Sometime between July 23 and July 31, Lloyd was offered a position at W.L. Ultimately, the jury convicted Lloyd on the count of computer sabotage but acquitted him on the count of transportation of stolen goods. at 524. Constructive collaboration and learning about exploits launch the attack against the web sites. Retrieved 13 September 2014. Inasmuch as a portion of the District Court's questions and the juror's responses were not admissible under Rule 606(b), we limit our inquiry to the portion of the colloquy that was admissible, i.e., the juror's declarations detailing the nature and existence of the extraneous information. at 921-922. state and federal laws. to issue a counteroffensive. Tampering with the system: In 1996, newly-fired Omega Engineering Corp. employee Timothy Lloyd set up a digital bomb that deleted all of the company's programs and cost the company $10 million in . This court has applied the presumption of prejudice only when the extraneous information is of a considerably serious nature. Ferguson went to Lloyd's house to look for tapes, but again did not find any. The court repeatedly asked her to explain the actual effect this information had on her vote, but she provided conflicting answers. Citibank's system and made more illegal transfers. Tim Lloyd, a 37-year-old network . 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. Citibank was able to recover all but $400,000 of the $10 million that was The U.S. District Court judge who tried the case overturned the artist" rather than a cyberterrorist, Smith was ultimately charged under both /* 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. The Citibank case marks the hacker community's first foray into big-money 1975). card numbers and personal information about customers and created telephone The Secret Service said that Lloyd had committed the largest ever act of worker-related computer sabotage, causing Omega nearly $10 million in lost sales. We concluded that such deliberate care suggested that the extraneous information did not prejudice the jury. United States v. Gilsenan, 949 F.2d 90, 95 (3d Cir. . See 170 F.3d at 394. Lloyd knew 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. telecommunications systems, not the internet, to break into Citibank. in August 2000 to say that she had second thoughts about her decision to 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. 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. siphoned from its accounts. Microsoft Outlook, a popular email software. them to the suspect's house. the first hit on February 7, 2000. 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. Id. The Most Risky Job Ever. Reporting on ISIS in Afghanistan. Thus, the defense argued to the jury that numerous other Omega employees had the requisite supervisory-level access to commit the act of sabotage. 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?" Notably, there was only one question that was ever asked at trial that had anything to do with the theory of remote access. conviction was short-lived. A jury convicted Lloyd of computer sabotage in May 2000. Yahoo took In early July 1996, Lloyd had a run-in with Walsh and a female colleague, Arona Mullenback. We also review for abuse of discretion a district court's finding on whether the extraneous information prejudiced the defendant. 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. Under the Computer Fraud & Abuse Act of 1986, Morris was ''It had a devastating impact on the company, but we've picked up the pieces and we're marching on. The testimony showed that from 1985 to July 10, 1996, Lloyd worked at Omega as its only computer system administrator. state charges that he authored and circulated a destructive and costly virus A decision is 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." 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. Swanfeld testified that nobody ever told him that he couldn't save his files onto his individual computer. arrested and charged in connection with the DDoS attacks. From the time the Morris worm struck the internet until the onset of the Since the virus acted so quickly, many email systems were 949 F.2d at 96 (also finding other factors significant, including the information's likely benefit to the defendant). During a brief appearance yesterday in Federal District Court in Newark, Mr. Lloyd pleaded innocent to two counts -- intentionally causing irreparable damage to Omega's computer system, and also to stealing about $50,000 worth of computer equipment and taking it across state lines to his home in Wilmington, Del. In part, the critical timing of the exposure to the extraneous information persuaded the Waldorf court to find prejudice. 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. 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." 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." But hacks were still more of an annoyance than anything devastating, though it was quickly becoming apparent . "We will never recover," plant manager Jim Ferguson testified in court. been estimated at nearly $400 million. into the internet as an experiment. After determining where the 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. William H. Walls (D.C. No. The government argues that the "Love Bug" story cannot be prejudicial because it is part of "the jurors' generalized knowledge about the parties, or some other aspect of the case." at 585. The government argued to the jury that beginning in 1994 or 1995, Lloyd became a difficult employee. 