C&P From Today's L.A. Times

[thepoet]

"17 Charged in Satellite TV Case
By BARBARA WHITAKER


LOS ANGELES, Feb. 11 — Seventeen people have been charged with developing technology used to steal millions of dollars in satellite television service. The charges culminated a yearlong federal investigation into the underground world of computer hackers, the authorities announced today.

One key defendant, Randyl Walter, 43, pleaded guilty to manufacturing satellite decryption devices, admitting responsibility for nearly $15 million in losses to satellite companies like Dish Network and DirecTV. He faces fines up to $500,000 and a maximum of five years in prison. Nine other defendants have also agreed to plead guilty to charges related to significant losses by the companies.

Six of the remaining defendants have been charged in grand jury indictments and another was charged in a criminal complaint. Five defendants were taken into custody today.

Authorities said they focused their investigation, dubbed Operation Decrypt, at high-level hackers and manufacturers by infiltrating secret online chat rooms where hackers developed technology to steal satellite programming. The technology was sold to users, often over the Internet.

Those charged include software writers and manufacturers who developed programs and equipment to crack the scrambled signals designed to limit satellite TV services to paying customers. Among the devices being manipulated by the hackers were "smart cards," typically used by companies such as DISH and DirecTV.

Authorities noted that smart cards are increasingly used in everyday commerce, particularly in Europe. The cards used by DirecTV and Dish are considered among the most sophisticated conditional access products in the world, said Assistant United States Attorney James W. Spertus, who worked on the case.

'The people who can hack that type of smart card can hack any type of smart card,' Mr. Spertus said. 'It's a big concern because smart cards are becoming more and more important to commerce.'

Six of the defendants are charged with violating the criminal antidecryption provisions of the Digital Millennium Copyright Act. It is only the second time in the nation a grand jury has issued an indictment under the statute.

Those charged range in age from 19 to 52 and come from across the country.

'The hacking community should understand from this announcement we've infiltrated their chat rooms and Web sites, and we are identifying targets and bringing charges when appropriate,' Mr. Spertus said.

'No matter how sophisticated the criminals are, we will uncover the devices they create and the strategies they use to steal the lifeblood of the business community,' said Debra W. Yang, United States Attorney for the Central District of California."

[thegeek50]

These names are being thrown around

Sxxxxx Txxxxxx - Thor33
Rxxxxx Wxxxx - GizmoBob
Jxxxx Hxxxx- VMU
Exxxxx Vxxxxxxx- Skeezer
Mxxxxxx Wxxxxxx- JungleMike
Pxxxx Dxxxxx- Mpik
Lxxxx Lxxx - CyberV
Rxxxxx Sxxxxxx- Superhunky
Dxxxxx Wxxxxx - aol6945
Cxxxx Hxxxxx - Mahadri/Maxheadroom

[Salty Jizm]

Originally posted by thegeek50
These names are being thrown around

Sxxxxx Txxxxxx - Thor33
Rxxxxx Wxxxx - GizmoBob
Jxxxx Hxxxx- VMU
Exxxxx Vxxxxxxx- Skeezer
Mxxxxxx Wxxxxxx- JungleMike
Pxxxx Dxxxxx- Mpik
Lxxxx Lxxx - CyberV
Rxxxxx Sxxxxxx- Superhunky
Dxxxxx Wxxxxx - aol6945
Cxxxx Hxxxxx - Mahadri/Maxheadroom

They are feeding on the top of the food chain. I hope there are errors in that list!

[crzywhtboy]

:eek:


crzy

[thegeek50]

February 11, 2003
FBI, DOJ Crack Satellite Piracy Ring internetnews.com.


Five people were taken into custody by the FBI Tuesday morning as part of a complex sting operation. The bureau's Computer Crimes Section in the Central District of California, said it targeted hackers allegedly developing and distributing software and hardware for pirating satellite television signals.

Tuesday's arrests bring the operation's total tally to 17 people across 7 states, with a number of the accused indicted for violating the anti-decryption provisions of the Digital Millennium Copyright Act (DMCA) (define).

The indictments mark the first time the controversial DMCA has been used in the Central District of California, and only the second time that a grand jury in the U.S. has issued an indictment under the statute. Other charges issued including manufacturing a device for the purpose of stealing satellite signals, and conspiracy. All three counts carry a maximum possible sentence of five years in a federal prison. The first two charges each carry a potential fine of $500,000, while the conspiracy count carries a maximum fine of $250,000.

The arrests were part of a yearlong investigation called "Operation Decrypt," which uncovered an alleged ring of hackers that used secret online chat rooms to exchange data and techniques to circumvent the security of Hughes Electronics unit DirecTV and EchoStar Communications' (Quote, Company Info) DISH Network.

"This case demonstrates our commitment to identifying and prosecuting sophisticated computer hackers who steal the intellectual property of others for their own economic benefit," said United States Attorney Deborah W. Yang. "No matter how sophisticated the criminals are, we will uncover the devices they create and the strategies
they use to steal the lifeblood of the business community."

Yang said the alleged pirates caused millions of dollars in losses to DirecTV and DISH Network, as well as NDS and NagraStar, developers and suppliers of proprietary encryption and smart card technology for DirecTV and DISH Network respectively. Additionally, Yang said the Motion Picture Association of America (MPAA) loses millions of dollars every year in unpaid royalties when satellite programming is stolen.

