Computer Crime and |
Prosecuting Crimes Facilitated by Computers and by the Internet
- Computer Facilitated Crime Cases
- Ways Computers Can Be Used In Crimes
- The Rising Tide of Internet Fraud, Jonathan Rusch, USA Bulletin (May 2001)
- Tracing in Internet Fraud Cases: PairGain and NEI Worldweb, Christopher M.E. Painter, USA Bulletin (May 2001)
- Internet Gambling
- Cyberstalking and Harassing Speech
- Executive Order on Unlawful Conduct Using the Internet
- Child Pornography
- Sale of Prescription Drugs Over the Internet
- Identity Theft: The Crime of the New Millennium, Sean B.Hoar, USA Bulletin
(March 2001)
Many crimes that are not specifically related to computers can be substantially facilitated by the use of computers. The easy access of cyberspace can provide a low-cost high-connectivity way for criminals to reach victims.
A. Computer Facilitated Crime CasesComputers can be used in a variety of roles in crimes. Each of these roles can raise novel investigative and prosecutorial issues because of the unique attributes of computers. Cases exemplify this trend are listed below.
Year 2006
- United States Secret Service’s Operation Rolling Stone Nets Multiple Arrests (March 28, 2006)
- Azusa, California ‘Phisher’ Arrested for Posing as America Online Billing Representative and Obtaining Personal Information from Subscribers (January 26, 2006)
Year 2005
- Fairlawn, Ohio Man Sentenced in e-Bay Auction Scam (March 28, 2005)
- New York Teen Pleads Guilty to Making Extortion Threats Against Internet Company (March 22, 2005)
- New York Spammer Arrested for Making Threats Against Internet Messaging Company and Sending More Than 1.5 Million Spam Messages (February 17, 2005)
- Former Sacramento Man Arrested in eBay Auction Scam (January 27, 2005)
Year 2004
- Fourth Defendant in Massive Internet Scam Pleads Guilty to Fraud and Money Laundering Charges (November 18, 2004)
- Cary Waage Sentenced to Prison for his Role in $60 Million Internet Scam (July 9, 2004)
- Wi-Fi Hacker Pleads Guilty to Attempted $17,000,000 Extortion (June 8, 2004)
- Vallejo, California Woman Charged with Exceeding Authorized Computer Access to Embezzle More Than $875,035 (May 27, 2004)
- Fraudster Sentenced to Nearly Four Years in Prison in Internet ‘Phishing’ Case: Spammer Posed as AOL and Paypal to Con Customers into Providing Personal Information (May 18, 2004)
- Six Formerly Associated with Fox Cable Charged with Copyright Infringement for Running Warez Site that had Pirated Movies, Software (May 14, 2004)
- Pennsylvania Man Sentenced to Prison for Accessing Massachusetts Investor’s On-line Investment Account and Making $46,000 in Unauthorized Trades (May 5, 2004)
- Department of Justice Announces Arrests of Detroit-Area Men on Violations of the "Can-Spam" Act (April 29, 2004)
- Parma, Ohio Man Indicted for Ebay Fraud, Credit Card Fraud, and Identity Theft (April 28, 2004)
- Former Global Crossing Employee Sentenced to 46 Months in Prison for Posting Thousands of Social Security Numbers and Multiple Threats on his Internet Website (April 16, 2004)
- Orange County, California Man Indicted on Wiretapping Charges for Installing Spy Hardware on Employer's Computer (March 23, 2004)
- Oak Park, California Computer Programmer Arrested for Extortion and Mail Fraud Scheme Targeting Google, Inc. (March 18, 2004)
- Mission Viejo, California Teen Guilty in Internet Auction Fraud; Defendant Also Admits $400,000 Bank Fraud (March 1, 2004)
- Sewell, New Jersey Man Sentenced to 37 Months in Prison for Defrauding eBay Bidders and Cashing Checks from Stolen Mail (February 27, 2004)
- 'Cyberscammer' Sentenced to 30 Months for Using Deceptive Internet Names to Mislead Minors to X-Rated Sites (February 26, 2004)