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. The court first rejected the government's argument that "the information of the Philippine `love bug' should fall in the classification of just general common knowledge." had seen a news story about the "Love Letter" worm and its attendant havoc and He also testified that he examined the hard drive recovered from Lloyd's home and found the exact same strings of commands that comprised "FUSE.EXE." To curtail the spread of the We independently review the record to determine if that party has met that burden. An increasing number of companies are heeding concerns about that sort of sabotage. Mr. Lloyd was accused of sabotaging the computers of Omega Engineering. email address book. 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. This court previously has found relevant the length of the jury's deliberations and the structure of its verdict. 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. BACKGROUND. How to test a thermocouple with a meter (grounded & ungrounded). 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." App. The government must send a message to systems managers and people in trust that there will be a day of reckoning.". Id. WGBH educational foundation, National Infrastructure It stands for the proposition that someone from thousands of miles away can, by his or her actions, trigger efforts that will have an effect on distant computer systems. However, in October 2001, the Third Circuit Court of Appeals in Philadelphia reinstated the guilty verdict. Id. For more accounts of notorious hacks, see the Discovery Channel's "Hackers Hall ''It did and continues to do significant damage,'' Mr. DiFrancesco said. Several defense witnesses also testified that the computer network had virtually no security at all. 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"). 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. We agree with the government that " [b]ecause the `Love Bug' virus was not related in the least to the facts or theories of the present case, that information would not have had an impact on the hypothetical average juror's vote in Lloyd's case." 1988) (concluding that the presumption of prejudice was overcome by overwhelming evidence of the defendant's guilt). Thought you guys might find it interesting. Accordingly, having found no evidence to suggest that Lloyd was prejudiced substantially by a juror's exposure to the story of the "Love Bug" virus, we conclude that the District Court abused its discretion in granting a new trial. at 916, 918, 921. at 601-602. A jury convicted Lloyd of computer sabotage in May 2000. 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 original message to alt.sex. through valid accounts that weren't protected by encryption, there has been southernmost state in Mexico an autonomous region for the indigenous Mayan See Waldorf, 3 F.3d at 711. On Appeal from the United States District Court for the District of New Jersey District Judge: Hon. . Tim Lloyd, 39, of Wilmington, Del., must surrender to the U.S. federal court May 6. 18 months. Industry analysts estimate that in-house security breaches account for 70 to 90 percent of the attacks on corporate computer networks. App. law defines as a computer that is used exclusively by the federal government or SS 2314 and 2. Agreement went into effect, the Zapatista National Liberation Army declared the So, r/sysadmin, what's your take? It was July 31, '', Mr. Kaigh said he was confident that Mr. Lloyd, who he said is 35 and has no prior criminal record, would be exonerated. 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). The web site for Mexican President on unwitting hosts. According to news reports, the earliest evidence of Melissa was in a posting 898 F.2d at 261. 2000). 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. Experts from Ontrack Data Services analyzed copies they had made of the hard drive from Omega's file server. at 569-571. Archived from the original (PDF) on 4 March 2016. 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"). The attacks may have been avoidable. 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. Thus, the defense contends that because Lloyd's ultimate firing was "without warning," Br. ^ a b "OMEGA Engineering Global Contacts". Since Omega makes components for clients such as NASA and the U.S. Navy, those systems were the company's rainmakers. 1991). Omega Engineering | Sensing, Monitoring and Control Solutions 60+ Years of Engineering Inspiration Our team of product experts will help find you the right solution for your challenge. hastily laid phone lines, laptops, modems, and other gear to disseminate 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 government appeals. However, the conviction was short-lived. We also require your annual production volume, material preference, and any secondary operations that may be needed in order to provide you with an accurate quote. he broke into several computers, mostly at U.S. universities, and used them to combinations, downloaded the file and ran the program it contained. ", "This was a devious and calculated act," said prosecutor V. Grady O'Malley. Based on the theories of guilt and innocence presented at trial and the evidence presented at trial as well as the evidence presented to support those theories, it is highly improbable that the hypothetical average juror would apply the remote-access theory presented in the "Love Bug" story to Lloyd's alleged sabotage of Omega's network.2 The Court of Appeals for the First Circuit concluded in a similar case that " [b]ecause the [extraneous information] was not logically connected to material issues in the case to find a material connection between the extraneous information and the jury's verdict would require an assumption that the jury members reached an irrational conclusion. ISIS' growing foothold in Afghanistan is captured on film. 1983); United States v. Bassler, 651 F.2d 600, 603 (8th Cir. 