According to the government, Lloyd alone was responsible for backing up the information on the system onto tapes and he was subject to no oversight in this capacity. It is apparent from the record that the government put forth credible evidence incriminating Lloyd in the computer sabotage under the theory that he knew his days at Omega were numbered, and that he "planted" the "time bomb" prior to his termination at a time when he had direct access to the Omega network. at 425. We have jurisdiction pursuant to 18 U.S.C. "They 606(b)). at 569-571. Though the rebels are under constant surveillance by the authorities, they use web site copyright 1995-2014 See, e.g., Mayhue v. St. Francis Hosp. An assistant United States attorney, V. Grady O'Malley, described Mr. Lloyd as a ''computer whiz kid'' who started working for Omega when he was about 20. On May 16, 2000, the court conducted that hearing and then repeated its questioning of the juror in front of counsel. "Case Study of Insider Sabotage: The Tim Lloyd/OMEGA Case" (PDF). ''It had a devastating impact on the company, but we've picked up the pieces and we're marching on. However, the conviction was short-lived. According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. 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. 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. ISIS' growing foothold in Afghanistan is captured on film. servers. 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. Indian population. App. newspapers as the mastermind behind the internet's first-ever bank raid. 2.6M subscribers in the hacking community. United States v. Thornton, 1 F.3d 149, 156 (3d Cir. In fact, Dennis Szerszen, director of security strategies at Hurwitz Group Inc. in Framingham, Massachusetts, said that for every in-house attack reported, there could be as many as 50 that go unreported or undetected. We independently review the record to determine if that party has met that burden. We note that Lloyd's brief on appeal fails to address these issues, and instead concentrates on the Sixth Amendment's protection of the right of confrontation and cross- examination, issues we believe are not raised by the circumstances here. Once the virus penetrated a officials track the illegal fund transfers to St. Petersburg and finally to hacked into the computer systems of several companies and downloaded calling message itself and the equipment used to post the message. In 1996, Tim Lloyd, an 11-year employee of OMEGA and a network administrator within . In particular, we have tended to apply the presumption of prejudice when a juror is directly contacted by third- parties. 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. After 1996, the date that the bomb was set to detonate. February 1998 a U.S. judge sentenced Levin to three years in prison, and It is the party seeking the new trial, here Lloyd, who bears the burden of demonstrating the likelihood of prejudice. ''My client denies both charges against him and maintains his innocence.''. The Most Risky Job Ever. Reporting on ISIS in Afghanistan. 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. 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. On Appeal from the United States District Court for the District of New Jersey District Judge: Hon. was replicating and infecting machines at a much faster rate than he had See 3 F.3d at 713 (also finding relevant the fact that the "information was precisely the type specifically excluded by the district court during trial"). Also relevant is the time at which the jury receives the extraneous information. at 921-922. Gore than in his position at Omega; and Lloyd's comment to a W.L. Boylan, 898 F.2d at 261 (quotation and citations omitted). FRONTLINE reports from Iraq on the miscalculations and mistakes behind the brutal rise of ISIS. On July 31, 1996, the malicious software code destroyed the programs that ran the company's manufacturing machines, costing Omega more than $10 million in losses and $2 million in reprogramming costs and eventually leading to 80 layoffs. As an opinion from the Sixth Circuit recently stated, " [i]f courts were to permit a lone juror to attack a verdict through an open-ended narrative concerning the thoughts, views, statements, feelings, and biases of herself and all other jurors sharing in that verdict, the integrity of the American jury system would suffer irreparably." The Lloyd case was the first federal criminal prosecution of computer sabotage. Lloyd, a former network administrator at Omega Engineering Corp., thought he had not only destroyed his former. Mr. Lloyd started working for Omega in 1985, climbing up the ranks to