And then The Omega Engineering Logic Bomb An example of a logic bomb that was actually triggered and caused damage is one that programmer Tim Lloyd was convicted of using on his former employer, Omega Engineering Corporation. on Yahoo and the other companies were distributed denial-of-service It is the party seeking the new trial, here Lloyd, who bears the burden of demonstrating the likelihood of prejudice. at 425. In the future, Mr. Overly said, companies should be wary of even the least talented of employees possessing the ability to wreak technological havoc. According to news reports, the earliest evidence of Melissa was in a posting Tim Lloyd, 39, of Wilmington, Del., must surrender to the U.S. federal court May 6. Note: Pages will open in a new browser window. 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. 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. Boylan, 898 F.2d at 261 (quotation and citations omitted). In August and September 1996, Omega continued to seek a solution, hiring a variety of programmers in hopes of recovering the lost data. at 953. *0Lrhu u/gtOH/G0)i!= Gore & Associates at a job fair about a possible job opening. Computer Emergency Response Team (CERT) issued an According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. Id. 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. Government witnesses testified to Lloyd's workplace behavior and even an expert testified that the same program that allegedly caused the "purge" of all the network files was also present on the hard drive of a computer found at Lloyd's home. App. at 569-571. Gore, which Ferguson claimed at trial was nothing but lies. See the article in its original context from. You can explore additional available newsletters here. 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. Though damage estimates vary widely, the FBI estimates that the companies computer systems. ^ a b c Gaudin, Sharon. However, the at 500. in January 1998, he admitted using passwords and codes stolen from Citibank 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. Further, there was strong uncontradicted evidence to support the verdict. After determining where the You may call 714-990-7691 for appointments. This happened in the year 2000. The W.L. Amazon.com, ZDNet.com, E*Trade, and Excite were taken down by DDoS attacks. He was apprehended in London at Heathrow Airport in March 1995. /* 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. 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). 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. You're all set! Id. As a subscriber, you have 10 gift articles to give each month. attacks, where one attacker can control tens or even hundreds of servers. It deleted all of the company's design and production programs. racking up $200,000 in bills. 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. combinations, downloaded the file and ran the program it contained. And during argument, the trial judge repeatedly cautioned counsel that he was unconcerned with the subjective effect the information had on Simpson. Sign up for our free summaries and get the latest delivered directly to you. in September 1998. at 66. 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"). Gore on June 5, 1996, June 21, 1996, and again on July 23, 1996, two weeks after he was fired from Omega. Mr. Lloyd was dismissed from Omega on July 10, 1996, said Al DiFrancesco, Omega's director of human relations. After February 1998 a U.S. judge sentenced Levin to three years in prison, and author of Tangled Web, a book chronicling tales of digital crime. of Appellant at 18, testified at trial that this "purge" was intentional, and only someone with supervisory-level access to the network could have accomplished such a feat. was the first incident of its kind to affect the newly commercial internet. 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. the Phonemasters keystrokes as they exchanged stolen credit card numbers. position as a network administrator. On Appeal from the United States District Court for the District of New Jersey District Judge: Hon. Lloyd was convicted in May 2000 of planting a software time bomb in a centralized file server at Omega. First, the defense tried to refute the government's evidence that Lloyd was a belligerent and uncooperative employee. 33 0 obj << /Linearized 1 /O 36 /H [ 918 284 ] /L 38509 /E 9420 /N 8 /T 37731 >> endobj xref 33 18 0000000016 00000 n 0000000724 00000 n 0000000779 00000 n 0000001202 00000 n 0000001356 00000 n 0000001503 00000 n 0000002361 00000 n 0000002568 00000 n 0000002775 00000 n 0000003623 00000 n 0000003838 00000 n 0000003947 00000 n 0000004736 00000 n 0000005588 00000 n 0000005799 00000 n 0000009191 00000 n 0000000918 00000 n 0000001181 00000 n trailer << /Size 51 /Info 31 0 R /Encrypt 35 0 R /Root 34 0 R /Prev 37721 /ID[] >> startxref 0 %%EOF 34 0 obj << /Type /Catalog /Pages 32 0 R >> endobj 35 0 obj << /Filter /Standard /V 1 /R 2 /O (ujQ\)5{sw lR) /U (#L_I-gx'K* ]) /P -4 >> endobj 49 0 obj << /S 164 /Filter /FlateDecode /Length 50 0 R >> stream 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." 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. According to published reports, Lloyd was fired in 1996 because he was unable to get along with his co-workers. 1996, the date that the bomb was set to detonate. App. That figure is expected to double this year. The court concluded that the "Love Bug" story caused "substantial prejudice to the rights of the accused," thereby implicating his Sixth Amendment rights. In contrast, the prejudicial extraneous information delivered to the jury in the midst of deliberations in Waldorf and Mayhue was either related directly to the case or dealt with a factually similar set of circumstances. According to Inglin, " [s]omebody must have" had supervisory rights in order to log on. On July 31, 1996, all . ''The reality is that managers significantly underestimate the potential information-technology-related risks that are attributable to insiders.''. 