------------------------------ From: John and Barbara McMullen Subject: The Riggs Sentencing (reprint from Newsbytes) Date: November 21, 1990 ******************************************************************** *** CuD #2.13: File 3 of 5: More on the Riggs Sentencing *** ******************************************************************** (The following articles, by John and Barbara McMullen, were originally published in Newsbytes. They are reprinted with permission. They corrects some errors in the original AP wire service story reported in the last issue of CuD). ======================================================================= (NEWS)(GOVT)(NYC)(00001) ATLANTA SENTENCING FOR COMPUTER CRIMES ATLANTA, GEORGIA, U.S.A., 1990 NOV 19 (NB) -- Robert J. Riggs, Adam E. Grant and Franklin Darden, who pleaded guilty in July to various charges relating to computer break-ins to systems of BellSouth, have been sentenced by U.S. District Judge Owen Forrester to prison sentences and ordered to make financial restitution of $233,000 to BellSouth. Riggs, who had pleaded guilty to one conspiracy count and could have received a maximum sentence of five years in prison and a $200,000 fine, was sentenced to a 21-month prison term and was ordered to begin serving the sentence on February 15th. Darden, who faced similar penalties, received 14 months as did Grant. Grant had pleaded guilty to possessing 15 or more BellSouth access devices with the intent to defraud and faced a maximum penalty of 10 years in prison and a $250,000 fine. In sentencing Grant and Darden, Judge Forrester stipulated that seven months of their sentences may be served in a halfway house. Grant and Darden are scheduled to report for confinement on January 4th. Craig Neidorf, who had been indicted for publishing an electronic document which Riggs admitting copying from BellSouth's files, expressed surprise at the sentence, telling Newsbytes "The sentence seems severe when one considers the lesser sentence given to Robert Morris who disrupted thousands of computers and caused untold financial expense to those who had to undo the damage that he caused. I am not saying that Morris should have received a harsher penalty; I'm saying rather that the Atlanta sentences seem disproportionate. I don't know much about all of the Atlanta charges but the testimony concerning them at my case did not indicate that there had been great financial damage to anyone because of the actions of these three." Neidorf also questioned the determination of damages in the case, saying "I hope that the damages claimed by BellSouth have been well scruitinized by the government. You may remember that, before the charges against me were dismissed, BellSouth had claimed that the value of the document in question was over $70,000. It turned out that the document was available in print for under $20. Riggs, Darden and Grant had already pleaded guilty when this gross overstatement came out. I hope, for justice's sake, that the restitution awarded actually relates to substantiated damages." Kent Alexander, Assistant U.S. Attorney, told Newsbytes that he "is comfortable with the method under which the damages were determined." He also clarified the order for restitution, saying that Riggs, Darden and Grant are jointly responsible for the $233,000 and that each of them is individually liable for the entire amount should the others default in payment. Alexander had, in July, told Newsbytes that the plea agreement entered into by the defendants "allows the United States Attorney's office to, in return for substantial assistance from the defendants, to ask for a downward departure from the sentencing guidelines. The substantial assistance referred to includes debriefing by the Secret Service and truthful testimony in other related computer cases." Alexander confirmed, in his current comments to Newsbytes, that the sentences given were, in fact, downward departures from the sentencing guidelines. New York State Police Senior Investigator Donald Delaney, who has been at the forefront of New York State investigations into computer crime, commented on the sentencing to Newsbytes, saying "I think that the sentence is significant and appropriate given the severity of the crimes. I hope that this sends a message to others engaged in telecommunications fraud that such actions can result in actual jail terms." (Barbara E. McMullen & John F. McMullen/19901119) ============================================================================= (EXCLUSIVE)(GOVT)(NYC)(00001) ATLANTA SENTENCING DESIGNED TO "SEND MESSAGE" ATLANTA, GEORGIA, U.S.A., 1990 NOV 20 (NB) -- In response to questions by Newsbytes concerning the rationale underlying the sentences received by Robert J. Riggs, Adam E. Grant and Franklin E. Darden, Jr. on November 16th for activities involving illegal access to computer systems of BellSouth, Assistant United States Attorney for the Northern District of Georgia Kent B. Alexander has released the "Government's Sentencing Memorandum And S.G. & 5K1.1 Motion". This 21 page document, prepared by Joe D. Whitney, United States Attorney for