Credit Union Worker Gets 15 Months for $388K Scam

Phillip Adrian Webb fraudulently obtained about $388,000 worth of computer parts from San Jose, California-based Cisco Systems, Inc., while he worked at Woodbury-based Postal Credit Union.

Brooklyn Park resident Phillip Adrian Webb was sentenced on Tuesday to 15 months in prison for fraudulently obtaining about $388,000 worth of computer parts from San Jose, California-based Cisco Systems, Inc.

Webb, 46, was charged for the scam in early October and pleaded guilty to one count of mail fraud in November. He faced up to 20 years in prison.

According to his plea agreement, Webb was a manager of network services for Woodbury-based Postal Credit Union (PCU) from June 2007 to October 2009. While working for PCU, Webb notified Cisco-a computer parts manufacturer-that some of the parts in PCU's computer system were faulty.

Cisco then shipped replacement parts to PCU, and in return, PCU was supposed to return the defective parts to Cisco. Webb admitted that he instead sold the Cisco replacement parts online to reap profits for himself, and he obtained inexpensive second-hand parts to return to Cisco, according to the U.S. Attorney's Office.

For example, in June 2009, Webb told Cisco that an Ethernet port switch-worth about $7,500-was defective. Cisco sent a replacement part, which Webb kept for himself. He returned an inexpensive second-hand unit that he acquired from a different source.

Webb ultimately returned 55 so-called “defective” parts to Cisco-42 of which were cheap replacements that he obtained elsewhere. Cisco lost an estimated $388,000 as a result of the scheme.