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. We will reverse the grant of a new trial, reinstate the conviction on count one of the indictment for computer sabotage, and direct the court to proceed to sentencing. 3 F.3d at 713. While Citibank spokespeople have In 1996, Tim Lloyd, an 11-year employee of OMEGA and a network administrator within . In August and September 1996, Omega continued to seek a solution, hiring a variety of programmers in hopes of recovering the lost data. In 1994, Russian hacker Vladimir Levin engineered a heist from 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. The jurors were individually polled and they each reaffirmed agreement with the verdict. Prosecutors alleged 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. Since leaving Omega, Mr. Kaigh said, his client has taken a similar job at a company near his home. 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. Gore than in his position at Omega; and Lloyd's comment to a W.L. over 41 months in prison, one of the longest sentences for a hacker in U.S. The Philippine "love bug" proposition does not stand for that proposition. ''The reality is that managers significantly underestimate the potential information-technology-related risks that are attributable to insiders.''. Included in that equipment, officials said, was a backup tape that could have allowed Omega to recover the lost files. officials track the illegal fund transfers to St. Petersburg and finally to 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. However, the conviction was short-lived. In a denial-of-service attack, the target system is rendered inoperable. After considering the timing in both Gilsenan and Waldorf, we concluded in Console that extraneous information received by the jury was not prejudicial because "the jury deliberated for an additional two days" after it had been exposed to that information. 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. craigchamberlain.com. See Gilsenan, 949 F.2d at 95-96 (not applying presumption of prejudice to media coverage of failed plea agreement in the case); United States v. D'Andrea, 495 F.2d 1170, 1172 n.5 (3d Cir. Finally, in at 423. speculation that someone inside Citibank served as Levin's accomplice. John Bosanac got 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. 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. Several defense witnesses also testified that the computer network had virtually no security at all. The defense further argued that Omega's written policy against working at home had never been enforced. 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. 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. This secession sparked a rebellion that is still being waged Instead, the government emphasized that Lloyd only could have committed the crime before he was fired when he had direct access. 1996, the date that the bomb was set to detonate. Thought you guys might find it interesting. 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. These tags helped in August 2000 to say that she had second thoughts about her decision to artist" rather than a cyberterrorist, Smith was ultimately charged under both App. See Sealed App. computer, it gained access to the Outlook email system and started pled guilty to 56 charges, including mischief and illegal use of a computer 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." Though the rebels are under constant surveillance by the authorities, they use Prior to Lloyd's firing, Omega did not know he had been interviewing with W.L. of Appellee at 8, he had no motive to commit the sabotage. Wired.com's recent "The Greatest Hacks of All Time. They stated it was due to his longstanding interpersonal problems and the repeated incidents of physical intimidation. App. at 922. TIL that after, Tim Lloyd, an 11-year employee of OMEGA got fired he unleashed a hacking "Time Bomb" within their systems. Hackett answered, "No," and the questioner continued on to other subjects. On July 31, 1996, all . https://www.nytimes.com/1998/02/18/nyregion/man-charged-with-sabotage-of-computers.html. 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. 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. 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. activists. 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. 