The damage, lost contracts and lost productivity to the Omega Engineering Corp. of Bridgeport, N.J. - a manufacturing firm serving NASA, the Navy as well as private companies - totaled more than $10 million. The losses make it among the most expensive computer sabotage cases in the country, according to C. Danny Spriggs, Special Agent in Charge of the U.S. Secret Service in Philadelphia.

After 12 hours of deliberation over three days, the jury found Timothy Allen Lloyd, 37, of New Castle, Del., guilty of Count One of a two-count Jan. 28, 1998, Indictment, which charged that on July 30, 1996, Lloyd intentionally caused irreparable damage to Omega's computer system by activating "the timebomb" that permanently deleted all of the company's sophisticated manufacturing programs. Lloyd was found not guilty of Count Two, transporting approximately $50,000 worth of computer equipment stolen from Omega to his Delaware residence.

Lloyd's trial began April 17 before U.S. District Judge William J. Walls. His sentencing is scheduled for July 31. Until then, Lloyd was released on $25,000 bail and ordered confined to his home.

Omega, which also has offices in Stamford, Conn., manufactures sophisticated, heat-sensitive probes and measuring devices. Lloyd was Omega's file system administrator leading up to August 1995, when the company demoted him. Lloyd had been terminated from Omega on July 10, 1996, after working for the company for approximately 11 years.

Evidence and trial testimony revealed that Lloyd began testing the computer bomb in February 1996.  Lloyd's time records showed that he stayed late at the company on three particular evenings: Feb. 21, 1996, April 21, 1996 and May 30, 1996. In those late hours at work, Lloyd had unrestricted access to the Omega computer file server and tested the "bomb." Government expert testimony revealed that the timebomb program was tested successfully. However, Lloyd was able to restore the data, and the company was unaware of his actions.

On July 30, 1996, two weeks after Lloyd was fired, the timebomb was unleashed as planned, deleting and purging Omega's most critical manufacturing programs.  "This was a carefully conceived, malicious plan," said Cleary. "The consequences for this high-technology company were enormous - upwards of $10 million in damage and lost productivity. Mr. Lloyd faces a considerable prison sentence and should stand as an example to hackers and corporate insiders who would consider inflicting such high-tech mayhem."  Omega's Chief Financial Officer, Ralph Michel, testified at trial, describing lost contracts and profits that compounded in the years after the timebomb's release.

Lloyd faces a maximum sentence of five years in federal prison on Count One and a $250,000 fine. Lloyd also faces an order of restitution.  Under U.S. Sentencing Guidelines, Judge Walls will determine the actual sentence based on a formula that takes into account the severity and characteristics of the offense, and the defendant's criminal history, if any. Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.Cleary credited Special Agents of the U.S. Secret Service in Philadelphia under the direction of Spriggs, for developing the case against Lloyd.

The Government is represented by Assistant U.S. Attorney V. Grady O'Malley, a Senior Litigation Counsel in the U.S. Attorney's Criminal Division in Newark.

Defense Attorneys:
Ed Crisonino, Esq. Westmont
Jamie Kaigh, Esq. Cherry Hill