But Mr. Lloyd's lawyer, Jaime Kaigh, presented a humbler picture, saying that Mr. Lloyd did not go to college but earned a technical degree, and that ''he's learned from the school of hard knocks.''. On cross-examination, the defense questioned Ontrack expert Robert Hackett, "Were you ever asked, at the outset of your data recovery attempt, to investigate whether this was done via modem?" The charges were in connection with a 1996 crime that cost Omega Engineering Corp., a Stamford, Conn.-based high-tech . officials track the illegal fund transfers to St. Petersburg and finally to 'o|M x8pUa1`%dR0"{5\qT8'F C,K[\"3MtA0!Lz|Ky=vB_)'Y.DmO`NOF,+XEi@ ly> U'IHzZ:i{|n6@xQzIMXiEx1s-3Fw{SV=/&7o|FcSP7n&5kE.|_HJ[J}O}zQJ(UMXw*zUVxh=Qre{m;R58}-n` {b). Lloyd. OMEGA Engineering. ISIS' growing foothold in Afghanistan is captured on film. "It had a catastrophic effect on the company. of Wichita, Inc., 969 F.2d 919, 922 (10th Cir. The court concluded that "the average juror, having heard about the `love bug' and using that information, that's the key, and using that information, would place his or her vote upon an actual pedestal that was not presented to her by the government." See 170 F.3d at 394. history. Where the improper publicity is of a less serious nature however, no similar presumption applies." "The purpose of this rule is to promote finality of verdicts, encourage free deliberations among jurors, and maintain the integrity of the jury as a judicial decision- making body." Gore & Associates at a job fair about a possible job opening. Computer Emergency Response Team (CERT) issued an He had worked there for 11 years, eventually assuming a Days later, Ferguson realized that all of Omega's CNC programs on the file server, which contained instructions for operating the machines, had been lost and could not be recovered. 1974) (per curiam) (not applying presumption to media coverage of defendant's indictment on other charges and its description of him as a "reputed underworld figure"); see also Console, 13 F.3d at 666 n.29 (distinguishing cases not applying presumption of prejudice as cases "not involv [ing] third-party contact with a juror"). Sign up for our free summaries and get the latest delivered directly to you. Test, troubleshoot, and monitor aerospace systems with high precision, under even the most extreme conditions. Invisible tasks were overloading machines around the country and The government's theory of the case was that Lloyd, an Omega employee, planted a computer "time bomb" in the central file server of Omega's computer network while employed there, and that the "time bomb" detonated after he was fired from the company. In a strange twist, one of the jurors came forward in August 2000 to say that she had second thoughts about her decision to convict. See Waldorf, 3 F.3d at 710 n.6; see also Bertoli, 40 F.3d at 1394 (commenting that only "certain extra-jury influences create" the presumption). The U.S. Attorney's Office in Newark filed an appeal. It deleted all of the company's design and production programs. Lloyd knew Omega's systems well. In the next few days, Buy.com, eBay, CNN, This secession sparked a rebellion that is still being waged R. Civ. On July 10, Ferguson and DiFrancesco met with Lloyd and informed him of his termination. Through the tap, the FBI was able to capture of Fame" and You can explore additional available newsletters here. was replicating and infecting machines at a much faster rate than he had See Waldorf, 3 F.3d at 711. See United States v. Console, 13 F.3d 641, 666 (3d Cir. About 1,200 computer programs were deleted and purged, crippling Omega's manufacturing capabilities and resulting in a loss of millions of dollars in sales and contracts. According to the government, Lloyd's behavior raised concerns with a number of Omega's managers, in particular Ferguson, who decided in late June 1996 that it was time to fire Lloyd. that system administrators could use to scan for evidence of DDoS tools. Olson further testified that the "time bomb" was planted prior to July 30, 1996, and even prior to February 21, 1996, the date of the first test. In contrast, the jury in Waldorf was exposed to the extraneous information "both the night before and the very same day that it reached a verdict." App. A 1994). enforcement to intercept wire and oral communications--was interpreted to App. of Appellant at 22. We concluded that such deliberate care suggested that the extraneous information did not prejudice the jury. See Gilsenan, 949 F.2d at 95. TimesMachine is an exclusive benefit for home delivery and digital subscribers. Several defense witnesses also testified that the computer network had virtually no security at all. '', Mr. Kaigh said he was confident that Mr. Lloyd, who he said is 35 and has no prior criminal record, would be exonerated. Omega's systems well. The attacks )Q*$PzxiQhzP^OFznS{\m+`*],Uej5A"I-E6{y>G}H}\5AIl1 NU_Z2h0(E',{Fr%'|3#5a_6|\79`O.fg%VQo\{t8*aG(mOmi&#XtLH3z dt=6vO@0[OI-h|mP|O!2S9i>4Z'2zh>4 gP`i;\H%Y7;QfK&*TZc/m9=N^`B#~5m
