Woodbury Postal Credit Union employee sentenced in $388,000 Cisco scam case
A Woodbury Postal Credit Union employee was sentenced today to 15 months in prison on federal mail fraud charges that he scammed a computer parts manufacturer out of $388,000.
U.S. District Court Judge John R. Tunheim issued the sentence following a November 2010 guilty plea by the suspect, Phillip Adrian Webb, of Brooklyn Park.
According to a Department of Justice press release, Webb admitted that between June 1, 2007, and Oct. 11, 2009, he falsely notified Cisco Systems, Inc., that various computer parts at his workplace were faulty. Cisco, a computer parts manufacturer, shipped PCU the replacement parts. According to a service contract, PCU was required to ship back the faulty parts.
But Webb, who worked as manager of network services for PCU's Woodbury location, sold the Cisco equipment online for his own benefit. Federal prosecutors said Webb obtained cheap second-hand units that were mailed to Cisco, purported to be defective.
Webb, 46, admitted to running the scheme, which bilked Cisco out of $388,000, according to the justice department.
In all, Webb returned 55 parts to the manufacturer - only 13 of which were actually defective, the justice department stated.
The case was the result of a U.S. Postal Inspection Service and Internal Revenue Service criminal investigation.