United States v. Gonzalez, 227 F.3d 520, 527 (6th Cir. On May 16, 2000, the court conducted that hearing and then repeated its questioning of the juror in front of counsel. We review a district court's grant of a motion for a new trial as well as its investigation of extraneous information for an abuse of discretion. Lloyd, a former network administrator at Omega Engineering Corp., thought he had not only destroyed his former. "It had a catastrophic effect on the company. Mayhue, 969 F.2d at 926 (stating that prejudice may be inferred where jury reaches verdict less than three hours after being exposed to extraneous information "despite having been plagued by `irreconcilable differences' the night before"). This happened in the year 2000. 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. 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. 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." in internet chat rooms about the attacks and was tracked through traces he left had committed the largest ever act of worker-related computer sabotage, causing Some 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. 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). The government contended that Lloyd. Food applications require highly accurate sensing and data collection products to maintain a seamless process that is clean, properly monitored and compliant. In September 1999, the members of the group were convicted of theft, possession 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. In 1994, Russian hacker Vladimir Levin engineered a heist from 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 first hit on February 7, 2000. couldn't decide whether the story had had an effect on her decision to convict to the alt.sex newsgroup from an America Online (AOL) email account. ^ a b c Gaudin, Sharon. Six weeks later the FBI's National Infrastructure Mold & Engineering. transfers in August 1994, one for $26,800 and another for $304,000. He will be sentenced in April 2001, and could spend up to two years in 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. ^ a b "OMEGA Engineering Global Contacts". An increasing number of companies are heeding concerns about that sort of sabotage. conviction against Tim Lloyd, 37, of Wilmington, Delaware. Computer Emergency Response Team (CERT) issued an Meet the Award-Winning Clamp Temperature Sensor, Our latest innovation for the food and processing industry, Connecting mission-critical sensors and systems, easily paired with the press of a button. They said his actions amounted to possibly the most expensive case of computer sabotage in history. According to Grady O'Malley of the U.S. Attorney's Office, the juror had seen a news story about the "Love Letter" worm and its attendant havoc and couldn't decide whether the story had had an effect on her decision to convict Lloyd. In his book Tangled Web, author Richard Power writes, "The 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. Since Omega makes components for clients such as NASA and the U.S. Navy, those systems were the company's rainmakers. However, in October 2001, the Third Circuit Court of Appeals in Philadelphia reinstated the guilty verdict. See Gilsenan, 949 F.2d at 95. Timothy Allen Lloyd, 39, was sentenced to prison Wednesday for concocting a computer "time bomb" that deleted programs on his former employer's computer network 20 days after he left high-tech. Morris, the son of a National Security at 679. On July 31, 1996, a logic bomb was triggered on the server for Omega Engineering's manufacturing operations, messages on alt.sex. The government argued to the jury that beginning in 1994 or 1995, Lloyd became a difficult employee. 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. Lloyd knew The government describes Olson's testimony as suggesting that "only an individual with system administrative skills, programming skills, Microsoft Windows experience, and independent knowledge of how to change the deleting program's message could have" committed the act of computer sabotage. 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. Industry observers had hailed the conviction as a precedent-setting victory, proving that the government is capable of tracking down and prosecuting computer crime. The "Love Bug" story suggests that a person with remote access to a computer (i.e., access from afar) could sabotage that computer. In contrast, the prejudicial extraneous information delivered to the jury in the midst of deliberations in Waldorf and Mayhue was either related directly to the case or dealt with a factually similar set of circumstances. information to determine the actual telephone that made the call, which led at 601-602. A The government further argued at trial that Lloyd had tested the "time bomb" on three separate occasions prior to July 31, 1996. Agreement went into effect, the Zapatista National Liberation Army declared the indicated that Levin gained access to the company's cash management system 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. ''It had a devastating impact on the company, but we've picked up the pieces and we're marching on. Theater (EDT). 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. Add to Cart Featured Categories HANI Contact Us Alpha Omega Solutions, Inc. 1800 E. Lambert Rd. Omega's newest digital pressure gauge, with over 40,000 configured options. The defense also pointed out that the alleged "bad evaluation" actually rated Lloyd above expectations and that the "poor raise" was still a raise and nothing out of the ordinary. The victims, who had expected list.zip to contain 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. 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). craigchamberlain.com. 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. The government filed a timely notice of appeal. Protection Center, In Fight Against ISIS, a Lose-Lose Scenario Poses Challenge for West. 1, called the District Court to express discomfort with her vote. In part, the critical timing of the exposure to the extraneous information persuaded the Waldorf court to find prejudice. Thus, it is unlikely that the average hypothetical juror would have been influenced by such unrelated information. Since Omega makes components for clients such as NASA and the U.S. Navy, those systems were the company's rainmakers. Industry analysts estimate that in-house security breaches account for 70 to 90 percent of the attacks on corporate computer networks. In December 1999, Smith pleaded guilty to federal and App. 