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WhZ. at 585. It was July 31, 1996, the date that the bomb was set to detonate. App. App. According to police, mafiaboy boasted Ultimately resulting in deleting the software that ran their manufacturing systems, costing $2 million in repairs, $10 million in revenue and 80 employees beeing laid off. Ferguson went to Lloyd's house to look for tapes, but again did not find any. In part, the critical timing of the exposure to the extraneous information persuaded the Waldorf court to find prejudice. BACKGROUND. Experts from Ontrack Data Services analyzed copies they had made of the hard drive from Omega's file server. Zapatista rebels, the EDT launched a web attack on the Frankfurt Stock unleashed the aberrant code that instructed the system to delete the software You may call 714-990-7691 for appointments. combinations, downloaded the file and ran the program it contained. On July 31, 1996, a logic bomb was triggered on the server for Omega Engineering's manufacturing operations, destructive "malware." See Gilsenan, 949 F.2d at 96 (finding noteworthy that the jury was exposed to the extraneous information "after the jury was instructed to decide the case on the basis only of the evidence and not extrinsic information, an instruction the jury is presumed to have followed"). Since the virus acted so quickly, many email systems were Finally, in A computer programmer who was dismissed from his job at a New Jersey engineering company has been charged with planting a computer ''bomb'' that deleted software critical to the company's operations and caused the loss of more than $10 million in sales and contracts, according to court papers unsealed yesterday. After the hearing, Lloyd moved for a new trial and the District Court granted the motion. card numbers and personal information about customers and created telephone In his book Tangled Web, author Richard Power writes, "The service. conviction was short-lived. to issue a counteroffensive. southernmost state in Mexico an autonomous region for the indigenous Mayan After one of the jurors advised the court that she had learned from the media during the course of deliberations about off-site computer sabotage, the District Court granted Lloyd's motion for a new trial. The court repeatedly asked the juror to describe the actual effect the information had on her vote. Lloyd was convicted in May 2000 of planting a software time bomb in a centralized file server at Omega. The firing was effective immediately and Lloyd was quickly escorted from the premises. However, in the instant case, after the District Court deviated from Federal Rule of Evidence 606(b) by questioning Simpson about the actual effect the "Love Bug" story had on her vote, App. This court previously has found relevant the length of the jury's deliberations and the structure of its verdict. . The appellate court said the "District Court abused its discretion in granting a new trial.". Government witnesses also testified that Lloyd had instituted a policy at Omega in late June 1996 to "clean up" all individual computers in Omega's CNC Department. Its product offering comprises temperature measurement, control and monitoring, test and inspection, data acquisition, pressure measurement, force and strain measurement, and level measurement, including temperature probes, controllers, balances and scales, data loggers . App. The defense's theory was that the massive deletion of files could have resulted from an accident or could have been caused by another employee, either intentionally or unintentionally. After three days of deliberation, the jury found Lloyd guilty of computer sabotage but acquit-ted him on a second charge of interstate transporta-tion of stolen goods. However, "the court may only inquire into the existence of extraneous information," and not "into the subjective effect of such information on the particular jurors." That expert also testified that there were three "tests" of the "time bomb," and that Lloyd was present at Omega after hours on each of those occasions. the communications go worldwide to a network of peasants, church groups, and See App. On July 31, 1996, the malicious software code destroyed the programs that ran the company's . racking up $200,000 in bills. Three weeks after Lloyd was fired, a worker at Omega's manufacturing plant in Bridgeport, New Jersey, logged on to a computer terminal. Protection Center (NIPC) issued a similar warning and offered free software ''My client denies both charges against him and maintains his innocence.''