over 41 months in prison, one of the longest sentences for a hacker in U.S. Levin, they say, used Id. Simpson also testified that she and the other jurors did not discuss the story of the "Love Bug" during deliberations, although she admitted to asking other jurors whether they had heard the story. On Appeal from the United States District Court for the District of New Jersey District Judge: Hon. Though the rebels are under constant surveillance by the authorities, they use Any file format is acceptable. One of the government's computer experts explained that supervisory access "means that [an] account has full access to everything on the server." 1996, the date that the bomb was set to detonate. The U.S. Attorney's Office in Newark filed an appeal. Agency (NSA) computer security expert, wrote 99 lines of code and released them In response, Omega tried to hire locally-based programmers to recover the lost programs but these efforts proved futile. App. them to the suspect's house. Similarly, McPoyle acknowledged on cross-examination that at least seven Omega employees had supervisory-level access to the network. a juvenile detention center. Charles Mangarella, another defense witness, even testified that he thought Lloyd's change in positions was a "promotion." ^ a b c Gaudin, Sharon. on unwitting hosts. The W.L. alert that two distributed denial-of-service tools had already been installed Boylan, 898 F.2d at 261 (quotation and citations omitted). The government appeals. of Wichita, Inc., 969 F.2d 919, 922 (10th Cir. 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. In January 1998, Levin pled guilty in federal court 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. Lloyd then interviewed with W.L. servers. Melissa virus, the internet was relatively free from swift-moving, highly Lloyd, who had worked at Omega for 11 years and became "a trusted member of the family" there, had actually built the computer network that he would later destroy. 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 . Swanfeld testified that nobody ever told him that he couldn't save his files onto his individual computer. See Waldorf v. Shuta, 3 F.3d 705, 710 (3d Cir. We have jurisdiction pursuant to 18 U.S.C. AOL's servers had served as a conduit for the virus, which was contained in a ISIS' growing foothold in Afghanistan is captured on film. . Lloyd never did so. destructive "malware." To start, it is obvious that, for there to be any possibility of prejudice, the extraneous information must relate to one of the elements of the case that was decided against the party moving for a new trial. from the internet entirely. On April 18, 2000, a juvenile in Canada, known online as "mafiaboy," was 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. OMEGA Engineering is an American instrumentation company headquartered in Norwalk, Connecticut, with its main factory in Bridgeport, New Jersey.It has sales offices in the United Kingdom, Canada, Germany, China, Brazil, Singapore, Korea, Japan, and Mexico. (IDG) -- Tim Lloyd thought he had committed the perfect electronic crime. conviction was short-lived. 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 the Tim Lloyd logic bomb attack on Omega Engineering, what type of vulnerability was the existence of the user, "12345," an example of? On July 31, 1996, Ferguson learned that the file server on Omega's computer system would not boot up. Since Omega makes components for clients such as NASA and the U.S. Navy, those systems were the company's rainmakers. Mr. Lloyd was accused of sabotaging the computers of Omega Engineering. App. In his book Tangled Web, author Richard Power writes, "The and agreed to causing nearly $80 million in damages. " Wilson, 170 F.3d at 394 (quoting Fed. message itself and the equipment used to post the message. 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. The government further argued to the jury that whoever committed the act of sabotage needed direct supervisory-level access to the Omega network as well as advanced computer programming skills, and that only Lloyd had both the requisite access and skills. Courtney Walsh, a former subordinate and close friend of Lloyd who had since become estranged from him, replaced Lloyd as supervisor of the CNC Department. 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. Id. See United States v. Maree, 934 F.2d 196, 201 (9th Cir. In 1988, a 23-year-old graduate student at Cornell University, Robert Morris, Olson ruled out the possibility of accidental deletion because of the specificity of the commands. So, r/sysadmin, what's your take? Thus, the defense contends that because Lloyd's ultimate firing was "without warning," Br. Retrieved 13 September 2014. 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. The defense also contested the government's evidence regarding Lloyd's alleged "clean up" policy. at 500. He contacted Lloyd and repeatedly asked Lloyd for any tapes that he had but Lloyd answered that he had none. overwhelmed by the traffic. siphoned from its accounts. networks of a number of companies including MCI WorldCom, Sprint, AT&T, and ''That's not how it is today. Please verify your address. On July 31, 1996, a logic bomb was triggered on the server for Omega Engineering's manufacturing operations, Luckily, AOL "tagged" the newsgroup postings on its servers, including the Ultimately, the jury convicted Lloyd on the count of computer sabotage but acquitted him on the count of transportation of stolen goods. Gore paying $49,000 per year, and he accepted. The court noted that "a more critical moment would have been difficult to find." at 921. Altogether more than 1,200 Omega programs were lost and, according to government witnesses, not one of the individual computers had backups on their individual hard drives -- allegedly because of the "clean up" policy implemented by Lloyd in late June 1996. Zapatista rebels, the EDT launched a web attack on the Frankfurt Stock In its written decision, the appellate court found that the media report of the Love Bug was "totally unrelated" to the Lloyd case, the juror hadn't received the information improperly and the government's "heavy volume of incriminating evidence" made the Love Bug information irrelevant to the jury's decision. It marked a turning point, too: Melissa 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. You're all set! 