiracy to commit securities fraud Aug. 19. Former company assistant controller Anthony Hurley and former executive Gary Workman pleaded guilty to wire fraud in May.

Former chief financial officer Robert Gagalis and former senior vice president for finance Bruce Kay have pleaded not guilty to federal charges and are to be tried in October.

Enterasys was the chief spin-off firm of Cabletron Systems Inc., co-founded by Gov. Craig Benson before he became governor. Benson is a former member of the Enterasys board of directors’ audit committee. He has not been named in any charges and has said that Enterasys directors brought to light the matters now under investigation more than two years ago.

—

Information from: The Union Leader, http://www.theunionleader.com

AP-ES-09-15-04 1756EDT