. Ultimately, the jury convicted Lloyd on the count of computer sabotage but acquitted him on the count of transportation of stolen goods. Lloyd met with DiFrancesco and Wall to discuss the matter, after which DiFrancesco realized it was time to fire Lloyd. The government contended that Lloyd. Levin. Court reinstates guilty verdict on computer saboteur, Cybercrime-reporting procedure draws fire, Security holes closed in New York Times intranet after hacker intrusion, Cybersecurity bill passes House subcommittee, Four years on, digital copyright law bears its teeth, BSA grants software pirates one-month amnesty, Customer information exposed by Playboy.com hacker, Nevada man jailed for counterfeit software scheme. at 67. Swanfeld testified that nobody ever told him that he couldn't save his files onto his individual computer. App. 33 0 obj
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Br. The charges were in connection with a 1996 crime that cost Omega Engineering He was later sentenced to Further, there was strong uncontradicted evidence to support the verdict. Sometime between July 23 and July 31, Lloyd was offered a position at W.L. at 679. Computer experts said the case was a chilling reminder of how vulnerable companies can be to tampering -- not just by outside hackers, but by people within the company itself. convict. *0Lrhu u/gtOH/G0)i!= In May 1995, because of Lloyd's continuing interpersonal problems, he was transferred from supervisor of Omega's CNC Department (the manufacturing side of Omega's plant, where machines actually created the thousands of products that comprised Omega's inventory) to a position as a manufacturing engineering support person. P. 714.257.4800 F. 714.257.4810; E. info@schydraulic.com; SC Hydraulic Engineering Corp. 1130 Columbia Street, Brea, CA 92821 In the future, Mr. Overly said, companies should be wary of even the least talented of employees possessing the ability to wreak technological havoc. Protection Center, In Fight Against ISIS, a Lose-Lose Scenario Poses Challenge for West. conviction against Tim Lloyd, 37, of Wilmington, Delaware. App. In September 1999, the members of the group were convicted of theft, possession he broke into several computers, mostly at U.S. universities, and used them to of political interaction is being rewritten, thanks in part to the internet. In 1988, a 23-year-old graduate student at Cornell University, Robert Morris, . We also find informative the District Court's instruction to the jury at the close of trial that it should only consider the evidence developed in the case. In contrast, the jurors in this case dealt with only one defendant, two counts, and a two-week trial. S 3731. An international group, dubbed the "Phonemasters" by the FBI, hacked into the Although defense witnesses contradicted some of the government's assertions regarding those employees with supervisory-level access, Lloyd's likely termination, and his behavior at work, it was up to the jury to assess the credibility of witnesses and choose between the government's and the defendant's view of the evidence. AOL's servers had served as a conduit for the virus, which was contained in a United States v. Thornton, 1 F.3d 149, 156 (3d Cir. Government witnesses testified at trial that they hoped this change in positions would cause Lloyd to improve his behavior, but it had the opposite effect and his interpersonal problems increased. One factor often considered by courts is the extent of the jury's exposure to the extraneous information. See Console, 13 F.3d at 667 (approving the district court's inquiry as to the identities of jurors exposed to the extraneous information); Waldorf, 3 F.3d at 711 (noticing that half of the jurors had been exposed to the allegedly prejudicial information). original message to alt.sex. 1991) (stating that " [i]n determining whether [the juror's] misconduct warrants a new trial, our inquiry is limited to the admissible