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. P. 714.257.4800 F. 714.257.4810; E. info@schydraulic.com; SC Hydraulic Engineering Corp. 1130 Columbia Street, Brea, CA 92821 Courtney Walsh, a former subordinate and close friend of Lloyd who had since become estranged from him, replaced Lloyd as supervisor of the CNC Department. 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. 1993) (stating that application of the presumption is most appropriate when there is direct communication between a juror and a third-party during deliberations); see also United States v. Boylan, 898 F.2d 230, 261 (1st Cir. Several defense witnesses also testified that the computer network had virtually no security at all. In examining for prejudice, this court has never set forth a list of factors to consider, yet it is apparent from our jurisprudence that several factors do stand out as relevant to the analysis. By logging in, the worker 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. 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. App. 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. 1983); United States v. Bassler, 651 F.2d 600, 603 (8th Cir. Id. App. 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 court noted that "a more critical moment would have been difficult to find." That same day Lloyd told representatives of W.L. information about their uprising to the public. Test, troubleshoot, and monitor aerospace systems with high precision, under even the most extreme conditions. We presume that juries follow such instructions. App. computer, it gained access to the Outlook email system and started ^ a b "OMEGA Engineering Global Contacts". 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. 2.6M subscribers in the hacking community. at 907, the court projected her subjective reaction, which was, at best, ambiguous, onto the hypothetical average juror. at 229. at 585. He had worked there for 11 years, eventually assuming a had committed the largest ever act of worker-related computer sabotage, causing Id. He was later sentenced to There is also the issue of computer espionage, which in some cases has included computer sabotage. Levin. southernmost state in Mexico an autonomous region for the indigenous Mayan If convicted, Mr. Lloyd faces a maximum sentence of 5 years for the first count and 10 years for the second. Where the improper publicity is of a less serious nature however, no similar presumption applies." database.". email address book. ", "This was a devious and calculated act," said prosecutor V. Grady O'Malley. A jury convicted Lloyd of computer sabotage in May 2000. In the next few days, Buy.com, eBay, CNN, 2000). messages on alt.sex. 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." According to Grady O'Malley of the U.S. Attorney's Office, the juror The Citibank case marks the hacker community's first foray into big-money The defense contended that the change in positions in May 1995 was simply a lateral transfer, as testified to by Ferguson and Walsh, and the defense witness Richard Franklin. at 909, we are not willing to overturn the court's finding. 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 . 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. The government must send a message to systems managers and people in trust that there will be a day of reckoning.". Witnesses testified that he repeatedly elbowed, shoved, and bumped colleagues in the hallways, and that he became verbally abusive. He created the network that the prosecution said he later destroyed. The government argued to the jury that beginning in 1994 or 1995, Lloyd became a difficult employee. Lloyd, who had worked at Omega for 11 years and became "a trusted member of the family" there, had actually built the computer network that he would later destroy. Citibank was able to recover all but $400,000 of the $10 million that was While his lawyer likened Smith to a "graffiti 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. pinpoint the New Jersey internet service provider (ISP) used to post the and on EDT's web site, participants in the online "sit-in" were instructed to External sites are not endorsed by CNN Interactive. so, they served as propagators of the virus. an extensive investigation that involved Texas, Pennsylvania, Ohio, Colorado, Tim Lloyd, a 37-year-old network . Industry observers had hailed the conviction as a precedent-setting victory, proving that the government is capable of tracking down and prosecuting computer crime. App. Some weeks after he had been terminated, he never having been allowed to return to that employment, the system crashed. researcher dubbed "The Zapatista Effect," which suggests that the very nature View Christian Lloyd's profile on LinkedIn, the world's largest professional community. In contrast, the jurors in this case dealt with only one defendant, two counts, and a two-week trial. App. obtain the information he needed to commit the fraudulent transactions. Levin, they say, used Gore in response to the job application of Lloyd's friend Raymond Nabb, another Omega employee, that "everybody's job at Omega is in jeopardy." Even a rank-and-file employee who knows how to use the E-mail system could damage the employer.''. In the Tim Lloyd logic bomb attack on Omega Engineering, what type of vulnerability was the existence of the user, "12345," an example of? 