Nov. 23 (Bloomberg) -- Cisco Systems Inc., the world's biggest maker of computer-networking equipment, fired an executive charged by Brazilian federal authorities in a tax- evasion probe at the company.

Carlos Carnevali Sr., 60, was dismissed after an internal investigation found he failed to comply with Cisco's business code of conduct, the San Jose, California-based company said in a statement yesterday on its Web site. Carnevali Sr. served as vice president for Latin America, a post he held for more than two years.

Last month, Cisco said Brazilian authorities raided its offices in Sao Paulo and Rio de Janeiro and seized documents and detained employees. Police are investigating a suspected import fraud scheme that prosecutors say benefited Cisco, its Brazilian unit and a vendor in the country. Cisco said it is cooperating with the probe.

``Our preliminary review as well as information brought to our attention by authorities strongly suggest that at least this one Cisco Brazil employee was pursuing a personal agenda for his own benefit,'' Cisco said in the statement.

At the time of the raid, Brazilian police said they were probing a U.S. computer-networking gear company, which they refused to identify, for allegedly evading import taxes during the past five years. Authorities there alleged that the U.S. company evaded 1.5 billion reais ($832 million) in duties.

Cisco rose 44 cents, or 1.6 percent, to $28.69, at 1 p.m. New York time in Nasdaq Stock Market trading. The stock has risen 6.6 percent in the past 12 months.

White-Collar Crime

Eduardo Reale, a Sao Paulo-based lawyer defending Carnevali Sr., said his client is innocent and that Cisco's decision to fire him is ``unfair.'' Reale will present his defense on Dec. 5 when the case goes before a judge. Carnevali Sr. has been in police custody for 35 days.

``The charges are absurd,'' Reale said in a telephone interview. ``We will show that during the judicial process.''

Brazil has doubled the budget and tripled the staff of its federal police in the last five years in the widest crackdown on white-collar crime in the nation's history. Securities regulators also promised in August to tackle money-laundering.

Earlier this month, UBS AG, Europe's largest bank by assets, said an employee was arrested in Sao Paulo after Brazilian police raided offices of retailers and suspected black-market currency traders as part of a probe into money laundering and tax evasion.

Other Arrests

Carnevali Sr. and 15 other people have been charged in the investigation. Carlos Carnevali Sr. was named vice president for Latin America in August 2005 and has worked for Cisco more than 13 years, according to the company's Web site.

``Should it be found that additional employees violated Brazilian law or Cisco's Code of Business Conduct, those violations will be dealt with severely,'' the company said in the statement.

Cisco said on Nov. 15 that it placed Carnevali's son, Carlos Carnevali Jr., and Sandra Tumelero on paid administration leave. Carnevali Jr. serves as a director of sales for Cisco's Brazilian unit.

Brazil represents about 1 percent of Cisco's overall business, the company said in an Oct. 16 statement. Cisco first established a presence in Brazil 13 years ago and has since maintained offices in Sao Paulo, Rio de Janeiro and Brasilia. The company employs more than 250 people in the country.

Carnevali Sr. has been charged with fraudulent import and use of documents ideologically false, according to an e-mailed statement from the public prosecutor's office.

To contact the reporters on this story: Romina Nicaretta in Sao Paulo at at rnicaretta@bloomberg.net; Telma Marotto in Sao Paulo at Tmarotto1@bloomberg.net

Last Updated: November 23, 2007 15:19 EST