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Compensation for Bandwidth Costs is Extortion?

Tha_Big_Guy23 asks: "According to this article, a man who created a website for his local Sheriff's department is being charged with extortion. This was caused by taking down the website after repeated attempts to get compensation from the county to cover the bandwidth costs. As a result, all his personal computer property, and company computer property was seized and he was jailed." "After being jailed he was charged with extortion, larceny by conversion, using a computer to commit a crime, and obstruction of justice. This website explains in more detail the circumstances surrounding the situation. Has anyone on Slashdot ever had an experience where a client was unwilling to compensate you for either your work, and/or the resources required to do your work?"

While the end result of this situation is a shame, let this situation serve as a warning for those of you who work, without a contract in place. While it is the general hope that people will behave in an honorable manner, sometimes this is just not the case, and contracts exist to protect both parties, when things go sour.

23 of 865 comments (clear)

  1. Wow what a site! by ericspinder · · Score: 5, Informative
    3.5 million hits per month
    www.macombsheriff.com must be one busy site. no wonder he wanted $300,000 dollars. That link is down, so what did he have on the site, lets check. Just in case your wondering the sherrif's office is in Mt. Clemens, MI
    --
    The grass is only greener, if you don't take care of your own lawn.
  2. More Information by Johnny_Law · · Score: 3, Informative

    An article from today on this topic.

    Perhaps this should be a lessong to all to work out your contracts a bit more clearly in advance.

  3. Let's do some math here... by bc90021 · · Score: 3, Informative

    $300,000 for three years is...
    $100,000 for one year, which is...
    $ 8,333 for one month of hosting.

    (blatant_plug)
    Well, don't host with that guy, come host with Tigerhost.com. We only charge $100/month for businesses! (And $16 for personal sites.)
    (/blatant_plug)

    Seriously, though, at those rates, he could retire on just that one site.

    1. Re:Let's do some math here... by the_rev_matt · · Score: 3, Informative

      You have got to be kidding me. Back in the dotcom era when ISPs and colos were charging ridiculous rates because they could we didn't pay anywhere near 100,000/year.

      Dedicated T1 + 100G/month bandwidth plus colo/management fees: 1100/month in the Denver market. We ate up the bandwidth several times (lots of large file traffic) and even with overage charges we never went over $2000/month. 2000x33= 66000. So he's saying that his work on the site was worth $90,000/year? I don't think so. Not for one site, and a relatively small one at that.

      --
      this is getting old and so are you

      blog

    2. Re:Let's do some math here... by Umrick · · Score: 3, Informative

      As we just priced it..

      Note that as we're in the Styx, prices would be a bit higher.

      AT&T (Tier 1) is costing us $698 per month for 2 year contract. Flat rate T1 (unmetered bandwidth) with AT&T providing the router (Cisco 2620) and managing it.

      Sprint just started a sale in the same price range with a preconfigured but unmanaged 2620 thrown in.

  4. Re:Oh, gotta rant, gotta rant on this one... by argmanah · · Score: 5, Informative

    Read TFA, not skim TFA.

    According to the second link in the article, he spent $300,000 of his own money and is not asking for his inventment back. He simply tried to tell the county that, going forward, he couldn't afford to pay for it himself. When they ignored him, he closed up shop to keep from losing more money. They retaliated by arresting him and slapping him with exortion and other charges.

    --
    Overrated Moderation: This posts sucks... because.
  5. Re:Yes, it is extortion by tessaiga · · Score: 4, Informative
    Taking something away from someone else and threatening not to return it until they give you money. It doesn't matter if they OWE you money anyway, that's extortion.
    Why is this +5 Informative? Stopping services when someone doesn't pay is perfectly legit. Try taking this approach with the utility company if you stop paying your electricity bill, and see how far you get. Same with internet, phone, and a variety of other services.

    The real issue is whether he's owed money or not. As someone pointed out, he's basically asking for over $8,000 per month hosting what should be a relatively small local site (I'd like to see how his hits were measured -- if those are unique visits, I'd be pretty surprised). The article seems to imply that he already had a verbal contract to provide the service for free in return for publicity (as suggested by the article). If that's the case, then he's essentially trying to change the terms of his agreement unilaterally while holding the site hostage, and that's what's getting him the extortion charge.

    --
    The bold print giveth, and the fine print taketh away ...
  6. Re-read TFAs by Gr8Apes · · Score: 4, Informative

    The quotes you state are from the Justice 4 Pat campaign, an apparently biased source drumming up support for Pat.

    Personally, I'd trust a newspaper over blatant assertions by an activist site any day.

    --
    The cesspool just got a check and balance.
  7. Re:The Guy Made Mistakes All Along by stratjakt · · Score: 4, Informative

    The courts will decide.

    "You owe me $300,000 for services rendered."

    vs.

    "Pay me $300,000 or I'll shut you down and keep you out of your data"

    What was the oral contract? The Sheriffs dept most likely owns the website and the content on it, and this guy was just hosting it.

    If he doesn't want to host it, fine, they take their business elsewhere. He sues for services rendered, etc..