- Mississippi Man Indicted for Attempted Extortion of $2.5 Million from Best Buy Co., Inc. (January 6, 2004)
Year 2003
- Former Global Crossing Employee Convicted of Posting Threats on His Internet Website and Distributing Information to be Used in Identity Theft (December 4, 2003)
- Sewell, New Jersey Man Admits to Defrauding eBay Bidders and Cashing Checks From Stolen Mail (November 18, 2003)
- Chicago Man Pleads Guilty to MSN Internet Fraud (September 12, 2003)
- Gloucester City, New Jersey Man Admits Defrauding eBay Bidders and Criminal Copyright Infringement (September 8, 2003)
- Southern California Man Pleads Guilty to Fraud in Online Escrow Scam (September 5, 2003)
- Sacramento, California Woman Convicted of Embezzling More Than $910,000 In Computer Fraud Scheme (August 1, 2003)
- Leader of $60 Million Internet Scam Pleads Guilty to Fraud and Money Laundering Charges (May 16, 2003)
- Vista, California Man Charged in Complex Internet Facilitated Wire Fraud Scheme (February 13, 2003)
- Alleged Leaders of $60 Million Internet Scam Indicted on Fraud and Money Laundering Charges (January 3, 2003)
Year 2002
- Man Indicted on Charges of Defrauding Buyers Using eBay Internet Auction Service, Remains Fugitive (December 20, 2002)
- Two Los Angeles, California, Men Accused of Operating Websites Selling Fake Ids Named in Conspiracy; 5 Felons Who Applied for Bogus Documents also Charged (December 20,2002)
- U.S. Announces What is Believed the Largest Identity Theft Case In American History; Losses are in the Millions
(November 25, 2002)
- Florida Lawyer Charged in Offshore Sports Betting Case (October 22, 2002)
- Melvern, Ohio Man Sentenced for Defrauding Bidders on eBay (October 16, 2002)
- Richmond, Kentucky Man Sentenced for Selling Fake Sports Memorabilia on eBay (September 20, 2002)
- Sacramento, California Woman Convicted of Committing Check 'Kite' Through Unauthorized Computer Access (September 17, 2002)
- Los Angeles, California Woman Admits Bilking eBay Bidders (September 10, 2002)
- Defendant Sentenced in Three Fraud Prosecutions for Online Auction, Telemarketing, and Computer-Generated Counterfeit Check Scams (August 30, 2002)
- Former LA Ram Sentenced in eBay Internet Fraud Schemes (August 5, 2002)
- Fairfax, Virginia Man Sentenced 144 Months for Internet Auction
Fraud (July 16, 2002)
- Internet Auction Scam Results in Guilty Plea (July 8, 2002)
- San Francisco Man Sentenced for Selling Fake Derek Jeter and Normar Garciaparra Baseball Bats on eBay (July 2, 2002)
- Defendants Sentenced for Selling Prescription Drugs on Norfolk Men's Clinic Web Site (June 18, 2002)
- Owner of Internet Service Provider Sentenced to 18 Months in Prison for Credit Card Scam (June 10, 2002)
- Melvern, Ohio Man Indicted for eBay Auction Fraud (June 5, 2002)
- Internet Doctor Sentenced to Over 4 Years in Prison (May 29, 2002)
- Defendant Pleads Guilty in Three Fraud Prosecutions for Online Auction, Telemarketing, and Computer-Generated Counterfeit Check Scams (May 17, 2002)
- Reynoldsburg, Ohio Man Sentenced for Misuse of Law Enforcement Computer (May 8, 2002)
- San Jose, California Man Pleads Guilty to Selling Explosives on eBay (May 2, 2002)
- Five Guilty Pleas and Seven Arrested for Wire and Securities Fraud in Connection with Collapse of Apponline.com (March 12, 2002)
- Man Sentenced for eBay Auction Fraud of Certain Rare Baseball and Basketball Card Sets (March 4, 2002)
- New York Electronic Crimes Task Force Arrests Jacksonville, Florida, Man for One of the Largest Identity Theft Cases in U.S. History (February 28, 2002)
- Internet Doctor Convicted in Oklahoma City (January 30, 2002)
- Six Defendants Sentenced in $16 Million Bogus Investment Scheme Marketed Over Internet (January 30, 2002)