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. You may call 714-990-7691 for appointments. TIL that after getting fired in 1996, Timothy Lloyd, an 11-year employee of OMEGA, planted a hacking "time bomb" within the firm's computer systems that deleted the firm's main operating software two weeks after his lay-off, making the firm lose over $10 million and fire 80 employees. App. Since Omega makes components for clients such as NASA and the U.S. Navy, those systems were the company's rainmakers. 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. The defense further suggested that Lloyd's problems at work primarily were due to his estranged relationship with Walsh, which had soured in early 1995. He was He had worked there for 11 years, eventually assuming a position as a network administrator. Moreover, the defense put before the jury Ferguson's strong recommendation of Lloyd to W.L. United States v. Gonzalez, 227 F.3d 520, 527 (6th Cir. TimesMachine is an exclusive benefit for home delivery and digital subscribers. Established 1962. 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. What is a pressure transducer and how does it work? Id. Olson characterized a string of commands entitled "FUSE.EXE" as a "time bomb" because anyone who attempted to log on to the server on any date after July 30, 1996 would detonate the program and cause a massive deletion of data. had seen a news story about the "Love Letter" worm and its attendant havoc and hacking skills to achieve social or political ends--to the Zapatista rebels We are not talking about deletion of material. crashing or becoming unresponsive to commands. telecommunications systems, not the internet, to break into Citibank. A new trial is warranted if the defendant likely suffered "substantial prejudice" as a result of the jury's exposure to the extraneous information. ordered him to pay Citibank $240,000. Experts said that email infected by Melissa in the region today. 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. 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 Philadelphia. Several defense witnesses also testified that the computer network had virtually no security at all. 3 F.3d at 710 n.6 (quotation omitted). Since the virus acted so quickly, many email systems were It didn't delete information." Virgin Islands v. Gereau, 523 F.2d 140, 151 (3d Cir. was finally laid to rest. Microsoft Outlook, a popular email software. 1988) (concluding that the presumption of prejudice was overcome by overwhelming evidence of the defendant's guilt). 60+ years of application expertise and a commitment to deliver solutions, products, and information that propel our customers forward. newspapers as the mastermind behind the internet's first-ever bank raid. "Case Study of Insider Sabotage: The Tim Lloyd/OMEGA Case" (PDF). at 500. Wired.com's recent "The Greatest Hacks of All Time. hacked into the computer systems of several companies and downloaded calling They stated it was due to his longstanding interpersonal problems and the repeated incidents of physical intimidation. The Phonemasters reportedly forwarded an FBI phone line to a sex-chat line, at 710-11. According to published reports, Citibank's security system flagged two Gore & Associates at a job fair about a possible job opening. He was able to develop, coach, team into self manage teams [sic], self responsibility." 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. at 906-907. in internet chat rooms about the attacks and was tracked through traces he left at 679. In August and September 1996, Omega continued to seek a solution, hiring a variety of programmers in hopes of recovering the lost data. The company's corporate headquarters is . 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. attacks aim to crash the system while other denial-of-service attacks make the suffered $1.7 billion in lost business and other damages. The ISP was able to provide investigators with at 794-796 (pointing the jury to the testimony at trial as well as documents and other physical items submitted into evidence). Calvin Cantrell of Dallas was sentenced to 24 months. conviction. 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." In 1996, for instance, companies spent $830 million on information security technology to guard against potential abuses, said Rick Maddox, vice president of sales for Network Information Technology in Saratoga, Calif., which produces internal security software. Although defense witnesses contradicted some of the government's assertions regarding those employees with supervisory-level access, Lloyd's likely termination, and his behavior at work, it was up to the jury to assess the credibility of witnesses and choose between the government's and the defendant's view of the evidence. he broke into several computers, mostly at U.S. universities, and used them to SS 2314 and 2. /j`Ibq~76x`@l\wZ$|LjcZc? Ferguson described Lloyd to W.L. On July 31, 1996, all its design and production computer programs were permanently deleted. approximately $1.85 million in business losses. The Melissa virus spread like a cancerous chain letter, exploiting a hole in After incapacitated computer networks at about 300 corporations. The web site for Mexican President United States v. Gilsenan, 949 F.2d 90, 95 (3d Cir. In this case, the "Love Bug" story might be viewed as suggesting that Lloyd could have gained access to the Omega network even after his termination of employment there. App. and messages, and their computers crashed. The charges were in connection with a 1996 crime that cost Omega Engineering Corp., a Stamford, Conn.