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Man Charged With Stealing Code From Federal Reserve Bank

wiredmikey writes "A Chinese computer programmer was arrested by U.S. authorities in New York on Wednesday, on charges that he stole proprietary source code while working on a project at the Federal Reserve Bank of New York. The man arrested, Bo Zhang of New York, worked as a contract employee developing a specific portion of the GWA's (Government-Wide Accounting and Reporting Program) source code at the Federal Reserve Bank of New York where the code is maintained. The complaint alleges that in the summer of 2011, Zhang stole the GWA code, something he admitted to in July 2011. Zhang said that he used the GWA Code in connection with a private business he ran training individuals in computer programming."

27 of 199 comments (clear)

  1. Lesson 1 by ackthpt · · Score: 4, Funny

    Don't steal from the government - it hates the competition

    --

    A feeling of having made the same mistake before: Deja Foobar
    1. Re:Lesson 1 by ThatsMyNick · · Score: 4, Insightful

      Fed is not part of the government. Its a private entity controlled by the members.

    2. Re:Lesson 1 by redmid17 · · Score: 5, Informative

      The people who run the Fed are largely appointed by the President and confirmed by the Senate

    3. Re:Lesson 1 by Oxford_Comma_Lover · · Score: 3, Interesting

      The Fed is as close to godhood as one gets in public life. You only serve for fourteen years (unlike federal judges), but you also make the money. I suppose the Fed could be abolished, but short of that, you're pretty much set.

      --
      -- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
    4. Re:Lesson 1 by hedwards · · Score: 5, Informative

      The Federal Reserve does not print or issue money. Never have and hopefully never will. Those bills are printed by the Bureau of Engraving and Printing and the coinage is minted by the United States Mint.

      The Federal Reserve only puts them into circulation when the Board of Governors authorizes it to do so. It is a bit complicated, but the Federal Reserve itself is a private entity that happens to have a board of publicly appointed figures.

    5. Re:Lesson 1 by ThatsMyNick · · Score: 3, Insightful

      The Board of Governors are appointed by the President and their salaries are set by the govt, but the input with which the Fed takes decisions is largely from the member banks. Its one of those strange public-private partnerships, that I would consider mostly private.
       
        And It goes without saying that the board of governors are usually former Wallstreet barons.

    6. Re:Lesson 1 by Pharmboy · · Score: 5, Insightful

      In addition to your comment, the source code was never available for sale to any other party. It wasn't "infringement" in that it cost the Fed lost sales, it lost them exclusive access to sensitive data that they only wanted a limited number of people to have access to. The financial loss isn't related to lost sales, but in potential security implications. Apples and Oranges.

      In this case, it was more like theft because the Fed lost exclusive use of the software, something that can't be given back once it is in the wild. Piracy is completely different, where 100 copies of a file can cost lost sales of 1 or 2 actual copies, but no loss of use or security is involved, only revenue. With music and movies, you WANT many people to have access to the product, but at a cost. With exclusive software, you want NO ONE to have a copy. Neither is ideal if you own the "property", but they aren't the same.

      --
      Tequila: It's not just for breakfast anymore!
    7. Re:Lesson 1 by nedlohs · · Score: 5, Interesting

      So if the Federal Reserve doesn't "issue money" can you explain the word issue in:

      Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized.

      - US Code, Title 12 Chapter 3 Subchapter XII Section 411 - http://www.law.cornell.edu/uscode/12/411.html

      Or are you just sticking to a technically that the Board isn't the Fed, so the Microsoft Board of Directors doesn't count as Microsoft for example.

      Or that having the power to direct something to be done isn't the same as doing it - so that whole gulf oil thing a while back has isn't BHPs problem after all they just told their contractors and employees to do it.

    8. Re:Lesson 1 by Oligonicella · · Score: 3, Insightful

      "In this case, it was more like theft because the Fed lost exclusive use of the software, something that can't be given back once it is in the wild. Piracy is completely different..."

      Nope. Piracy is the loss of your right to distribute your material as you see fit because some numbnuts thinks his desires trump your copyright. Copyright is not about revenue. Once disbursed into the wild, it can't be called back either. More same than not.

  2. Citizenship not required? by magarity · · Score: 4, Interesting

    Every government IT job like this I've ever seen has US citizenship required, not even green card required. How did this guy get in?

    1. Re:Citizenship not required? by ToadProphet · · Score: 3, Informative

      The Bloomberg article states that he's a Chinese citizen in the US on a work visa

      --
      It's on America's tortured brow, That Mickey Mouse has grown up a cow
    2. Re:Citizenship not required? by MrEricSir · · Score: 5, Funny

      Initech has had trouble finding people who can write bank software lately, especially after their building burned down.

      --
      There's no -1 for "I don't get it."
    3. Re:Citizenship not required? by RenderSeven · · Score: 3, Informative

      The story says that he's Chinese, not that he's a Chinese citizen.

      The Bloomberg article states that he is in fact a Chinese citizen

      since he "stole" the code for his own private training business

      No, he claims he stole it for his own private business. May or may not be true, but it sure sounds better than admitting espionage.

    4. Re:Citizenship not required? by WindBourne · · Score: 4, Informative

      Zhang is a Chinese citizen, said a person with knowledge of the matter who didn’t want to be identified because the information wasn’t public.
      The software system relates to the “tracking of the billions of dollars that are electronically transferred every day in the U.S.’s general ledger,” prosecutors said.
      Zhang has been in the U.S. on a work visa since 2000, said another person familiar with the matter who also didn’t want to be identified because the information isn’t public.

      Kind of destroys your theory there.