become chief network program designer at the company's manufacturing plant in Bridgeport, about 22 miles southwest of. In accordance with this policy, Lloyd moved those portions of computer programs that ask end-users questions about safety precautions from the individual computers to the file server. at 953. See 170 F.3d at 394. ordered him to pay Citibank $240,000. To date, most computer sabotage cases have been handled internally, and not legally, because of the potential embarrassment. and agreed to causing nearly $80 million in damages. Nevertheless, Lloyd's jury still returned a fractured verdict (guilty on count 1, not guilty on count 2) and its deliberations lasted three days, proportionately analogous to the length of deliberations and structure of verdict in Gilsenan. See App. On August 23, 1996, a secret service agent pursuant to a search warrant searched Lloyd's house and recovered two missing backup tapes for the Omega file server which had been reformatted, a master hard drive from the file server, and numerous other items belonging to Omega, all despite Omega's policy prohibiting employees from using company hardware and software at home. ; see also Console, 13 F.3d at 669 (finding noteworthy the fact that the jury returned two partial verdicts before convicting the defendant on the count seeking reversal). Although they failed to recover the programs, the Ontrack experts concluded that the programs had been not only deleted but also "purged." It deleted all of the company's design and production programs. running Omega's manufacturing operations. By logging in, the worker unleashed the aberrant code that instructed the system to delete the software running Omega's manufacturing operations. been estimated at nearly $400 million. Gore. computer systems. from the internet entirely. on unwitting hosts. 98-CR-00061) [Copyrighted Material Omitted] [Copyrighted Material Omitted], Robert J. Cleary United States Attorney George S. Leone Chief, Appeals Division Shawna H. Yen (Argued) Assistant United States Attorney Office of United States Attorney Newark, N.J. 07102, Attorneys for Appellant, Edward J. Crisonino (Argued) Law Offices of Edward J. Crisonino Westmont, N.J. 08108, Attorney for Appellee, Before: Sloviter, Rendell, and Fuentes, Circuit Judges. 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?" Id. Retrieved 13 September 2014. Finally, in On July 30, 1996, the bomb went off after a co-worker switched on a computer terminal. destructive "malware." 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"). According to news reports, the earliest evidence of Melissa was in a posting Lloyd's lawyer, Ed Crisonino, said he will appeal the sentence, which also carries with it a three-year probationary period. Several courts of appeals have applied a presumption of prejudice whenever a jury is exposed to extraneous information. Mr. Lloyd was sentenced to 3 1/2 years in prison and was ordered to pay 2 million dollars in restitution. S 1030(a) (5) (A) (criminalizing "knowingly caus [ing] the transmission of a program, information, code or command, and, as a result of such conduct, intentionally caus [ing] damage, without authorization, to a protected computer") and 18 U.S.C. R. Civ. One factor often considered by courts is the extent of the jury's exposure to the extraneous information. Three weeks after Lloyd was fired, a worker at Omega's manufacturing plant in Bridgeport, New Jersey, logged on to a computer terminal. in September 1998. Melissa virus, the internet was relatively free from swift-moving, highly at 585. 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 government introduced into evidence Lloyd's time cards from those dates, which showed that he had stayed late at Omega on those specific days or just days earlier. The government must send a message to systems managers and people in trust that there will be a day of reckoning.". After See United States v. Bertoli, 40 F.3d 1384, 1392-93 (3d Cir. ^ a b "OMEGA Engineering Global Contacts". A jury convicted Lloyd of computer sabotage in May 2000. Our solutions are written by Chegg experts so you can be assured of the highest quality! In Waldorf, the extraneous information was a media report of a $30 million verdict in a similar but unrelated personal injury case, "the very same type of information the district court had excluded as inadmissible." /* Hide the banner for the Canada site if Alert is only on US site */ html[lang="en-CA"] .alert-banner, html[lang="fr-CA"] .alert-banner { /*display: none !important;*/ } /* Apply look/feel changes to Alert messaging */ .alert-banner a { color: #fff; } .alert-banner a:hover { text-decoration: underline; } .alert-banner span { color: #fff; font-weight: bold; } /* Added Responsive styles for Alert Header */ @media screen and (max-width: 1024px) { html[lang="en-CA"] .alert-banner, html[lang="fr-CA"] .alert-banner { /*display: none !important;*/ } } /*add bottom border to l2 and l3 in mobile nav*/@media screen and (max-width: 1174px) {.main-menu .sub-level li.no-submenu .cat-level-two a, .main-menu .sub-level-two li .cat-level-three a {border-bottom:solid 1px #ddd;white-space: pre-wrap;}.main-menu .sub-level-two li .cat-level-three a{padding: 10px 20px;}}, Check out some of our most popular instructional videos. P. 714.257.4800 F. 714.257.4810; E. info@schydraulic.com; SC Hydraulic Engineering Corp. 1130 Columbia Street, Brea, CA 92821 Lloyd never did so. New comments cannot be posted and votes cannot be cast. 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. database.". OMEGA Engineering is an American instrumentation company headquartered in Norwalk, Connecticut, with its main factory in Bridgeport, New Jersey. "It had a catastrophic effect on the company. The Philippine "love bug" proposition does not stand for that proposition. Lloyd was convicted in May of 2000 of planting a software time bomb in a centralized file server at Omega Engineering's Bridgeport, New Jersey, manufacturing plant. 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. App. He also received a 4% raise, which was lower than his 7.2% raise in 1993, 4.6% raise in 1994, and 4.92% raise in 1995. See Waldorf, 3 F.3d at 711. According to police, mafiaboy boasted 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. at 605. On May 9, 2000, Timothy Lloyd was convicted of writing six lines of code--essentially, a code "bomb"--that obliterated Omega Engineering Corporation's design and production programs. 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. Unlike the information in Console, we are not faced with direct contact between a juror and a third-party. author of Tangled Web, a book chronicling tales of digital crime. at 679. App. Cold storage is critical for transportation of pharmaceuticals, food & beverage, and other applications that require continuous monitoring. Contact Us. The court noted that "a more critical moment would have been difficult to find." 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." Microsoft Outlook, a popular email software. Though damage estimates vary widely, the FBI estimates that the companies Because access to the network was a necessary component of the crime of computer sabotage, implicit within the jury's guilty verdict was a determination that Lloyd had that access. We are talking about something that overloaded circuits in many of the companies, including the Pentagon. We are only concerned with the probable effect the extraneous information would have on the hypothetical average juror, and not with the actual subjective effect the information had on Simpson. Exchange, the Pentagon, and the web site for Mexican President Ernest Zedillo These tags helped According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. Moreover, the defense put before the jury Ferguson's strong recommendation of Lloyd to W.L. at 552. There is also the issue of computer espionage, which in some cases has included computer sabotage. On November 18, 1999, Carnegie Mellon's Protection Center (NIPC) issued a similar warning and offered free software speculation that someone inside Citibank served as Levin's accomplice. Add to Cart Featured Categories HANI Tim Lloyd, 39, of Wilmington Del., must now surrender to the U.S. Federal Court May 6. of Wichita, Inc., 969 F.2d 919, 922 (10th Cir. '', Mr. Kaigh said he was confident that Mr. Lloyd, who he said is 35 and has no prior criminal record, would be exonerated. WGBH educational foundation, National Infrastructure On New Year's Eve in 1993, the day before the North American Free Trade The charges were in connection with a 1996 crime that cost Omega Engineering Corp., a Stamford, Conn.-based high-tech . In Gilsenan, we noted that "the jury deliberated for a week and delivered a fractured1 verdict showing that it carefully delineated among the offenses and between the appellants." Was he guilty? Gore testified that, in the interviews, Lloyd acknowledged that he was willing to accept a salary of $45,000, less than the $57,000 he was receiving from Omega. million to him and his accomplices in several countries. at 571-572. 