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Man Convicted For Helping Thousands Steal Internet Access

angry tapir writes "An Oregon man has been convicted of seven courts of wire fraud for helping thousands of people steal Internet service. Ryan Harris, 26, of Redmond, Oregon, was convicted by a jury in U.S. District Court for the District of Massachusetts. He faces a prison term of up to 20 years and a fine of up to $250,000 on each of the seven counts."

378 comments

  1. he got rich from fraud by ozduo · · Score: 5, Insightful

    don't to the crime if you cant do the time

    --
    I got to the chocolate box before you, that's why the hard ones have teeth marks.
    1. Re:he got rich from fraud by MacGyver2210 · · Score: 5, Insightful

      I would agree with you on that if corporate CEOs and pretty much everyone who makes over a million dollars a year hadn't set the precedent that defrauding thousands of people at a time comes only with a slap on the wrist and a meager fine despite a huge profit margin.

      Shit, that's the definition of how corporate America works. Why aren't they jailing the CEOs of the cable companies instead for charging >5000 times the amount they pay for bandwidth for the average user? Why aren't they jailing the AT&T and Verizon execs for bait-and-switch with the 'Unlimited' plans which are actually limited to single-digit bandwidth amounts?

      It's all ass-backward, and this guy just had the balls to do something about it. Do your time, but do it proudly.

      --
      If the only way you can accept an assertion is by faith, then you are conceding that it can't be taken on its own merits
    2. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      How did he get rich? The software is free.

    3. Re:he got rich from fraud by dintech · · Score: 2

      Information wants to be free and so does Ryan Harris.

    4. Re:he got rich from fraud by 0100010001010011 · · Score: 4, Insightful

      Why aren't they jailing the CEOs of the cable companies instead for charging >5000 times the amount they pay for bandwidth for the average user?

      I bet it'd be a different story if this guy had significant campaign contributions. It'd be a "Misunderstanding" of some sort.

    5. Re:he got rich from fraud by Corbets · · Score: 4, Insightful

      I would agree with you on that if corporate CEOs and pretty much everyone who makes over a million dollars a year hadn't set the precedent that defrauding thousands of people at a time comes only with a slap on the wrist and a meager fine despite a huge profit margin.

      Shit, that's the definition of how corporate America works. Why aren't they jailing the CEOs of the cable companies instead for charging >5000 times the amount they pay for bandwidth for the average user? Why aren't they jailing the AT&T and Verizon execs for bait-and-switch with the 'Unlimited' plans which are actually limited to single-digit bandwidth amounts?

      It's all ass-backward, and this guy just had the balls to do something about it. Do your time, but do it proudly.

      Why aren't they also jailing each of the individual loan officers who sold mortgages to customers who couldn't pay them back? They were, perhaps, more directly responsible than the CEOs, and yet also directly benefited (commissions or bonuses, depending how such things work at each institution).

      That question is also your answer. There is a very large chain of people involved in the financial crisis, and it's unlikely that any single one of them can be apportioned enough blame to go to jail.

    6. Re:he got rich from fraud by philip.paradis · · Score: 2, Interesting

      I would agree with you on that if corporate CEOs and pretty much everyone who makes over a million dollars a year hadn't set the precedent that defrauding thousands of people at a time comes only with a slap on the wrist and a meager fine despite a huge profit margin.

      Two wrongs make a right. Gotcha. You must be some kind of rebel freedom fighter.

      Shit, that's the definition of how corporate America works. Why aren't they jailing the CEOs of the cable companies instead for charging >5000 times the amount they pay for bandwidth for the average user?

      They aren't being jailing them because nobody has proven in a court of law that they've broken any laws. Please feel free to demand charges be pressed if you feel they're warranted. Maybe a few desperate law students can help you figure out a way to trump some charges up.

      On a related note, I was born in 1981. I probably grew up in the same culture you did, and still have admiration for things like The Conscience of a Hacker. That said, you sure as shit ain't the guy that wrote that, nor are you really anything to write home about in terms of that culture. I ran a BBS here and there from the time I was a kid into my teens, and did some stuff that I'm pretty glad the statute of limitations has run out on around the same time. Looking back, the shady side of the stuff I did was utterly fucking stupid.

      It's all ass-backward, and this guy just had the balls to do something about it. Do your time, but do it proudly.

      Nobody does their time proudly, you dumb fuck, aside from people who have legitimately dodged grenades and slit throats for their country only to get locked up in some overseas shithole because they had the bad luck to get caught in the process (or similar scenario; go ahead and try to equate that to the crap you're defending here, I dare you). Have you ever been to a county jail, let alone served a prison term? I've got a brother who's done both; I'll be going to pick him up again when he gets released (again) next month. He's a tough son of a bitch, literally did UFC trial fights and failed to lose before getting his ass locked up again and screwing that opportunity (one of oh so many) up too. He'll be happy to demonstrate the finer points of correctional living to you if you need some help understanding it. I'll bet dollars to your nutsuck you wouldn't last 15 minutes in a drunk tank. Shit, put me in there with you, let's find out just to get it over with.

      In short, I think you most likely fall into the wannabe vigilante category, and you probably stopped maturing around 14. Get a fucking life, and go do something about the stuff you're bitching about. Namely, go do something innovative to improve the situation, or shut the fuck up.

      --
      Write failed: Broken pipe
    7. Re:he got rich from fraud by Anonymous Coward · · Score: 1

      Well see, first of all, I know something about the internet industry, and I doubt they are charging ">5000 times the amount they pay". Even if they are, they offered it, and someone accepted it and signed a contract. That makes it consensual, and legal. As much as I think that the advertising laws should be changed to require that anyone who uses the word "unlimited" to actually offer fully unrestricted and unlimited access - the reality is that everyone would stop using the term, because even the most lax places (like speakeasy) would get pissed if you started pulling down 300 terabytes a month on a $50 connection. And - again - they put it in the contract, even if it was in the fine print somewhere, that the connection is "reasonable use", and what their definition of that is. If you don't like it, you don't have to sign up, which makes it legal.

      This guy going out and stealing internet access? Not so legal.

      I might add that CEOs take advice from lower down people in finance, networking, IT, etc., while examining their debt, equity, and competitive situations. Saying they should be jailed because you don't personally like the price they set is a bit much.

    8. Re:he got rich from fraud by TheVelvetFlamebait · · Score: 4, Insightful

      It depresses me that people think that some people it takes material profit in order to make fraud and theft of service immoral. Apparently you can't commit a crime against a rich person, unless you become one in the process.

      --
      You know, there is a difference between trolling and pointing out the flaws in your reasoning. Just saying.
    9. Re:he got rich from fraud by Richard_at_work · · Score: 5, Insightful

      Why aren't they jailing the CEOs of the cable companies instead for charging >5000 times the amount they pay for bandwidth for the average user?

      Because thats neither fraud nor any other crime - its not illegal to not base your prices on your costs. The cable companies can charge what they like for their product.

      Why aren't they jailing the AT&T and Verizon execs for bait-and-switch with the 'Unlimited' plans which are actually limited to single-digit bandwidth amounts?

      Now that's a better example, and one I can't give an answer to.

      It's all ass-backward, and this guy just had the balls to do something about it. Do your time, but do it proudly.

      Sorry, but that's just a pathetic excuse for this guys actions, he didn't do anything justifiable or the be proud of.

    10. Re:he got rich from fraud by andsens · · Score: 5, Insightful

      don't to the crime if you cant do the time

      I know, but 20 years?!?! Are they serious? That is an insane amount of time for a non-violent crime!

    11. Re:he got rich from fraud by erroneus · · Score: 2

      It just means he should have incorporated and created a ficticious "personhood" to take the fall.

    12. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      Your a fucking moron

      owe the iron knee.

    13. Re:he got rich from fraud by priceslasher · · Score: 1

      And I doubt that anyone is "pulling down 300 terabytes a month on a $50 connection". Now, as far as real numbers are concerned - 3GB is a tiny amount of bandwidth that gets smaller every day.

    14. Re:he got rich from fraud by evilviper · · Score: 1

      Apparently you can't commit a crime against a rich person, unless you become one in the process.

      You're way off. In this case the fact that he made a decent amount of money off of the fraud COMPLETELY undercuts his claim of this being a "freedom of information" situation, where he just reported on a known exploit, or some such.

      We've heard enough cases here, of legitimate researchers facing unjustified prosecution at the behest of corporate interests, that those in the know have become highly suspicious of all such government actions. His substantial money-making just makes it clear he's certainly not in the same situation by any means.

      --
      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
    15. Re:he got rich from fraud by Cat_Herder_GoatRoper · · Score: 3, Insightful

      20 years for each count he could do 140 (a death sentence) for a non-violent crime.

    16. Re:he got rich from fraud by evilviper · · Score: 0

      Why aren't they also jailing each of the individual loan officers who sold mortgages to customers who couldn't pay them back?

      Because there's nothing illegal about making an unsound loan?

      Misleading investors most certainly *is* a criminal offense, and it wasn't the loan officers responsible for that.

      --
      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
    17. Re:he got rich from fraud by a_hanso · · Score: 1

      20 years for each count he could do 140 (a death sentence) for a non-violent crime.

      More than one life sentence != death sentence.

    18. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      Silly person!

      It's because our justice systems make sure that rich people don't go before poor person courts!!!

    19. Re:he got rich from fraud by Johann+Lau · · Score: 1

      That question is also your answer. There is a very large chain of people involved in the financial crisis, and it's unlikely that any single one of them can be apportioned enough blame to go to jail.

      "blame" is a weird way to spell "700 billion".

    20. Re:he got rich from fraud by Ihmhi · · Score: 1

      I believe you neglected to tell him to get off your lawn.

    21. Re:he got rich from fraud by Ihmhi · · Score: 1

      Yeah, I mean he just defrauded a huge company. It's not like he had a baggie of cocaine on him!

    22. Re:he got rich from fraud by flyneye · · Score: 2, Insightful

      Because Mr. Harris didn't make any "political contributions" and Cable companies are on a first name basis with Repubmocrat legislators.
      Further Mr. Harris charged a fee for helping gain free internet access. Hackers put up this info for free on the internet. I notice they aren't being charged either.
      Nope, this was a case of regulating commerce and example making. Have your contribution ready 'cause you have to buy the right to make money here in the U.S.

      --
      *Repent!Quit Your Job!Slack Off!The World Ends Tomorrow and You May Die!
    23. Re:he got rich from fraud by vinehair · · Score: 1

      Death by lack of freedom?

      Death by boredom?

      Death from prolonged exposure to bad prison food?

    24. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      He'll be happy to demonstrate the finer points of correctional living to you if you need some help understanding it.

      Implying that anyone incarcerated who isn't a real tough cookie gets... what... killed? Injured beyond recognition? Are you sure your brother isn't just the type itching for a fight? There are horrible prisons/jails and there are reasonable ones. In some, bide your time and keep yourself to yourself and nothing happens to you. In others, you don't assert yourself and you're targetted as weak. Lots of people are proud of their civil disobedience and will accept the risk of a beating. Perhaps it's after you peaked, but blacks have more rights under the law now and that had something to do with it.

      Meanwhile anyone who believes he has "dodged grenades and slit throats for their country" in the last 30 years has in fact done so to make a small group of powerful people richer, and against the interests of his country. If he is captured then he may remain proud, but he remains proud because he is a misguided fool. He in fact hates all that his country stands for and stands against the Founding Fathers.

    25. Re:he got rich from fraud by Anonymous Coward · · Score: 2, Insightful

      Just Rebuplicans?

      Corporations firmly control both parts of the one party system.

    26. Re:he got rich from fraud by turing_m · · Score: 2, Insightful

      A parasite on the cable companies is not going to be able to match the magnitude of the campaign contributions of said cable companies. Whoever makes a decision by looking at such things is going to say "Hmmm. Campaign contributions from cable companies >= Gross amount of your theft... kthxbye."

      --
      If I have seen further it is by stealing the Intellectual Property of giants.
    27. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      Right when big CEO rips people they get a slap on the wrist and a few weeks in jail. When a big named doctor kills MJ he gets a few weeks in jail. When you help other people get online for free, you get twenty years in jail. So not only will he be overcrowding our jails but us, the taxpayers will be giving him food and shelter so he can sit there and read books and not have to worry about working for twenty years...

    28. Re:he got rich from fraud by JoeMerchant · · Score: 2

      That question is also your answer. There is a very large chain of people involved in the financial crisis, and it's unlikely that any single one of them can be apportioned enough blame to go to jail.

      I think there's plenty of blame to go around to justify jail time for the lot of 'em, just not enough space in the jails.

    29. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      What are you, a SOPA loving Republican?

    30. Re:he got rich from fraud by flyneye · · Score: 2

      Republicrats, REPUBMOCRATS!
      I hold no delusions that this is a two party system, rather a one party system pretending to be at odds by highlighting and playing up minor differences, they have created the illusion of two parties at odds. Jointly they have been chipping away at our most valuable freedoms for around a century now, and monopolizing the political arena through disinformation and info manipulation.

      Yes, as I was saying as a corporation, just drop the envelope with the cash into the congressman/senators box and you too can do as you please until you breech the press who can connect you to your benefactor.

      --
      *Repent!Quit Your Job!Slack Off!The World Ends Tomorrow and You May Die!
    31. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      Why aren't they jailing the CEOs of the cable companies instead for charging >5000 times the amount they pay for bandwidth for the average user?

      You middle class dead-end IT knobs crack me up. Get over it.

    32. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      Ugh why is this modded down.

      I'm sorry my BBS brother, the slashtards whiners are out in full force today, wanting their free internet so they can go get their free movies and music most likely.

    33. Re:he got rich from fraud by gutnor · · Score: 1

      Not really. As an employee or an exec, you can still be charged for illegal action you took, even if you were ordered to.

      If your organisation is big enough (read generous enough with their overlord), you can get away with it, generally by even preventing the law that makes it illegal to even exist in the first place.

    34. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      ^^^ obviously the words of someone who lives in moms basement, because if you made your own money, you'd understand why someone stealing and re-selling the service you offer (for a free) is a legitimate problem.

    35. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      Why aren't they jailing the CEOs of the cable companies instead for charging >5000 times the amount they pay for bandwidth for the average user?