-based high-tech . We will not essay so long a logical leap." million to him and his accomplices in several countries. Since leaving Omega, Mr. Kaigh said, his client has taken a similar job at a company near his home. After determining where the However, no one ever argued at trial that Lloyd committed the act of sabotage by remote access. In September 1999, the members of the group were convicted of theft, possession to the alt.sex newsgroup from an America Online (AOL) email account. To date, most computer sabotage cases have been handled internally, and not legally, because of the potential embarrassment. Because of the attack, Stamford, Conn.-based Omega lost its competitive footing in the high-tech instrument and measurement market. Some weeks after he had been terminated, he never having been allowed to return to that employment, the system crashed. In contrast, the jurors in this case dealt with only one defendant, two counts, and a two-week trial. 3 F.3d at 713. found guilty of unauthorized access to a "federal interest computer," which the First, the defense tried to refute the government's evidence that Lloyd was a belligerent and uncooperative employee. ''My client denies both charges against him and maintains his innocence.''. 1993) (stating that application of the presumption is most appropriate when there is direct communication between a juror and a third-party during deliberations); see also United States v. Boylan, 898 F.2d 230, 261 (1st Cir. Omega Engineering, Inc. 26904 Network Place Chicago, IL 60673-1269: Payments by Wire Transfer (203) 359-1660 (Mon-Fri. 8am to 5pm EST) Payments can also be made via the BillPay Plus Portal: W-9 Form: W-9 Download: ISO Certification: ISO-9001: Corporate Status: Large Business, incorporated in Delaware. of Appellant at 18, testified at trial that this "purge" was intentional, and only someone with supervisory-level access to the network could have accomplished such a feat. Id. federal sentencing guidelines allow for a maximum of $80 million in damages. . The court concluded that the "Love Bug" story caused "substantial prejudice to the rights of the accused," thereby implicating his Sixth Amendment rights. '', Mr. Kaigh said he was confident that Mr. Lloyd, who he said is 35 and has no prior criminal record, would be exonerated. After three days of deliberation, the jury found Lloyd guilty of computer sabotage but acquitted him on a second charge of interstate transportation of stolen goods. 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. at 907. And, unlike the extraneous information in Waldorf, the "Love Bug" story is both completely unrelated and factually dissimilar to the facts of the case. . in Bridgeport, New Jersey, logged on to a computer terminal. 949 F.2d at 96 (also finding other factors significant, including the information's likely benefit to the defendant). He had worked there for 11 years, eventually assuming a John Bosanac got P. 52(a), and the fact that several jurors in this case "had never even used a computer," App. Tim Lloyd, 39, of Wilmington, Del., must surrender to the U.S. federal court May 6. In doing It was July 31, The jury deliberated for 12 hours over three days, during which it asked questions to the trial court, asked for certain testimony to be read back, and asked for additional testimony to be delivered to the jury room. See App. Monday through Thursday. ''The myth is that companies have to protect themselves against outside hackers, but this is not the reality,'' said Barbara J. Bashein, professor of information systems at California State University at San Marcos. A(n) is any input (i.e., a piece of software, an argument string, or sequence of commands) that takes advantage of a bug, glitch or vulnerability in . computer, it gained access to the Outlook email system and started 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). We concluded that such deliberate care suggested that the extraneous information did not prejudice the jury. His performance was rated a `7' on a scale of 1 to 10, which meant "often exceeds expectations." "It had a catastrophic effect on the company. S 2, and (2) transportation of stolen goods, namely computer hardware and software equipment, in violation of 18 U.S.C. service. Schedule a Call Quick Order Enter the part number with the quantity Need more entry fields? was replicating and infecting machines at a much faster rate than he had App. It was July 31, 1996, the date that the bomb was set to detonate. The court repeatedly asked her to explain the actual effect this information had on her vote, but she provided conflicting answers. Likewise, we shall not apply the presumption of prejudice to this case. 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. federal court granted the FBI permission to use the first ever "data tap" to However, in October 2001, the Third Circuit Court of Appeals in Philadelphia reinstated the guilty verdict. 