the Northern District of Georgia, and Alexander and sent to United States District Court Judge J. Owen Forrester, puts forth the factors which the prosecuting attorneys wish the judge to consider in determining sentence. The memorandum states "Although the government is going to recommend a downward departure from the Sentencing Guidelines, the three defendants are clearly criminals who have caused a significant amount of damage and should be punished accordingly. Moreover, the computer hacker world is watching this case very closely, and the Court should send a message that illegal computer activities will not be tolerated" (The word "hacker" is footnoted and explained by saying "The government uses the term 'hacker' to describe a person who uses computers for criminal activity. The Court should note, however, that the term 'hacker' can also be used to describe legitimate computer users. At one time all computer users were known as 'hackers' and some computer users still identify themselves as 'hackers'."). In explaining the gravity of the crimes, the memorandum states "In all, they stole approximately $233,800 worth of logins/passwords and connect addresses (i.e. access information) from BellSouth. BellSouth spent approximately $1.5 million in identifying the intruders into their system and has since spent roughly $3 million more to further secure their network." In explaining the perceived need to send a message to the "hacker community", the memorandum points out that the last federally prosecuted adult criminal hacker, Robert Morris, Jr. received probation and that that sentence was followed very closely by 'hackers' throughout the nation. The memorandum states "Any sentence that does not include incarceration would send the wrong message to the hacking community; that is, that breaking into computer systems is not really a crime." The document also states that "All three defendants have provided significant cooperation that has fueled further investigation into the activities of a number of computer hackers throughout the country." Because of this cooperation, the "government moves for this Court to make a downward departure pursuant to S.G. 5k1.1 in the amount of three levels for defendants Grant and Darden and two levels for defendant Riggs." The memorandum then details the cooperation of each of these defendants in cases involving Craig Neidorf in Chicago and an unnamed "fellow Legion of Doom member" in Detroit. The memorandum also explains why a lesser departure is recommended for Riggs - "Defendant Riggs strikes the undersigned counsel as an unusually quiet and pensive person. Throughout the investigation, he has been cooperative, but because of his nature, he sometimes comes across as uninterested and evasive. The bottom line is that he provided helpful information that furthered several investigations around the country, though his assistance was not as substantial as that of Grant and Darden; hence the recommendation of only a two-level departure." An earlier conviction for Riggs related to computer fraud was also mentioned. In the actual sentencing by Judge Forrester, Grant and Darden received 14 months incarceration of which 7 will be in a half-way house while Riggs received 21 months incarceration . Additionally, they were directed to make restitution payments to BellSouth of $233,000. In a conversation with Newsbytes, the aforementioned Craig Neidorf questioned the determination of damages in the case, saying "I hope that the damages claimed by BellSouth have been well scrutinized by the government. You may remember that, before the charges against me were dismissed, BellSouth had claimed that the value of the document in question was over $70,000. It turned out that the document was available in print for under $20. Riggs, Darden and Grant had already pleaded guilty when this gross overstatement came out. I hope, for justice's sake, that the restitution awarded actually relates to substantiated damages." An examination of the sentencing memorandum finds that the E911 file, "the subject of the Chicago indictment" was estimated by Bob Kibler of BellSouth Security to be valued, based on R&D costs, at $24,639. Kent Alexander, Assistant U.S. Attorney, told Newsbytes that he "is comfortable with the method under which the damages were determined." He also clarified the order for restitution, saying that Riggs, Darden and Grant are jointly responsible for the $233,000 and that each of them is individually liable for the entire amount should the others default in payment. The Department of Justice release also stated "The United States Attorney commented that most computer users engage in legal and constructive activities. Criminal hackers, however, who break into computer systems of others, are breaking the law and will be prosecuted accordingly." (Barbara E. McMullen & John F. McMullen/19901119) ******************************************************************** >> END OF THIS FILE << *************************************************************************** Downloaded From P-80 International Information Systems 304-744-2253 12yrs+