fraud

Sprint must face NY tax-fraud case, says judge

Sprint may end up in court after a U.S. judge refused to throw out a case accusing the carrier of deliberately not collecting and paying millions in tax.

According to Reuters, the U.S.-based firm could be facing a lawsuit brought forward by the New York state over the allegations. Under the state's False Claims Act (.pdf), the Attorney General -- Eric Schneiderman -- is able to file a suit against Sprint on the basis that the company withheld funds from the state and local government through "false or fraudulent conduct."

If a case is … Read more

Purdue students charged with switching prof's keyboard to improve grades

Who understands the importance of performance better than an engineer?

Yet the pressures that come with performing to perfect levels can cause some engineers to cut corners, even obfuscate.

How tragic, then, that three apparently bright (or not quite so bright) young things studying engineering at Purdue University have been charged with using their skills to artificially jack up their grades.

I am not sure how sophisticated this alleged scheme was.

It all began to allegedly unravel at the end of 2012 when an engineering professor was suddenly struck by suspicion that the password on his computer kept changing. He … Read more

Craigslist wins early legal victory against PadMapper, 3Taps

Craigslist has won the first round in its federal lawsuit against PadMapper and two other companies, which extracted and used real estate listings from the world's most popular classifieds site.

U.S. District Judge Charles Breyer in San Francisco on Tuesday rejected attempts by the defendants to dismiss Craigslist's lawsuit, which alleged a slew of unlawful acts -- including terms of use violations, copyright violations, trespass, and civil violations of the Computer Fraud and Abuse Act (CFAA).

"Defendants' continued use of Craigslist after the clear statements regarding authorization in the cease and desist letters and the technological … Read more

Pirate Bay co-founder charged with alleged hacking and fraud

Intrigue and suspense movie thrillers are made from stuff like the story of Gottfrid Svartholm Warg. And for Warg, it seems like his story may be coming to an end.

The Pirate Bay co-founder was charged today with conspiracy to hack into several Swedish agencies and allegedly attempting to make an illegal online money transfer out of a local bank, according to Swedish news site The Local.

"A large amount of data from companies and agencies was taken during the hack, including a large amount of personal data, such as personal identity numbers (personnummer) of people with protected identities,&… Read more

'Aaron's Law' rewrite backfires, reformers now on defensive

For years, criminal defense attorneys, academics, and civil libertarians have warned that an anti-hacking law, originally designed to protect NORAD's computers, needs to be reformed. Federal prosecutors have used the law to prosecute the late Aaron Swartz and a Missouri woman accused of lying on her MySpace profile.

Now a key U.S. House of Representatives committee finally is rewriting the Computer Fraud and Abuse Act. But instead of fixing the law's vagueness problems, or reducing its penalties, draft legislation backed by the Justice Department would make it even more Draconian.

It's a bitter setback to the … Read more

AT&T 'hacker' and Internet troll sentenced to over three years

In the latest criminal prosecution to alarm Internet activists, a security researcher who accessed a non-password protected portion of AT&T's Web site was sentenced today to 41 months in prison and three years of supervised release.

Andrew Auernheimer, who goes by the nickname "Weev" and was convicted by a federal jury last year of hacking, was sentenced today by a federal judge in Newark, N.J. "No matter what the outcome, I will not be broken," Auernheimer said this morning after hosting an all-night party in Newark and making an unsuccessful appearance on … Read more

From 'WarGames' to Aaron Swartz: How U.S. anti-hacking law went astray

Aaron Swartz, the Internet activist who committed suicide while facing the possibility of a felony criminal conviction, was prosecuted under a law that was never intended to cover what he was accused of doing.

The Computer Fraud and Abuse Act of 1984 dealt only with bank and defense-related intrusions. But over the years, thanks to constant pressure from the U.S. Department of Justice, the scope of the law slowly crept outward.

So by the time Swartz was arrested in 2011, the tough federal statute meant to protect our national defense secrets covered everything from Bradley Manning's offenses to … Read more

HP's Autonomy acquisition probed by U.K. regulators

Hewlett-Packard has a way of quietly announcing its dealings with Autonomy in its annual and quarterly regulatory filings.

In its quarterly report to the U.S. Securities and Exchange Commission today, the company announced that the U.K. Serious Fraud Office has launched an investigation into the alleged irregularities of HP's acquisition of Autonomy.

Here's what HP wrote in its filing:

As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the U.S. Department of Justice and the SEC related to the accounting improprieties, disclosure failures … Read more

Attorney General Eric Holder defends Aaron Swartz case

U.S. Attorney General Eric Holder defended the criminal case against the late activist Aaron Swartz today, saying the penalties sought represented a "good use of prosecutorial discretion."

In an appearance before the Senate Judiciary Committee, Holder denied that Justice Department prosecutors engaged in any wrongdoing, arguing that Swartz could have avoided a lengthy prison sentence if he had simply accepted a guilty plea of up to six months.

Swartz committed suicide on January 11 in New York. His family and friends have blamed prosecutors for filing 13 felony charges -- meaning years or decades in prison if … Read more