      Because that isn't fraud? It's slimy, but it doesn't misrepresent the service to the purchaser.

    36. Re:he got rich from fraud by Hatta · · Score: 1

      That question is also your answer. There is a very large chain of people involved in the financial crisis, and it's unlikely that any single one of them can be apportioned enough blame to go to jail.

      This is what RICO is for.

      --
      Give me Classic Slashdot or give me death!
    37. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      if his name was rockefeller we'd all be singing his praises for how he 'liberated the internet' from the hands of the few to the hands of the many

    38. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      Don't forget that this is a federally regulated utility. Beating up on the CEO for what the government allows and, in some cases, dictates that they do isn't very advanced.

    39. Re:he got rich from fraud by Defenestrar · · Score: 1

      Are you entirely sure he was trying to make a strike for freedom?

      "Mr. Harris tried to hide behind the banner of freedom of access to the Internet, but the evidence established that he built a million dollar business helping customers steal Internet service," Assistant Attorney General Lanny Breuer of the DOJ's Criminal Division, said in a statement.

      This sounds more like stealing from the rich while still charging the poor.

    40. Re:he got rich from fraud by bws111 · · Score: 2

      Yeah, right. Let's examine your claim that "defrauding thousands of people at a time comes only with a slap on the wrist and a meager fine".

      Bernie Madoff - 150 years
      Bernie Ebbers - 25 years
      Dennis Kozlowski - 25 years
      Jeffrey Skilling - 24 years, 4 months

      Yup, just 'slaps on the wrist'.

      Why aren't they jailing the CEO of cables companies? How about: because they aren't doing anything illegal. What laws do you imagine they have broken? If we take your ridiculous assertion that they are charging >5000 times cost, then their profit margins should be about 99.999%. They aren't anywhere close to that (TWC is 8.5%, Comcast is 8.56%), so clearly you are just plain wrong on that one.

      Why aren't they jailing the CEOs of AT&T and Verizon? Again, what laws to you suppose they have broken? At most they have breached your contract. So sue them. Oh, you signed a contract saying you wouldn't sue? Well then that's your problem, isn't it.

    41. Re:he got rich from fraud by haruchai · · Score: 0, Offtopic

      That's why I cast a jaundiced eye towards those who think Ron Paul will swoop in and save them - he's a lifelong Republican and, overall, kowtows to the party line, although he's considerably more honest that the leading nutbars. If he had real balls and struck out on his own, like Ross Perot did, I'd be a lot less critical.

      --
      Pain is merely failure leaving the body
    42. Re:he got rich from fraud by asylumx · · Score: 1

      Arguably, spending the rest of your life in prison could be considered far worse than death.

    43. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      If you really think cable companies are charging unreasonable rates, and making unreasonable profits, why not buy some stock in these companies and get your share of the alleged 5000% profit? (Actually, AT&T's 5 year average profit margin is 9.9%. )

      Fraud is defined as: (1.) A lie (2.) reliance on that lie. (3.) Damages due to that lie.

      Fraud is not: (1) Charging a lot. (2) Charging an unreasonable amount. (3). Paying your CEO a alot. (4) being an idiot.

      There are lots of reasons to be upset with AT&T, refine your complaints and they will be taken more seriously.

    44. Re:he got rich from fraud by Taty'sEyes · · Score: 4, Informative

      No he is not a "life long Republican." He is a libertarian Republican and ran for president as a Libertarian in the past. He does kowtow the party line of the Republicans... of the early 1900's.

      --
      We show geeks how to get their dream girl at EyesOfOdessa.com
    45. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      There is a very large chain of people involved in the financial crisis, and it's unlikely that any single one of them can be apportioned enough blame to go to jail.

      So if a group of people get together to commit a murder, each of them goes to jail for 1 year? None of them goes to jail? No, they all go to jail for a long time. One of the greatest problems with our application of the corporate model is a deluded belief that just because there's a corporation involved, it somehow dilutes responsibility for peoples' actions. When there's no corp involved, two people committing a crime don't each get half the time.

    46. Re:he got rich from fraud by mcgrew · · Score: 1

      Nice sound bite there, sherriff, but the fact is that only the stupid or unlucky criminals ever get caught. You law enforcement types are too busy chasing potsmokers and hookers to do much about real crime.

    47. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      It's an interesting comparison. But this would be more like Verizon stealing bandwidth and coverage from AT&T by hacking their cell towers, and "proudly" pocketing the profits while billing other AT&T customers for the costs.

    48. Re:he got rich from fraud by jedidiah · · Score: 1

      Loan officers were simply following corporate policy. It's the corporations that should have been held accountable. They're supposed to be people now. Perhaps they should be prosecuted and punished as such.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    49. Re:he got rich from fraud by RicoX9 · · Score: 1

      I thought that Sarbanes Oxley (sp?) was put in place precisely for this. Make the executives responsible for the fiscal malfeasance of their underlings. I know my boss's boss's boss was a big believer in things being done properly because he had no intentions of doing time for something he signed being bogus/fraudulent.

    50. Re:he got rich from fraud by fafaforza · · Score: 1

      It isn't as simple as assuming a conspiracy. Go and prove in a court of law that something was done illicitly. That a lender was talked into an ARM they didn't understand. That the CEO had intimate knowledge of what his underlings were up to. You don't think there is an AG out there that would love to put away a few bad CEOs and become hero of the every man and boost his career?

    51. Re:he got rich from fraud by specific · · Score: 1

      HAHA... you have jaundice!

      --
      If you lend someone $20 and never see that person again, it was probably worth it.
    52. Re:he got rich from fraud by X0563511 · · Score: 1

      You didn't the whole word. He actually wrote some weird hybridization of Republican and Democrat.

      --
      For large sets, this will be our guide even unto death, for the LORD will work for each type of data it is applied to...
    53. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      It's a potential for 20 years per count. This wiggle room is given so that more sever forms of a crime can be punished harshly without having to have a few million laws on the books to cover the scope of every possible combination of circumstances.

    54. Re:he got rich from fraud by steelfood · · Score: 2

      No, you just can't commit a crime against a rich person in general. Now, poor people, you can bend them over backwards and fuck 'em however you like. At worst, you'll get a slap on the wrist. At best, you'll get a pat on the back for a job well done. Either way, you'll be filthy rich.

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    55. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      your examples by and large defrauded the 1%, not the 99. i do wonder how mf global got away with stealing a billion though.

    56. Re:he got rich from fraud by mrchaotica · · Score: 1

      Because thats neither fraud nor any other crime - its not illegal to not base your prices on your costs. The cable companies can charge what they like for their product.

      The fraud is the failure to deliver the reasonable service at reasonable prices that the cablecos (and telcos) promised when the government granted them their monopolies.

      In other words, it's not "their product." It's a service that they are only able to provide because they took right-of-way from our property to lay the lines, and they owe us that service as recompense.

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    57. Re:he got rich from fraud by sjames · · Score: 1

      There is a very long chain of people involved in delivering a dime bag in NYC as well, but we seem to have no problem finding someone to jail for it.

    58. Re:he got rich from fraud by gtcodave · · Score: 1

      I agree. he should be given a medal or something to the effect of a Nobel peace prze for trying to give the internet to everyone (under the assumption the ppl he helped were'nt loaded and he didn't profit massivly from it)

      regardless I am in firm agreement that his penalty is twisted and unfair and unbalanced compared to bankers and corporations penalties for much worse

      --
      -- David
    59. Re:he got rich from fraud by haruchai · · Score: 1

      One Fearful Yellow Eye

      --
      Pain is merely failure leaving the body
    60. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      He's probably shitting his pants right now and would never commit another crime. God bless the land of the free.

    61. Re:he got rich from fraud by trevelyon · · Score: 2

      And his crime was the worst you can make: not respecting big, rich monopoly corporations. If he just stole from people that would be no problem but he had the audacity to help people steal from the likes of Comcast and other sacred cows. From the article it sounds like he didn't even steal anything just basically sold a lockpick set and showed people how to use it. Gotta love the face of modern business/politics and yes there are basically one thing now.

    62. Re:he got rich from fraud by Drew_9999 · · Score: 1

      Surely you have a citation for the claim that you made in the first sentence.

    63. Re:he got rich from fraud by Darinbob · · Score: 1

      That's the beauty of a corporation, collective guilt is spread around so that evil is easier to live with.

    64. Re:he got rich from fraud by schlachter · · Score: 1

      It's the human equivalent of the corporate saying, "too big to fail", only there's "too many to punish them all"

      --
      My God can beat up your God. Just kidding...don't take offense. I know there's no God.
    65. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      Yeah. Murderers often get far less (than the 140 years he could be facing). Damned if we haven't got our priorities straight.

    66. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      how may lives do you have?

    67. Re:he got rich from fraud by flyneye · · Score: 1

      Not quite lifelong. He's been known to crossdress as Libertarian.

      --
      *Repent!Quit Your Job!Slack Off!The World Ends Tomorrow and You May Die!
    68. Re:he got rich from fraud by flyneye · · Score: 1

      You didn't the concept.

      --
      *Repent!Quit Your Job!Slack Off!The World Ends Tomorrow and You May Die!
    69. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      Kind of a circular problem, they steal from us, we steal from them. Truthfully we all live in your moms basement. She likes us better and says you used to steal from her purse.

    70. Re:he got rich from fraud by glorybe · · Score: 1

      The former president of Adelphia Cable rots in a prison cell to this very day. Once in a while they bag a big guy.

    71. Re:he got rich from fraud by chrismcb · · Score: 1

      Because thats neither fraud nor any other crime - its not illegal to not base your prices on your costs. The cable companies can charge what they like for their product.

      Actually the cable company can't charge whatever it wants. Most cable companies are a monopoly, you can't vote with your wallet and choose a different cable company.
      Of course that doesn't mean you can jail a CEO because they are charging too much.

    72. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      It's all ass-backward, and this guy just had the balls to do something about it. Do your time, but do it proudly.

      Yeah sweet! I'm going to go and steal an iphone and it's ok because they have a huge profit margin!
      You're just a fucking idiot.

    73. Re:he got rich from fraud by exomondo · · Score: 1

      The fraud is the failure to deliver the reasonable service at reasonable prices that the cablecos (and telcos) promised when the government granted them their monopolies.

      And exactly what do you define this reasonable service to be and what do you define the reasonable price to be?

      In other words, it's not "their product." It's a service that they are only able to provide because they took right-of-way from our property to lay the lines, and they owe us that service as recompense.

      No, they don't owe you that service, what would be in it for them if compensation for laying the lines was the provision of the service which is the sole purpose for laying the lines anyway? The lines are there and any cable provider can use them, there is a cost involved in maintenance, monitoring, etc... so that will be factored in.

    74. Re:he got rich from fraud by mrchaotica · · Score: 1

      The answer to both of those questions is that telecoms are/should be regulated like any other utility.

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    75. Re:he got rich from fraud by exomondo · · Score: 1

      The answer to both of those questions is that telecoms are/should be regulated like any other utility.

      So you're accusing them of fraud and defining this as a failure to meet obligations that you can't specify...not a very compelling argument.

    76. Re:he got rich from fraud by Cat_Herder_GoatRoper · · Score: 1

      Ok, you are correct. Would you consider spending the remainder of your natural life in prison a just punishment for a non-violent crime?

    77. Re:he got rich from fraud by haruchai · · Score: 1

      Looks like I pissed off some Ron-tards. Sucks to be you, boys. Go smoke your gold standard somewhere else.

      --
      Pain is merely failure leaving the body
    78. Re:he got rich from fraud by Anonymous Coward · · Score: 0

      The point here is that if CEOs and other high level execs were held accountable with prison time and extremely large fines, then there'd be a much better outcome as shit rolls down hill. The CEOs would work a lot harder to make sure all those who do the legwork in the company would not be defrauding everyone left and right since the CEO would be held accountable for such actions. Because they've been above the law, they've not cared if they break any laws or hurt others. That's why laws need to change to prosecute the people at the top. That's the only way to affect change down to the bottom.

  2. Information wants to be free!! by Anonymous Coward · · Score: 0

    Oh, except when someone has to pay for it... or works for a living...

  3. seven courts by Anonymous Coward · · Score: 5, Funny

    Courts are an odd unit to measure instances of wire fraud.

    1. Re:seven courts by Anonymous Coward · · Score: 2, Funny

      I believe 1 court = 1/8 Library of Congress.

    2. Re:seven courts by Mitchell314 · · Score: 5, Funny

      Close, 1 Court ~ 0.1248859302 Libraries of Congress. The SI system never lines up nicely with the US's.

      --
      I read TFA and all I got was this lousy cookie
    3. Re:seven courts by MobileTatsu-NJG · · Score: 5, Funny

      That typo was in the article, too. I'm not sure whether I should snobbily deride the editors for not correcting the mistake or fashionably praise Slashdot for finally reporting on a article accurately.

      --

      "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

    4. Re:seven courts by Anonymous Coward · · Score: 0

      If copy/paste denotes accuracy.

    5. Re:seven courts by Anonymous Coward · · Score: 1

      ... fashionably praise Slashdot for finally reporting on a article accurately.

      ... and not just *AN*y article, but *A* article!

    6. Re:seven courts by MobileTatsu-NJG · · Score: 3, Insightful

      Thank you for quoting me accurately!

      --

      "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

    7. Re:seven courts by turing_m · · Score: 1

      ... and not just *AN*y article, but *A* article!

      I wouldn't be so quick to judge. It is clear that in either case the article is indefinite.

      --
      If I have seen further it is by stealing the Intellectual Property of giants.
    8. Re:seven courts by alreaud · · Score: 1

      Here's a new idea of measure: "and justice for all." I won't quote the rest of it. That might be considered treasonous...

    9. Re:seven courts by Anonymous Coward · · Score: 0

      Hm,

      I remember my English teacher complaining about me using "an" instead of "a". Something about "an" not being proper English and watching to much tv :-)

  4. hrm by Anonymous Coward · · Score: 0

    Interesting how when it is internet service theft, nobody seems to mind the arrests but when it is intellectual property everyone bawws the fuck out about it. What's wrong? Isn't internet service ~unlimited~?