Year 2001
- Miami Man Pleads Guilty to eBay Auction Fraud (December 20, 2001)
- San Francisco Man Indicted for Selling Fake Derek Jeter and Nomar Garciaparra Baseball Bats on eBay, Harassing E-Mails (December 18, 2001)
- Brooklyn, New York Man Pleads Guilty in eBay Fraud Case (December 13, 2001)
- Internet Sports Bookmakers Plead Guilty; Will Forfeit $3.3 Million in Criminal Earnings (December 3, 2001)
- New York City Law Firm Paralegal Pleads Guilty to Stealing Trial Plan (October 4, 2001)
- Alleged Internet Fraud Kingpin and Web Page DesignerArrested in Costa Rica (September 6, 2001)
- Five Charged in Los Angeles with Fraud In Internet Auctions (July 31, 2001)
- Two Men Plead Guilty in California to Mail and Wire Fraud in eBay Shill Bidding Scheme that Auctioned Fake Diebenkorn Painting for $135,805 (April 17, 2001)
- Portland, Oregon 18 Year Old Arrested for Sending Threatening Internet Communication Resulting in New York School Closing (March 26, 2001)
- Internet False ID Scam Defendants Sentenced in the District of Columbia (March 22, 2001)
- Three Men Indicted in Sacramento for eBay Shill Bidding Ring That Auctioned Fake Diebenkorn Painting for $135,805 (Mar. 8, 2001)
- New York Father and Son Are Accused in Playstation 2 Internet Auction Scam (Feb. 14, 2001)
- High-Tech Defendants Sentenced to Jail (February 8, 2001)
- Two Indicted and Arrested in South Carolina for Trafficking in Counterfeit Luxury Goods over www.fakegifts.com Web site (January 29, 2001)
Year 2000
B. Ways Computers Can Be Used In CrimesComputers can be used in a variety of roles in crimes. Each of these roles can raise novel investigative and prosecutorial issues because of the unique attributes of computers. Testimony and speeches by Assistant Attorney General for the Criminal Division James K. Robinson, FBI Director Louis Freeh, Deputy Attorney General Eric H. Holder, Jr., and others about the roles computers can play in crime are provided via the links below:
- Remarks of James K. Robinson, Assistant Attorney General, Criminal Division, on the "Internet as the Scene of Crime" at the International Computer Crime Conference in Oslo, Norway (May 29, 2000)
- Statment of James K. Robinson, Assistant Attorney General for the Criminal Division, Before the Senate Committee on Judiciary, on Cybercrime and The Internet Integrity and Critical Infrastructure Act (May 25, 2000)
- Statment of Louis J. Freeh, Director of the Federal Bureau of Investigation, Before the Senate Committee on Judiciary Subcommittee for the Technology, Terrorism, and Government Information, on Cybercrime (March 28, 2000)
- Speech by Deputy Attorney General Eric H. Holder, Jr. at the High-Tech Crime Summit in Washington, DC (January 12, 2000)
- Statement of Robert S. Litt, Deputy Assistant Attorney General, Criminal Division, United States Department of Justice, Before the Subcommittee on Social Security Senate Ways and Means Committee, United States Senate, Washington, D.C., May 6, 1997
- Internet Crimes Affecting Consumers: Statement of Robert S. Litt, Deputy Assistant Attorney General, Criminal Division, United States Department of Justice, Before the Subcommittee on Technology, Terrorism and Government Information, Senate Judiciary Committee, United States Senate, Washington, D.C., March 19, 1997
C. The Rising Tide of Internet Fraud, Jonathan Rusch, USA Bulletin (May 2001)
By all accounts, the United States leads the world in using the Internet for commerce and communication, and in spending on electronic commerce. There are growing indications that along with the expansion of legitimate Internet use, the United States is experiencing a rising tide of fraud that exploits the Internet.