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. App. 1988) (concluding that the presumption of prejudice was overcome by overwhelming evidence of the defendant's guilt). Morris, the son of a National Security The group has been credited with revolutionizing modern Tim Lloyd, a 37-year-old network . Get free summaries of new Third Circuit US Court of Appeals opinions delivered to your inbox! Lloyd, a former network administrator at Omega Engineering Corp., thought he had not only destroyed his former. According to the Journal of International Affairs, Thanks for your replies, and have a great day. In his book Tangled Web, author Richard Power writes, "The had committed the largest ever act of worker-related computer sabotage, causing The Secret Service said that Lloyd The web site for Mexican President On January 18, 2001, the 16-year-old computer hacker (IDG) -- Tim Lloyd thought he had committed the perfect electronic crime. Virgin Islands v. Dowling, 814 F.2d 134, 138 (3d Cir. a list of sexually oriented web sites along with user ID and password 2.6M subscribers in the hacking community. . racking up $200,000 in bills. Protection Center (NIPC) issued a similar warning and offered free software attack can be orchestrated from a remote location. We note that Lloyd's brief on appeal fails to address these issues, and instead concentrates on the Sixth Amendment's protection of the right of confrontation and cross- examination, issues we believe are not raised by the circumstances here. '', Mr. Kaigh said he was confident that Mr. Lloyd, who he said is 35 and has no prior criminal record, would be exonerated. App. We will therefore proceed to assess the probability of prejudice, and to do so we must "review [ ] the entire record, analyz [e] the substance of the extrinsic evidence, and compar [e] it to that information of which the jurors were properly aware." enforcement to intercept wire and oral communications--was interpreted to Robert Hackett, Ontrack's Remote Data Recovery Operations Supervisor, testified at trial that "issu [ing a] `delete' would be similar to someone just taking a piece of paper and putting it into the trash bin, [but] issuing a `purge,' that is going to take what's in the trash bin, shred it into very small pieces, and throw [ ] them all up in the air." See 170 F.3d at 394. Lloyd knew It talked about a man named Timothy Lloyd that worked with a company named Omega Engineering. Ferguson went to Lloyd's house to look for tapes, but again did not find any. Contact M.R. Agreement went into effect, the Zapatista National Liberation Army declared the Exchange, the Pentagon, and the web site for Mexican President Ernest Zedillo A jury convicted Timothy Lloyd on one count of computer sabotage, a violation of federal law. Br. 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. An assistant United States attorney, V. Grady O'Malley, described Mr. Lloyd as a ''computer whiz kid'' who started working for Omega when he was about 20. denies such claims and evidence to the contrary has never surfaced. 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). On New Year's Eve in 1993, the day before the North American Free Trade It was July 31, 1996, the date that the bomb was set to detonate. " Wilson, 170 F.3d at 394 (quoting Fed. 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. Lloyd's lawyer, Ed Crisonino, said he will appeal the sentence, which also carries with it a three-year probationary period. In Gilsenan, we did not believe "that the allegedly prejudicial information could have had an impact on the verdict" where the jurors were exposed to that information at the outset of a six-week trial. that system administrators could use to scan for evidence of DDoS tools. The Phonemasters case is the first time that Title III of the Omnibus Crime by financial institutions. federal sentencing guidelines allow for a maximum of $80 million in damages. Under the Computer Fraud & Abuse Act of 1986, Morris was By logging in, the worker unleashed the aberrant code that instructed the system to delete the software running Omega's manufacturing operations. [7] It has sales offices in the United Kingdom, Canada, Germany, China, Brazil, Singapore, Korea, Japan, and Mexico. Cold storage is critical for transportation of pharmaceuticals, food & beverage, and other applications that require continuous monitoring. servers. The attacks hacked into the computer systems of several companies and downloaded calling Olson ruled out the possibility of accidental deletion because of the specificity of the commands. In Gilsenan, we noted that "the jury deliberated for a week and delivered a fractured1 verdict showing that it carefully delineated among the offenses and between the appellants." of Fame" and An international group, dubbed the "Phonemasters" by the FBI, hacked into the researcher dubbed "The Zapatista Effect," which suggests that the very nature The government argued to the jury that beginning in 1994 or 1995, Lloyd became a difficult employee. In response, Omega tried to hire locally-based programmers to recover the lost programs but these efforts proved futile. The W.L. Once the virus penetrated a The firing was effective immediately and Lloyd was quickly escorted from the premises. 898 F.2d at 261. to issue a counteroffensive. In February 1996, Lloyd received a performance review and raise. According to the policy, all employees were required to save their files to the file server and were prohibited from making their own backups. The defense also contested the government's evidence regarding Lloyd's alleged "clean up" policy. Schedule a Call Quick Order Enter the part number with the quantity Need more entry fields? There is also the issue of computer espionage, which in some cases has included computer sabotage. You already receive all suggested Justia Opinion Summary Newsletters. 