    1. Re:hrm by siddesu · · Score: 3, Informative

      Get your terminology right, please. There's no such thing as "intellectual property", there is a large body of laws and regulations that pertain to patents, trademarks, copyright and other related rights and mostly create various monopolies. "Intellectual property" is a WIPO marketing term for the weak-minded.

    2. Re:hrm by taktoa · · Score: 2

      No, bandwidth requires infrastructure and maintenance, while "intellectual property" can be copied infinitely for a near-zero sum of money.

    3. Re:hrm by xenobyte · · Score: 4, Insightful

      There a huge difference. You can indeed steal Internet service - you are not making a copy - you are actually taking something someone else paid for, i.e. theft.

      When it comes to 'stealing' intellectual property - you are not taking anything away, nor are you taking something someone else paid for. You are making a copy that detracts nothing from the original. Any loss would come from the loss of a potential sale, but as must file sharing either is done by people who would never pay for the stuff they download (no lost sale) or by people that buys the downloaded material later when it becomes available, there's usually no loss involved and thus no theft.

      Understand it now?

      --
      "For every complex problem, there is a solution that is simple, neat, and wrong." -- H.L. Mencken (1880-1956) --
    4. Re:hrm by Skapare · · Score: 0

      "Intellectual property" is a contradiction.

      --
      now we need to go OSS in diesel cars
    5. Re:hrm by Forty+Two+Tenfold · · Score: 1

      you are actually taking something someone else paid for, i.e. theft.

      Are you sure it wasn't more like a free ride? It's not dissimilar to taking what somebody else invested R&D money to develop.

      --
      Upward mobility is a slippery slope - the higher you climb the more you show your ass.
    6. Re:hrm by jhoegl · · Score: 1

      My mom said my brain was intellectual Property, so what are you saying?!?

    7. Re:hrm by kyrio · · Score: 2

      Are you really as retarded as you are making yourself out to be, or do you actually not understand something this basic?

      By using an ISP's connection without paying for it, you aren't piggybacking on another person's packets, you're using up the limited* space in the pipe. By not paying, and essentially being an unknown factor to the business providing the pipe, you are lowering the quality of service for everyone else. If not through using bandwidth that wasn't accounted for, it's by delaying their packets with your own, during an especially congested time.

      * Regardless of how big the pipes are, the ISPs do need to calculate just how much capacity they have for the amount of people they are serving. Adding a few hundred extra people without accounting for them can be a big difference for their neighbours. Add thousands of unaccounted users, and you can have a massive congestion problem that will be extremely hard to track down, and costly to locate and fix.

    8. Re:hrm by azalin · · Score: 2

      probably that your brain contradicts his line of thinking

    9. Re:hrm by gomiam · · Score: 4, Informative
      Obvious troll, but I'll bite: the bits that you receive through my connection detract from the bits that I can receive through my connection for bandwidth is a physical world entity.

      OTOH, the bits that you copy from me don't disappear from my hard disk by your copying, for information is being a virtual world entity.

    10. Re:hrm by brit74 · · Score: 2, Insightful

      Any loss would come from the loss of a potential sale, but as most [sic] file sharing either is done by people who would never pay for the stuff they download (no lost sale) or by people that buys the downloaded material later when it becomes available, there's usually no loss involved and thus no theft.

      I'd actually argue that most filesharing is done by people who wouldn't pay for it and there's still a loss involved.

      For example, let's imagine a thought experiment: if a company is selling 100,000 copies of some digital media product and then piracy comes along and now 1 million people are pirating it and only 50,000 copies are being sold. We could say that piracy halved the sales - causing a "loss" of 50,000 sales. However, since there are 1 million people pirating it, we could calculate that 95% of them (950,000/1,000,000) wouldn't have bought it. The fact that most of them wouldn't have bought it doesn't change the fact that it caused the sales to be cut in half. Heck, if piracy became the norm, and let's assume that all the sales disappeared (i.e. a loss of 100,000 sales) then we could still truthfully say that "90% of them wouldn't have bought it". My point being: even if you can truthfully say that most of them wouldn't have bought it doesn't mean that it doesn't produce lost sales.

      (And just to head-off the "potential sales aren't real they're purely fictional" argument that someone might want to throw my way - if anyone believes that, then they should argue that copyright should never have existed in the first place and corporations should've always been allowed to print all the books they want and sell all the software they want and sell all the movies they can - because it only means a "potential" loss for the creators and corporations should be allowed to pocket all the money for themselves.)

    11. Re:hrm by brit74 · · Score: 1

      No, it's not.

    12. Re:hrm by MacGyver2210 · · Score: 2

      What did the customer pay for that these people were stealing? Do terrestrial/cable ISPs still charge per-hour or per-GB for bandwidth?

      Last I checked every provider in my area was offering (truly) unlimited high-speed access for a flat rate, and they couldn't tell worth a damn if someone else was using my connection. They certainly didn't charge me more (for example) when my friends would stop by and use my WiFi.

      This is no more stealing than using Coffee Shop WiFi, the only difference is how the connection was made.

      --
      If the only way you can accept an assertion is by faith, then you are conceding that it can't be taken on its own merits
    13. Re:hrm by MobileTatsu-NJG · · Score: 1

      Interesting how when it is internet service theft, nobody seems to mind the arrests but when it is intellectual property everyone bawws the fuck out about it.

      What's interesting is despite how clearly the general view on piracy has been made around here for YEARS, there's always some dipshit who comes along and tries to raise some artificial hypocrisy and not only demonstrates that he doesn't understand what people have been saying, but that he doesn't understand the topic at hand either.

      You would have gotten more mileage out of mentioning the Pringles can articles this site covered. (Do your homework, though, that's still an uphill battle.)

      --

      "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

    14. Re:hrm by Sarten-X · · Score: 2, Insightful

      Are you really as retarded as you are making yourself out to be, or do you actually not understand something this basic?

      By using research without paying for it, you aren't piggybacking on another person's discoveries, you're using up the limited* funding in the field. By not paying, and essentially being an unknown factor to the business providing the R&D investment, you are lowering the return on investment for every other researcher. If not through reducing sales of a final product, it's by crowding their publishable papers out with your own, in a given issue of a journal.

      * Regardless of how big the wallets are, the investors do need to calculate just how much return they will see from the research projects they are funding. Adding a few hundred extra competitors to a market without accounting for them can be a big difference for the feasibility projection of a project. Add thousands of unaccounted clones & derivatives, and you can have a massive marketability problem that will be extremely hard to track down, and costly to locate and fix.

      --
      You do not have a moral or legal right to do absolutely anything you want.
    15. Re:hrm by jdogalt · · Score: 1

      Obvious troll, but I'll bite: the bits that you receive through my connection detract from the bits that I can receive through my connection for bandwidth is a physical world entity.

      OTOH, the bits that you copy from me don't disappear from my hard disk by your copying, for information is being a virtual world entity.

      I'm not trolling, nor the author of the grandparent post, nor interested enough to RTFA. But I kindof agree with your line of reasoning, BUT... You sound like the kind of logical ethicist who might be interested in this followup thought-

      Suppose the hacker in question was _so good_, that they managed to write their tools and enabling hacks, such that the only bandwidth 'stolen', was known, with scientific and engineering accuracy, to have gone completely unused. Now that's a very, very big IF. But from skimming these comments, it does sound like this guy may have known the technical nature of the network even better than those who owned and operated it. In that hypothetical, his infraction seems about as ethically dubious as the seemingly less (by your expression) malicious copyright violation of getting a free copy of that tv episode you paid itunes for.

      Lots of shades of gray, and very very big pictures to consider... I consider it best to reserve judgement, given I'm positive I don't know all the relevant facts, and it does seem incredibly unlikely to have seriously harmed anyone. (but who knows, its just as easy to construct a hypothetical where the interference interrupted 911 emergency services, but if so, the details of such things are for a jury of ones peers to decide).

    16. Re:hrm by kenshin33 · · Score: 1

      sell the expertise then, not the product.

    17. Re:hrm by westlake · · Score: 1

      Any loss would come from the loss of a potential sale, but as most file sharing either is done by people who would never pay for the stuff they download (no lost sale)....

      The car thief doesn't get let off the hook because he would never would have paid for the cars he stole.

      Tell me why again why the geek with a PC and a broadband connection is entitled to freely download movies and games that others must rent from the Red Box or go without.

      "File sharing" implies that you are both uploading and downloading files.

      The Kazaa client made it explicit by displaying progress bars for both upload and download traffic. There was not so much as fig leaf to disguise that you were engaged in an unlicensed wholesale redistribution.

    18. Re:hrm by kenshin33 · · Score: 2

      the guy did offer software to modify the cable modem firmware to get uncapped connections or clone the mac addr of some legitimate modem to access the nework (yes cable modems are authenticated with mac addr) . he didn't do it himself.

    19. Re:hrm by Anonymous Coward · · Score: 1

      My point being: even if you can truthfully say that most of them wouldn't have bought it doesn't mean that it doesn't produce lost sales.

      The reverse also holds, of course: It doesn't mean that it does produce lost sales, either.

      Fact: People spend more money on entertainment in various forms than ever. A trend which continues year after year.

      Fact: The entertainment budget for people in general is not unlimited.

      Conclusion: All the money that could be spent on entertainment is spent on entertainment.

      Consequence: No amount of increasingly harsh laws, DRM or other nonsense will have any positive effect on entertainment sales.

      Reasonable reaction: Stop inventing silly law after silly law, the only effect of which is to lessen the freedoms of everyone for no positive reason.

      Actual reaction: Continue the endless stream of freedom-restricting nonsense, since the actual purpose is control which is something entirely different.

    20. Re:hrm by kyrio · · Score: 0

      Do you see where you went wrong with your failed reply?

      Where the things you wrote about don't affect the physical world - they are completely based on a guess, an assumption, or on the imaginary - the issue at hand, of using a finite resource, does affect the physical world.

      By stealing Internet access, something is physically taken away from people who paid for it - they are no longer able to use the thing they paid for, because someone else took it from them.

    21. Re:hrm by Farmer+Tim · · Score: 2

      Infinitely copied, yes. Infinitely produced, no; that also requires infrastructure and people's time.

      --
      Blank until /. makes another boneheaded UI decision.
    22. Re:hrm by kyrio · · Score: 0

      So, you agree with what I said, and you confirm that you're a retard, and you confirm that don't understand the topic at hand in any way, at all?

    23. Re:hrm by TemperedAlchemist · · Score: 2

      You haven't accounted for the pirates who then turn into customers, either.

      Or pirates that tell their friends about how great of a program it is, and those friends purchase the program legitimately.

      ---

      No, let's operate off of the assumption that piracy never occurred. Who is to say your program will have as many paying customers? Don't think you can simply say, "HEY LOOK X PAID, BUT Y DIDNT, THEREFORE WE LOST PROFITS!" Which is mathematically wrong. It should be represented as:

      x = customers who are customers regardless of piracy
      n = customers who are customers because of piracy
      p = pirates that who are not customers, but would otherwise be customers
      r = pirates who are not customers, but would not otherwise be customers

      If you're going to claim damages, please provide proof that x > p, not that x + n > p.

    24. Re:hrm by EnempE · · Score: 1

      What about the right of the copyright holder to be forgotten ?

      Endless copies of a piece of work that you hate and have chosen to stop distributing do detract from your right to not sell something that you own ...

      This is getting off topic, apologies.

    25. Re:hrm by bolt_the_dhampir · · Score: 1

      The. Car. Is. Not. Gone. If you have the technology to copy my car, leaving the original intact so I can still use it, feel absolutely free to do so.

    26. Re:hrm by Sarten-X · · Score: 1

      So using a finite resource affects the physical world, but I wrote about things that apparently don't affect the physical world... so am I to understand then that R&D funding is an infinite resource? Please tell me where this endless fountain of funding is, so I can pass it on to my long-shot medical researcher friends.

      By copying IP without restraint, something is physically taken away from the people who paid for it - they are no longer able to sell the product they paid for, because the sales market is drastically reduced.

      Sure, it's comforting to think of information as being completely free and endless, and we'd all love to live in a world where art and science are pursued for their own sake - but that hasn't happened in the past 3000 years, and it's not going to happen anytime soon, either. There is a cost to producing the information that people want so dearly, and whoever foots the bill is going to expect some kind of return on their investment - be it fame, fortune, or simply the satisfaction of knowing their creation is widely used. Unfortunately, only the former two are easily turned into living expenses, and only the last inherently follows freely-duplicated IP.

      --
      You do not have a moral or legal right to do absolutely anything you want.
    27. Re:hrm by gomiam · · Score: 2

      By using research without paying for it, you aren't piggybacking on another person's discoveries, you're using up the limited* funding in the field.

      On the contrary, you are actually not using up the funding in the field. You would be, though, if you had to replicate research already done once and again. That's why researchers consider publishing your research a good thing: they get information quite more cheaply than if they had to research everything on their own and they may also get validation/refutation of their own research.

      ..you are lowering the return on investment for every other researcher.

      Only, perhaps, if you don't share back. But if you don't share back you will get sidelined.

      ...investors do need to calculate just how much return they will see from the research projects they are funding.

      Weren't we talking about ROI for other _researchers_? Investors putting money into research and looking at ROI means they don't care about research but its products... and will probably keep research results secret anyway.

    28. Re:hrm by TheVelvetFlamebait · · Score: 2

      There a huge difference. You can indeed steal Internet service - you are not making a copy - you are actually taking something someone else paid for, i.e. theft.

      Do you know how much the artist paid for the copies you take? They have donated both their time and their money into creating it. It's not like they come to them for free, it's just that most of the cost is incurred very early in the creation process.

      --
      You know, there is a difference between trolling and pointing out the flaws in your reasoning. Just saying.
    29. Re:hrm by Anonymous Coward · · Score: 0

      You're not copying somebody else's internet connection. You're taking their finite bandwidth away from them without their permission. Hence, theft.

      but it was *unlimited* internet access when the target originally signed up....

    30. Re:hrm by Richard_at_work · · Score: 1

      I personally am of the opinion that it doesn't matter whether they were never going to become a customer regardless, they are "enjoying" the product nonetheless.

    31. Re:hrm by kamapuaa · · Score: 2

      And along those lines, I don't like the Chicago Cubs, so maybe we can all just pretend they don't exist. Problem solved!