Additional information on this subject is available via the link below.
D. Tracing in Internet Fraud Cases: PairGain and NEI Worldweb, Christopher M.E. Painter, USA Bulletin (May 2001)
Fraud, including stock manipulation and the full panoply of other deceitful schemes, has found a comfortable home on the Internet. Many of these crimes are simply age-old schemes being committed over a new medium -- so called old wine in new bottles. Others, like Internet auction fraud or the easy dissemination of digital copyrighted works, are novel and have been spawned by the new technology. In either case, crimes committed over the Internet pose special challenges for law enforcement.
Additional information on this subject is available via the link below.
1. Federal Legislation Related to Internet GamblingOn April 29, 2003, Deputy Assistant Attorney General John G. Malcolm testified before the U.S. House of Representatives Subcommittee on Crime, Terrorism, and Homeland Security Committee on the Judiciary. In his testimony, Mr. Malcolm offered the views of the Department of Justice about Internet gambling, including the potential for gambling by minors and compulsive gamblers, the potential for fraud and money laundering, and the potential for infiltration by organized crime. Mr. Malcom's testimony addressed the Department's concerns, with respect to H.R. 1223, about the feasibility and desirability of regulating Internet gambling. He expressed several of the Department's concerns with respect to H.R. 21, including the concern that this bill should be drafted to apply to all unlawful Internet gambling regardless of the communications medium used to place bets.
Kevin V. Di Gregory, Deputy Assistant Attorney General, testified before the House of Representatives Committee on Banking and Financial Services on June 20, 2000 on Gambling on the Internet. As with earlier testimony, this statement addressed the Department of Justice's concerns with proposed Internet gambling legislation and the problems inherent in creating a solution that is not technology-neutral.
Kevin V. Di Gregory, Deputy Assistant Attorney General, testified before the Subcommittee on Crime, of the House Committee on the Judiciary on March 9, 2000 on Internet Gambling. His testimony addressed the Department of Justice’s concerns with proposed Internet gambling legislation that would effectively expand legal gambling. He also expressed the Department’s concern with creating an inconsistent regulatory scheme that would result in the same conduct being treated differently over the telephone, the Internet, and other technologies. Kevin V. Di Gregory, Deputy Assistant Attorney General, Department of Justice, testified before the Senate Committee on Indian Affairs on June 9, 1999 regarding Internet Gambling and Indian Gaming. His testimony addressed two issues: (1) the Department of Justice's support of efforts to amend federal gambling statutes to ensure that these gambling activities made possible by the Internet are prohibited; and (2) the Department's belief that any law prohibiting Internet gambling should not conflict with the rights or privileges of Indian tribes, both as sovereigns and under the Indian Gaming Regulatory Act (IGRA). Also linked below is a letter from the Department of Justice to Senator Patrick J. Leahy, Ranking Minority Member, Senate Judiciary Committee, regarding the Internet Gambling Prohibition Act of 1999.Kevin V. Di Gregory, Deputy Assistant Attorney General, Department of Justice, testified regarding Gambling on the Internet before the Subcommittee on Crime, of the House Committee on the Judiciary, on June 24, 1998. His testimony addressed law enforcement concerns as they relate to development of the Nation’s policy toward gambling and, more particularly, the effectiveness of existing state and federal laws for prosecuting various forms of Internet gambling. It also identifies important characteristics that legislation pertaining to the transmission of information over the Internet should have. His testimony is available via the link below, along with questions and answers regarding prosecution of gambing and the Internet: Questions and answers:
- Testimony of Kevin V. Di Gregory, Deputy Assistant Attorney General, addressing Internet Gambling and Indian Gaming before the Senate Committee on Indian Affairs (June 9, 1999)
- Letter from the Department of Justice to Senator Leahy regarding S. 692, the Internet Gambling Prohibition Act of 1999 (June 9, 1999)
2. Prosecution of Internet Gambling
- How can the Department prosecute Internet gambling under existing law?
- How would new legislation prohibiting Internet gaming affect Indian tribes?
