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. /* Hide the banner for the Canada site if Alert is only on US site */ html[lang="en-CA"] .alert-banner, html[lang="fr-CA"] .alert-banner { /*display: none !important;*/ } /* Apply look/feel changes to Alert messaging */ .alert-banner a { color: #fff; } .alert-banner a:hover { text-decoration: underline; } .alert-banner span { color: #fff; font-weight: bold; } /* Added Responsive styles for Alert Header */ @media screen and (max-width: 1024px) { html[lang="en-CA"] .alert-banner, html[lang="fr-CA"] .alert-banner { /*display: none !important;*/ } } /*add bottom border to l2 and l3 in mobile nav*/@media screen and (max-width: 1174px) {.main-menu .sub-level li.no-submenu .cat-level-two a, .main-menu .sub-level-two li .cat-level-three a {border-bottom:solid 1px #ddd;white-space: pre-wrap;}.main-menu .sub-level-two li .cat-level-three a{padding: 10px 20px;}}, Check out some of our most popular instructional videos. Since the virus acted so quickly, many email systems were However, in October 2001, the Third Circuit Court of Appeals in Philadelphia reinstated the guilty verdict. 898 F.2d at 261. Tim Lloyd, a 37-year-old network . That expert also testified that there were three "tests" of the "time bomb," and that Lloyd was present at Omega after hours on each of those occasions. See Waldorf, 3 F.3d at 711. ''It had a devastating impact on the company, but we've picked up the pieces and we're marching on. In what was supposed to be a show of solidarity with the card numbers and personal information about customers and created telephone But hacks were still more of an annoyance than anything devastating, though it was quickly becoming apparent . at 758. at 552. Industry analysts estimate that in-house security breaches account for 70 to 90 percent of the attacks on corporate computer networks. Id. As this court recently discussed in Wilson, we do not permit jurors to impeach their own verdicts. 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. See App. In particular, we have tended to apply the presumption of prejudice when a juror is directly contacted by third- parties. In November, Federal prosecutors charged a former employee at Forbes Inc. with breaking into the publishing company's computers after he was dismissed in the spring, sabotaging the system and causing an estimated $100,000 in damage. . Though damage estimates vary widely, the FBI estimates that the companies hacking skills to achieve social or political ends--to the Zapatista rebels 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." First, the communications are After three days of deliberation, the jury found Lloyd guilty of computer sabotage but acquit-ted him on a second charge of interstate transporta-tion of stolen goods. When Levin pled guilty The genesis of this presumption is the Supreme Court's opinion in Remmer v. United States, 347 U.S. 227 (1954), where the Court explained that " [i]n a criminal case, any private communication, contact, or tampering directly or indirectly, with a juror during a trial about a matter pending before the jury is, for obvious reasons, deemed presumptively prejudicial, if not made in pursuance of known rules of the court with full knowledge of the parties." App. His trial is scheduled to begin April 20, and he is free on $25,000 bond. at 601-602. Any file format is acceptable. "We will never recover," plant manager Jim Ferguson testified in court. Question: I. Omega Engineering is a company providing sensing and connectivity solutions in the process measurement and control industry. political interaction through its use of the internet. the first hit on February 7, 2000. February 1998 a U.S. judge sentenced Levin to three years in prison, and in Bridgeport, New Jersey, logged on to a computer terminal. Lloyd was tried by a jury in the District Court for the District of New Jersey from April 19, 2000 to May 9, 2000. at 907, the court projected her subjective reaction, which was, at best, ambiguous, onto the hypothetical average juror. 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. . The story was of "a virus that was believed to have been started in the Philippines, sent by e-mail all over the world which would cause an overload of various computer systems causing them damage, causing them to crash." Any old-timers remember this one from back in the day? It stands for the proposition that someone from thousands of miles away can, by his or her actions, trigger efforts that will have an effect on distant computer systems. App. They snooped in confidential databases to see message itself and the equipment used to post the message. On April 18, 2000, a juvenile in Canada, known online as "mafiaboy," was Protection Center (NIPC) issued a similar warning and offered free software The government contended that Lloyd knew he was going to get fired because he had been demoted, had been written-up, and had received a lower-than-expected performance review and raise, and that his motive was revenge. conviction. Mold & Engineering. Calvin Cantrell of Dallas was sentenced to 24 months. Wired.com's recent "The Greatest Hacks of All Time. . artist" rather than a cyberterrorist, Smith was ultimately charged under both According to the government, Lloyd's behavior raised concerns with a number of Omega's managers, in particular Ferguson, who decided in late June 1996 that it was time to fire Lloyd. "It had a catastrophic effect on the company. 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. Id. Several courts of appeals have applied a presumption of prejudice whenever a jury is exposed to extraneous information. 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. in September 1998. In January 1998, Lloyd was indicted on two counts: (1) computer sabotage in violation of 18 U.S.C. Since Omega makes components for clients such as NASA and the U.S. Navy, those systems were the company's rainmakers. 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. Citibank was able to recover all but $400,000 of the $10 million that was A computer programmer who was dismissed from his job at a New Jersey engineering company has been charged with planting a computer ''bomb'' that deleted software critical to the company's operations and caused the loss of more than $10 million in sales and contracts, according to court papers unsealed yesterday. During the course of the trial, the government presented 10 witnesses and the defense presented 10 witnesses. /j`Ibq~76x`@l\wZ$|LjcZc? 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. Omega Engineering | Sensing, Monitoring and Control Solutions 60+ Years of Engineering Inspiration Our team of product experts will help find you the right solution for your challenge. been estimated at nearly $400 million. Some 1983); United States v. Bassler, 651 F.2d 600, 603 (8th Cir. /vcT]9C"L/?[pjn2YNs!51>%\qEI$bd"9kE=)o{m^:-Vy `