      --
      Slashdot: providing anti-social weirdos a soapbox, since 1997.
    32. Re:hrm by Richard_at_work · · Score: 2

      The thing that people have yet to touch on in this thread is that the bandwidth used does not just affect the end consumer that is having their connection increased or hijacked - and I'm not talking about the effect on other users on the network.

      Let's talk peering arrangements. No ISP has access to the entire Internet, so they peer with other networks and backbones to increase their reach - and those agreements are routinely based on an amount of data transferred per period. Go over that agreed amount and the ISP has to pay. Routinely go over that agreed amount and they have to renegotiate the agreement. Routinely stay under the amount and the ISP can renegotiate a less costly agreement.

      So yes, there is a real effect here, it's just some way downstream from you.

    33. Re:hrm by QuasiSteve · · Score: 1

      Suppose the hacker in question was _so good_, that they managed to write their tools and enabling hacks, such that the only bandwidth 'stolen', was known, with scientific and engineering accuracy, to have gone completely unused.

      That sounds fair, but only in principle.

      Let's say you and I both run a web business out of our homes. You've got your website running on your local Apache copy, I've got mine. On that website, you're selling product X, and I'm selling product X as well.
      As part of your at-home business, you pay your ISP for a 2GB/month upload cap, say, $100. You only ever use a maximum of 1GB, however. The ISP's next lower tier is 500MB/month, so you can't downgrade. So 1GB is left over.
      I take that 1GB from you. You're not using it anyway, so no harm no foul, right? Except that I'm not paying that $100. I'm not even paying 'my share' of $50.
      As a result, I price the items in my store lower than yours - as I don't have that additional expense, or I price them the same and simple take in a higher profit. Suddenly, ham/foul.

      Now, this is a contrived example, and when you use other analogies (Food banks getting food for free, letting others eat for free while you had to pay top dollar for that same food. The kid next door using a pirated copy of Photoshop and doing their commercial web design while you paid for your legitimate copy.) the opinion of whether harm/foul comes into play is going to differ wildly even within the same person's mind.

      But the point is that it's not a third party's decision whether it's okay or not to take any unused good without permission. In the example, you paid for the right to not use that 1GB. Is it a shame to let it go to waste? Perhaps. But that's your decision - you could give somebody permission to use it, for free or otherwise, but still your decision.

    34. Re:hrm by Tim+C · · Score: 2

      Grammar nit-pick - you use "[sic]" when correctly quoting a mistake in the original, not when correcting one when quoting.

    35. Re:hrm by gomiam · · Score: 1

      Suppose the hacker in question was _so good_, that they managed to write their tools and enabling hacks, such that the only bandwidth 'stolen', was known, with scientific and engineering accuracy, to have gone completely unused. Now that's a very, very big IF. But from skimming these comments, it does sound like this guy may have known the technical nature of the network even better than those who owned and operated it. In that hypothetical, his infraction seems about as ethically dubious as the seemingly less (by your expression) malicious copyright violation of getting a free copy of that tv episode you paid itunes for.

      _If_ the bandwidth was really unused I certainly would have no problem with his using it. But it would seem the software this guy's company developed was designed to clone other user access information, which would most certainly cause connection problems, as that usually happens when having repeated MACs or IPs in the same network.

      Not directly related, but it seems the ISPs could have worked in some better kind of security in their authentication protocols, which would have probably defeated any easy attempt to break it.

    36. Re:hrm by siddesu · · Score: 1

      I can't see why I should care about some young animals, even if they are in the Chicago zoo. But what do they have to do with the fiction of "intellectual property"?

    37. Re:hrm by metlin · · Score: 2

      You're missing the point. To allow people to pirate because a small portion of them could potentially purchase down the road may be great for marketing, but is poor for revenue.

      I am just unable to understand the intellectual lethargy that I find on Slashdot when it comes to piracy. You may disagree with how someone feels about piracy, but if it is their content, it is their prerogative.

    38. Re:hrm by master_p · · Score: 1

      Can we please stop with the shitty argument that one that has illegally downloaded something is not a lost sale? it is an insult to our minds. Someone who has downloaded and used something is a stolen sale, because that person is using something he/she should have paid for.

    39. Re:hrm by Anonymous Coward · · Score: 0

      Sometimes the person is illegally downloading something so that he/she can finally use what he/she paid for.

      You don't have to believe me, but there's plenty of evidence out there if you bother to look.

    40. Re:hrm by kyrio · · Score: 1

      Yes, unlimited for that person who signed up, on his plan, with a very specific speed that will essentially cap his total usage for a given period of time.

      If you let thousands of people access service with a parallel cut of the speed, not just sharing the total speed of the person they're impersonating, then you're not just piggybacking another person's service, you're using speed and service that's reserved for other paying customers, present and future.

      The infrastructure is limited and capacity depends on how many customers are accounted for. If thousands of people are using the service without being accounted for, that destroys the service for everyone who did pay.

    41. Re:hrm by TemperedAlchemist · · Score: 1, Insightful

      I am not addressing this. I am addressing the claim that they have suffered damages. Which the onus is on them to prove. I merely laid out an error in common reasoning about how they calculate damages.

    42. Re:hrm by Forty+Two+Tenfold · · Score: 0

      So, you agree with what I said, and you confirm that you're a retard, and you confirm that don't understand the topic at hand in any way, at all?

      No. Go somewhere where they train reading comprehension.

      --
      Upward mobility is a slippery slope - the higher you climb the more you show your ass.
    43. Re:hrm by GNU(slash)Nickname · · Score: 1

      You haven't accounted for the pirates who then turn into customers, either.

      Or pirates that tell their friends about how great of a program it is, and those friends purchase the program legitimately.

      ---

      No, let's operate off of the assumption that piracy never occurred. Who is to say your program will have as many paying customers? Don't think you can simply say, "HEY LOOK X PAID, BUT Y DIDNT, THEREFORE WE LOST PROFITS!" Which is mathematically wrong. It should be represented as:

      x = customers who are customers regardless of piracy n = customers who are customers because of piracy p = pirates that who are not customers, but would otherwise be customers r = pirates who are not customers, but would not otherwise be customers

      If you're going to claim damages, please provide proof that x > p, not that x + n > p.

      Don't you mean p > n? If there are more pirates would otherwise be customers than the number of new customers gained through pirate word of mouth, then damages have occurred. X and R and completely irrelevant to this calculation.

    44. Re:hrm by Oligonicella · · Score: 1

      It's neither a contradiction nor self-affirming.

    45. Re:hrm by Oligonicella · · Score: 1

      The *ability* to be copied is the mark of nothing. It's a smoke screen for those who want to do so and break an author's copyright.

    46. Re:hrm by Oligonicella · · Score: 1

      "you are not taking anything away"

      Incorrect. You are removing the right of distributorship. The rest of your post isn't relevant to the crime.

    47. Re:hrm by Oligonicella · · Score: 1

      "Unlimited" in the aggregate, limited in the moment of reality. That you don't understand this explains your confusion.

    48. Re:hrm by sFurbo · · Score: 1

      I am just unable to understand the intellectual lethargy that I find on Slashdot when it comes to piracy. You may disagree with how someone feels about piracy, but if it is their content, it is their prerogative. [Emphasis mine]

      I think that is the disagreement right there: The idea that your can own content is a form of censorship* which a portion of the /. readership does not find reasonable (at least under the current terms). You do not share that view. I hope that explains difference.

      *Censorship can be defined as prohibiting certain expressions, which is exactly what IP does. Some IP owners might allow you to express yourself in that way if you pay them, some will not. It is censorship regardless.

    49. Re:hrm by Anonymous Coward · · Score: 0

      NO! IP = Internet Protocol!

    50. Re:hrm by sFurbo · · Score: 1

      When people say that a copy pirated is not a lost sale, they are defining "lost sale" as "a sale that WOULD have been made, except for the pirating". You are using the definition: "a sale that SHOULD have been, except for the pirating".

    51. Re:hrm by Oligonicella · · Score: 1

      A nice, bland statement that really doesn't apply to much. What would you type on if all computer companies sold their 'expertise' and not their products ... or eat, or live in?

      And frankly, expertise, in and of itself, is worthless. You have to have something to apply it towards, and that always ends up being material... product.

    52. Re:hrm by master_p · · Score: 1

      That's exactly what I am saying, that my definition makes a lot more sense: when you use a product that you should have paid for, and you didn't, it's a lost sale.

      The community has made a bogus definition in order to support its pirating habits. It's a simple as that.

    53. Re:hrm by ub3r+n3u7r4l1st · · Score: 1

      Chicago Cubs is the biggest joke in baseball.

    54. Re:hrm by TemperedAlchemist · · Score: 1

      I actually meant to say that the profits from x + p > x + n.

      This is what I get for not sleeping. I can math, really. Promise.

    55. Re:hrm by Anonymous Coward · · Score: 0

      Someone who has downloaded and used something is a stolen sale, because that person is using something he/she should have paid for.

      Should is not set in concrete. We have it by convention that such a thing as copyright exists, but it's not self evident that it does. It's in fact quite the opposite: all of human culture is based on free copying, i.e. stealing. You use the Latin alphabet when typing this post yet you pay nothing to Rome. You use the system of democracy in your government yet you pay nothing to Greece. You're also a thief. Just because everyone does it, does not make it any less immoral. At some point, some people decided they would restrict the flow of ideas they themselves stole or based on other work they did not contribute to, and we now have this copyright argument which we should probably outlaw. Besides in your example above, the person who bought your software program paid you for it, he then shared it with everyone. It is, I believe, his natural right to do with the thing whatever he wants to do with it, since he paid for it. If you don't like that, don't sell your products and keep them secret. I will grant you then that it would be wrong to share the contents of your secret diary with the world.

      Ignoring all of that it's still not a lost sale because only the consumer decides whether he would have bought the item at that price in return for what the item offers.
      Most people will use half a-rsed products for free but few would be willing to pay to use them.
      And let's face it, 99.99% of the stuff out there is overpriced garbage. It's not worth looking at, and without advertising and the dishonest creation of false memories, few would be compelled to download this garbage even for free. Don't tell kids they need the latest song or the latest game. Don't tell users they need the latest AV or Office. They don't usually need these things.

    56. Re:hrm by Fluffeh · · Score: 1

      That's not always true. I love a good show, and I do often borrow shows to watch. I do want to become a customer - and my very extensive DVD collection backs that statement up. However, when products aren't available here (such as Dollhouse even though it came out three years ago!) I will find other means of watching them. When it comes out, I will happily go out and buy it. Why? You ask?

      Because as someone who enjoys watching good entertainment, the only way that I can, as a consumer, encourage the folks that makes what I call good entertainment keep making good entertainment is to let them profit from it.

      I am not interested in reality TV. I am not interested in watching soaps or cooking shows. I am however interested in watching a show with a good storyline, good characters and see them develop over time and improve as people - albeit fake TV show people. If I find a product made by media companies that I enjoy, I speak with the only voice that they hear. My money, and I do it gladly. If by spending a few dollars on a TV series I can encourage more of that show, or type of show to be made, then I do it gladly - for there is benefit to me.

      --
      Moved to http://soylentnews.org/. You are invited to join us too!
    57. Re:hrm by geminidomino · · Score: 1

      And you're making a bogus definition in order to support the abuse that the content suppliers heap upon their actual paying customers. It's as simple as that.

      See? We can pull mindless proclamations out of our asses, too.

    58. Re:hrm by siddesu · · Score: 1

      So, they are not really a baseball team, but are trying to convince us they are one? Well, then it is an apt comparison to the situation with "intellectual property" then, it isn't real too, but its fans are trying hard to convince everybody else otherwise.

    59. Re:hrm by GmExtremacy · · Score: 1

      Which really has nothing to do with copyright infringement since copyright infringers have nothing to do with the production.

    60. Re:hrm by GmExtremacy · · Score: 1

      Getting a free ride on the bus and not paying for it is actually an apt analogy.

      Only if you take someone's else's seat.

    61. Re:hrm by GmExtremacy · · Score: 1

      By not paying, and essentially being an unknown factor to the business providing the R&D investment, you are lowering the return on investment for every other researcher.

      You're not the one taking their money. They use it up all on their own.

    62. Re:hrm by GmExtremacy · · Score: 1

      We could say that piracy halved the sales

      You could, but it would be a mere assumption.

      And the only "loss" is a potential one.

      if anyone believes that, then they should argue that copyright should never have existed in the first place and corporations should've always been allowed to print all the books they want and sell all the software they want and sell all the movies they can - because it only means a "potential" loss for the creators and corporations should be allowed to pocket all the money for themselves

      Yes. I want copyright gone completely.

    63. Re:hrm by GmExtremacy · · Score: 1

      1) Whether they should have paid for it or not is subjective.
      2) It's also irrelevant. It's only a lost sale if they would have bought it otherwise (pretty hard to prove).

    64. Re:hrm by GmExtremacy · · Score: 1

      The community has made a bogus definition in order to support its pirating habits. It's a simple as that.

      Then how do you say that you lost the potential for a customer to buy something from you because they didn't like your company's practices? "Should" never come into a situation such as that (at least not for me).

    65. Re:hrm by TapeCutter · · Score: 1

      All property is intellectual, "property" is the deep rooted concept of ownership found in such diverse creatures as humans and hermit crabs, territorial behaviour is another example. It's meaningless without the "cooperation" of the majority of individuals, which is where we seem to be in the "information age".

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    66. Re:hrm by Farmer+Tim · · Score: 1

      Exactly. Copyright do not contribute to recouping the costs of production by paying, but still benefit from the result. How is this different from ripping off an ISP?

      --
      Blank until /. makes another boneheaded UI decision.
    67. Re:hrm by Barbara,+not+Barbie · · Score: 1

      sell the expertise then, not the product.

      That works so well that all the big software companies like Apple and Microsoft are doing it ... NOT!

      All those expertise-sellers, and we're still waiting for the year of the linux desktop, because upgrades still break things on a regular basis (which is why so many of us distro-hop - in my case from slackware to redhat to mandrake back to redhat to suse to opensuse and now fedora 16).

      Most people don't want to buy expertise - they want something that "just works". For the average consumer, if it needs support, it's broken ... and they're right.