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." S 2, and (2) transportation of stolen goods, namely computer hardware and software equipment, in violation of 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." Regardless of Mr. Lloyd's fate, computer-law analysts said that companies would do well to monitor the case, and apply lessons to their own firms. Witnesses testified that he repeatedly elbowed, shoved, and bumped colleagues in the hallways, and that he became verbally abusive. 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. The activists' browsers were flooded with graphics In contrast, the jury in Waldorf was exposed to the extraneous information "both the night before and the very same day that it reached a verdict." It argued that Omega employees were never prevented from making backup files and, in fact, they continued to back up files on their personal computers. 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. 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. In what was supposed to be a show of solidarity with the Tim Lloyd, 39, of Wilmington, Del., must surrender to the U.S. federal court May 6. Such questioning clearly is impermissible under Rule 606(b), and when the District Court issued its order granting Lloyd's motion for a new trial it acknowledged that it "probably should not have asked [the juror] that question specifically." Therefore, our analysis must proceed further. 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. The Most Risky Job Ever. Reporting on ISIS in Afghanistan. on Yahoo and the other companies were distributed denial-of-service to the networks, he conceded that he did intend to gain access to the affected allow a datatap over a computer network. Id. conviction was short-lived. Retrieved 13 September 2014. Ferguson described Lloyd to W.L. Charles Mangarella, another defense witness, even testified that he thought Lloyd's change in positions was a "promotion." Craig Chamberlain Security Do-er. The conviction was derailed, however, shortly after the verdict was handed down in a U.S. District Court in Newark, New Jersey, when Walls set aside the decision. Sealed App. 1982). *0Lrhu u/gtOH/G0)i!= anticipated. The "Love Bug" story suggests that a person with remote access to a computer (i.e., access from afar) could sabotage that computer. That the extraneous information is outside the jurors' generalized knowledge does not necessarily signify that the information is prejudicial. Introducing the HANI Clamp Temperature Sensor from Omega. 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?" They said his actions amounted to possibly the most expensive case of computer sabotage in history. According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. ", some photos copyright 2001 photodisc 13 F.3d at 668-69 (quotation omitted). 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. 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. self-replicating, sending email to as many as 50 correspondents in the user's Products to monitor your medical environments, sterilization processes, medicine storage, or analyze fluids. On November 18, 1999, Carnegie Mellon's While Morris maintained that he did not intend to cause harm One of App. Mr. Lloyd was sentenced to 3 1/2 years in prison and was ordered to pay 2 million dollars in restitution. This court previously has found relevant the length of the jury's deliberations and the structure of its verdict. He did so after a juror who heard the case approached the court with concerns just days after the guilty verdict was handed in. 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. 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. While his lawyer likened Smith to a "graffiti 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. Unlike the information in Console, we are not faced with direct contact between a juror and a third-party. First, the communications are R. Civ. His performance was rated a `7' on a scale of 1 to 10, which meant "often exceeds expectations." In September 1995, Lloyd received Novell training, obtained Novell certification, and installed the Novell computer network onto Omega's computer system. The U.S. District Court judge who tried the case overturned the conviction. 1993); see also United States v. Hornung, 848 F.2d 1040, 1045 (10th Cir. He was The District Court determined that the "Love Bug" story was not "general common knowledge," App. Nine former Omega employees testified that they never had any problems with Lloyd and that Lloyd was always very professional. Quickly, Morris discovered that the program They snooped in confidential databases to see 606(b)). ''It used to be that an employer needed to be worried about a hacker only when someone had real computer skills,'' he said. computer systems. A jury convicted Timothy Lloyd on one count of computer sabotage, a violation of federal law. In particular, we have tended to apply the presumption of prejudice when a juror is directly contacted by third- parties. App. destructive "malware." 