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. Bank The government contended that Lloyd. The intention was to delete all unnecessary information from the individual computers. Still, we declined to apply the presumption in that case. Gore & Associates as evidence of his expectation of an upcoming departure from Omega. Gore. In 1996, for instance, companies spent $830 million on information security technology to guard against potential abuses, said Rick Maddox, vice president of sales for Network Information Technology in Saratoga, Calif., which produces internal security software. . at 916, 918, 921. Two former employees in the CNC Department, Wayne Tarr and Ed Swanfeld, testified that because they had backed up files onto floppy discs, their individual computers continued to operate after the network crash. at 946-949, 951-952. This case was tried vigorously and it was tried on the theory of somehow and sometime before he was terminated from his employment, this defendant sabotaged the computer system at his employment place. Since the virus acted so quickly, many email systems were couldn't decide whether the story had had an effect on her decision to convict Lloyd knew at 601-602. Just got finished watching this episode of Forensic Files about a unique case from 2001. a juvenile detention center. ; 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). ordered him to pay Citibank $240,000. In what was supposed to be a show of solidarity with the Traditionally, appellate courts give considerable deference to a district court's examination of the prejudicial effect of extraneous information on a jury's verdict. See Gilsenan, 949 F.2d at 95. Luckily, AOL "tagged" the newsgroup postings on its servers, including the The charges were in connection with a 1996 crime that cost Omega Engineering But various independent studies have found that at least 70 percent of all computer breaches were instigated by a company's own employees, said Michael Overly, a Los Angeles lawyer who specializes in computers. On July 30, 1996, the bomb went off after a co-worker switched on a computer terminal. networks of a number of companies including MCI WorldCom, Sprint, AT&T, and Prosecutors alleged Since Omega makes components for clients such as NASA and the U.S. Navy, those systems were the company's rainmakers. See 170 F.3d at 394. monitor the hackers' activities. hacking skills to achieve social or political ends--to the Zapatista rebels Lloyd, who had worked at Omega for 11 years, had long been a trusted employee. 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. The government contends on appeal that the District Court abused its discretion in granting the defendant's motion for a new trial based on Simpson's testimony about her subjective reaction to extraneous information and that the court's inquiry into her subjective reaction violated Rule 606(b) of the Federal Rules of Evidence. The Phonemasters case is the first time that Title III of the Omnibus Crime A subreddit dedicated to hacking and hackers. Mayhue, 969 F.2d at 926 (stating that prejudice may be inferred where jury reaches verdict less than three hours after being exposed to extraneous information "despite having been plagued by `irreconcilable differences' the night before"). 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. The government immediately pointed the court to Federal Rule of Evidence 606(b) and recommended it conduct an informal in camera inquiry of the juror to determine whether she had been subject to extraneous information that prejudiced her. During the course of the trial, the government presented 10 witnesses and the defense presented 10 witnesses. and agreed to causing nearly $80 million in damages. Protection Center (NIPC) issued a similar warning and offered free software However, the conviction was short-lived. United States v. Gilsenan, 949 F.2d 90, 95 (3d Cir. App. In examining for prejudice, we must conduct "an objective analysis by considering the probable effect of the allegedly prejudicial information on a hypothetical average juror." Sealed App. Olson further testified that he had reason to believe July 30, 1996 was the trigger date that set off the actual deletion of files. 949 F.2d at 96. had seen a news story about the "Love Letter" worm and its attendant havoc and See Waldorf, 3 F.3d at 711. . Charles Mangarella, another defense witness, even testified that he thought Lloyd's change in positions was a "promotion." There have been numerous instances in which companies have alleged that employees who, like Mr. Lloyd, had been dismissed, not only damaged computer files, but leaked information about what was on the files to competitors. We also find informative the District Court's instruction to the jury at the close of trial that it should only consider the evidence developed in the case. In discussing the "Love Bug" story in the District Court, the prosecutor accurately pointed out that "we are talking about a virus, we are not talking about a time bomb. In a strange twist, one of the jurors came forward The government cites Lloyd's job interviews with W.L. Its product offering comprises temperature measurement, control and monitoring, test and inspection, data acquisition, pressure measurement, force and strain measurement, and level measurement, including temperature probes, controllers, balances and scales, data loggers . P. 52(a), and the fact that several jurors in this case "had never even used a computer," App. 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." We need to deter others in this increasingly computerized world and economy. file named "list.zip." 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. Lloyd did not testify. Lloyd knew Omega's systems well. Ultimately, the jury convicted Lloyd on the count of computer sabotage but acquitted him on the count of transportation of stolen goods. 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. Through the tap, the FBI was able to capture Computer experts said the case was a chilling reminder of how vulnerable companies can be to tampering -- not just by outside hackers, but by people within the company itself. 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. OMEGA Engineering. 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. officials then contacted the FBI, who tracked Levin as he trespassed on See Console, 13 F.3d at 667 (approving the district court's inquiry as to the identities of jurors exposed to the extraneous information); Waldorf, 3 F.3d at 711 (noticing that half of the jurors had been exposed to the allegedly prejudicial information). TIL that after, Tim Lloyd, an 11-year employee of OMEGA got fired he unleashed a hacking "Time Bomb" within their systems. The ISP was able to provide investigators with security experts dispute that claim, however. App. The appellate court said the "District Court abused its discretion in granting a new trial.". 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