In 1990, a federal judge sentenced Morris to 400 hours of community service and ''That's not how it is today. 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. Several defense witnesses also testified that the computer network had virtually no security at all. The firing was effective immediately and Lloyd was quickly escorted from the premises. Omega Engineering, Inc. is a leading international, integrated, single-source supplier of highly engineered products and customized solutions in the process measurement and control industry, with a very strong brand, high levels of repeat business with an unmatched reputation for meeting customer needs. ", "This was a devious and calculated act," said prosecutor V. Grady O'Malley. Likewise, we shall not apply the presumption of prejudice to this case. In February 2000, some of the internet's most reliable sites were rendered Agency (NSA) computer security expert, wrote 99 lines of code and released them Ferguson described Lloyd to W.L. 1992); United States v. Perkins, 748 F.2d 1519, 1533 (11th Cir. This secession sparked a rebellion that is still being waged The group has been credited with revolutionizing modern The appellate court said the "District Court abused its discretion in granting a new trial.". computer systems. couldn't decide whether the story had had an effect on her decision to convict But hacks were still more of an annoyance than anything devastating, though it was quickly becoming apparent . John McPoyle, also trained in Novell, also failed to recover any Omega files. Virgin Islands v. Gereau, 523 F.2d 140, 151 (3d Cir. Omega Engineering, Inc. 26904 Network Place Chicago, IL 60673-1269: Payments by Wire Transfer (203) 359-1660 (Mon-Fri. 8am to 5pm EST) Payments can also be made via the BillPay Plus Portal: W-9 Form: W-9 Download: ISO Certification: ISO-9001: Corporate Status: Large Business, incorporated in Delaware. Instead, the government emphasized that Lloyd only could have committed the crime before he was fired when he had direct access. 2.6M subscribers in the hacking community. App. Experts said that email infected by Melissa Several courts of appeals have applied a presumption of prejudice whenever a jury is exposed to extraneous information. Sealed App. Walsh objected, fearing that the removal of these programs from individual computers could cause the whole computer system to crash, yet Lloyd apparently remained steadfast in his position. Timothy Lloyd, 30, of Wilmington, Delaware, was charged in US District Court with intentionally damaging a computer system maintained by his former employer, Omega Engineering Inc. Lloyd is . In what was supposed to be a show of solidarity with the The attacks may have been avoidable. 1996, the date that the bomb was set to detonate. Omega nearly $10 million in lost sales. The company's corporate headquarters is . On July 31, 1996, a logic bomb was triggered on the server for Omega Engineering's manufacturing operations, ''The myth is that companies have to protect themselves against outside hackers, but this is not the reality,'' said Barbara J. Bashein, professor of information systems at California State University at San Marcos. It further contends that only Lloyd had each of these necessary skills and the necessary access to commit this crime. at 916, 918, 921. Gore employee on July 31, 1996, the day the Omega network crashed, that "everybody's job at Omega is in jeopardy." Mold & Engineering. A jury convicted Lloyd of computer sabotage in May 2000. John Bosanac got He created the network that the prosecution said he later destroyed. The defense further argued that Omega's written policy against working at home had never been enforced. Lloyd's supervisor, James Ferguson, testified for the government that, even though he told Lloyd this change in positions was only a "lateral move," in fact it constituted a "demotion," as it took supervisory capabilities away from Lloyd. However, in the instant case, after the District Court deviated from Federal Rule of Evidence 606(b) by questioning Simpson about the actual effect the "Love Bug" story had on her vote, App. at 921, even though several members of the jury had computer knowledge. Government witnesses testified at trial that Lloyd was the only person who maintained the Novell computer network and had top- level supervisory access to it. Id. We review a district court's grant of a motion for a new trial as well as its investigation of extraneous information for an abuse of discretion. of Fame" and After determining where the 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. ; cf. The extraneous information at issue here -- a media report on a computer virus totally unrelated to the "time bomb" that occurred on Omega's network -- is of a less serious nature than even the information in Waldorf and the other cases where we declined to apply the presumption of prejudice. position as a network administrator. As this court recently discussed in Wilson, we do not permit jurors to impeach their own verdicts. The Secret Service said that Lloyd had committed the largest ever act of worker-related computer sabotage, causing Omega nearly $10 million in lost sales. Still, we declined to apply the presumption in that case. According to the Journal of International Affairs, Tim Lloyd, a 37-year-old network . We independently review the record to determine if that party has met that burden. Simpson testified that on the last day of deliberations -- the first day following media reports of the "Love Bug" virus -- the jury did not discuss the "Love Bug" at all during the actual deliberations. conviction. 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. message itself and the equipment used to post the message. banking. 606(b)). If convicted, Mr. Lloyd faces a maximum sentence of 5 years for the first count and 10 years for the second. ''It had a devastating impact on the company, but we've picked up the pieces and we're marching on. released the internet's first worm. Tim Lloyd, 39, of Wilmington, Del., must surrender to the U.S. federal court May 6. activists. nearly unreachable by distributed denial-of-service (DDoS) attacks. As an opinion from the Sixth Circuit recently stated, " [i]f courts were to permit a lone juror to attack a verdict through an open-ended narrative concerning the thoughts, views, statements, feelings, and biases of herself and all other jurors sharing in that verdict, the integrity of the American jury system would suffer irreparably." (IDG) -- Tim Lloyd thought he had committed the perfect electronic crime. During the course of the trial, the government presented 10 witnesses and the defense presented 10 witnesses. 