portions of the declarations"). Yet, as this court stated in Waldorf, " [i]n some cases the publicity that occurs is so fundamentally prejudicial that actual prejudice is presumed as a matter of law. the insurgency in Mexico and its use of modern technology has led to what one whose phones the FBI and federal Drug Enforcement Agency were tapping. So, r/sysadmin, what's your take? at 601-602. An increasing number of companies are heeding concerns about that sort of sabotage. These tags helped Access Introduction to Computer Security 1st Edition Chapter 4.6 Problem 2R solution now. The Lloyd case was the first federal criminal prosecution of computer sabotage. Any file format is acceptable. The story was of "a virus that was believed to have been started in the Philippines, sent by e-mail all over the world which would cause an overload of various computer systems causing them damage, causing them to crash." In a denial-of-service attack, the target system is rendered inoperable. "P&v)>T\eSC,'
Whj^vz)9 file named "list.zip." them to the suspect's house. on Yahoo and the other companies were distributed denial-of-service at 571-572. However, the We need to deter others in this increasingly computerized world and economy. law defines as a computer that is used exclusively by the federal government or An employee in the human resources department at W.L. The Omega Engineering Logic Bomb An example of a logic bomb that was actually triggered and caused damage is one that programmer Tim Lloyd was convicted of using on his former employer, Omega Engineering Corporation. Yahoo took Indian population. 949 F.2d at 96 (also finding other factors significant, including the information's likely benefit to the defendant). Since leaving Omega, Mr. Kaigh said, his client has taken a similar job at a company near his home. Notably, there was only one question that was ever asked at trial that had anything to do with the theory of remote access. After considering the timing in both Gilsenan and Waldorf, we concluded in Console that extraneous information received by the jury was not prejudicial because "the jury deliberated for an additional two days" after it had been exposed to that information. message itself and the equipment used to post the message. Walsh objected, fearing that the removal of these programs from individual computers could cause the whole computer system to crash, yet Lloyd apparently remained steadfast in his position. What happened next was that Mr. Lloyd hid a ''bomb'' inside Omega's computer network, according to investigators with the United States Secret Service, which has had jurisdiction over such cases since 1986. External sites are not endorsed by CNN Interactive. In Gilsenan, we did not believe "that the allegedly prejudicial information could have had an impact on the verdict" where the jurors were exposed to that information at the outset of a six-week trial. Temperature Connectors, Panels and Block Assemblies, Temperature and Humidity and Dew Point Meters, High Accuracy Sanitary Pressure Transducers, Tuning Fork Sensors detect levels of liquids, Electronic Pressure Switch Display + Alarms, Wireless IIoT Smart Environmental Sensors, Web-based Environmental Monitoring and Recording, Sanitary, Rangeable, Pressure Transmitters with Display, 21CFR Compliant USB Data Loggers for Vaccines, Single use Cold Chain PDF Temperature Logger. The defense also contested the government's evidence regarding Lloyd's alleged "clean up" policy. Food applications require highly accurate sensing and data collection products to maintain a seamless process that is clean, properly monitored and compliant. Significantly, evidence that went unchallenged included: the string of commands found on the hard drive in Lloyd's home that was identical to that used in the program that purged the Omega network of all its files; the testimony that the "time bomb" had been tested three times previously and that on each occasion Lloyd had stayed late at the office; Lloyd's willingness to accept up to $12,000 less in a job with W.L. activists. monitor the hackers' activities. The defense further sought to refute the government's emphasis on the amount of Omega property recovered from Lloyd's home by pointing out that Lloyd often brought work home with him while employed at Omega, and that his supervisors knew this. Contact Us Alpha Omega Solutions, Inc. 1800 E. Lambert Rd. Olson as well testified on cross-examination that he came across two accounts that had supervisory access to the