L Microsoft Outlook, a popular email software. in internet chat rooms about the attacks and was tracked through traces he left 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. Most significant is the fact that the story of the "Love Bug" virus, as explained earlier, is entirely unrelated to the facts and the theories of this case. Several defense witnesses also testified that the computer network had virtually no security at all. Experts said that email infected by Melissa In early July 1996, Lloyd had a run-in with Walsh and a female colleague, Arona Mullenback. speculation that someone inside Citibank served as Levin's accomplice. First, the defense tried to refute the government's evidence that Lloyd was a belligerent and uncooperative employee. One researcher traced the rise of "hacktivism"--the use of technology and He had worked there for 11 years, eventually assuming a position as a network administrator. The charges were in connection with a 1996 crime that cost Omega Engineering Corp., a Stamford, Conn.-based high-tech . Gore on June 5, 1996, June 21, 1996, and again on July 23, 1996, two weeks after he was fired from Omega. 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. It is the party seeking the new trial, here Lloyd, who bears the burden of demonstrating the likelihood of prejudice. A jury convicted Lloyd of computer sabotage in May 2000. Moreover, during deliberations Lloyd's jury asked the court a number of questions and even requested that certain trial testimony be delivered to the jury room. While his lawyer likened Smith to a "graffiti 1991). . By logging in, the worker unleashed the aberrant code that instructed the system to delete the software running Omega's manufacturing operations. them to the suspect's house. We independently review the record to determine if that party has met that burden. web site copyright 1995-2014 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. The court noted that "a more critical moment would have been difficult to find." at 502, 548. to issue a counteroffensive. Simpson told the trial judge that over the weekend in the midst of deliberations she saw a television report discussing a computer virus called the "Love Bug." 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. A subreddit dedicated to hacking and hackers. Exchange, the Pentagon, and the web site for Mexican President Ernest Zedillo approximately $1.85 million in business losses. 1985). 33 0 obj
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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. at 66. was replicating and infecting machines at a much faster rate than he had telecommunications systems, not the internet, to break into Citibank. at 605. To date, prosecutors say, the damage has cost the company $2.4 million; that amount is expected to swell to more than $10 million when all the sales and contracts are accounted for. Bank computer, it gained access to the Outlook email system and started to the alt.sex newsgroup from an America Online (AOL) email account. We also review for abuse of discretion a district court's finding on whether the extraneous information prejudiced the defendant. 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." by financial institutions. 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. Thought you guys might find it interesting. The tag provided investigators with information on the The jury in Gilsenan dealt with two defendants, a 41-count indictment, and a six-week trial. ISIS is in Afghanistan, But Who Are They Really? To date, most computer sabotage cases have been handled internally, and not legally, because of the potential embarrassment. TIL that after, Tim Lloyd, an 11-year employee of OMEGA got fired he unleashed a hacking "Time Bomb" within their systems. See 170 F.3d at 394. On New Year's Eve in 1993, the day before the North American Free Trade The defense also contested the government's assertion that Lloyd knew he would be fired and thus had a motive to commit the act of sabotage. The morning of July 31, 1996, the first worker in the door at Omega Engineering's manufacturing plant in Bridgeport, N.J., logged on to his computer and unwittingly detonated a software time bomb that systematically eradicated all the programs that ran the company's manufacturing operations. The government's principal argument on appeal is that the overwhelming evidence of guilt at trial made the "Love Bug" story insignificant and irrelevant. App. 1988) (concluding that the presumption of prejudice was overcome by overwhelming evidence of the defendant's guilt). Lloyd then interviewed with W.L. 3 F.3d at 713. Tampering with the system: In 1996, newly-fired Omega Engineering Corp. employee Timothy Lloyd set up a digital bomb that deleted all of the company's programs and cost the company $10 million in . Olson as well testified on cross-examination that he came across two accounts that had supervisory access to the Omega network. Test, troubleshoot, and monitor aerospace systems with high precision, under even the most extreme conditions. 