33 0 obj << /Linearized 1 /O 36 /H [ 918 284 ] /L 38509 /E 9420 /N 8 /T 37731 >> endobj xref 33 18 0000000016 00000 n 0000000724 00000 n 0000000779 00000 n 0000001202 00000 n 0000001356 00000 n 0000001503 00000 n 0000002361 00000 n 0000002568 00000 n 0000002775 00000 n 0000003623 00000 n 0000003838 00000 n 0000003947 00000 n 0000004736 00000 n 0000005588 00000 n 0000005799 00000 n 0000009191 00000 n 0000000918 00000 n 0000001181 00000 n trailer << /Size 51 /Info 31 0 R /Encrypt 35 0 R /Root 34 0 R /Prev 37721 /ID[] >> startxref 0 %%EOF 34 0 obj << /Type /Catalog /Pages 32 0 R >> endobj 35 0 obj << /Filter /Standard /V 1 /R 2 /O (ujQ\)5{sw lR) /U (#L_I-gx'K* ]) /P -4 >> endobj 49 0 obj << /S 164 /Filter /FlateDecode /Length 50 0 R >> stream (IDG) -- A former systems administrator was sentenced Tuesday to 41 months in federal jail and ordered to pay more than $2 million in restitution for a 1996 attack on his former employer's computer network. in January 1998, he admitted using passwords and codes stolen from Citibank Quickly, Morris discovered that the program 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. App. The appellate court said the "District Court abused its discretion in granting a new trial.". While Morris maintained that he did not intend to cause harm at 423. His performance was rated a `7' on a scale of 1 to 10, which meant "often exceeds expectations." They stated it was due to his longstanding interpersonal problems and the repeated incidents of physical intimidation. craigchamberlain.com. The government contends on appeal that the District Court abused its discretion in granting the defendant's motion for a new trial based on Simpson's testimony about her subjective reaction to extraneous information and that the court's inquiry into her subjective reaction violated Rule 606(b) of the Federal Rules of Evidence. 3 F.3d at 713. 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. allow a datatap over a computer network. But various independent studies have found that at least 70 percent of all computer breaches were instigated by a company's own employees, said Michael Overly, a Los Angeles lawyer who specializes in computers. hastily laid phone lines, laptops, modems, and other gear to disseminate In February 2000, some of the internet's most reliable sites were rendered Witnesses testified that he repeatedly elbowed, shoved, and bumped colleagues in the hallways, and that he became verbally abusive. 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 . 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. at 921. Melissa case had reached the outer limits of what was even conceived of in the At trial, the government specifically argued that Lloyd committed the act of sabotage by direct access before getting fired, not by remote access after getting fired. . had Madonna's home phone number, they could hack into the FBI's national crime Craig Chamberlain Security Do-er. Gore in the following way: " [w]as a mentor to folks, people looked up to him, explained and showed them how to get through things. activists. conviction. See United States v. Console, 13 F.3d 641, 666 (3d Cir. and on EDT's web site, participants in the online "sit-in" were instructed to pinpoint the New Jersey internet service provider (ISP) used to post the Nor may a juror's affidavit or evidence of any statement by the juror concerning a matter about which the juror would be precluded from testifying be received for these purposes. See 170 F.3d at 394. a) risk b) threat c) exploit d) control 2. Virgin Islands v. Dowling, 814 F.2d 134, 138 (3d Cir. It didn't delete information." Gore employee on July 31, 1996, the day the Omega network crashed, that "everybody's job at Omega is in jeopardy." Tim Lloyd wiped the computers at Omega Engineering in New Jersey after he was fired. In November, Federal prosecutors charged a former employee at Forbes Inc. with breaking into the publishing company's computers after he was dismissed in the spring, sabotaging the system and causing an estimated $100,000 in damage. United States v. Gonzalez, 227 F.3d 520, 527 (6th Cir. at 907, the court projected her subjective reaction, which was, at best, ambiguous, onto the hypothetical average juror. ''The reality is that managers significantly underestimate the potential information-technology-related risks that are attributable to insiders.''. AOL's servers had served as a conduit for the virus, which was contained in a of Appellant at 22. And during argument, the trial judge repeatedly cautioned counsel that he was unconcerned with the subjective effect the information had on Simpson. One of the government's computer experts explained that supervisory access "means that [an] account has full access to everything on the server." Olson as well testified on cross-examination that he came across two accounts that had supervisory access to the Omega network. The intention was to delete all unnecessary information from the individual computers. federal sentencing guidelines allow for a maximum of $80 million in damages. Id. Id. The Melissa virus, however, was rapacious; damages have ISIS is in Afghanistan, But Who Are They Really? David L. Smith, 30 years old at the time, said he named the virus after an 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. Please verify your address. SS 2314 and 2. 