Omega network. John Bosanac got Contact M.R. In January 1998, Lloyd was indicted on two counts: (1) computer sabotage in violation of 18 U.S.C. Tim Lloyd, a 37-year-old network . Melissa virus, the internet was relatively free from swift-moving, highly Please verify your address. use FloodNet, a tool the group developed enabling users to overload web This court has applied the presumption of prejudice only when the extraneous information is of a considerably serious nature. at 552. running Omega's manufacturing operations. The Melissa virus, however, was rapacious; damages have On cross-examination, Inglin testified that he gained supervisory-level access to the Omega network from either Ferguson, DiFrancesco, or Jim Daniels, an Omega employee trained in Novell networks. released the internet's first worm. security experts dispute that claim, however. 1982). He contacted Lloyd and repeatedly asked Lloyd for any tapes that he had but Lloyd answered that he had none. Two former employees in the CNC Department, Wayne Tarr and Ed Swanfeld, testified that because they had backed up files onto floppy discs, their individual computers continued to operate after the network crash. On November 18, 1999, Carnegie Mellon's On July 31, 1996, all . in Bridgeport, New Jersey, logged on to a computer terminal. One of the defense witnesses, Richard McKee, who had helped Lloyd install the network, testified that the network was installed so that "anyone who logged onto it had [supervisory] rights." 1975). California, Oregon, New York, Florida, Canada, Switzerland, and Italy, the case Federal prosecutors believe that the programmer, Timothy A. Lloyd, intentionally destroyed computer files of his employer, Omega Engineering Inc. of Bridgeport, N.J., because he was upset over the loss of his job. approximately $1.85 million in business losses. Omega Engineering Corp. ("Omega") is a New Jersey- based manufacturer of highly specialized and sophisticated industrial process measurement devices and control equipment for, inter alia, the U.S. Navy and NASA. In order to submit an RFQ (Request for Quote) a 2-D drawing with dimensions and tolerances and a 3-D model are required. attacks aim to crash the system while other denial-of-service attacks make the The morning of July 31, 1996, the first worker in the door at Omega Engineering's manufacturing plant in Bridgeport, N.J., logged on to his computer and unwittingly detonated a software time bomb that systematically eradicated all the programs that ran the company's manufacturing operations. Id. On May 9, 2000, Timothy Lloyd was convicted of writing six lines of codeessentially, a code "bomb"that obliterated Omega Engineering Corporation's design and production programs. Concerned that Lloyd had too much control over Omega's network and that his termination would leave no one at Omega with access to the network, Ferguson testified that he asked Lloyd to give access to the file server to himself, Al DiFrancesco in Human Resources, and another employee, William Wall. Six weeks later the FBI's National Infrastructure . David L. Smith, 30 years old at the time, said he named the virus after an Omega Man: The Implosion of Tim Lloyd In document Tangled Web Tales of Digital Crime from the Shadows of Cyberspace pdf (Page 196-200) In the 2000 CSI/FBI survey, 28 respondents were able to quantify financial losses from incidents involving sabotage of data or networks for a total of $27,148,000. and agreed to causing nearly $80 million in damages. transactions originated, telecommunications employees in Russia helped U.S. 8:30 a.m. - 5:30 p.m. Friday (alternating weeks) 8:00 a.m. - 5:00 p.m. To maximize customer convenience, it is highly recommended that an appointment time be scheduled. The court repeatedly asked her to explain the actual effect this information had on her vote, but she provided conflicting answers. obtain the information he needed to commit the fraudulent transactions. at 907, the court projected her subjective reaction, which was, at best, ambiguous, onto the hypothetical average juror. launch the attack against the web sites. Both Hackett and Greg Olson, Ontrack's director of worldwide data recovery services whom the government describes as "the world's foremost expert in Novell networking," Br. database.". Traditionally, appellate courts give considerable deference to a district court's examination of the prejudicial effect of extraneous information on a jury's verdict. at 605. In discussing the "Love Bug" story in the District Court, the prosecutor accurately pointed out that "we are talking about a virus, we are not talking about a time bomb. Was he guilty? pled guilty to 56 charges, including mischief and illegal use of a computer Agreement went into effect, the Zapatista National Liberation Army declared the You already receive all suggested Justia Opinion Summary Newsletters. at 922. According to Inglin, " [s]omebody must have" had supervisory rights in order to log on. the Phonemasters keystrokes as they exchanged stolen credit card numbers. The jurors were individually polled and they each reaffirmed agreement with the verdict. 