      --
      I prefer the "u" in honour as it seems to be missing these days.
  3. Lesson: read what you sign by RightwingNutjob · · Score: 3, Insightful

    I work in a place that makes you sign an NDA. Betcha he had to sign one too. Whether blueprints or code, industrial espionage is a real crime, both morally and legally.

  4. Re:Why? by tomhath · · Score: 4, Insightful

    FTA: "he used the GWA Code in connection with a private business he ran training individuals in computer programming" Training individuals who are interested in the Fed's software? Now who (cough) would be interested in that?

  5. Really? by wbr1 · · Score: 5, Informative

    Zhang said that he used the GWA Code in connection with a private business he ran training individuals in computer programming.

    Correctly edited version: Zhang said that he used the GWA Code in connection with a private business he ran training Chinese Hackers in Reserve Bank Code.

    --
    Silence is a state of mime.
  6. Re:With people like these... by ackthpt · · Score: 4, Insightful

    Is it a wonder that there is a growing contempt for China and its actions?

    I believe we've gone way past the "three times is enemy action" for incidents like these.

    Sensationalism by the author, playing to the xenophobic among the indigenous readership. It should have been 'Programmer Steals Code ..' Not 'Chinese Programmer Steals Code ...'

    Now, if he were an agent of the PRC, a point of nationality would be highly relevant, but in this case it does not serve fair news reporting.

    --

    A feeling of having made the same mistake before: Deja Foobar
  7. meanwhile just a handful of hours away by Osgeld · · Score: 4, Interesting

    There is an unemployed American programmer begging for minimum wage temporary night shift job, and eating spaghetti for the 4th night in a row, meanwhile these shits are hiring Chinese contractors

    God bless America!

  8. Re:With people like these... by Osgeld · · Score: 4, Insightful

    I have more contempt for the fuck that hired a Chinese contractor to work on government systems while people are begging for jobs here

  9. Mr. Bo Zhang-gles? by Anonymous Coward · · Score: 4, Funny

    Did he steal the code and dance out of the place?

  10. Re:With people like these... by Gadget_Guy · · Score: 3, Insightful

    Is it a wonder that there is a growing contempt for China and its actions?

    If all it takes is for one citizen to copy a bit of code for you to hold his country in contempt, then you must really hate America after all those people lost billions of dollars in the Enron scandal. Of course, I chose the Enron example at random, but there are probably thousands of criminal acts occurring across the country every day. If you are going to just single out the ones committed by people of Chinese decent then think that says more about you than China.

  11. Re:Maybe better background checks? by Nerdfest · · Score: 3, Insightful

    You can do all the background checks you want. If a representative of the Chinese government says "Here's 20K$ to hand us some code", a very large percentage of people will say "Deal". If a representative of the Chinese government says "hand us the code you work on, or your relatives in China disappear", a very large percentage of people will say "what sort of media would you like it on".

  12. Racists by digitallife · · Score: 5, Informative

    Holy f#ck people are racist on here.
    The dude was using some code he wrote to train people. Can we assume guilt of something *after guilt has been proven*? Pretty please?

    1. Re:Racists by WindBourne · · Score: 4, Interesting
      --
      I prefer the "u" in honour as it seems to be missing these days.
  13. Re:CALING BS (AGAIN) by theNAM666 · · Score: 4, Insightful

    I might suggest you read my comment history, if you think I'm in middle school, my friend.

    I didn't suggest that you *work* for the Geek Squad. I suggested that anyone hungry and with half a clue could steal the Geek Squad's lunch.

    More seriously, I get these sort of "jobs" from friends all the time. My bartender approached me last night, and said he took his virus-crashed laptop to Best Buy and they quoted him $400 to move the files off and to his new Mac. He told me he'd give me $200 to do the job-- adding that he had certain files with his wife that were, shall we say, "private" in nature and he didn't trust Best Buy to deal with.

    That kind of work is everywhere. If the Geek Squad is charging $100/hr to do very basic tech (setting up DVRs, etc) then you can undercut that-- and provide a professional relationship. It's not work I really want-- but how you beat the big corporate guys, is by providing a better price point, and a better service. Get a $700 suit for $300 on OverStock, treat your customers well, communicate with them in standard written English, establish trust and security. Kiss their rumps if you have to, if you're eating Ramen.

    In the end, I don't mean to insult you if your situation is hard. But I'm not going to accept BS, either. If you're not in the sticks where there's no market-- if you are somewhere where there's Best Buy and Comp USA-- then surely, you can still find people with money, who will pay Best Buy if they have no other choice, and take that business. And provide a better value.

    As far as this guy-- c'mon. Your proposition is silly. The US Federal government is a damn Dilbert mess, sure, but if they could hire a US-native programmer for the same price (don't assume this guy is a low-ball salary) or even 50% more, they'd probably do so. The talent isn't there.

    Of course, that's also a failure of the US Educational system. I'm probably more pissed than you about that, and I understand that the US isn't providing as much educational investment and opportunity for young people, as, for instance, China. But the young in the US also have an enormous sense of entitlement, of wishing and thinking they should get something for nothing.

    I worked hard in College and grad school. I put in the 80+ hour weeks, and I still do. I've lived in CA-- if you can't downsize enough to live on $45K in the Mission, or Berkeley (or the burbs), c'mon, $45K is still a lot of money. I've made 100x that in a year, and I've lived on a quarter of that in other years. Adjust to your means and make the best of it-- if you can't pull in $45K, then don't try to live a $45K lifesytle.

  14. fixed it for you by Shakrai · · Score: 4, Funny

    but is nothing close to the millions you can steal on Wall Street.

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.