Thursday, Nov. 18 2010 5:52PM

http://www.lsjournal.com/2010/11/18/59747/ls-man-sentenced-for-mail-fraud.html

A Lee’s Summit man was sentenced in federal court today for a mail fraud scheme that involved stealing approximately $573,000 worth of computer equipment from the U.S. Department of Agriculture, where he worked as a contract employee, and selling it over the Internet for more than $166,000.

According to Beth Phillips, United States Attorney for the Western District of Missouri, Gragg R. Vaill, 48, was sentenced to 18 months in federal prison without parole. The court also ordered Vaill to pay $400,000 in restitution.

Reports indicate that on July 28, Vaill pleaded guilty to one count of mail fraud related to shipping the stolen computer equipment across state lines, and to one count of money laundering related to financial transactions of the proceeds of the fraud scheme.

Vaill worked as a contract employee for the U.S. Department of Agriculture. He was a senior technician in the office of the chief information officer, a position that allowed him unrestricted access to the USDA main facility as well as additional office spaces and the warehouse.

Vaill admitted that he stole 64 Cisco computer switches and four Cisco fiber optical converters from the USDA between January 2006 and August 2009. Vaill sold the equipment online, including on eBay, for $166,083. Vaill also admitted that he sometimes accessed his e-mail and eBay account from his work computer.

The buyers were unaware that Vaill had stolen the computer equipment. Vaill shipped each of the stolen switches and fiber optics converters via a commercial carrier, such as FedEx.

USDA reported a loss of approximately $571,425 from the theft of the switches, $1,500 from the theft of the fiber optic converters, and approximately $79,672 in labor cost during a six-hour network outage (for a total loss to USDA of $652,597). This outage occurred because Vaill stole two active network switches. The two switches provided network connectivity for approximately 225 USDA employees.

Vaill also admitted to stealing an unknown number of additional Cisco network switches from USDA and selling them. He used the funds to pay off his auto loan, purchase a house, and for personal investments.

This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Federal Protective Service and IRS-Criminal Investigation.