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Extradited Software Piracy Ringleader Pleads Guilty
Court Watch | 2007/04/20 01:08

The leader of one of the oldest and most renowned Internet software piracy groups has pleaded guilty to criminal copyright infringement charges, in one of the first ever extraditions for an intellectual property offense, Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Attorney Chuck Rosenberg for the Eastern District of Virginia announced today.

Hew Raymond Griffiths, 44, a British national living in Bateau Bay, Australia, was extradited from Australia in February 2007 to face criminal charges in U.S. District Court in Alexandria, Va. He pleaded guilty today before U.S. District Judge Claude M. Hilton to one count of conspiracy to commit criminal copyright infringement and one count of criminal copyright infringement. If convicted on both counts, Griffiths could receive a maximum sentence of 10 years in prison and a $500,000 fine. Prior to his arrival in the United States, he had spent nearly three years incarcerated at a detention center in Australia while fighting his extradition in Australian court. Judge Hilton set a sentencing date for June 22, 2007, at 9:00 a.m.

Griffiths was the leader of an organized criminal group known as DrinkOrDie, which had a reputation as one of the oldest security-conscious piracy groups on the Internet. DrinkOrDie was founded in Russia in 1993 and expanded internationally throughout the 1990s. The group was dismantled by the Justice Department and U.S. Immigration and Customs Enforcement as part of Operation Buccaneer in December 2001, with more than 70 raids conducted in the U.S. and five foreign countries, including the United Kingdom, Finland, Norway, Sweden and Australia. To date, Operation Buccaneer has resulted in more than 30 felony convictions in the United States and 11 convictions of foreign nationals overseas. Prior to its dismantling, DrinkOrDie was estimated to have caused the illegal reproduction and distribution of more than $50 million worth of pirated software, movies, games and music.

Griffiths, known by the screen nickname “Bandido,” was a longtime leader of DrinkOrDie and an elder in the highest echelons of the underground Internet piracy community, also known as the warez scene. He held leadership roles in several other well-known warez groups, including Razor1911 and RiSC. In an interview published in December 1999 by an online news source, he boasted that he ran all of DrinkOrDie’s day-to-day operations and controlled access to more than 20 of the top warez servers worldwide. In fact, Griffiths claimed to reporters that he would never be caught.

Griffiths admitted that he oversaw all the illegal operations of DrinkOrDie, which specialized in cracking software and distributing the cracked versions over the Internet. Once cracked, these software versions could be copied and used without limitation. Members stockpiled the illegal software on huge Internet computer storage sites that were filled with tens of thousands of individual software, game, movie and music titles worth millions of dollars. The group used encryption and an array of other sophisticated technological security measures to hide their activities from law enforcement.

This case was investigated by the Washington field office of U.S. Immigration and Customs Enforcement (ICE) in conjunction with the Customs Cybercenter in Fairfax, Va.

This case is being prosecuted by Deputy Chief Michael DuBose and trial attorney Jay Prabhu of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Robert Wiechering of the Eastern District of Virginia.



Payroll company owner pleads guilty to $4M fraud
Court Watch | 2007/04/19 06:09

The co-owner of a payroll company pleaded guilty Wednesday to a scheme to defraud business clients of more than $4 million by diverting employee taxes to his personal use, federal officials said.

Stephen E. Taylor, 34, of Canton pleaded guilty to wire fraud and could be sentenced to up to 20 years in prison and fined $250,000 at sentencing June 27 in U.S. District Court, officials said.

U.S. Attorney David Nahmias said Taylor was co-owner of 20/20 Payroll Solutions, with offices in Georgia, Texas and Alabama.

"This defendant took advantage of more than 100 innocent business owners, including many mom-and-pop operations," Nahmias said. "He took the funds clients entrusted him with to pay their employees' taxes and used the funds instead for his own personal benefit.

'When his scheme spiraled out of control, he began using the funds of one client to pay for the taxes owed by other clients. In less than two years, he cheated his clients out of more than $4 million dollars," the prosecutor said



Judge rules lawsuit in Ball State shooting can proceed
Court Watch | 2007/04/18 12:18

A federal judge says he won't dismiss a civil rights lawsuit filed against a former Ball State University police officer by the family of a student who was fatally shot by the officer. U-S District Judge Richard Young refused yesterday to reconsider his previous order allowing the wrongful death lawsuit against Robert Duplain to go to trial. A Delaware County grand jury cleared Duplain of any wrongdoing in the 2003 shooting, but the family of 21-year-old Mike McKinney filed a 100 (m) million dollar civil rights lawsuit. Duplain's attorneys asked Young to dismiss the suit, arguing that he had used reasonable force and had qualified immunity as a police officer. Young ruled that expert witnesses could provide testimony that McKinney did not charge at Duplain before he was shot.