2000). Meet the Award-Winning Clamp Temperature Sensor, Our latest innovation for the food and processing industry, Connecting mission-critical sensors and systems, easily paired with the press of a button. Though the rebels are under constant surveillance by the authorities, they use But Mr. Lloyd's lawyer, Jaime Kaigh, presented a humbler picture, saying that Mr. Lloyd did not go to college but earned a technical degree, and that ''he's learned from the school of hard knocks.''. Some With Novell, Omega was able to place all of its information on a central file server, which acted as a central storage device and allowed all the information on the server to be shared with other computers on the network. In his book Tangled Web, author Richard Power writes, "The (IDG) -- A former systems administrator was sentenced Tuesday to 41 months in federal jail and ordered to pay more than $2 million in restitution for a 1996 attack on his former employer's computer network. An increasing number of companies are heeding concerns about that sort of sabotage. Sealed App. On January 18, 2001, the 16-year-old computer hacker However, the App. He contacted Lloyd and repeatedly asked Lloyd for any tapes that he had but Lloyd answered that he had none. 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 500. Mr. Lloyd was dismissed from Omega on July 10, 1996, said Al DiFrancesco, Omega's director of human relations. 60+ years of application expertise and a commitment to deliver solutions, products, and information that propel our customers forward. 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. Industry analysts estimate that in-house security breaches account for 70 to 90 percent of the attacks on corporate computer networks. App. Traditionally, appellate courts give considerable deference to a district court's examination of the prejudicial effect of extraneous information on a jury's verdict. In December 1999, Smith pleaded guilty to federal and The government argued to the jury that beginning in 1994 or 1995, Lloyd became a difficult employee. On cross-examination, the defense questioned Ontrack expert Robert Hackett, "Were you ever asked, at the outset of your data recovery attempt, to investigate whether this was done via modem?" Though the Melissa virus reportedly caused nearly $400 million in damages, In Wilson, we rejected information as not prejudicial because it related to the question of a defect in a products liability case and the appellant prevailed on that issue at trial. Though damage estimates vary widely, the FBI estimates that the companies incapacitated computer networks at about 300 corporations. Although this timing may suggest the likelihood of prejudice as in Waldorf, in fact, the jury had already deliberated for two days so it is reasonable to expect that the jurors were well-informed about the evidence set forth at trial and about the different theories of the case by the time they learned of the "Love Bug." In early July 1996, Lloyd had a run-in with Walsh and a female colleague, Arona Mullenback. It is apparent from the record that the government put forth credible evidence incriminating Lloyd in the computer sabotage under the theory that he knew his days at Omega were numbered, and that he "planted" the "time bomb" prior to his termination at a time when he had direct access to the Omega network. 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. The Pentagon, which had been alerted to EDT's plans, fought back. However, no one ever argued at trial that Lloyd committed the act of sabotage by remote access. App. OMEGA Engineering is an American instrumentation company headquartered in Norwalk, Connecticut, with its main factory in Bridgeport, New Jersey. at 707. On November 18, 1999, Carnegie Mellon's Concerned that Lloyd had too much control over Omega's network and that his termination would leave no one at Omega with access to the network, Ferguson testified that he asked Lloyd to give access to the file server to himself, Al DiFrancesco in Human Resources, and another employee, William Wall. Once the virus penetrated a On April 18, 2000, a juvenile in Canada, known online as "mafiaboy," was Theater (EDT). The Melissa virus, however, was rapacious; damages have The FBI was first tipped off to the Phonemasters' actions in 1994. he broke into several computers, mostly at U.S. universities, and used them to A OMEGA Engineering. 1982). After one of the jurors advised the court that she had learned from the media during the course of deliberations about off-site computer sabotage, the District Court granted Lloyd's motion for a new trial. His trial is scheduled to begin April 20, and he is free on $25,000 bond. Citibank was able to recover all but $400,000 of the $10 million that was Yet, as this court stated in Waldorf, " [i]n some cases the publicity that occurs is so fundamentally prejudicial that actual prejudice is presumed as a matter of law. file named "list.zip." The Lloyd case was the first federal criminal prosecution of computer sabotage. . First, the communications are Under the Computer Fraud & Abuse Act of 1986, Morris was 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. 13 F.3d at 668-69 (quotation omitted). 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. See Gilsenan, 949 F.2d at 95 (noting that the extraneous information could actually support the defense position, so it cannot possibly be prejudicial to the defense). in August 2000 to say that she had second thoughts about her decision to The government introduced into evidence Lloyd's time cards from those dates, which showed that he had stayed late at Omega on those specific days or just days earlier. Tim Lloyd, 39, of Wilmington, Del., must surrender to the U.S. federal court May 6. 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). The defense also challenged the testimony of government witnesses suggesting that only Lloyd had supervisory-level access to the Omega network. Omega Engineering is a company providing sensing and connectivity solutions in the process measurement and control industry. 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. On New Year's Eve in 1993, the day before the North American Free Trade 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. a juvenile detention center. That the extraneous information is outside the jurors' generalized knowledge does not necessarily signify that the information is prejudicial. We presume that juries follow such instructions. and agreed to causing nearly $80 million in damages. 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. Thus, the defense contends that because Lloyd's ultimate firing was "without warning," Br. 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. Deliver solutions, products, and he is free on $ 25,000 bond their own.... Ddos ) attacks unreachable by distributed denial-of-service ( DDoS ) attacks network that the computer network had virtually security... 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