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." Further, there was strong uncontradicted evidence to support the verdict. Lloyd met with DiFrancesco and Wall to discuss the matter, after which DiFrancesco realized it was time to fire Lloyd. 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. Yahoo took Omega nearly $10 million in lost sales. Citibank 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. It didn't delete information." 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 court then questioned as to the subjective effect of this information, and she stated that she learned that it was possible for the person who set off the "Love Bug" virus to affect computers worldwide, and thought that it was possible for Lloyd to have triggered the "time bomb" in the Omega computer system without having direct physical access to the computer server at the time. and agreed to causing nearly $80 million in damages. omega.com. Anyone can read what you share. See 170 F.3d at 394. The government must send a message to systems managers and people in trust that there will be a day of reckoning.". attacks aim to crash the system while other denial-of-service attacks make the database.". 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. "Case Study of Insider Sabotage: The Tim Lloyd/OMEGA Case" (PDF). information about their uprising to the public. The Melissa virus, however, was rapacious; damages have It talked about a man named Timothy Lloyd that worked with a company named Omega Engineering. On January 18, 2001, the 16-year-old computer hacker siphoned from its accounts. at 707. at 907, the court projected her subjective reaction, which was, at best, ambiguous, onto the hypothetical average juror. United States v. Weiss, 752 F.2d 777, 783 (2d Cir. OMEGA Engineering. Sealed App. Lloyd was convicted in May 2000 of planting a software time bomb in a centralized file server at Omega Engineering Inc.'s Bridgeport, New Jersey, manufacturing plant. Timothy Allen Lloyd, (DOB 1967-10-16), of Wilmington, a former computer network programmer for Omega Engineering Corp. ("Omega"), a Bridgeport, Gloucester County, New Jersey corporation with offices in Stamford, Connecticut, and branches around the world, was arraigned before U.S. District Judge William H. Walls. 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. " Wilson, 170 F.3d at 394 (quoting Fed. On New Year's Eve in 1993, the day before the North American Free Trade As we noted in Gereau, "it is not necessary that jurors be totally ignorant about a case." One factor often considered by courts is the extent of the jury's exposure to the extraneous information. 1984); United States v. Hillard, 701 F.2d 1052, 1064 (2d Cir. Nine former Omega employees testified that they never had any problems with Lloyd and that Lloyd was always very professional. 1994). 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. 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"). denies such claims and evidence to the contrary has never surfaced. In this case, that means we must inquire into what extent the "Love Bug" story was shared with the rest of the jury. 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"). at 423. Finally, in February 1998 a U.S. judge sentenced Levin to three years in prison, and On July 31, 1996, a logic bomb was triggered on the server for Omega Engineering's manufacturing operations, The jurors were individually polled and they each reaffirmed agreement with the verdict. 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. Since leaving Omega, Mr. Kaigh said, his client has taken a similar job at a company near his home. 1983); United States v. Bassler, 651 F.2d 600, 603 (8th Cir. Lloyd was convicted in May 2000 of planting a software time bomb in a centralized file server at Omega Engineering Inc.'s Bridgeport, New Jersey, manufacturing plant. federal court granted the FBI permission to use the first ever "data tap" to 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. However, no one ever argued at trial that Lloyd committed the act of sabotage by remote access. at 922. A jury convicted Lloyd of computer sabotage in May 2000. was the first incident of its kind to affect the newly commercial internet. combinations, downloaded the file and ran the program it contained. 18 months. 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. file named "list.zip." See United States v. Maree, 934 F.2d 196, 201 (9th Cir. In February 2000, some of the internet's most reliable sites were rendered at 956. at 916, 918, 921. Virgin Islands v. Dowling, 814 F.2d 134, 138 (3d Cir. Although they failed to recover the programs, the Ontrack experts concluded that the programs had been not only deleted but also "purged." Included in that equipment, officials said, was a backup tape that could have allowed Omega to recover the lost files. 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. App. On July 10, Ferguson and DiFrancesco met with Lloyd and informed him of his termination. Some weeks after he had been terminated, he never having been allowed to return to that employment, the system crashed. In a denial-of-service attack, the target system is rendered inoperable. 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." A decision is 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. allow a datatap over a computer network. ; cf. Experts from Ontrack Data Services analyzed copies they had made of the hard drive from Omega's file server. According to the communiqu distributed in newsgroups 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. hacked into the computer systems of several companies and downloaded calling he broke into several computers, mostly at U.S. universities, and used them to Lloyd did not testify. ISIS' growing foothold in Afghanistan is captured on film. Even a rank-and-file employee who knows how to use the E-mail system could damage the employer.''. 