      --
      Let's call it what it is, Anti-Social Media.
    68. Re:hrm by Barbara,+not+Barbie · · Score: 1

      It's not intellectual lethargy - it's a hypocritical unwillingness to admit that what they are doing is unethical.

      That's why they'll bend over backward to make the argument that it isn't stealing ("oh noes - it's just teh copyright infringement - they still have their original bits").

      But watch those same ones whine if you take code licensed under the gpl and say "I'm going to modify it and sell a proprietary closed fork - I'm not stealing your work - you still have your original code". All of a sudden, licenses mean something.

      And this despite the fact that RMS actively encourages people to pirate closed-source applications because anyone who writes closed software somehow deserves it for their "anti-social" behaviour.

      --
      Let's call it what it is, Anti-Social Media.
    69. Re:hrm by Farmer+Tim · · Score: 1

      Sigh. Copyright infringers...that's what I get for watching stuff on YouTube while posting.

      --
      Blank until /. makes another boneheaded UI decision.
    70. Re:hrm by Anonymous Coward · · Score: 0

      You're not copying somebody else's internet connection. You're taking their finite bandwidth away from them without their permission. Hence, theft.

      but it was *unlimited* internet access when the target originally signed up....

      Hmm, it is more like "everything you can eat for $xx" diners. It is limited by, and priced according to, the statistically obtained mathematical expectation of what amount of offered good/service a single customer can consume per serving/time period. Of course your buddies can't help you out with your meal!

    71. Re:hrm by GmExtremacy · · Score: 1

      Okay. In one example, someone is paying for their own internet connection. No harm done by using the internet connection.

      In the other example, they're not paying for the internet connection. People say they're "stealing" bandwidth. Not only are they not helping recoup the costs of production, they're (according to some) actually harming the person.

      Copyright infringers have no affiliation with the artists whatsoever. They aren't using their resources in any way. The copyright infringers generally use their own internet connections to download the material.

    72. Re:hrm by jedidiah · · Score: 0

      No. Most things labeled as property are finite things where the classic definition of property makes some sense.

      That is the "right to exclude" BTW.

      If you can't fence it in or put it in a box, then trying to call it property is a little absurd. That's not surprising since it is an entirely modern idea.

      The basic idea is "copying == theft".

      --
      A Pirate and a Puritan look the same on a balance sheet.
    73. Re:hrm by jedidiah · · Score: 2

      If it's been 30 years then I should be able to violate the author as much as I want. That's part of the bargain.

      Genuine natural rights don't expire like that.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    74. Re:hrm by jedidiah · · Score: 1

      Lars? Is that you? If you really think that way then give up all of your money and possessions now.

      They only exist because of "piracy".

      --
      A Pirate and a Puritan look the same on a balance sheet.
    75. Re:hrm by jedidiah · · Score: 1

      > That's why they'll bend over backward to make the argument that it isn't stealing

      No bending is required. It's copying.

      If anyone is suffering from "intellectual lethargy" then it is you and everyone else like you that can't make a good ethical argument without using a weak transparent lie as a crutch.

      Your ranting only undermines what you claim to shill for.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    76. Re:hrm by jedidiah · · Score: 1

      > What about the right of the copyright holder to be forgotten ?

      He has no such right. Never had. Any suggestions to the contrary are bad attempts at reconning Copyright.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    77. Re:hrm by Anonymous Coward · · Score: 0

      You may disagree with how someone feels about piracy, but if it is their content, it is their prerogative.

      There us no such thing as "their content", just as there is no such thing as "my speck of sand" as soon as it has fallen from my palm down to the beach.

    78. Re:hrm by Farmer+Tim · · Score: 1

      They aren't using their resources in any way.

      Wrong, they're using the product of the artists investments in time, labour and necessary equipment, just like an internet connection is a product of an ISP's investment in time, labour and necessary equipment. Trying to separate the product from the investment is intellectually dishonest because in either case the former can't exist without the latter.

      --
      Blank until /. makes another boneheaded UI decision.
    79. Re:hrm by GmExtremacy · · Score: 1

      Wrong, they're using the product of the artists investments in time, labour and necessary equipment

      ...Which I believe doesn't affect them in any way because the artist has already used their time and money to develop the product. They did that of their own volition, I might add. Even if it's copied a million times after that, the artist wouldn't lose anything except perhaps potential sales.

      None of the artist's resources are being used by the copyright infringers. The artist already lost the resources making the product (nothing to do with the copyright infringer), so the copyright infringer can't use those again.

      Trying to separate the product from the investment is intellectually dishonest

      What does that even mean? I disagree with you, therefore I'm intellectually dishonest? A seemingly common theme among people who disagree with one another: the opposition is almost always "intellectually dishonest." Funny, isn't it?

      The investment cannot be lost again since it has already been lost. Certainly, the copyright infringers aren't helping the artist out, and perhaps they should according to some people, but comparing this situation to copyright infringement is, I believe, an invalid comparison.

      because in either case the former can't exist without the latter.

      And?

    80. Re:hrm by Barbara,+not+Barbie · · Score: 1

      No, your weak claim that taking something without the owners' permission isn't stealing is the lie.

      Example from the non-virtual world - you take someone's car without their permission and return it a few hours later. They still have their car, but you're still a thief.

      Another example - you photograph the questions for an upcoming test so you can cheat. You use this to get ahead of someone who doesn't cheat, so you get a scholarship they would have won. Not only have you stolen the questions, you've also stolen the scholarship.

      I dump a load of garbage in your parking space - you still have your parking space ... but in real terms, I've stolen the use of your parking space from you. Now, you get fined by the city for having a bunch of garbage in your parking spot. You also have to pay to have it cleaned up. So, I've stolen money from you as well, and transferred it to me (I own the company that you pay to do the clean-up, and I'm also an elected official at CrookesVille). But - you still have your original parking spot, so I didn't "really" steal anything from you, right? And all those parking tickets you had to pay because your spot was full of garbage? They don't count either, right?

      --
      Let's call it what it is, Anti-Social Media.
    81. Re:hrm by GmExtremacy · · Score: 1

      My point is this: If someone doesn't give me all of their money for no reason (a loss of potential gain), I don't treat that as the same kind of situation as when someone steals my money from me. In one situation, I merely lost the potential to gain something (certainly, it would be nice if I could've gained, but I don't think I really lost anything here, nor do I feel that I did), while in the other, I actually lost something I already had. Call me "intellectually dishonest" all you please; you're probably not going to get me to change my mind if you still don't agree with me.

    82. Re:hrm by master_p · · Score: 1

      So, are you claiming that it is not illegal for you to use something you have not paid for, when you should have?

    83. Re:hrm by Sarten-X · · Score: 1

      Ah, the troubles of form.

      Weren't we talking about ROI for other _researchers_?

      I wasn't. I thought we were talking about "taking what somebody else invested R&D money to develop." I was talking about the ROI for people who fund the research. Furthermore, I'm also using a fairly broad definition of the term "research", to include not just academic investigations, but also more industrial R&D like literature surveys, benchmarking, comparison analysis, testing, and so forth. I'm also trying to argue in such a way as to apply my argument to artistic creations (which I find very close to academic research in methodology and funding sources).

      Academic research is far less restricted by IP rules than industry, and I think this is a good thing. I also think that certain IP regulations are too strict (copyright length), while others are too lax (artists giving all ownership to a label via a contract). I'm one of those folks who thinks that we should be able to find a set of laws that fits the current IP situation just right.

      Unfortunately, the honor system that works so well in academic research doesn't seem to scale very well to the rest of the world. In academics, there are few enough researchers in any particular field that any copied work will be noticed, and a plagiarizer will be shunned. That provides an economic stimulus to produce original work, and to stay far away from derivative work unless it's clearly noted. Outside academics, the chance of two unrelated researchers working on similar projects is far higher, to the point where plagiarism can be easily and successfully passed off as coincidence.

      --
      You do not have a moral or legal right to do absolutely anything you want.
    84. Re:hrm by GmExtremacy · · Score: 1

      If it's been 30 years[...]

      Fifteen is the maximum number of years that I would agree to should copyright exist at all.

    85. Re:hrm by Richard_at_work · · Score: 1

      I'd love to see how you came to that conclusion.

    86. Re:hrm by geminidomino · · Score: 1

      No, the legality of it never entered into it. Poor attempt at a strawman.

      I'm claiming you're going to have to do much better than you did to make a case for a 'lost sale' in every single case, as you attempted to do.

    87. Re:hrm by DaveV1.0 · · Score: 1

      So, what you are saying is that it is OK for me to steal from you as long as I buy something eventually, right?

      --
      There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
    88. Re:hrm by TemperedAlchemist · · Score: 1

      Is that what I said?

    89. Re:hrm by Anonymous Coward · · Score: 0

      People weren't breaking into the ISP and stealing bandwidth - they were operating hacked modems that presented them to the ISP as legitimate customers, causing them to be able to send/receive packets on their network. That's fraud, not theft. By providing the modems, the guy in this story is an accomplice to fraud.

    90. Re:hrm by DaveV1.0 · · Score: 1

      Yes, that is your post basically says. Here, want me to make it clearer for you?

      Your post is a variation of the broken window fallacy and it is just as false.

      --
      There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
    91. Re:hrm by TemperedAlchemist · · Score: 1

      I neither condoned copyright infringement or stealing. Read it again if you're not sure.
      --
      And while we're talking about fallacies, how about strawmen?

    92. Re:hrm by GmExtremacy · · Score: 1

      Example from the non-virtual world - you take someone's car without their permission and return it a few hours later. They still have their car, but you're still a thief.

      But that's a false analogy because, even if only temporarily, they lost the car.

      Not only have you stolen the questions, you've also stolen the scholarship.

      How did you steal the questions? Or, for that matter, the scholarship? I'm not seeing the theft in this example. You cheated, yes, but I don't see any theft.

      I dump a load of garbage in your parking space

      Suddenly your space is being used up. A resource. Not stolen, but used up.

      You also have to pay to have it cleaned up.

      What kinds of analogies are you trying to make here? Now I especially fail to see what this has to do with copyright infringement since nothing of the sort happens there.

      So, I've stolen money from you as well

      I'd say you harmed them, but I wouldn't say you stole their money.

      But - you still have your original parking spot, so I didn't "really" steal anything from you, right?

      Stealing a parking spot would be quite difficult. Rather, you used it up and inflicted harm upon them by doing so. Can we talk about copyright infringement now?

    93. Re:hrm by master_p · · Score: 1

      What do you mean 'the legality never entered into it'? once you use a product, you have to pay for it, period. It's the law.

    94. Re:hrm by geminidomino · · Score: 1

      It only takes 10 seconds of thinking to come up with things that are wrong to anyone sane, but are legal, and maybe 15 to come up with things that aren't but are illegal because they offend some scumbag politician (or more likely, his corporate overlords' bank accounts).

      Legality and morality are orthogonal, and neither one has anything to do with your sweeping, unsupported statement that, in your exact words:

      That's exactly what I am saying, that my definition makes a lot more sense: when you use a product that you should have paid for, and you didn't, it's a lost sale.

      Go troll the Escapist. You're out of your depth here.

    95. Re:hrm by master_p · · Score: 1

      No sir. You are making a big mistake. Paying for products that are not free is the cornerstone of modern civilization. If we did not pay, and we just took what we desired, economic growth would be impossible. Anarchy and violence would be the law of the land. The smaller guys would not have a chance to survive.

      You, and people like you, have created in your mind your own legal system, in order to justufy piracy. I understand you. I too had a great time downloading music, movies and games illegally. It did not cost me anything and I had plenty of material to enjoy. But, we all have to undersrand that, what we did harmed a lot of people, and we broke the law, for the sole purpose of our entertainment, disrespecting the foundations modern society is based upon.

      I understand your unwillingness to admit the above, but it is the sad truth. The free ride is over.

    96. Re:hrm by geminidomino · · Score: 1

      Again, besides being profoundly wrong -- which has never stopped people like you in the past -- that also has nothing at all to do with my original post.

      At this point, it's even money whether you're a shill or just incapable of rational thought. Either way, I'm finished feeding you.

  5. Bad design by xenobyte · · Score: 5, Interesting

    If this guy could build a business, complete with websites, forums and so on, it must have gone on for quite a while (6 years it turns out), so it is obvious that:

    1) The ISP didn't know enough about their business to realize the giant holes this guy was exploiting.
    2) The ISP was incompetent enough to let this guy and his customers steal service (which the ISP's other customers paid for) for a long time.

    Any sentencing here should include a heavy fine to the ISP for technical incompetence.

    --
    "For every complex problem, there is a solution that is simple, neat, and wrong." -- H.L. Mencken (1880-1956) --
    1. Re:Bad design by Dexter+Herbivore · · Score: 3, Insightful

      Any sentencing here should include a heavy fine to the ISP for technical incompetence.

      Theoretically it already has, it's paid the fine in lost customers due to their service being so crappy. I can't imagine that you could pull something like this off without massively degrading the hijacked service.

    2. Re:Bad design by SuricouRaven · · Score: 5, Informative

      Worse, actually. He was impersonating modems using sniffed MAC addresses, which is only possible if the network is running without encryption - a feature that should be easily supported by DOCSIS (BPI has been in there since version 1.0), if the ISP were willing to fork out for the equipment. Coax is a shared medium, which means that every customer's data was being sent to every other customer on that segment, in cleartext - the only thing to stop someone from sniffing all the facebook accounts, emails, MMORPG logins and other non-SSL data they could desire would be the firewall in their modems, which is easily broken with a hacked firmware. That's a massive security worry right there - the ISP were lucky he only exploited it for theft of service, rather than sniffing all traffic and selling details to scammers who might use it for ID theft, spam and the looting of World of Warcraft accounts.

    3. Re:Bad design by Asic+Eng · · Score: 4, Interesting

      Well, from the description it appears the guy was selling modified cable modems to sniff data on the coax line and enabling the user to change MAC addresses etc. This would seem to indicate that the device would operate with several configuration sets - maybe switching those on the fly depending whether they were already in use. This way the users' modems would be able to replicate the access data of other users.