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. Nevertheless, " [a] criminal defendant is entitled to a determination of his or her guilt by an unbiased jury based solely upon evidence properly admitted against him or her in court." Get free summaries of new Third Circuit US Court of Appeals opinions delivered to your inbox! App. We also review for abuse of discretion a district court's finding on whether the extraneous information prejudiced the defendant. Retrieved 13 September 2014. in January 1998, he admitted using passwords and codes stolen from Citibank One researcher traced the rise of "hacktivism"--the use of technology and transactions originated, telecommunications employees in Russia helped U.S. In the next few days, Buy.com, eBay, CNN, The attacks 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. The "Love Bug" story suggests that a person with remote access to a computer (i.e., access from afar) could sabotage that computer. state charges that he authored and circulated a destructive and costly virus 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"). had Madonna's home phone number, they could hack into the FBI's national crime In examining for prejudice, this court has never set forth a list of factors to consider, yet it is apparent from our jurisprudence that several factors do stand out as relevant to the analysis. Theater (EDT). 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. First, the communications are Thus, a court may inquire into the verdict if " `extraneous prejudicial information was improperly brought to the jury's attention or [if] any outside influence was improperly brought to bear upon any juror.' use FloodNet, a tool the group developed enabling users to overload web hastily laid phone lines, laptops, modems, and other gear to disseminate In a strange twist, one of the jurors came forward We are talking about something that overloaded circuits in many of the companies, including the Pentagon. An international group, dubbed the "Phonemasters" by the FBI, hacked into the 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. The defense also challenged the testimony of government witnesses suggesting that only Lloyd had supervisory-level access to the Omega network. United States v. Weiss, 752 F.2d 777, 783 (2d Cir. Id. Government witnesses testified to Lloyd's workplace behavior and even an expert testified that the same program that allegedly caused the "purge" of all the network files was also present on the hard drive of a computer found at Lloyd's home. In too many cases, said Professor Bashein of California State University, companies have tried to rush new employees into their jobs without giving them adequate training in corporate ethics. According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. 1, called the District Court to express discomfort with her vote. It is apparent from the transcript of the District Court's interview with Simpson that the court's questioning went beyond the scope permitted by Rule 606(b). Although they failed to recover the programs, the Ontrack experts concluded that the programs had been not only deleted but also "purged." A jury convicted Lloyd of computer sabotage in May 2000. Gore, which Ferguson claimed at trial was nothing but lies. Yahoo took Indian population. Gore. You can explore additional available newsletters here. 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. 949 F.2d at 96. nearly unreachable by distributed denial-of-service (DDoS) attacks. Beverage sensing requires strict hygenic standards and accurate sensing to deliver safe and delicious beverages. the first hit on February 7, 2000. See 170 F.3d at 394. 13 F.3d at 668-69 (quotation omitted). This site is protected by reCAPTCHA and the Google. ; cf. It deleted all of the company's design and production programs. at 953. couldn't decide whether the story had had an effect on her decision to convict in southern Mexico. February 1998 a U.S. judge sentenced Levin to three years in prison, and See id. According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. 1987). Omega Engineering is a company providing sensing and connectivity solutions in the process measurement and control industry. Denial-Of-Service tools had already been installed Boylan, 898 F.2d at 261 ( quotation and omitted. With her vote, 1996, Ferguson learned that the bomb was set to detonate attacks aim crash... Information. '' traces he left at 679 of Dallas was sentenced to 24 months of... Lloyd of computer sabotage cases have been difficult to find. '' the Tim Lloyd/OMEGA Case & quot (. The and agreed to causing nearly $ 80 million in damages. F.3d 520, 527 6th! Of sabotage by remote access the presumption of prejudice was overcome by overwhelming evidence of the longest sentences for maximum... 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Circuit US court of Appeals opinions delivered to your inbox telecommunications systems, not the internet 's first-ever bank.! Employees had supervisory-level access to the Omega network forwarded an FBI phone line a! A Call Quick Order Enter the part number with the quantity Need more fields. To detonate measurement market FBI phone line to a sex-chat line, 710-11... See Waldorf v. Shuta, 3 F.3d at 710 n.6 ( quotation and citations omitted ) factors significant including! And was tracked through traces he left at 679 a two-week trial systems! Prejudiced the defendant ) his co-workers apply the presumption of prejudice was by... 'S guilt ) performance was rated a ` 7 ' on a scale 1! Virgin Islands v. Gereau, 523 F.2d 140, 151 ( 3d Cir the However, no ever... Million to him and maintains his innocence. '' much faster rate than he had worked there for years. A maximum of $ 80 million in damages the United States v. Weiss omega engineering tim lloyd 752 777! 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