    But if he threatened to hold the content hostage, he probably crossed the line into extortion. He was demanding money to release property he didnt have a claim over. It would be like me taking home the sourcecode from my company, and demanding a payoff to give it back.

    DA's file charges, not local podunk Sherriff's (With whom I work with every day so I know how little power they actually have). DA's usually aren't very thrilled when Barney Fife shows up with some frivolous overblown charge.

    --
    I don't need no instructions to know how to rock!!!!
  8. How the USDA didn't pay me by bangular · · Score: 3, Informative

    I'm a programmer. My friend works in IT at a local USDA lab. One of the scientists there told my friend they needed to automate some of their "blasting". They needed to take DNA they found in plants and compare it to a bunch of national databases and depending on the results take it to other national databases, etc. etc (these national databases were all websites so it was A LOT of text processing). The final results needed to be put into an excel spreadsheet. I worked for a couple of months and had about 4 complete rewrites. It worked fine at my house, but it did not work at their labs.

    What happened was, they had many many computers being natted with one ip address. These websites would see one ip address flooding their servers and cut them off or give one of MANY random errors. It was almost impossible to reproduce anywhere else. I got almost no co-operation on their part to get more ip addresses for the boxes doing the dna blasting. All they would say is "It doesn't work right". That was the extent of my bug reporting. "It doesn't work right".

    It was basically impossible to get meetings with them and the project lasted about 5 months with only 5 meetings (each lasting less than a half hour). After not seeing one penny of payment and MANY thousands of lines of code later, I told them I'm not going to work on it anymore until I get some payment. That's about when I couldn't get a hold of them anymore.

    That was my first and last time working on code without a contract before hand. I did not recieve a single penny for my months of work. They acted like they were in it to help out a young programmer. The USDA was in it to help the USDA. About the end of it all they hired a "programmer". One of these people who had many degrees and could "program" in many languages, but couldn't write a simple program on the spot. From what I understand they tried to get him to write it because he was supposed to be this experienced programmer with many degrees. It made me feel good that after 6 months they still don't have anything from him.

    They were greedy. They taught me a lesson. Don't work for ANYONE, without a contract before hand. No matter how much they pretend they are looking out for your interests, THEY'RE NOT.

  9. Re:What's wrong with what he did? by Shurhaian · · Score: 3, Informative

    From the article(as quoted above):

    "Richard, a former reserve deputy in the sheriff's marine division, more than three years ago offered to provide the Web site at no cost to the county as an in-kind contribution. Hackel, who enthusiastically supported it, said Richard agreed to operate it in exchange for publicity for his company." [emphasis mine]

    If that is accurate, then the guy tried to retroactively change the fee, exploiting the fact that there wasn't a written contract. The response is definitely extreme, though; it could probably have been settled with much less drastic measures.

    --
    NB: YMMV. IANAL. Take the above with a grain of salt.
  10. Just do some research on this 'Sheriff'... by cnelzie · · Score: 3, Informative

    I know a bit myself, but have no interest in really sharing anything as my memory might not be perfect on all matters detailing some of the things this 'sheriff' has been involved in.

    Needless to say, I am certain that one could find something searching goole, The Detroit News or Detroit Free Press and other Michigan, Detroit Area publications.

    --
    If you ignore the other uses of a tool, does that make the tool less useful, or you less useful?
  11. Re:Oh, gotta rant, gotta rant on this one... by merlin_jim · · Score: 4, Informative

    This for 3.5 million users per year.

    Actually, that's 3.5 million users per month...

    42 million per year

    115.5 million for the lifetime of the site

    --
    I am disrespectful to dirt! Can you see that I am serious?!
  12. Re:Thankyou sir by pla · · Score: 5, Informative

    His actions certainly are not reasonable.

    They didn't pay, he shut down the site. Explain the part of that you consider "unreasonable", please?

    Whether or not you consider the magnitude of his bill to the county as reasonable, it boils down simply to "he provided a service, sent a bill, bill went unpaid, he stopped providing the service". Nothing more than that.

    Theft of service also breaks the law. Key difference, a private individual doesn't have the power to abuse to have people from the country government frivolously arrested.


    Also, RTFA (in particular, the second link). He did not send them a bill for $300k... He said his total expenses came out to $300k (not unreasonable, if he actually worked something resembling full-time for 2-3 years... That alone gives $200k+ depending on the going rate in his area for a network admin). He didn't even attempt to recover any of his past expenses on the project. He merely requested they start paying for his services, and when they refused, he stopped providing the service.

    If this counts as extortion, it sets a VERY dangerous precedent... A precedent that basically makes slavery legal, by making it a crime to stop performing a voluntary service.

    On the bright side, assuming he doesn't end up in prison for a few years, he has a fairly good case for harassment, with monetary damages resulting. He could end up getting considerably more than his $300k (which, again, he did not actually try to bill the county for).