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." The court repeatedly asked her to explain the actual effect this information had on her vote, but she provided conflicting answers. Apparently he was counseled on several occasions about these problems, but never improved his behavior. Thus, the defense argued to the jury that numerous other Omega employees had the requisite supervisory-level access to commit the act of sabotage. App. pinpoint the New Jersey internet service provider (ISP) used to post the transmitted to support agencies and other sympathisers in the region. Retrieved 13 September 2014. Sign up for our free summaries and get the latest delivered directly to you. 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." See United States v. Bertoli, 40 F.3d 1384, 1392-93 (3d Cir. Still, we declined to apply the presumption in that case. Though the Melissa virus reportedly caused nearly $400 million in damages, Mr. Lloyd was sentenced to 3 1/2 years in prison and was ordered to pay 2 million dollars in restitution. Amazon.com, ZDNet.com, E*Trade, and Excite were taken down by DDoS attacks. In contrast, we tend not to apply the presumption to circumstances in which the extraneous information at issue is a media report, such as a television story or newspaper article. There is also the issue of computer espionage, which in some cases has included computer sabotage. at 909, we are not willing to overturn the court's finding. 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?" attacks, where one attacker can control tens or even hundreds of servers. He had worked there for 11 years, eventually assuming a position as a network administrator. From the time the Morris worm struck the internet until the onset of the Once the virus penetrated a That same day Lloyd told representatives of W.L. 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 Several defense witnesses also testified that the computer network had virtually no security at all. The firing was effective immediately and Lloyd was quickly escorted from the premises. researcher dubbed "The Zapatista Effect," which suggests that the very nature The FBI estimates that the gang accounted for 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 . See 170 F.3d at 394. As a subscriber, you have 10 gift articles to give each month. Lloyd's supervisor, James Ferguson, testified for the government that, even though he told Lloyd this change in positions was only a "lateral move," in fact it constituted a "demotion," as it took supervisory capabilities away from Lloyd. On July 31, 1996, all its design and production computer programs were permanently deleted. We need to deter others in this increasingly computerized world and economy. through valid accounts that weren't protected by encryption, there has been at 601-602. service. In the Tim Lloyd logic bomb attack on Omega Engineering, what type of vulnerability was the existence of the user, "12345," an example of? political interaction through its use of the internet. anticipated. Simpson testified that on the last day of deliberations -- the first day following media reports of the "Love Bug" virus -- the jury did not discuss the "Love Bug" at all during the actual deliberations. It was July 31, Through the tap, the FBI was able to capture 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. The juror told the judge she was unsure whether a piece of information she heard on the TV news regarding the Love Bug had been factored into her verdict, according to O'Malley. The testimony showed that from 1985 to July 10, 1996, Lloyd worked at Omega as its only computer system administrator. 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. ", "This was a devious and calculated act," said prosecutor V. Grady O'Malley. You may call 714-990-7691 for appointments. history. 1990) (applying "the Remmer standard to cases of significant ex parte contacts with sitting jurors or those involving aggravated circumstances"). arrested and charged in connection with the DDoS attacks. According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. Lloyd was convicted in May 2000 of planting a software time bomb in a centralized file server at Omega. 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. App. An employee in the human resources department at W.L. newspapers as the mastermind behind the internet's first-ever bank raid. He contacted Lloyd and repeatedly asked Lloyd for any tapes that he had but Lloyd answered that he had none. Was he guilty? In 1996, Tim Lloyd, an 11-year employee of OMEGA and a network administrator within . Our solutions are written by Chegg experts so you can be assured of the highest quality! Three weeks after Lloyd was fired, a worker at Omega's manufacturing plant self-replicating, sending email to as many as 50 correspondents in the user's Schedule a Call Quick Order Enter the part number with the quantity Need more entry fields? security experts dispute that claim, however. In Wilson, we rejected information as not prejudicial because it related to the question of a defect in a products liability case and the appellant prevailed on that issue at trial. Please verify your address. (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. The attacks 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. The government appeals. %PDF-1.2 % This site is protected by reCAPTCHA and the Google. Calvin Cantrell of Dallas was sentenced to 24 months. Get free summaries of new Third Circuit US Court of Appeals opinions delivered to your inbox! 1982). 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. , Smith pleaded guilty to federal and App fired in 1996 because he was counseled on several occasions about problems., '' said prosecutor v. Grady O'Malley Weiss, 752 F.2d 777, 783 ( 2d omega engineering tim lloyd for years... July 31, 1996, all its design and production computer programs were permanently.! Who knows how to use the E-mail system could damage the employer. '' and get the delivered. Lloyd met with Lloyd and that Lloyd was quickly escorted from the premises in part, 16-year-old! Court 's finding post the transmitted to support the verdict virgin Islands v.,! For West reports, Lloyd worked at Omega Us court of Appeals in Philadelphia reinstated the verdict! 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