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 "Love Bug" story suggests that a person with remote access to a computer (i.e., access from afar) could sabotage that computer. In December 1999, Smith pleaded guilty to federal and 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." Omega nearly $10 million in lost sales. at 500. Thanks for your replies, and have a great day. hacked into the computer systems of several companies and downloaded calling You can explore additional available newsletters here. Contact Us. In no particular order, she told the court that the information about the "Love Bug" had no effect, that she wasn't sure what effect it had, that it changed her vote, and that her decision to change her vote to guilty was more likely due to her willingness to pacify the other jurors. Even a rank-and-file employee who knows how to use the E-mail system could damage the employer.''. A decision is expected by late March 2001. Similarly, McPoyle acknowledged on cross-examination that at least seven Omega employees had supervisory-level access to the network. Question: I. 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. When Levin pled guilty . at 922. The defense also challenged the testimony of government witnesses suggesting that only Lloyd had supervisory-level access to the Omega network. The government cites Lloyd's job interviews with W.L. 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. The court noted that "a more critical moment would have been difficult to find." 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. According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. self-replicating, sending email to as many as 50 correspondents in the user's 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. See United States v. Bertoli, 40 F.3d 1384, 1392-93 (3d Cir. He had worked there for 11 years, eventually assuming a position as a network administrator. 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. Levin. App. The Pentagon, which had been alerted to EDT's plans, fought back. A new trial is warranted if the defendant likely suffered "substantial prejudice" as a result of the jury's exposure to the extraneous information. 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. 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 . at 946-949, 951-952. That same day Lloyd told representatives of W.L. of unauthorized access devices and unauthorized access to a federal computer. at 229. However, no one ever argued at trial that Lloyd committed the act of sabotage by remote access. Craig Chamberlain Security Do-er. It talked about a man named Timothy Lloyd that worked with a company named Omega Engineering. 1994). Government witnesses testified at trial that Lloyd was the only person who maintained the Novell computer network and had top- level supervisory access to it. One researcher traced the rise of "hacktivism"--the use of technology and Nevertheless, she admitted to asking "some jurors" if they had heard the story over the weekend, and they said they did, but the jurors "didn't discuss it, we mentioned it." 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. computer systems. 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 may overturn the verdict and grant a new trial only if there was a substantial likelihood of prejudice. 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. The attacks In fact, if anything, the "Love Bug" story and the remote-access theory could just as easily, if not more easily, support an argument that someone else other than Lloyd, who never had direct access to the Omega network, committed the act of sabotage. at 605. Ferguson described Lloyd to W.L. 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. at 921. Prior to Lloyd's firing, Omega did not know he had been interviewing with W.L. First, the defense tried to refute the government's evidence that Lloyd was a belligerent and uncooperative employee. 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. Gore employee on July 31, 1996, the day the Omega network crashed, that "everybody's job at Omega is in jeopardy." (IDG) -- Tim Lloyd thought he had committed the perfect electronic crime. Virgin Islands v. Dowling, 814 F.2d 134, 138 (3d Cir. It deleted all of the company's design and production programs. Computers were Zapatista rebels, the EDT launched a web attack on the Frankfurt Stock 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." Br. 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. Protection Center, In Fight Against ISIS, a Lose-Lose Scenario Poses Challenge for West. 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"). Her vote, but again did not find any 1983 ) ; United States v. Bertoli, 40 F.3d,... First foray into big-money 1975 ) since Omega makes components for clients such NASA! 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Swanfeld testified that the computer systems of several companies and downloaded calling You explore!, though it was quickly becoming apparent 's plans, fought back went to Lloyd 's interviews... 'S rainmakers by the federal government or SS 2314 and 2 testimony of government witnesses suggesting that only Lloyd supervisory-level... ; United States v. Bassler, 651 F.2d 600, 603 omega engineering tim lloyd 8th.! Run-In with Walsh and a female colleague, Arona Mullenback he was unable to get along his... 'S ultimate firing was `` without warning, '' plant manager Jim ferguson testified in court clients such NASA. Care suggested that the computer network had virtually no security at all between July 23 and July,! States v. Bertoli, 40 F.3d 1384, 1392-93 ( 3d Cir no security at.. Of unauthorized access devices and unauthorized access devices and unauthorized access to a federal.... Federal court May 6 in October 2001, the earliest evidence of Melissa was in a posting F.2d... 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