Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

U.S. charges four with stealing $100 million in software, data

Published 09/30/2014, 04:19 PM
© Reuters Illustration file picture shows a man typing on a computer keyboard in Warsaw

By Aruna Viswanatha

WASHINGTON (Reuters) - Four members of an alleged international computer hacking ring were charged with stealing more than $100 million worth of software and data - some of it used to train military pilots and some related to Microsoft Corp's (O:MSFT) Xbox gaming console - the U.S. Justice Department said Tuesday.

Two of the four - a 28-year-old New Jersey man and a 22-year-old Canadian man - pleaded guilty to charges contained in an indictment unsealed earlier in the day, the agency said.

Prosecutors said the ring gained unauthorized access to the computer networks of Microsoft and some of its partners between January 2011 and March 2014 to steal source code, technical specifications and other information.

Some of the intrusions were directed at the Xbox One gaming console before its November 2013 release. The hackers tried to build a counterfeit version of the console, according to the indictment.

The hackers also stole information about pre-release versions of the "Gears of War 3" and "Call of Duty: Modern Warfare 3" video games, prosecutors said.

Redmond, Washington-based Microsoft declined to comment on the case.

The men were also accused of logging into a U.S. Army network to steal simulator software for the Boeing (N:BA) Apache attack helicopter, the Justice Department said.

Those attacks occurred after the ring hacked into the network of Zombie Studios, a Seattle-based video game developer contracted by the Army to make the training software, according to the indictment.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The men allegedly obtained access to the computer networks partly by using the stolen user names and passwords of employees at the partner firms.

Sanadodeh Nesheiwat of Washington, New Jersey and David Pokora of Mississauga, Ontario pleaded guilty to charges in Delaware federal court, the Justice Department said.

Nathan Leroux, 20, of Bowie, Maryland, and Austin Alcala, 18, of McCordsville, Indiana, were also charged in an 18-count superseding indictment. A fifth member of the ring who is an Australian citizen was charged under Australian law for his alleged role in the conspiracy, the agency said.

Tuesday's charges marked the second big hacking case announced by the Department of Justice this year.

In May, the agency charged five Chinese military officers and accused them of hacking into American nuclear, metal and solar companies to steal trade secrets.

(Reporting by Aruna Viswanatha; Editing by Ros Krasny, Chizu Nomiyama and Jonathan Oatis)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.