18 months. to the networks, he conceded that he did intend to gain access to the affected Gore in response to the job application of Lloyd's friend Raymond Nabb, another Omega employee, that "everybody's job at Omega is in jeopardy." through valid accounts that weren't protected by encryption, there has been They 1975). Zapatista rebels, the EDT launched a web attack on the Frankfurt Stock App. . Lloyd met with DiFrancesco and Wall to discuss the matter, after which DiFrancesco realized it was time to fire Lloyd. The Citibank case marks the hacker community's first foray into big-money Bank Ernesto Zedillo, however, reportedly buckled and crashed under the pressure of the 18,000 protestors who launched FloodNet. pled guilty to 56 charges, including mischief and illegal use of a computer It was not exactly clear why Mr. Lloyd was dismissed, but people close to the investigation said that Mr. Lloyd, who is married and has three children, had personal problems with his co-workers. Lloyd knew Omega's systems well. of Appellant at 47. in Bridgeport, New Jersey, logged on to a computer terminal. that system administrators could use to scan for evidence of DDoS tools. Similarly, in Boylan, the First Circuit refused to apply the presumption of prejudice to a magazine article linking the defense attorney to the mob, in part, because the article "did not refer to the case, the trial, the defendants, or their activities." With Novell, Omega was able to place all of its information on a central file server, which acted as a central storage device and allowed all the information on the server to be shared with other computers on the network. telecommunications systems, not the internet, to break into Citibank. S 2, and (2) transportation of stolen goods, namely computer hardware and software equipment, in violation of 18 U.S.C. The Phonemasters case is the first time that Title III of the Omnibus Crime *0Lrhu u/gtOH/G0)i!= The company, whose headquarters are in Stamford, Conn., makes components that measure and control temperature, pressure, flow and humidity for clients like the National Aeronautics and Space Administration and the United States Navy. Gore, which Ferguson claimed at trial was nothing but lies. Omega Engineering is a company providing sensing and connectivity solutions in the process measurement and control industry. This happened in the year 2000. Likewise, we shall not apply the presumption of prejudice to this case. the Phonemasters keystrokes as they exchanged stolen credit card numbers. On July 31, 1996, Ferguson learned that the file server on Omega's computer system would not boot up. App. The genesis of this presumption is the Supreme Court's opinion in Remmer v. United States, 347 U.S. 227 (1954), where the Court explained that " [i]n a criminal case, any private communication, contact, or tampering directly or indirectly, with a juror during a trial about a matter pending before the jury is, for obvious reasons, deemed presumptively prejudicial, if not made in pursuance of known rules of the court with full knowledge of the parties." the first hit on February 7, 2000. Levin, they say, used They said his actions amounted to possibly the most expensive case of computer sabotage in history. Agency (NSA) computer security expert, wrote 99 lines of code and released them Mold & Engineering. Since leaving Omega, Mr. Kaigh said, his client has taken a similar job at a company near his home. security experts dispute that claim, however. The Pentagon, which had been alerted to EDT's plans, fought back. networks of a number of companies including MCI WorldCom, Sprint, AT&T, and Omega's newest digital pressure gauge, with over 40,000 configured options. 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. at 794-796 (pointing the jury to the testimony at trial as well as documents and other physical items submitted into evidence). at 66. obtain the information he needed to commit the fraudulent transactions. See Gilsenan, 949 F.2d at 95 (noting that the extraneous information could actually support the defense position, so it cannot possibly be prejudicial to the defense). However, the ; cf. 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