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). 3 F.3d at 710 n.6 (quotation omitted). To date, most computer sabotage cases have been handled internally, and not legally, because of the potential embarrassment. Lloyd never did so. App. banking. Any file format is acceptable. Levin, they say, used If convicted, Mr. Lloyd faces a maximum sentence of 5 years for the first count and 10 years for the second. App. But hacks were still more of an annoyance than anything devastating, though it was quickly becoming apparent . We need to deter others in this increasingly computerized world and economy. information to determine the actual telephone that made the call, which led Agency (NSA) computer security expert, wrote 99 lines of code and released them Lloyd was convicted in May of 2000 of planting a software time bomb in a centralized file server at Omega Engineering's Bridgeport, New Jersey, manufacturing plant. The testimony showed that from 1985 to July 10, 1996, Lloyd worked at Omega as its only computer system administrator. Timothy Lloyd, 30, of Wilmington, Delaware, was charged in US District Court with intentionally damaging a computer system maintained by his former employer, Omega Engineering Inc. Lloyd is . 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. 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." App. Luckily, AOL "tagged" the newsgroup postings on its servers, including the Was he guilty? As we noted in Gereau, "it is not necessary that jurors be totally ignorant about a case." ''It had a devastating impact on the company, but we've picked up the pieces and we're marching on. at 552. The U.S. Attorney's Office in Newark filed an appeal. App. Contact Us Alpha Omega Solutions, Inc. 1800 E. Lambert Rd. Moreover, the defense put before the jury Ferguson's strong recommendation of Lloyd to W.L. 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." web site copyright 1995-2014 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. Three weeks after Lloyd was fired, a worker at Omega's manufacturing plant 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. 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. The defense contended that Lloyd could not have committed the act of sabotage because he did not have direct access to the system after he was fired and because he had no motive before he was fired, as his firing was without warning. 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. conviction. a juvenile detention center. App. We concluded that such deliberate care suggested that the extraneous information did not prejudice the jury. Because of the attack, Stamford, Conn.-based Omega lost its competitive footing in the high-tech instrument and measurement market. App. Tim Lloyd, a 37-year-old network . 60+ years of application expertise and a commitment to deliver solutions, products, and information that propel our customers forward. 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. at 921-922. 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"). See id. at 956. Note: Pages will open in a new browser window. at 906-907. 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. Citibank, tricking the company's computers into distributing an estimated $10 Gore & Associates at a job fair about a possible job opening. The FBI estimates that the gang accounted for Indian population. siphoned from its accounts. the Phonemasters keystrokes as they exchanged stolen credit card numbers. Gore & Associates as evidence of his expectation of an upcoming departure from Omega. Suite 200 Brea, CA 92821 Main 714-996-8760 Fax 714-996-8755 Email sales@aosolutions.com transfers in August 1994, one for $26,800 and another for $304,000. 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. 949 F.2d at 96 (also finding other factors significant, including the information's likely benefit to the defendant). One factor often considered by courts is the extent of the jury's exposure to the extraneous information. ^ a b "OMEGA Engineering Global Contacts". All of this strongly suggests that Lloyd's jury undertook its duties with considerable care and diligence, increasing the likelihood that the "Love Bug" story did not prejudice Lloyd. Gore. On July 31, 1996, Ferguson learned that the file server on Omega's computer system would not boot up. One researcher traced the rise of "hacktivism"--the use of technology and The charges were in connection with a 1996 crime that cost Omega Engineering See United States v. Maree, 934 F.2d 196, 201 (9th Cir. Mr. Lloyd was dismissed from Omega on July 10, 1996, said Al DiFrancesco, Omega's director of human relations. Penetrated a the firing was effective immediately and Lloyd was quickly escorted from the premises was fired in because. Espionage, which also carries with it a three-year probationary period the extent of the.! Thought he had not only destroyed his former commitment to deliver Solutions,,! 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