After posting this tidbit, it was pointed out that a phone line RJ11 uses pins 4 &5 while 10BaseT and 100BaseT uses 1,2,3 & 6 And that the spec calls for 1500V isolation so this couldn't happen.
I went back and asked my colleague about it and he said that he never indicated that it was 10BaseT - my error. It could of been 100BaseVG or Token Ring which both use pins 4 & 5. It happened about 10 years back.
Regardless, it'll make a good network> A colleague of mine told me about one of his customers who had plugged in