      That could be prevented by using encryption for exchanging login data, but it's pretty hard to detect: You can't easily tell the difference between unauthorized access of user B with user A's login data, and user A who just happens to use the internet a lot. Also you wouldn't notice a few users doing that in one particular segment, the guys customers could be distributed all over the US:

    4. Re:Bad design by Alwin+Henseler · · Score: 1

      3) Due to the 'hacking' / under-the-radar nature of the theft (on the network that is, not that the guy was advertising it) the ISP didn't know or realize how much bandwidth was used by paying customers, and how much by non-paying ones.

      One might group that under 2) "incompetent", but perhaps it really was difficult from the ISP side to know what exactly was going on & how many people were doing it. Just that someone provides tools that make it easy to abuse a service, doesn't automatically mean those tools are used on a large scale.

    5. Re:Bad design by SuricouRaven · · Score: 3, Insightful

      Cable modems actually solved that a long time ago. The modems themselves are the authentication token - they each have a unique private key embedded in them, and the network uses that. Or rather, should use that - the type of impersonation attack that the article describes is only possible if the ISP has disabled encryption on their network (I'm assuming it's some version of DOCSIS), which is just really stupid of them.

    6. Re:Bad design by wvmarle · · Score: 1

      The network should be able to detect this. The end user too.

      Why I say so: let's say the thief, T, tries to go online. One way or another T intercepts the authentication codes of user U. Well maybe several users over time. Then when T wants to go online, he uses U's authentication codes to authenticate his modem to the ISP. So now T is online with U's authentication.

      Some time later, T still connected, and U wants to connect her modem to the Internet. Now there are suddenly two modems with the same authentication trying to connect - this should not be possible. One or the other will have to be kicked off. The ISP now has an authentication request, and a request for an IP address (assume DHCP), for a user that has logged on already. This in itself should raise a red flag: something is wrong on the network.

      The same for the end user. U may experience problems logging in to the network, as her account is connected already - two modems fighting over the same connection. Resulting in calls to the help desk, and an investigation should be able detect strange entries in the connection logs.

      Even if the network allows the same user account to log in twice at the same time, and get two connections (and two IP addresses), this still is easily detectable: every end user is supposed to have only one modem, and having the same modem logged on twice, on two different connections (same network segment, presumably) should set off a warning.

      Now detecting where (physical location) the offending modem is connected, that's probably going to be a different matter.

    7. Re:Bad design by ArsenneLupin · · Score: 4, Insightful

      He was impersonating modems using sniffed MAC addresses, which is only possible if the network is running without encryption

      Are you sure about this? Many encryption schemes only encrypt the payload, not link-level headers, such as the MAC address. Or how else would the modem be able to figure out which packets are for itself, and which aren't? Attempting to decrypt every packet (including those not intended for it) would be a huge performance drain.

    8. Re:Bad design by Anonymous Coward · · Score: 0

      Here I thought it was pretty well known that cable service basically sucks because it works like a giant Ethernet segment where everyone is on the same hub. Nobody encrypts anything they don't have to, so expecting it to be encrypted is a bit unrealistic. Only the ISP's payment pages will be encrypted - and that by HTTPS.

      Since you should already be using HTTPS, SFTP, and/or VPN if you want to be secure anyway, there is little added benefit to the cable company adding another layer of encryption to their network, which will make things easier to break, and probably slower.

    9. Re:Bad design by Tim+C · · Score: 1

      Any sentencing here should include a heavy fine to the ISP for technical incompetence.

      I wasn't aware that was illegal.

    10. Re:Bad design by Anonymous Coward · · Score: 0

      wow passwords are encrypted when sent.

    11. Re:Bad design by Vegemeister · · Score: 1

      Anything going across the public internet is in cleartext unless you take steps to encrypt it yourself. It is foolhardy to assume otherwise, or to increase the cost of modems by speccing enough CPU grunt to encrypt all traffic.

    12. Re:Bad design by Anonymous Coward · · Score: 0

      You are saying that all data on a cable network is broadcast? Wrong. Not 5 Informative. -5 wrong and misleading.

    13. Re:Bad design by Anonymous Coward · · Score: 0

      It's not. Lucky for the OP there's no fine for general incompetence.

    14. Re:Bad design by SuricouRaven · · Score: 1

      Of course it's broadcast. It's coax - it has to be sent to the whole segment, because it's a shared media. The modems just have a simple filter in them that only forwards frames to the user if they are addressed appropriatly. If you don't mind hacking the modem firmware, you can easily view the downstream traffic to everyone on your segment (Though not the upstream - different frequency band, I doubt the modem is even capable of receiving there). If the network is properly set up, it'll be encrypted though.

    15. Re:Bad design by tinkerghost · · Score: 2

      Theoretically it already has, it's paid the fine in lost customers due to their service being so crappy. I can't imagine that you could pull something like this off without massively degrading the hijacked service.

      His technique used a packet sniffer & changed the MAC addresses on the modems. That creates the same havoc on the network as 2 devices with the same IP address. So you would have a situation with huge blocks of packet loss while one modem was getting the data for both modems, until the ARP table updated & the other modem got all the data. So, it would probably be pretty miserable for both the person paying for the service, and the person impersonating them.

    16. Re:Bad design by nosferatu1001 · · Score: 1

      LInk level encryption does this, with each node decrypting then reencrpting before passing on. Layer 2 of OSI :)

    17. Re:Bad design by Asic+Eng · · Score: 1

      Well I don't know how that guy's tools worked, I was assuming T's setup would automatically change to another set of authentication data as soon as U was trying to connect. That's based on nothing but the description of coaxthief "if you have the time let the program run over night to sniff out as many macs as it can but this is not required" - but why bother gathering a large number of MACs if you don't want to use that in order to avoid collisions? Otherwise, each time U would try to connect T would have to manually switch to new authentication data.

      I did a quick check for an old version of the site. At $99 you would expect to get something that works reasonably smooth, even if you are just stealing internet access.

    18. Re:Bad design by Anonymous Coward · · Score: 0

      In DOCSIS the payload is the ethernet frame.

    19. Re:Bad design by Anonymous Coward · · Score: 0

      You can run any kind of packet sniffer on a Linux box (wireshark etc...) You'll seen the head-end of the cable network send out all sorts of whois xx.yy.zz.ww IP requests along with the other DHCP stuff. You won't see other customers traffic. The cable modem only needs to be able to decrypt/encrypt the entire packet at the lowest layer to allow MAC address encryption. Similarly for the head-end. As long as they both use the same key, it will work.

      In any case, a properly run cable TV/Internet network will maintain a white-list register of MAC addresses (which are logged to IP addresses) so you have to get permission to connect your own privately bought cable modem/box. Trying to brute-force read every other modem configuration on the network would set off alarms, so packet-sniffing would be the only way, along with MAC address reflashing.

    20. Re:Bad design by Anonymous Coward · · Score: 0

      Attempting to decrypt every packet (including those not intended for it) would be a huge performance drain.

      Plus it would have to have the key to decrypt every packet, which once dumped from the device would render it useless security.

    21. Re:Bad design by Anonymous Coward · · Score: 0

      http://www.wired.com/threatlevel/2009/11/derengel/

    22. Re:Bad design by Anonymous Coward · · Score: 0

      wrong link...
      http://www.wired.com/threatlevel/2009/11/derengel/

    23. Re:Bad design by sjames · · Score: 2

      That's fine though. Only the legitimate holder of a given MAC address would possess the correct encryption key. Another modem could transmit a packet with forged link level headers, but the payload wouldn't decrypt correctly and so wouldn't be forwarded.

    24. Re:Bad design by DaveV1.0 · · Score: 1

      So, you will be OK with being fined for incompetence if your identity is stolen, or your car stolen, or your home is burgled, right? After all, if you were technically competent then it would never have happened.

      --
      There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
    25. Re:Bad design by Anonymous Coward · · Score: 0

      It sounds like you not only changed your MAC, but you changed someone else as well, essentially swapping MACs with someone with higher level of service.

      http://teamxpc.com/forum/topic/106932-mac-sniffer/

    26. Re:Bad design by Anonymous Coward · · Score: 1

      FTFA:
      "The products included a packet sniffer, called Coax Thief, that intercepted Internet traffic so that the users could obtain the media access control addresses and configuration files of surrounding modems"
      Note the plural modems. Cable is not like the old phone company type plant. There is no dedicated wire back to the CO. The cable drops feed into a distribution line that feeds to a neighborhood node (basically a network router) that feeds to a trunk line where there may be other nodes. If the sniffer in modem "T" senses traffic from modem "U" it switches to another in the local network. This should happen in a fraction of a second. The cable network would not note two log-ins, nor would the user at Modem "U".

    27. Re:Bad design by flowwolf · · Score: 1

      You act as though looting a world of warcraft account is more serious than theft of a Real Life service. Nice try blizzard employee.

  6. Nothing is worth jail time by Anonymous Coward · · Score: 0

    Life moves really fast. If people are a vhs tape, jail time is like hitting fast forward through a huge chunk of it.

    Why would anybody give up that time? I just don't get it.

    So say this guy got $50 from each stolen internet setup. Times a few thousand, and that's maybe up to $100,000.00. Is 140 years in prison worth six figures? I don't think so. If you do the math, it only comes to $714.29 per year (I'm assuming he's not paying taxes on these figures, and lives through the entire 140 year sentence). That doesn't sound like a good return on investment to me.

    1. Re:Nothing is worth jail time by amiga3D · · Score: 2

      Generally the assumption is that they'll never be caught and thus never have to pay. If they knew for sure that it was going to cost many years out of their life I believe they might choose otherwise. It's some of that "It can't happen to me" kind of thinking that results in so many bad ends.

    2. Re:Nothing is worth jail time by Rockoon · · Score: 1

      If they knew for sure that it was going to cost many years out of their life I believe they might choose otherwise.

      Certainly, but it is not always irrational for a person to be sure that they will get caught yet still commit the crime in some cases.

      The people that calculate risk vs reward with regards to crimes are far worse for "society" than the people that just assume that they wont get caught. To this end it is precisely those that profit from crime in a business-like manner that should get the harshest sentences.

      Remember that the individual (or corporation!) is in control. They can choose to only commit crimes when they have a positive expectation (using their own metrics of value) over many trials. The conundrum is that it is neither good nor evil to do so. Its simply rational.

      --
      "His name was James Damore."
  7. Writing tools to configure cable modems by dutchwhizzman · · Score: 4, Interesting

    Writing tools to configure cable modems is what he got convicted for. He just wrote some tools so you could BOOTP your cable modem with a "valid" MAC and uncapped access speed. The cable companies knew they were putting the security in the dynamically configured end user device. They didn't fix the security flaw after it was publicly known. All the guy did was write an exploit for a publicly known bug, others (end users) were the ones that abused it.

    Oh well, at least now there is jurisprudence to put gun manufacturers into jail. After all, they make the tools that others use to commit crimes, which is what this guy is going to do hard time for.

    --
    I was promised a flying car. Where is my flying car?
    1. Re:Writing tools to configure cable modems by amiga3D · · Score: 4, Insightful

      It is slightly different in that he did provide customer support in cracking the network. Even so I wonder how this will do on appeal.

    2. Re:Writing tools to configure cable modems by snowgirl · · Score: 2

      Oh well, at least now there is jurisprudence to put gun manufacturers into jail. After all, they make the tools that others use to commit crimes, which is what this guy is going to do hard time for.

      Only if they're selling their weapons with full knowledge and intent that it will be used to commit crimes, but then this was the case prior to this guy anyways...

      --
      WARNING! This girl exceeds the MAXIMUM SAFE standards established by the FDA for BRATTINESS
    3. Re:Writing tools to configure cable modems by EnempE · · Score: 1

      There is a specific law that applies to the creation and distribution of tools for wiretapping. Unfortunately there isn't a similar law on the creation and distribution of tools for capping.

      Gives you an idea of the fine line that the makers of the pnyplug are walking.

    4. Re:Writing tools to configure cable modems by complete+loony · · Score: 2

      And if the gun manufacturer was taped giving advice on how to use the gun to rob a bank, knowing that the customer was going to follow their advice?

      --
      09F91102 no, 455FE104 nope, F190A1E8 uh-uh, 7A5F8A09 that's not it, C87294CE no. Ah! 452F6E403CDF10714E41DFAA257D313F.
    5. Re:Writing tools to configure cable modems by snowgirl · · Score: 4, Insightful

      "shooting targets" might be a nice hobby, but it's not very practical.

      The purpose of the item being sold does not have to be practical. Recurve bows and arrows have no "practical" use, and are only particularly useful for target practice. In fact, recurve bows are even less useful than hand guns for hunting.

      As well, handguns have another perfectly legal reason for purchase and ownership: protection, and defense.

      There is no way that gun manufacturers aren't aware of those statistics, yet they keep on allowing their products being sold in shops.

      Being aware the statistics about misuse of your item does not mean that you are criminally liable. The manufacturers of oxycodone are certainly aware of the high rate of abuse of their drug, shall we hold them responsible criminally for the abuse of their drug?

      With this jurisprudence, gun manufacturers are just as guilty. Either that, or someone got wrongly convicted here.

      This jurisprudence is not precedent setting. Gun manufacturers are already, and have long been subject to the conditions under which this individual was charged.

      There was sufficiently established evidence that this individual was selling a product that had no legal purpose. Guns have well recognized legal purposes. And weapons manufacturers are not concerned about this case... like I said, this case hinged on already well established legal precedents, and the gun manufacturer lawyers have long been aware of these details.

      But then, as usual, anything legal happens, and slashdot armchair lay lawyers are ready to jump out of the woodwork with specious legal theories, and pretend like shit means more than it actually does.

      --
      WARNING! This girl exceeds the MAXIMUM SAFE standards established by the FDA for BRATTINESS
  8. His software is still available by Cito · · Score: 2

    Tcniso uncapper to remove bandwidth restrictions http://www.cable-modem.net/dcforum/DCForumID5/205.html lot of interesting software still available by googling tcniso and on the torrents... stuff is really interesting how he wrote it

    1. Re:His software is still available by Anonymous Coward · · Score: 0

      http://www.haxorware.com/ is also still up seems they didnt do any takedowns... interesting

  9. Comment removed by account_deleted · · Score: 5, Insightful

    Comment removed based on user account deletion

  10. I'm ok with that so long as... by Sycraft-fu · · Score: 4, Insightful

    You are ok with a fine on you if your house gets broken in to and it is found you didn't do a good job securing it. After all, if we fining people for not doing security properly, then it needs to apply to physical security too, and to individuals too. So if you are like most people and have a cheap lock that is vulnerable to bumping and picking, single pane windows with no security screen or coating, no security locks on your windows, no alarm system, and so on then if you get broken in to, you get fined too.

