FORMER MICROSOFT EMPLOYEE SENTENCED TO 30 MONTHS IN PRISON FOR WIRE FRAUD AND USE OF FALSE SOCIAL SECURITY NUMBER
FRANK PHILIPS, 45, of DeSoto, Texas, was sentenced today in U.S. District Court in Seattle to 30 months in prison, three years of supervised release and $666,290 in restitution for ten counts of Wire Fraud and one count of Use of a False Social Security Number. PHILIPS was convicted by a federal court jury July 1, 2005 following a week-long trial. Prosecutors presented evidence that PHILIPS used his position as a Microsoft employee to steal software from company offices and to use the company's internal ordering system to order large amounts of software. PHILIPS then sold the software first on e-bay and then to software retailers. PHILIPS gained more than $100,000, which he used for his personal expenses.
PHILIPS was hired at Microsoft in 2000 using a false social security number. PHILIPS had been sentenced in December of 1999 for Social Security Fraud for submitting to the FAA an application for an Airman Certificate, in which, in order to conceal his identity - i.e., the prior revocation of his Airman Certificate - Philips listed a false social security number. PHILIPS used a different false Social Security number with Microsoft and claimed he had never been convicted of a felony.
In imposing sentence U.S. District Judge Marsha Pechman ordered PHILIPS to undergo drug treatment saying, "You tell me you have a drug problem. Then you need to deal with it because that affected your judgment along the way."
The case was jointly investigated by the Federal Bureau of Investigation and Social Security Administration, and prosecuted by Assistant United States Attorneys Lisca Borichewski and Arlen Storm.
For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney's Office, Western District of Washington at (206) 553-4110.