One of the accused, software and hardware developer Randyl Walter, 43, of West Los Angeles, pleaded guilty on Dec. 18, 2002, to manufacturing satellite signal decryption devices and also admitted to causing more than $14.8 million in losses to satellite companies.

Among those charged with violating the DMCA are:


Chad Fontenot, 26, of Richmond, Kentucky, arrested Tuesday morning on charges of conspiracy, satellite signal theft and violating the DMCA for designing and manufacturing hardware devices. Fontenot, a software and hardware developer who was known by the screen names "FreeTV" and "FreeTV2," was indicted on Jan. 23, 2003, but the losses caused by his alleged activities have not yet been determined.

Jason Hughes, 19, of Mocksville, North Carolina, who has agreed to plead guilty to violating the DMCA for developing and distributing software designed to circumvent smart cards for DirecTV. Hughes, a software developer who was arrested Tuesday morning, said he made $50,000 selling his software to individuals in Canada.

Edward Vanderziel, 35, of Ontario, California, was indicted on Jan. 23, 2003, on charges of conspiracy, manufacturing signal theft devices and violating the DMCA. Losses caused by Vanderziel's alleged activities remain undetermined. Vanderziel is a software developer who allegedly sold monthly subscriptions for software code for circumventing DirecTV's conditional access technologies

Michael Whitehead, 37, of Boca Raton, Florida, indicted on Jan. 23, 2003, on charges of conspiracy, manufacturing satellite signal theft devices and violating the DMCA for his alleged nationwide distribution of devices for circumventing the conditional access technologies in smart cards. Losses caused by Whitehead's alleged activities remain undetermined.

Peter DeForest, 30, of Seadrift, Texas, indicted on Jan. 30, 2003, on charges of manufacturing satellite signal theft devices and charges under the DMCA for manufacturing "unloopers" which are used to circumvent smart card technology.

Linh Ly, 38, of Rosemead, California, who agreed Tuesday to plead guilty to violating the DMCA and distributing decryption hardware that caused a loss of $561,507.48.

Richard Seamans, 52, of Chino Hills, California, who was indicted on Jan. 30, 2003 on charges of violating the DMCA and distributing decryption devices.

Others arrested in Operation Decrypt include:


Software developer Daniel Wilson, 33, of Houston, who has plead guilty to manufacturing satellite signal theft devices. Wilson developed freeware for circumventing conditional access technologies that was widely distributed on the Internet.

Stephen Thornton, 36, of Redondo Beach, California, 36, who has plead guilty to developing satellite signal theft devices by writing software to circumvent smart card technology.

Christopher Humbert, 20, of Terre Haute, Indiana, who has plead guilty to creating software code used to circumvent smart card technology.

Gary Bumgardner, 46, of Kernersville, North Carolina, who has plead guilty to manufacturing and distributing satellite signal theft devices including hacked access cards. Bumgardner admitted his actions lead to a loss of $68,732.16.

Thomas Sprink, 41, of Cocoa, Florida, who has plead guilty for selling hardware devices. Sprink admitted to causing a loss of $24,547.20.

Dennis Megarry, 39, of Ostrander, Ohio, who was arrested Tuesday morning based on a criminal complaint filed against him for distributing illegal hardware devices.

Robert Walton, 37, of Temple City, California, who was arrested Tuesday morning on charges of conspiracy and manufacturing satellite signal devices.

Thomas Emerick, 33, of Ontario, California, who has plead guilty to distributing decryption devices and reprogramming smart cards, and has admitted to causing $70,000 in loss to the satellite companies.

Joseph Bolosky, 30, of Panorama City, California, who has agreed to plead guilty to charges of manufacturing decryption devices and admitted causing a loss of $245,472.00.

Yang said Tuesday that Operation Decrypt is an ongoing investigation being handled by the Cyber Crimes Squad in the FBI's Los Angeles Field Office, and is part of the Attorney General's Computer Hacking and Intellectual Property program.

"There is definitely a strong possibility of others getting charged in the future," a spokesman for Yang told internetnews.com.

[phoztech]

"Dxxxxx Wxxxxx - aol6945 "

ummm i thought he was located in Canada?


and isnt JungleMike old news? he got busted a few months ago? or did he get busted again?

[crzywhtboy]

Jungle got raided...I guess the indictment/charges just came out.

Aol wasn't in canada


crzy

[javist]

Very sad news :( except for VMU

[mouse01]

Joseph Bolosky, 30, of Panorama City, California, who has agreed to plead guilty to charges of manufacturing decryption devices and admitted causing a loss of $245,472.00.

this one looks very very familiar to me. i think this one was referred to in one of hitecs rants. i hope i am very wrong on this one.

[huseless]

I can see lietec figuring in here prominently. Randyl Walter was PCMEDtech, his competition in DISH.
ref http://www.cybercrime.gov/walterPlea.htm
the $15 million is based on sales of 6000 "womper" boards sold worth $2477 a year in unlimited DISH service.
aol's efforts were calculated at $7k.
http://www.msnbc.com/avantgo/871516.asp?s=TECH

[crzywhtboy]

How true you are, there is already a thread overthere laughing and calling him a scammer.

Must have been fierce competition


crzy