    After all, it is something you can fix. You can get high security locks from someone like Medeco or Assa that can't be bumped, and key controlled, hard to pick etc. You can have your windows replaced with coated glass and screens that are very difficult to break through. You can buy friction security locks for your windows that you take on and off when you want to open them and so on.

    You probably don't choose to. Few people do. It costs more and is inconvenient. However it does make it much easier for someone to break in to your house.

    Now if you aren't ok with that, then I have to ask why it is ok to fine the ISP. Could have the had better security? Most certainly. However they chose not to and that doesn't make what was done to them right. Same shit with you. You can choose to have better security. Just because you don't, doesn't make it right for someone to break in.

    1. Re:I'm ok with that so long as... by rdebath · · Score: 1

      I dunno about the exact rules for high security locks and so forth, but insurance companies will refuse to pay out if you left the door unlocked.

      Plus if you've already been broken into they will not insure you unless you've increased the security since then.

      So yes, most people will "get fined" even if they don't know it yet.

    2. Re:I'm ok with that so long as... by Sycraft-fu · · Score: 1

      Same deal for the ISP's insurance, and yes they have insurance of many types.

      So why again should they be punished by the court system? Just because smart ass geeks think they could do better?

    3. Re:I'm ok with that so long as... by Anonymous Coward · · Score: 0

      Your example ignores that the cable companies control the security of large amounts of customer data. A better example might be the company you work for finds out that you left your work laptop sitting out on the car seat in a middle of a city. Then you'd likely be fined for ignoring your responsibility and showing considerable negligence. Leaving standard locks and windows on your house are a fine deterrent and if you keep most of your valuables hidden well I'd say you're very secure. Really if I'm breaking into houses a beefed up lock or windows isn't going to stop me any ways any more then the normal stuff I'd just bring the right tools and there goes your security.

    4. Re:I'm ok with that so long as... by Anonymous Coward · · Score: 0

      I think the idea here is that they're leaving their customers' data open to interception, which is a bit different.

    5. Re:I'm ok with that so long as... by Anonymous Coward · · Score: 0

      Very different case... A company has a responsibility to protect the services they provide to the consumers. In financial industries this responsibility is labeled Compliance, which includes other concerns as well, and failure to follow this results in fines and many bad for business repurcussions. I can live without any locks and it does not affect anyone but me. Having a ISP that is so riddled with holes decreases my security and diminishes the quality of my service, due to more users and possibly incriminating me for someone elses crimes using my MAC.

    6. Re:I'm ok with that so long as... by rdebath · · Score: 1

      who? Oh? but the ISP isn't on trial.

      Okay, I think the ISP should have some sort of penalty here, but, sorry, yes, the criminal courts aren't the right place. It may be reasonable for the ISP's paying customers to feel that they deserve a refund and perhaps they can sue for it in a civil court. I suppose that's how you see the ISP's insurance being likely to change.

    7. Re:I'm ok with that so long as... by flowwolf · · Score: 1

      This is an absurd analogy. The ISP is a service provider who sells access to the services provided on their cable wire. Part of that agreement is an expectation of data privacy. A common home owner isn't exactly selling the services of his house. The residents are responsible for their own security. You already knew this though. Why you are trying to mix up commercial and residential expectations is beyond me.

      It is okay for the ISP to be fined because they are a BUSINESS selling the SERVICES of their property to the PUBLIC.

    8. Re:I'm ok with that so long as... by flowwolf · · Score: 1

      A fine is not a criminal charge.

  11. What an idiot. by jtownatpunk.net · · Score: 1

    With all the effort and work that went into this thing, he could have built a legitimate business offering legal goods and services.

    1. Re:What an idiot. by Anonymous Coward · · Score: 0

      You say that like the Market Overlords would have allowed him to do it.

    2. Re:What an idiot. by SuricouRaven · · Score: 1

      Doing what? Competing with the millions of others who are just as skilled?

  12. What the hell is up with your justice system? by Anonymous Coward · · Score: 4, Insightful

    I mean -- 20 years for a simple financial fraud thing. In other countries, murder is less.

    No wonder you have a considerable fraction of your population in jail.

    Scary.

    1. Re:What the hell is up with your justice system? by Anonymous Coward · · Score: 0

      It is indeed telling that a guy who beat the dhit out of a stranger with a golf club, leaving them with disfigured and disabled would be very unlikely to see a longer sentence. Will thus be mitigated by the guy in this case being sent to wealthy white man federal prison, while "Happy Gilmour" goes to ass pounding penitentiary? Even still, it's a messed up way to run a judicial system.

    2. Re:What the hell is up with your justice system? by Zontar_Thing_From_Ve · · Score: 1

      I mean -- 20 years for a simple financial fraud thing. In other countries, murder is less.

      No wonder you have a considerable fraction of your population in jail.

      Scary.

      As an American, I am not suggesting that our system of justice is perfect. But... if you do something "really bad" (ie. murder, rape, etc.) there's a pretty good chance you'll be locked away for a long time here. Maybe you will never get out or you'll get the death penalty. In a lot of countries they look at criminals as being the real victims because they lose their freedom. There are reasons why people like those failed London bomber idiots from some years ago fled to Italy and begged for a trial in Italian courts. In Brazil you could commit genocide and kill over a million people. Care to guess what your maximum possible sentence would be? 29 years. One of the problems in the US is that we criminalized drug use and if we had a more reasonable approach to this issue it would reduce the population somewhat. But America is a violent place and we hold people accountable for their violence instead of acting like the pussy countries I named who feel like we all need to feel sorry for criminals as they are the ones who truly suffer when they kill people.

    3. Re:What the hell is up with your justice system? by tomhath · · Score: 1

      *up to* 20 years and a fine of *up to* $250,000

      He'll actually get much less. But tossing out numbers like that make for a better story.

    4. Re:What the hell is up with your justice system? by ScentCone · · Score: 1

      I mean -- 20 years for a simple financial fraud thing.

      It's not "a simple financial fraud thing." It's complicity in the theft of services. On a huge, deliberate scale. Akin to having a chef and his staff set aside space and supplies for you, and spend time to make you dinner, and then you slipping out the door without paying. Regularly. Thousands of times.

      Some punishments are about the deliberateness of the crime.

      In other countries, murder is less.

      Yes, many countries think that little of someone taking another person's life. Which is odd, really.

      --
      Don't disappoint your bird dog. Go to the range.
    5. Re:What the hell is up with your justice system? by Anonymous Coward · · Score: 0

      I mean -- 20 years for a simple financial fraud thing. In other countries, murder is less.

      No wonder you have a considerable fraction of your population in jail.

      Scary.

      As an American, I am not suggesting that our system of justice is perfect. But... if you do something "really bad" (ie. murder, rape, etc.) there's a pretty good chance you'll be locked away for a long time here. Maybe you will never get out or you'll get the death penalty. In a lot of countries they look at criminals as being the real victims because they lose their freedom. There are reasons why people like those failed London bomber idiots from some years ago fled to Italy and begged for a trial in Italian courts. In Brazil you could commit genocide and kill over a million people. Care to guess what your maximum possible sentence would be? 29 years. One of the problems in the US is that we criminalized drug use and if we had a more reasonable approach to this issue it would reduce the population somewhat. But America is a violent place and we hold people accountable for their violence instead of acting like the pussy countries I named who feel like we all need to feel sorry for criminals as they are the ones who truly suffer when they kill people.

      Prison should first and foremost be about protecting the public interest, not about getting revenge at any cost. Your system encourages recidivism, turns minor offenders into hardened criminals, and costs a whole hell of a lot of money to run, none of which is doing any good for the rest of society. I'd rather one of the "pussy" country's systems over that.

  13. Redmond, OR by Anonymous Coward · · Score: 0

    Geez, dude, just because your town's name is Redmond doesn't mean you have to conduct an IT business by illegal means, okay?

  14. Restitution by Anonymous Coward · · Score: 0

    I mean -- 20 years for a simple financial fraud thing. In other countries, murder is less.

    What's the point of spending money to incarcerate someone? That takes away the convict's productivity and costs money!

    This restitution thing is not even applicable to around 25% of the US prison population who are in the can for victimless "crimes".

  15. Not the secret service? by atari2600a · · Score: 1

    How come Kevin Mitnick gets helicopter fucking triangulation but this guy gets a slap on the wrist?

    1. Re:Not the secret service? by betterunixthanunix · · Score: 2

      Kevin Mitnick was far more dangerous than this guy! After all, Kevin Mitnick knew how to ask people to do things, in a way that actually convinced them to do it! Imagine the danger that such a person poses to the public -- a danger that is so severe that he needs to be incarcerated for five years without trial.

      Not to say that a cable modem hacker is not a dangerous criminal, who is constantly putting the general public at risk. I mean, this guy modified cable modems to break the rules set by cable companies! Can you imagine a world where that sort of person is allowed to be free, to be near your children?!

      In all seriousness, this guy is facing 20 years for each of 7 counts, which is more prison time than some convicted murderers face. What does that say about our society? That we value cable company profits more than human life? That is the scary thing about this case: the severe sentence that might be imposed.

      --
      Palm trees and 8
    2. Re:Not the secret service? by Antique+Geekmeister · · Score: 2

      No, Kevin engaged in active destruction, both deliberate and accidental, of the systems he probed. You seem to think he just engaged in social manipulation: while effective, it's hardly the only tool he used. And the destruction was as much from his _incompetence_ than from his expertise. By re-arranging and casually ruining core security systems he made production systems crash repeatedly, lose data and code, and cost developers, customers, and companies many millions in lost work. He also _kept_ doing it, even when he turned informant against other crackers and cut deals with the FBI to avoid prosecution.

      Mitnick was, indeed, _much_ more dangerous than this guy. He was also too insistent to _stop_ after being caught repeatedly.

    3. Re:Not the secret service? by betterunixthanunix · · Score: 1

      [citation needed]

      --
      Palm trees and 8
  16. 1970s vs 2012 by Anonymous Coward · · Score: 0

    You make a Blue box in the 70s, you later become billionaires.

    You steal internet in the 2012, you get charged.

    My, how the times have changed!

  17. not necessarily by Weezul · · Score: 5, Insightful

    We should never outlaw creating tools like lockpicks, knives, cable modem sniffers, or CPUs able to run unsigned code. We should only outlaw specific usages of said tool.

    A priori, there is nothing wrong with explaining how such tools work either, but aiding customers with the specifics of their particular cable provider could eventually cross the line into conspiracy to commit wire fraud, just like helping a robber a house's door would become conspiracy to commit robbery.

    I therefore hope they convicted him on specific instances of technical support he provided which unambiguously made him a conspirator in specific customer's wire fraud. And I hope he wins back his freedom on appeal if they convicted him on any other grounds.

    In fact, we should discuss the physical plans for equipment and software which he sold here because I'm sure we're curious what exactly he sold. Anyone got links to DIY kits? We should add this stuff to thepiratebay.se's physibles section : http://thepiratebay.se/blog/203

    --
    The Christian religion has been and still is the principal enemy of moral progress in the world. -- Bertrand Russell
    1. Re:not necessarily by shellster_dude · · Score: 1

      Unfortunately this case isn't that cut and dried.

      I'd like to know if his conviction is based on the tools he created or the fact that he specifically marketed, advocated, and provided support for stealing cable internet. The later would make sense.

      If he was just providing the tools, I don't know if they would have had a case.

    2. Re:not necessarily by Anonymous Coward · · Score: 0

      He charged money for the services, he's done for.

      Whether the magnitude of the punishment is reasonable is an issue, but whether he is guilty and stupid is not.

    3. Re:not necessarily by Weezul · · Score: 1

      Advocacy and marketing aren't usually criminal unless the crime is particularly serious, like murdering a specific individual. In particular, anti-cable advocacy might be protected political speech, i.e. "you shouldn't pay your cable modem company because they're evil."

      In any case, advocacy and marketing should never fall under wire fraud because you aren't actually defrauding anybody with whom you communicate directly. In essence, any laws restricting such public speech should be explicit rather than derived from non-speech laws. Ergo, I wish him luck on appeal if advocacy entered into the judgement at all.

      I suspect his crime was offering technical support that was to specific to particular customer's circumstances with particular cable modem companies, only detailed support should really cross that line into conspiracy to commit wire fraud.

      A locksmith who sells you lockpicks has not crossed the line into conspiracy, even if he teaches you their use on a specific lock type in his office, even if you look like a thief, even if he's feels locks are evil and everybody should pick them. He only crosses that line when (a) you tell what your trying to do, or maybe (b) he helps you enter a building without doing any due diligence.

      --
      The Christian religion has been and still is the principal enemy of moral progress in the world. -- Bertrand Russell
  18. sounds overly hefty by Anonymous Coward · · Score: 0

    $1,750,000, 140 years... that's harsh unless he was actually hurting someone.
    i agree with a serious fine, he shouldn't profit from selling criminals tools for crime. but that jail term is in my opinion over the top. 15 years total with parole set at 10 and no computer privileges is what i'd say is fair. i mean you have to weigh this against 25 years for killing someone

  19. And what about the people on the end? by Sycraft-fu · · Score: 5, Insightful

    Those that walked in to various loans, eyes wide shut? Or those who took loans they couldn't afford because they figured they'd just flip the house and make money?

    The idea that individuals were completely blameless in the financial crisis is silly. Sure there were some people who were suckered in. They were told one thing and given another. For them I have some sympathy (though really, there's a standard loan terms sheet that comes with every loan, it isn't hard to read). However there were plenty that got greedy and just ignored all good sense.

    An example would be my cousin, call him B. He owned a house that he'd had for quite some time, around 8-10 years on a 30 year fixed mortgage he could afford. then things went crazy and he decided he's take all his equity out in a refinance so that he could buy a bunch of new toys like a truck, take an expensive vacation, shit like that. His loan amount went way up because he was taking out more than the original loan had been for since his house was allegedly worth more. He couldn't afford a fixed loan at that rate so he got a cut rate ARM. Then prices crashed, the rate went up, and he lost his house. Not only should have he known better, my dad (among others) told him this was a stupid idea.

