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I think we need to do some calculations here.

The best information we have is that the cable modem was capped at 128kb/s, and that they illegally adjusted it to 2.5Mb/s. So basically, they increased the cap by a factor of 20. Since they are using a shared-bandwidth system, in effect, they had one share but gained 19 extra shares illicitly.

How much would it have cost for them to buy that service at the regular monthly rate? What if they had actually have signed up for 19 additional cable modems? Buckeye's web site is here, and it turns out that the monthly cost for one cable modem is $44.99. So, assuming they had it enabled all month, this increased cap would have cost them 19 * $44.99 == $854.81 per month if they'd gotten it legally. (And the cap is the only thing that matters here, network-wise. Whether they're using one cablemodem or 20, the effect is the same if they download 2.5Mb/s, because either way, they are sharing pieces of the same bandwidth.)

Since there were 23 people involved and the company claimed over $250,000 value of computer services lost (the FBI minimum), let's examine how long the problem would have had to go on for that figure to be accurate. 23 * $854.81 is $19660.63 per month for all of them. (This assumes every last one of them left their cable modems at the maximum of 2.5Mb/s for the entire month.)

For them to reach the $250,000 mark, they'd have (all) had to do this (continuously) for 12.716 months, or about 12 months and 22 days.

An article from CableWorld says the investigation began in Februrary, and the arrests took place in July. Let's give them an extra month to notice and start an investigation. That totals 6 months, and 6 is less than 12.7. Therefore, I'm inclined to believe the claim is inflated by a wide margin.

My opinion: the cable company would have been basically within its rights to threaten a lawsuit unless each customer paid an amount of up to $854.81 per month (depending on the individual case) that they left their cable modems uncapped. If legal costs were incurred, they would have been within their rights to sue for a little more. And that is, basically, just about it.

The Subscriber must not attach any device that permits access to services in violation of the Subscription Agreement. In addition, federal and state laws prohibit the possession, use, or attempted use of any equipment to receive any Buckeye services except as expressly provided by the Subscription Agreement.

The subscription agreement

17. Buckeye has no responsibility for, and is not liable for, the speed, content, or accuracy of any transmissions on the system.

And neither this, nor the Acceptible Use Policy state anything about what download speeds you're allowed.

The Subscriber must not attach any device that permits access to services in violation of the Subscription Agreement. In addition, federal and state laws prohibit the possession, use, or attempted use of any equipment to receive any Buckeye services except as expressly provided by the Subscription Agreement.

The subscription agreement

17. Buckeye has no responsibility for, and is not liable for, the speed, content, or accuracy of any transmissions on the system.

And neither this, nor the Acceptible Use Policy state anything about what download speeds you're allowed.

The Subscriber must not attach any device that permits access to services in violation of the Subscription Agreement. In addition, federal and state laws prohibit the possession, use, or attempted use of any equipment to receive any Buckeye services except as expressly provided by the Subscription Agreement.

The subscription agreement

17. Buckeye has no responsibility for, and is not liable for, the speed, content, or accuracy of any transmissions on the system.

And neither this, nor the Acceptible Use Policy state anything about what download speeds you're allowed.

People have talked about the chilling effect of calling the FBI to kick in the doors of some kids. Perhaps Slashdot can show companies how this chilling effect can backfire. Here are the useful names and numbers to return their favor:

From their webpage:
We look forward to hearing from you!

Or by phone: 419-724-9800

Or visit in person
5566 Southwyck Blvd
Monday through Saturday from 8am until 7pm.
Sunday, 12 noon until 5pm

And don't forget to make sure to bite the hands that feeds them, here is the parent company's info. Block Communications Incorporated has these happy numbers listed:
Phone: 419-724-6000
Fax: 419-724-6080
Or from their earning press release . We can find these info tidbits:
Jodi Miehls
Treasurer of Block Communications
419-724-6257
jmiehls@toledoblade.com

People have talked about the chilling effect of calling the FBI to kick in the doors of some kids. Perhaps Slashdot can show companies how this chilling effect can backfire. Here are the useful names and numbers to return their favor:

From their webpage:
We look forward to hearing from you!

Or by phone: 419-724-9800

Or visit in person
5566 Southwyck Blvd
Monday through Saturday from 8am until 7pm.
Sunday, 12 noon until 5pm

And don't forget to make sure to bite the hands that feeds them, here is the parent company's info. Block Communications Incorporated has these happy numbers listed:
Phone: 419-724-6000
Fax: 419-724-6080
Or from their earning press release . We can find these info tidbits:
Jodi Miehls
Treasurer of Block Communications
419-724-6257
jmiehls@toledoblade.com

People have talked about the chilling effect of calling the FBI to kick in the doors of some kids. Perhaps Slashdot can show companies how this chilling effect can backfire. Here are the useful names and numbers to return their favor:

From their webpage:
We look forward to hearing from you!

Or by phone: 419-724-9800

Or visit in person
5566 Southwyck Blvd
Monday through Saturday from 8am until 7pm.
Sunday, 12 noon until 5pm

And don't forget to make sure to bite the hands that feeds them, here is the parent company's info. Block Communications Incorporated has these happy numbers listed:
Phone: 419-724-6000
Fax: 419-724-6080
Or from their earning press release . We can find these info tidbits:
Jodi Miehls
Treasurer of Block Communications
419-724-6257
jmiehls@toledoblade.com

IANAL - but...
I just finished reading all of Buckeye's Terms of Service (pdf) , Acceptable Use (pdf) , Residential Agreement(pdf) , etc. Nowhere in the text does it say that you have a limit on the amount of bandwidth you can use nor does it limit the type of use other that 'illegal activities' (Warez,etc.). I'll be interested to see what type of charge they come up with. It can't be theft of any kind - unless they didn't even subscribe to the service.

This is just another example of Cowboy police (local,State, & Federal) not even researching if any crime was committed before reacting. They are just trying to intimidate citizens and use gestapo tactics. I think we all should let both the company and the law know how we feel. Then these people should file a class-action lawsuit against them.

IANAL - but...
I just finished reading all of Buckeye's Terms of Service (pdf) , Acceptable Use (pdf) , Residential Agreement(pdf) , etc. Nowhere in the text does it say that you have a limit on the amount of bandwidth you can use nor does it limit the type of use other that 'illegal activities' (Warez,etc.). I'll be interested to see what type of charge they come up with. It can't be theft of any kind - unless they didn't even subscribe to the service.

This is just another example of Cowboy police (local,State, & Federal) not even researching if any crime was committed before reacting. They are just trying to intimidate citizens and use gestapo tactics. I think we all should let both the company and the law know how we feel. Then these people should file a class-action lawsuit against them.

IANAL - but...
I just finished reading all of Buckeye's Terms of Service (pdf) , Acceptable Use (pdf) , Residential Agreement(pdf) , etc. Nowhere in the text does it say that you have a limit on the amount of bandwidth you can use nor does it limit the type of use other that 'illegal activities' (Warez,etc.). I'll be interested to see what type of charge they come up with. It can't be theft of any kind - unless they didn't even subscribe to the service.

This is just another example of Cowboy police (local,State, & Federal) not even researching if any crime was committed before reacting. They are just trying to intimidate citizens and use gestapo tactics. I think we all should let both the company and the law know how we feel. Then these people should file a class-action lawsuit against them.

But in either case, you are using the provider's network (be it roads or fiber) and if you want to use it you have to play by their rules.

Actually, the TOS (PDF) says very little. To their credit, they do mention that

"In addition, federal and state laws prohibit the possession, use, or attempted use of any
equipment to receive any Buckeye services except as expressly provided by the Subscription Agreement."