- Give us more details about the cases in the Southern District of New York?
- How would pending legislation affect fantasy sports leagues conducted on the Internet?
- What have other countries done with regard to Internet gaming?
On February 28, 2000, Jay Cohen was convicted in Manhattan federal court of operating a sports betting business that illegally accepted bets and wagers on sporting events from Americans over the Internet and telephones. Cohen is the first defendant to stand trial in a series of Internet offshore sports gambling cases that were the first prosecutions brought under the federal Wire Wager Act.
In New York, twenty-one owners, managers and employees of Internet sports betting companies have been charged in Manhattan federal court with conspiracy to transmit bets and wagers on sporting events via the Internet and telephones. Information about the filing of these charges is available below.3. Gambling Against EnforcementInternet Sports Books and the Wire Wager Act, Joseph V. DeMarco, USA Bulletin (March 2001)
Even as a certain "Madness" crowds network airwaves during the month of March, and as Americans gamble in various forms in ever-increasing numbers, gambling on sporting events is strictly regulated and, in most cases, prohibited outright under federal and state law. Notwithstanding these general prohibitions, however, the exponential growth in the use of the Internet by the mass public has been accompanied by a corresponding growth in the creation of Internet websites which offer Americans the ability to gamble on-line without the need for a neighborhood bookie. From on-line private lotteries, to on-line card games, "quiz shows," and traditional sports books, these websites offer privacy and anonymity to both the owners of the sites and their "clients" while, paradoxically, offering a perceived aura of legitimacy that derives from the fact that anyone can "sign on" to and use them as freely as any legitimate e-commerce site.
Additional information on this subject is available via the link below.
F. Cyberstalking and Harassing SpeechCyberstalkingOn April 21, 2000, Lynne A. Battaglia, United States Attorney for the District of Maryland, announced that Warren Gray, a 19-year old Upper Marlboro, Maryland man, pleaded guilty to five counts of sending threatening e-mails to a Largo High School administrator at the same time as Gray was stalking him last November.
The rapid growth of the Internet and other telecommunications technologies are promoting advances in virtually every aspect of society and every corner of the globe. Most of these advances represent positive changes in our society. Unfortunately, many of the attributes of this technology - low cost, ease of use, and anonymous nature, among others - make it an attractive medium for fraudulent scams, child sexual exploitation, and increasingly, a new concern known as "cyberstalking." Recognizing this emerging problem, Vice President Al Gore asked the Attorney General on February 26, 1999, to study the problem and to report back with recommendations on how to protect people from this threat. The report can be found by following the link below: On April 21, 1999, Carl Edward Johnson, 49, of Bienfait, Saskatchewan, Canada, was convicted on four felony counts of sending threatening e-mail messages via the Internet to federal judges and others. The charges were based on death threats posted to the Internet naming two federal judges based in Tacoma and Seattle and on an e-mail threat sent directly to Microsoft Chairman Bill Gates. Although Johnson had used anonymous remailers and forged e-mail address information in an attempt to disguise his identity, Judge Bryan found that the Government's technical evidence proved Johnson’s authorship. On June 11, 1999, Johnson was sentenced to thirty-seven months of imprisonment for his crimes.
- Man Convicted of Threatening Federal Judges by Internet E-mail (April 21, 1999)
- Man Sentenced to Thirty-Seven Months Imprisonment for Threatening Federal Judges by Internet E-mail (June 15, 1999)
Harassing SpeechOn October 16, 1998, an individual pleaded guilty in the Eastern District of Virginia to a felony for repeatedly causing e-mail to be transmitted over the Internet solely with the intent to harass another individual. Additional information regarding this case is available via the link below:
G. Executive Order on Unlawful Conduct Using the InternetOn March 9, 2000, Attorney General Janet Reno announced the release of "The Electronic Frontier: the Challenge of Unlawful Conduct Involving the Use of the Internet."H. Child Pornography
In August 1999, President Clinton established an interagency Working Group on Unlawful Conduct on the Internet. Executive Order 13,133 directed the Working Group, under the leadership of the Attorney General, to prepare a report with recommendations on:
--The extent to which existing federal laws provide a sufficient basis for effective investigation and prosecution of unlawful conduct that involves the use of the Internet;
--The extent to which new technology tools, capabilities, or legal authorities may be required for effective investigation and prosecution of unlawful conduct that involves the use of the Internet; and
--The potential for new or existing tools and capabilities to educate and empower parents, teachers, and others to prevent or to minimize the risks from unlawful conduct that involves the use of the Internet.