  13. The domain is registered to someone in Virginia by Animats · · Score: 4, Informative
    The domain is in fact registered to someone in Virginia. But note the phony phone number.
    • Registrant:

    • Fountainhead Media (MACOMBSHERIFF-DOM)
      19950 Denby
      Portsmouth, VA 23708
      US

      Domain Name: MACOMBSHERIFF.COM

      Administrative Contact, Technical Contact:
      Stanley, Michael (36687838P)
      fountainhead_463@hotmail.com
      Fountainhead Media
      19950 Denby
      Portsmouth, VA 23708
      US
      999-999-9999
  14. Re:Oh, gotta rant, gotta rant on this one... by goofballs · · Score: 4, Informative

    old sites are available on the wayback machine.

  15. Re:Thankyou sir by SkunkPussy · · Score: 5, Informative

    One of the others ("MSN Search Blocking Results For XFree86?") didn't really have enough data to prove or disprove (so it's probably not worth the 868 comments it attracted).

    What are you talking about? if you either click on the link in the story, or go to msn.com, type "xfree86" in the box at the top, then click on search, you only get 1 result, which is porn and it warns you about.

    If you go to any other search engine there is more than one result and it isnt this nightcrawler business. google has 2.4 million.

    tellingly if you search on google for xfree86 nightsurf, you only get 28 results, none of which is the website that msn throws up.

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    SURELY NOT!!!!!
  16. Re:Oh, gotta rant, gotta rant on this one... by urmensch · · Score: 5, Informative

    Macomb county is not some podunk area, it is part of metro Detroit

  17. Re:Oh, gotta rant, gotta rant on this one... by timbit · · Score: 3, Informative

    Hmmm... supposedly, they *were* getting 3.5 million hits a month. Their new site, however, is only at 18000 hits, even though it has been listed on slashdot. Now, obviously it will take a little time before everyone that usually went to the sheriff's site figures out that it has changed. Still, if it was such a busy site before, you'd think that *most* of the former visitors would find it -- especially considering that a Google search has the new site listed at the very top. Something seems a little fishy about 3.5 million per month...

  18. Not RTFA... RBTFA (b for BOTH) by gbulmash · · Score: 4, Informative
    I see people arguing he charged $300,000 for services rendered (sheriff's story) and people arguing he merely claimed it had cost him $300,000 over three years, and refused to go forward without payment.

    Regardless, with the domain name it's IP, a civil issue. It's parked, so the sheriff's office can do the WIPO cybersquatting claim, but, AFAIK and IANAL, it's not criminal.

    Who owns the content? If the sheriff's department does, holding the content hostage may be illegal. But then again, there was a private towing company that illegally towed my car from a private lot where I had a legal right to park, and would not return it. They violated two sections of the vehicle code in the illegal tow, then had additional violations (actually flaunting some of them) in the operation of their impound lot. What did the cops say? "This is a civil matter. Pay the impound fees and then sue them."

    The cops probably threw him in jail to try to intimidate him, which forced the DA's hand to prosecute, or perhaps it's collusion between the DA and the cops.

    The facts will come out at trial. Both sides will tell their stories, a judge and 12 people too dumb to get out of jury duty will decide who is telling the truth, and regardless of the outcome, a civil suit will follow.

    Welcome to America, where our courts, fine instruments of law, capable of incredible intricacy and precision in legal thought, are used to bludgeon people like a sledgehammer.

    - Greg

  19. Re:Thankyou sir by paganizer · · Score: 3, Informative

    Noo....
    What we have learned is, when you are setting up a sweetheart deal with the local sheriff's office, and you bill them an outrageous amount, pocket half and give the other half to the sheriff, make sure you have some sort of evidence on hand to use against the sheriff if people start noticing, so you can say "he made me do it! ".

    Good Old Boy Politics 101, learned in CLarksville, TN "The Crime and Corruption capital of Tennessee".

    --
    Why, yes, I AM a Pagan Libertarian.
  20. Have any of you actually read the *facts* ? by DL-44 · · Score: 3, Informative

    Please Note: Pat Ricahrd never attempted to get the sheriff's office to pay him. He informed the sheriff that he could no longer afford to pay for it himself, and that the sheriff would need to come up with a way to finance the hosting/bandwidth. The sheriff refused, beleive that he could continue to have a top-notch high-bandwidth site for free. Have any of you ever had a top notch high traffic site that did not cost you anything? Of course not. Servers, bandwidth, and labor costs money. Pat Richard provided all three of those things for free for several years. He gave the sheriff 2 years to come up with a way to offset the costs of such a service. He gave him an estimate of the cost he had incurred in an effort to make the sheriff understand how costly such things were. When the sheriff refused to finance his own website, Pat was forced to discontinue his services. Period.

  21. A more unbiased article by InkTank · · Score: 3, Informative

    At least this article get it right in that it states he was not asking for the $300,000 in payment, but just said that is how much it would have cost the county to have the site for those three years. He are the $300,000, but wanted the county to take over the future costs. Detroit Free Press Article Of course, the Sherrif says the money was a DEMAND. Well after a year or more of trying to come up with some sort of agrement and getting no response, he had to shut the site down. The article even points out what both sides agree on certain points: "Both sides agreed on a few points: that Richard started running the site for free a few years ago; that his site became so popular, the Sheriff's Department -- and the public -- came to rely on it. And that Richard decided the site was too costly to run for free any longer. " He got screwed. Period. No due process, no court orders, just a straight up jacking.