1984); United States v. Hillard, 701 F.2d 1052, 1064 (2d Cir. New comments cannot be posted and votes cannot be cast. a juvenile detention center. On Appeal from the United States District Court for the District of New Jersey District Judge: Hon. The defense also contested the government's assertion that Lloyd knew he would be fired and thus had a motive to commit the act of sabotage. In December 1999, Smith pleaded guilty to federal and App. While his lawyer likened Smith to a "graffiti A jury convicted Lloyd of computer sabotage in May 2000. On April 18, 2000, a juvenile in Canada, known online as "mafiaboy," was That was not the theory that the government advanced in this case and it therefore, seems to me, would follow that the average juror, having heard about the `love bug' and using that information, that's the key, and using that information, would place his or her vote upon an actual pedestal that was not presented to her by the government. We are talking about something that overloaded circuits in many of the companies, including the Pentagon. In 1996, Tim Lloyd, an 11-year employee of OMEGA and a network administrator within . Amazon.com, ZDNet.com, E*Trade, and Excite were taken down by DDoS attacks. However, in light of the significant dissimilarities between the "Love Bug" and the "time bomb," the court's conclusion that the average juror would "use" the information at all cannot be sustained. 1983); United States v. Bassler, 651 F.2d 600, 603 (8th Cir. In examining for prejudice, we must conduct "an objective analysis by considering the probable effect of the allegedly prejudicial information on a hypothetical average juror." at 956. One researcher traced the rise of "hacktivism"--the use of technology and had seen a news story about the "Love Letter" worm and its attendant havoc and Although this timing may suggest the likelihood of prejudice as in Waldorf, in fact, the jury had already deliberated for two days so it is reasonable to expect that the jurors were well-informed about the evidence set forth at trial and about the different theories of the case by the time they learned of the "Love Bug." William H. Walls (D.C. No. Corey Lindsly in Philadelphia, regarded as the mastermind, was sentenced to https://www.nytimes.com/1998/02/18/nyregion/man-charged-with-sabotage-of-computers.html. It didn't delete information." Such questioning clearly is impermissible under Rule 606(b), and when the District Court issued its order granting Lloyd's motion for a new trial it acknowledged that it "probably should not have asked [the juror] that question specifically." There have been numerous instances in which companies have alleged that employees who, like Mr. Lloyd, had been dismissed, not only damaged computer files, but leaked information about what was on the files to competitors. in internet chat rooms about the attacks and was tracked through traces he left Id. Citibank, tricking the company's computers into distributing an estimated $10 We were advised at argument that "fractured" in this context means that the jury was able to distinguish between the two counts, convicting on one and acquitting on the other. Timothy Lloyd, 30, of Wilmington, Delaware, was charged in US District Court with intentionally damaging a computer system maintained by his former employer, Omega Engineering Inc. Lloyd is . See Wilson v. Vermont Castings, Inc., 170 F.3d 391, 394 (3d Cir. Thus, it is unlikely that the average hypothetical juror would have been influenced by such unrelated information. He will be sentenced in April 2001, and could spend up to two years in Omega Engineering is a company providing sensing and connectivity solutions in the process measurement and control industry. App. Since Omega makes components for clients such as NASA and the U.S. Navy, those systems were the company's rainmakers. 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