The report and its appendices can be found via the links below:On August 5, 1999, President Clinton issued Executive Order 13133, which established a Working Group to analyze the existence of unlawful conduct on the Internet and to prepare and report recommendations based on its findings within 120 days. The specific topics that the group will be addressing include the extent to which existing Federal laws provide a sufficient basis for effective investigation and prosecution of unlawful conduct that involves the Internet; the extent to which new tools, capabilities, or authorities may be required for effective investigation and prosecution of Internet crime; and the potential for educating and empowering parents, teachers and others to prevent or minimize risks from such unlawful conduct. The Executive Order and related documents are available below:
- The Electronic Frontier: the Challenge of Unlawful Conduct Involving the Use of the Internet (March 9, 2000)
- Appendices to "The Electronic Frontier: the Challenge of Unlawful Conduct Involving the Use of the Internet " (March 9, 2000)
- Attorney General Issues Report on Unlawful Conduct on the Internet (March 9, 2000)
On September 29, 1999, Deputy Attorney General Eric Holder gave remarks on "Combating Child Pornography on the Internet" at Vienna, Austria International Child Pornography Conference. The conference sought to combat child pornography and exploitation on the Internet and was based on existing international obligations and committments for the protection of children, including the Conventionon the Rights of the Child. The conference built and acted upon commitments undertaken at the Stockholm World Congress against the Commercial Sexual Exploitation of Children (1996) and ongoing initiatives in many countries and regions.I. Sale of Prescription Drugs Over the InternetRemarks of U.S. Attorney General Eric Holder on "Combatting Ponography on the Internet" at the Vienna, Austria Intenational Child Pornography Conference (September 29, 1999)
On October 25, 2000, a New Jersey man pleaded guilty to one count of fraud. The man, Stanley Lapides, admitted to selling via the Internet home HIV test kits. However, Lapides neglected to tell his customers that these kits had not yet been approved for use by the FDA. On May 25, 2000, Deputy Associate Attorney General Ethan M. Posner testified before the Subcommittee on Oversight and Investigations of the House Committee on Commerce on the subject of Online Pharmaceutical Drug Sales. His testimony detailed the role of the Department of Justice in Internet drug sales, including current specific efforts by the Department and information on the Internet Prescription Drug Sales Act of 2000. On December 9, 1999, a federal grand jury charged Kent Aoki Lee with selling Viagra over the Internet without a prescription. Lee was also charged with wire fraud and trademark violations growing out of his operation of a separate pirated Internet website. Ivan K. Fong, Deputy Associate Attorney General, Department of Justice, testified before the Subcommittee on Oversight and Investigations, Committee of Commerce of the United States House of Representatives regarding Sale of Prescription Drugs over the Internet on July 30, 1999.
J. Identity Theft: The Crime of the New Millennium, Sean B.Hoar, USA Bulletin (March 2001)
Go to . . . CCIPS home page || Justice Department home pageIdentity theft has been referred to by some as the crime of the new millennium. It can be accomplished anonymously, easily, with a variety of means, and the impact upon the victim can be devastating. Identity theft is simply the theft of identity information such as a name, date of birth, Social Security number (SSN), or a credit card number. The mundane activities of a typical consumer during the course of a regular day may provide tremendous opportunities for an identity thief: purchasing gasoline, meals, clothes, or tickets to an athletic event; renting a car, a video, or home-improvement tools; purchasing gifts or trading stock on-line; receiving mail; or taking out the garbage or recycling. Any activity in which identity information is shared or made available to others creates an opportunity for identity theft.
Additional information on this subject is available via the link below.