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. so, they served as propagators of the virus. According to police, mafiaboy boasted In the next few days, Buy.com, eBay, CNN, You may call 714-990-7691 for appointments. An international group, dubbed the "Phonemasters" by the FBI, hacked into the Olson ruled out the possibility of accidental deletion because of the specificity of the commands. William H. Walls, the judge who presided over the case, told Lloyd, "What you did not only affected the company but the people who worked there. hastily laid phone lines, laptops, modems, and other gear to disseminate R. Civ. This site is protected by reCAPTCHA and the Google. Theater (EDT). 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. The defense's theory was that the massive deletion of files could have resulted from an accident or could have been caused by another employee, either intentionally or unintentionally. See Gilsenan, 949 F.2d at 95. The District Court determined that the "Love Bug" story was not "general common knowledge," App. *0Lrhu u/gtOH/G0)i!= According to the government, Lloyd alone was responsible for backing up the information on the system onto tapes and he was subject to no oversight in this capacity. 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. ordered him to pay Citibank $240,000. The U.S. Attorney's Office in Newark filed an appeal. App. service. The defense further suggested that Lloyd's problems at work primarily were due to his estranged relationship with Walsh, which had soured in early 1995. That figure is expected to double this year. In May 1995, because of Lloyd's continuing interpersonal problems, he was transferred from supervisor of Omega's CNC Department (the manufacturing side of Omega's plant, where machines actually created the thousands of products that comprised Omega's inventory) to a position as a manufacturing engineering support person. activists. Thus, it is unlikely that the average hypothetical juror would have been influenced by such unrelated information. In the Tim Lloyd logic bomb attack on Omega Engineering, what type of vulnerability was the existence of the user, "12345," an example of? Lloyd knew Omega's systems well. Sign up for our free summaries and get the latest delivered directly to you. We are not talking about deletion of material. transactions originated, telecommunications employees in Russia helped U.S. We may overturn the verdict and grant a new trial only if there was a substantial likelihood of prejudice. enforcement to intercept wire and oral communications--was interpreted to Significantly, evidence that went unchallenged included: the string of commands found on the hard drive in Lloyd's home that was identical to that used in the program that purged the Omega network of all its files; the testimony that the "time bomb" had been tested three times previously and that on each occasion Lloyd had stayed late at the office; Lloyd's willingness to accept up to $12,000 less in a job with W.L. He found that the program that deleted files was similar to a Microsoft program called "DELTREE," but only reconfigured for Novell. five years in prison. It talked about a man named Timothy Lloyd that worked with a company named Omega Engineering. Traditionally, appellate courts give considerable deference to a district court's examination of the prejudicial effect of extraneous information on a jury's verdict. Omega Engineering, Inc. is a leading international, integrated, single-source supplier of highly engineered products and customized solutions in the process measurement and control industry, with a very strong brand, high levels of repeat business with an unmatched reputation for meeting customer needs. Thus, the defense argued to the jury that numerous other Omega employees had the requisite supervisory-level access to commit the act of sabotage. The attacks may have been avoidable. ; cf. App. Thanks for your replies, and have a great day. Was he guilty? What happened next was that Mr. Lloyd hid a ''bomb'' inside Omega's computer network, according to investigators with the United States Secret Service, which has had jurisdiction over such cases since 1986. federal court granted the FBI permission to use the first ever "data tap" to to charges of conspiracy to commit bank, wire, and computer fraud. We also require your annual production volume, material preference, and any secondary operations that may be needed in order to provide you with an accurate quote. customers to make transfers to his accounts. 1990) (applying "the Remmer standard to cases of significant ex parte contacts with sitting jurors or those involving aggravated circumstances"). 1991) (stating that " [i]n determining whether [the juror's] misconduct warrants a new trial, our inquiry is limited to the admissible portions of the declarations"). Further, there was strong uncontradicted evidence to support the verdict. ; see also Console, 13 F.3d at 669 (finding noteworthy the fact that the jury returned two partial verdicts before convicting the defendant on the count seeking reversal). Accordingly, having found no evidence to suggest that Lloyd was prejudiced substantially by a juror's exposure to the story of the "Love Bug" virus, we conclude that the District Court abused its discretion in granting a new trial. 1984); United States v. Hillard, 701 F.2d 1052, 1064 (2d Cir. The extraneous information at issue here -- a media report on a computer virus totally unrelated to the "time bomb" that occurred on Omega's network -- is of a less serious nature than even the information in Waldorf and the other cases where we declined to apply the presumption of prejudice. at 922. officials track the illegal fund transfers to St. Petersburg and finally to On July 10, Ferguson and DiFrancesco met with Lloyd and informed him of his termination. One of the defense witnesses, Richard McKee, who had helped Lloyd install the network, testified that the network was installed so that "anyone who logged onto it had [supervisory] rights." According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. The software running Omega 's manufacturing operations, we have omega engineering tim lloyd to apply the presumption of prejudice when juror. Attorney 's Office in Newark filed an appeal F.2d 600, 603 ( Cir... 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