[iwar] Historical posting


From: Fred Cohen
From: fc@all.net
To: iwar@onelist.com
Mon, Jan 1, 1999 

fc  Mon Jan 1, 1999
Received: (from fc@localhost) by all.net (8.9.3/8.7.3) id FAA15269 for iwar@onelist.com; Tue, 18 Apr 2000 05:21:43 -0700
To: iwar@onelist.com
MIME-Version: 1.0
Mailing-List: list iwar@egroups.com; contact iwar-owner@egroups.com
Delivered-To: mailing list iwar@egroups.com
Precedence: bulk
List-Unsubscribe: 
Date: Mon, Jan 1, 1999
From: Fred Cohen 
Reply-To: iwar@egroups.com
Subject: [iwar] Historical posting

          


            
 Internet Service Provider Convicted and Sentenced for Intercepting Customer
Communications and Possessing Unauthorized Password Files, Reports U.S.
Attorney 

    SPRINGFIELD, Mass., Nov. 29 /PRNewswire/ -- An Internet bookseller,
which also operated an Internet communications service, pled guilty and was
sentenced today in federal court for intercepting electronic communications
and the unauthorized possession of password files.
    U.S. Attorney Donald K. Stern announced today that ALIBRIS, which is
headquartered in Emeryville, California, pled guilty before U.S. District
Court Judge Michael A. Ponsor to a criminal information charging the
company with ten counts of unlawful interception of electronic mail
messages ("e-mail") and one count of unauthorized possession of passwords
with intent to defraud.  Judge Ponsor accepted the terms of the plea
agreement entered into by ALIBRIS and the government and sentenced ALIBRIS
to pay a fine of $250,000.
    At today's hearing Assistant U.S. Attorney Jeanne Kempthorne told the
Court that had the case proceeded to trial evidence introduced would have
shown that ALIBRIS's corporate predecessor, INTERLOC, INC. ("INTERLOC"),
was an on-line bookseller, specializing in rare and out-of-print books.
INTERLOC also operated a business called Valinet, which provided Internet
service in the Greenfield, Massachusetts area.  INTERLOC provided e-mail
service to its customer book dealers.  The Information alleges that for
periods of time between January and June 1998, ALIBRIS/INTERLOC intercepted
e-mail messages directed by online bookseller Amazon.com to
ALIBRIS/INTERLOC bookseller clients which had INTERLOC e-mail addresses.
    In January of 1998, a senior executive at INTERLOC directed the systems
administrator to write code for the program that processed INTERLOC's
e-mail delivery so that it would copy and/or filter incoming mail which
contained "Amazon.com", "Bibliofind.com", or "Advanced Book Exchange" in
the "From:" field of any e-mail correspondence to INTERLOC's book dealer
customers.  All of these businesses were competitors of INTERLOC's
bookselling business.  In a matter of weeks INTERLOC intercepted and copied
thousands of e-mail communications to which INTERLOC was not a party and
was not entitled.  The activity continued with the full knowledge and
authorization of top executives at ALIBRIS after its merger with INTERLOC
in May of 1998.  The Information alleged that the purpose of the e-mail
interceptions was, in part, to gain competitive commercial advantage for
ALIBRIS/INTERLOC's own online bookselling business by compiling a database
of dealers' top 100,000 book purchase requests and to analyze the
bookselling market.
    The prosecutor also told the Court that evidence would have shown that
INTERLOC's systems administrator, again at the direction of a top
executive, hacked into the servers of competitor Internet service
providers.  Through this illegal means INTERLOC was able to obtain the
unauthorized copies of the confidential and proprietary password files and
user names, essentially customer lists, of its competitors, Shaysnet,
Megatron Data, and Crocker Communications.
    U.S. Attorney Stern stated: "In this case, an Internet service provider
intercepted mail passing through its network to gain a business advantage.
This was not an innocent interception, but was part of a scheme to
intercept e-mails for fraudulent purposes. E-commerce depends on the
security of electronic transactions.  We are committed to prosecuting the
electronic theft of valuable intangible business property with the same
vigor we have applied to the theft of valuable physical property in the past."
    ALIBRIS cooperated fully in the government's investigation.  No
confidential customer financial information was obtained or misused.
    The investigation is continuing.
    This case was investigated by the Federal Bureau of Investigation and
the Massachusetts State Police. The case is being prosecuted by Jeanne M.
Kempthorne, Chief of Stern's Public Corruption and Special Prosecutions Unit.

SOURCE U.S. Attorney


___________________________________________________________________
Ross Stapleton-Gray                   Sandstorm Enterprises, Inc.
rsgray@s...                  2503 Columbia Pike, Suite 118
                                      Arlington VA 22204
http://www.sandstorm.net/             +1 703 685-5197 / 5257 fax