Federal judge rejects secrecy for AIPAC trial
Court Watch | 2007/04/18 08:14

A federal judge Monday refused a request to close portions of the upcoming espionage trial of two former American Israel Public Affairs Committee lobbyists because doing so would violate the defendants' right to an open trial. The lobbyists, Steven Rosen and Keith Weissman, were indicted last year under the 1917 Espionage Act for allegedly conspiring to receive and disclose classified US defense information over a five-year period dating back to 1999. The prosecution's plan would have allowed only the judge, lawyers and jury to have access to classified evidence, but this was rejected by US District Judge T.S. Ellis.

In August 2006, Rosen and Weissman asked Ellis to dismiss the charges, arguing that the law is unconstitutionally vague and violates their right to free speech. Ellis, however, upheld the constitutionality of the Espionage Act.



22-Year-Old Guilty In UIC Beating Death
Court Watch | 2007/04/17 07:47

A Cook County jury convicted Mantas Matulis of second-degree murder Monday night in the death of Tombol Malik, a 23-year-old University of Illinois at Chicago student beaten to death with a bike lock in 2005.

Prosecutors had brought first-degree murder charges against Matulis, 22, alleging he kicked Malik in the head after an accomplice beat him with the lock. But the defense argued Matulis acted in self-defense, and the jury convicted him of the lesser charge after seven hours of deliberation.

The second-degree murder conviction carries a sentence of four to 20 years in prison.



Padilla terrorism trial starts in Miami
Court Watch | 2007/04/17 04:51

The trial of Jose Padilla and two co-defendants on terrorism charges began Monday with jury selection. Defense attorneys have expressed concern that potential jurors may have been tainted by early accusations that Padilla had planned to set off a radioactive "dirty bomb", an allegation not among the charges against Padilla, and that jurors might associate the defendants with the Sept. 11 attacks. US District Judge Marcia Cooke has instructed prosecutors to only refer to Sept. 11 in a limited manner, but barred them from implying that Padilla or his co-defendants were involved.

Last week, Cooke refused to dismiss the terror charges based on Padilla's allegations that he was tortured. Padilla, a US citizen, was arrested in 2002 at Chicago's O'Hare International Airport and subsequently detained as an "enemy combatant" at a Navy military brig in Charleston, South Carolina. Initially accused of planning to set off a "dirty bomb" in the United States, Padilla went from enemy combatant to criminal defendant when he was finally charged  in November 2005 on unrelated counts of conspiracy to murder US nationals and supporting terrorist activity. He was transferred to civilian custody  in January 2006 and has pleaded not guilty to the charges. In February, Padilla was ruled competent to stand trial.



Maine Lawyer Arrested For Registration Fraud
Court Watch | 2007/04/16 07:39

PORTSMOUTH - A local attorney was arrested Friday on four charges alleging he used the address of his downtown law office to register three cars, in spite of living in Kittery, Maine.

According to Katie Daley, spokeswoman for the New Hampshire Highway Patrol, Richard Foley, 53, was charged at the Newington Police Department on three felony counts of title fraud.

If convicted, according to Daley, Foley could be sentenced to a maximum of seven years in prison. The convictions could also be punishable by a maximum $4,000 fine for each of the four felony counts.

Foley was also arrested on a misdemeanor count of tampering with public records, punishable by up to one year in prison and a $1,200 fine.

The Division of Motor Vehicles Highway Patrol reports that Foley's arrest followed a two-month investigation. That investigation, according to the state, was based on information that Foley was using his 414 State St. law office to claim New Hampshire residency for the purpose of registering and titling three of his own vehicles.

Daley said the state is not releasing the attorney's Kittery street address.

Automobiles registered in New Hampshire are not subject to an excise tax, as is the case in Maine, where auto insurance is also mandated. The amount of the Maine tax is determined by the age of the vehicle and the suggested retail price.

Following his arrest, Foley was released on $4,000 personal recognizance bail and is scheduled to be arraigned May 23 in Portsmouth District Court.



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