    Then there's me, I have a house that I had since before things went crazy, on a 30 year fixed mortgage that I can afford. It supposedly doubled in value during the craziness. I could have taken a ton of money out. I didn't, because I knew that was a bad idea. I still have my house, and I can still afford my loan.

    We were both in a similar situation, he chose one option, I chose another. Nobody held a gun to anyone's head and forced the issue.

    The crisis was caused by failures and greed at so many levels. The government, the bond rating companies, the investors, the banks, the loan officers, and yes the individuals. You can't just act like a certain group were the evil ones who caused everything. There is a lot of blame to go around.

    Now if you just want to start locking everyone up, I guess that's a valid position, but you might want to ask how well that's work in, say, the drug war.

    1. Re:And what about the people on the end? by Anonymous Coward · · Score: 0, Troll

      (though really, there's a standard loan terms sheet that comes with every loan, it isn't hard to read)

      Thats easy to say, but in fact is not true.. the loan 'agreement' will be written by lawyers with the express intention of making it difficult to read by non-lawyers, and the company who wishes to fuck you over will pay somebody more to make it especially difficult because that way they can extract the maximum profit from the 'deal'.

    2. Re:And what about the people on the end? by ByOhTek · · Score: 5, Informative

      The loan reps aren't exactly blameless either.

      When I bought my places ($100k-$150k range), the first loan place I went to, the guy I talked to tried to convince me to get a more expensive house (you are approved for up to $350k! You should look at something nicer!)

      I would *not* be able to pay the mortgage on such a house, let alone cover food and utilities. He didn't care, they were just going to sell the loan to some other company, they would make their money, he'd get his commission.

      Glad I went with another company. That was obnoxious.

      --
      Self proclaimed typo king, and inventor of the bear destroying coffee table (patent not pending).
    3. Re:And what about the people on the end? by Ihmhi · · Score: 2

      The idea that individuals were completely blameless in the financial crisis is silly.

      IMO it's not so much that as the fact that the banks made really irresponsible loans.

      Generally I'd say it's not only stupid but flat-out unethical for banks to give out loans to people they know can't repay them. They're just waiting for the other shoe to drop. When you have a few thousand of these loans floating around, well... look what happens.

    4. Re:And what about the people on the end? by ByOhTek · · Score: 4, Insightful

      Personal responsibility is important (it certainly kept me out of a mess in this regard), but when people from every side are trying to trick you from every side, you eventually slip. These people know your financial situation, - they see your records, and in most cases, are probably better trained to understand it than you. Yet they try to put you in a situation that is above your head, and screws whoever they sell the loan to, for their own profit. Yeah, they should be held responsible as well, not instead of.

      It's a bit beyond the magnitude of a super-sized meal, a $20 stack of disks, or a V8 car...

      --
      Self proclaimed typo king, and inventor of the bear destroying coffee table (patent not pending).
    5. Re:And what about the people on the end? by Xacid · · Score: 4, Interesting

      Conversely, the fella I worked with was very practical about the topic. Basically I can afford up to X but I'd be eating only ramen and wiping with newspaper. For every increment lower that I could get to would increase my quality of life so either make more money or find something significantly cheaper than X. And hell, I was 23 at the time.

      Oh, and the bank - Bank of America oddly enough. Incidentally that guy doesn't work there anymore. He moved back to Sweden. Probably saw the writing on the wall, heh.

    6. Re:And what about the people on the end? by fearofcarpet · · Score: 5, Informative

      He didn't care, they were just going to sell the loan to some other company, they would make their money, he'd get his commission.

      You nicely summarized the root cause of the collapse of housing markets across the US. The banks thought that, by chopping up mortgages and combining them with other securities, the resulting CDOs had less risk because it was spread around and since the cost of each tranche was proportional to the risk, and therefore the yield, everyone understood the risks involved. Of course that created a profit motive to create as many mortgages as possible--and the riskier the better because the risk magically disappeared once sliced up and repackaged. Opportunists climbed into cheap suits and starting fly-by-night mortgage brokerages, assembling teams of sleazy salespeople to push bad loans. By the time the mortgages went sour, everyone involved in the transaction had taken their profit but, thanks to deregulated banking, those profits were basically paid out of the savings accounts of the very same people getting the bad mortgages. And since all the banks merged into giant mega-banks that snatched up bad debt with your money, they were "too big to fail." But don't worry, they bought "insurance" against it in the form of credit default swaps so that the government wouldn't have to bail them out. Except that the "insurance companies" were also banks and didn't have nearly enough cash to pay out, so the government bailed them out, including the third parties that were buying credit default swaps on CDOs that they didn't even own.

      So everyone made money--from the mortgage bundlers all the way up to the CEOs of the giant banks--no matter if they succeeded, failed, or wrecked the global economy in the process. And to get the economy going again, the Fed started loaning out money at %0.01 interest so the banks could turn around and lend it back to Treasury at 3% (and pay back the bailout after dumping their bad assets); it's socialism for banks, and "free markets" and personal responsibility for the rest of us. Now we have a mountain of government debt and a generation of college-educated young people entering a stagnated economy with student loans accrued during the boom-times. I guess that is what happens when you create a system in which you can flip someone's livelihood for a profit without taking on any risk or responsibility.

      ...but this guy goes to jail for 20 years for scamming cable companies.

      --
      Actually, I wrote my thesis on life experience.
    7. Re:And what about the people on the end? by Stewie241 · · Score: 1

      Would the same thing apply to the person in charge of financing at the car dealership?

    8. Re:And what about the people on the end? by roman_mir · · Score: 3, Interesting

      You nicely summarized the root cause of the collapse of housing markets across the US

      - that is NOT the root cause, that was an expected symptom based on the real root cause, which was government easy credit to the banks (they did push it down all the way to 1% for Clinton and 0% for Bush and it's there now too) and all of the mandates, that had government and quasi government agencies 'insuring' variable rate mortgages, liar loans, all of that stuff. At the time of Clinton and Bush it was mostly F&F, now it's mostly FHA, which 'insures' over 1Trillion with only 5Billion assets.

      Of-course all of this 'insurance', just like all other 'insurance' that government provides is not insurance. It's all debt and counterfeiting (hail the Fed).

      People saw this coming miles away.

    9. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      The banks thought that, by chopping up mortgages and combining them with other securities, the resulting CDOs had less risk because it was spread around and since the cost of each tranche was proportional to the risk, and therefore the yield, everyone understood the risks involved.

      Cat shit mixed with horse shit mixed with dog shit is still shit. Sub-prime mortgages, regardless of underwriter, are shit.

    10. Re:And what about the people on the end? by JoeMerchant · · Score: 1

      ...but this guy goes to jail for 20 years for scamming cable companies.

      He's an anomaly. The rest of 'em were just sheep in the herd - fat, stupid, evil sheep that deserve to be butchered for their avarice and greed, but there are just too many of them to do that, the rest of us would drown in their blood.

    11. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      The thing is, your cousin B made a stupid decision, and he unfortunately got burned. It was predictable (truck, vacations, all funded on a equity in a house? Give me a break!), but everyone makes bad decisions, and he's going to have to live with the financial repercussions for many years to come. Meanwhile, the guys at the top that cashed in on the mass stupidity got their fat bonuses, ran the scheme until it crashed the financial system, and profited enormously the whole time (shorting the market after causing the crash of the market: brilliant), probably without risking a dime of their own money. Who pays? Your cousin B and the rest of us do. That's why the fat cats at the top that enabled these fraudulent schemes should be in jail, because they defrauded all of us, not only the people foolish enough to buy into their pyramid scams.

      It's fine for you and me and other financially prudent people to sit here in our financially boring situations with our jobs, houses and lives largely intact, and think "Whew. Thank goodness I was sensible and made it through that okay. Everything is going to be fine."

      No.

      The guys at the top were gambling in a high-stakes game and didn't care what the result was. They should pay as much as the investors when they lose everything. I want the financial managers so strung up with regulations that they feel at least as nervous as your cousin B when he realized his own house was on the line. As in, those brokers are thinking "Wait, I can't do that. I'll lose my job and my house if this goes south." I want those sleezeballs at the top to BURN like the economy did. If we can't jail them for what they did already, then I want them to have new heavy regulatory weights attached to their financial balls, so that if they ever !@#^!^ around with the financial system like that again, they're the ones that are going to pay the full price when the weight goes over a cliff.

    12. Re:And what about the people on the end? by brillow · · Score: 1

      When a financial bet fails, do you blame the guy who gambled your money stupidly or the guy who duped them?

      The banks gambled and lost, boo hoo for them.

      Quit acting like they are such victims.

    13. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      The idea that individuals were completely blameless in the financial crisis is silly.

      YES, IT IS. You need some Patsy or the Game doesn't work! Every grifter knows that.

      To have institutionalized this kind of behavior, with apparently good people defending the System.

      Yep, America id quite done for.

    14. Re:And what about the people on the end? by Jah-Wren+Ryel · · Score: 1

      Oh, and the bank - Bank of America oddly enough.

      Not too odd. BoA only became massively culpable through their after-the-meltdown purchase of Countrywide. Countrywide was pretty much rotten to the core and BoA was probably criminally negligent in purchasing them, but otherwise they were a much smaller player in the mortgage fraud.

      --
      When information is power, privacy is freedom.
    15. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      The blame ultimately goes to the banks and the lazy underwriting standard that persisted until the crash. There have always been uncreditworthy people trying to get loans, this is not a new phenomenon. Once upon a time banks took responsibility for the loans they gave out on their balance sheet. Eventually some smartass decided it would be good to package up these loans and sell them to investors essentially leaving banks with no skin in the game. Ultimately it was the banks responsibility to safeguard this money for its investors. Unfortunately due to the incentive structure of the loan originating process the mortgage banking industry's risks did not align with their fiduciary responsibilities. Ethical lines were blurred and now we know what happens in the end.

    16. Re:And what about the people on the end? by fearofcarpet · · Score: 1

      I don't disagree; but I think it is fair to say that without the complete and utter lack of accountability or perceived risk on the part of investors, things could/would not have gotten so far out of hand. I do, however, think that you are giving the government too much credit (no pun intended). The Fed controls interest rates, not Treasury, and the Fed is designed to act independently of the federal government. In fact, if it weren't for Ron Paul and Bernie Sanders we wouldn't even know about the ~$14 trillion the Fed loaned to the banks at ~0%, the numbers behind "quantitative easing," or nonsense like this. One could even argue that the Fed lowered interest rates at the behest of the banks to juice the mortgage market after Clinton (and Rubin) eliminated the last remaining vestiges of post-depression regulations.

      --
      Actually, I wrote my thesis on life experience.
    17. Re:And what about the people on the end? by Krneki · · Score: 1

      Yap, many to blame, but not all of them lost the money.

      Your cousin B. is now without home, but the banks still have the money.

      The new capitalism if awesome, keep the profit and socialize the loses.

      --
      Love many, trust a few, do harm to none.
    18. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      If they had simply sliced the mortgage risk into CDO tranches it might have worked.

      However, they took the unsellable high risk tranches from the mortgage CDOs and packaged them into new CDOs. They then sold the new CDOs as if the top tranches were genuinely low risk assets (and the credit rating agencies ranked them as such), but because these CDOs were entirely composed of worthless mortgages, they were entirely high risk.

      Plus, as you say, the insurance companies sold far more credit default swaps than there were actually CDOs (which is odd; you can't normally insure an asset you don't own) so they had no hope of meeting their liabilities.

    19. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      Then there's me, I have a house that I had since before things went crazy, on a 30 year fixed mortgage that I can afford. It supposedly doubled in value during the craziness. I could have taken a ton of money out. I didn't, because I knew that was a bad idea. I still have my house, and I can still afford my loan.

      If you were so high, mighty, and all knowing you would have sold your house for the profit, rented for about 3 years, then went back and bought your house again for the post-crash value and been able to pay cash and have NO mortgage payment today. But you didn't, did you? So, you were either so pure of heart that you just couldn't bear to make a profit on market volatility, OR you didn't have the confidence of hindsight to come to such a direct conclusion at that time and so you sat on your ass and waited it out... Sorry if I have a hard time finding your position so admirable. You had the good sense to stay put in a volatile situation but that also makes you a low-risk chump. Your cousin, B, will probably start a high risk business and be sitting on millions in cash by the time he is 50. Will you be complaining about his poor decision making then?

    20. Re:And what about the people on the end? by jedidiah · · Score: 3, Insightful

      In the old days, there was an obvious means to discourage a loan officer from loaning you money that you could not pay back. If you failed to repay, then he or at least his company was on the hook. There was none of this shuffling off bad debt onto other people.

      Although even that practice didn't completely trash our economy.

      No. It took rampant pervasive corruption of ratings agencies to do that.

      The current approach to doing business is simply not sustainable regardless of how you view the situation in moral or ethical terms.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    21. Re:And what about the people on the end? by jedidiah · · Score: 1

      We even have a term for that sort of thing. We call it predatory lending.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    22. Re:And what about the people on the end? by jedidiah · · Score: 1

      > If you were so high, mighty, and all knowing you would have sold your house for the profit

      Or you simply would have avoided the insanity and been unable to gain from it.

      It's still speculation and ultimately just gambling. It's most unwise to engage in unless you are at the stage where you can treat money like a toy.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    23. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      They also didn't count on there being any correlation between the risks. They assumed that if you have parts of 50 loans, you're much better off than if you have one loan worth the same as those 50 parts, because those 50 loans aren't going to all fail at once. Until the housing bubble collapses and the economy goes south and we have mass mortgage defaults.

    24. Re:And what about the people on the end? by datavirtue · · Score: 1

      They wrongly felt justified because the government mandated home ownership for everyone. So, like a spoiled kid, they took the attitude that if the government was going to mandate they provide loans to everyone that they were going to make money off of it. In that climate I'm sure they sensed a government bail-out and they know bail-outs are standard practice anyway. So, the government was stupid/incompetent, and the banks were unethical. In reality it wasn't that simple, there was a perfect storm of deregulation and a slackening moral compass that came into play.

      --
      I object to power without constructive purpose. --Spock
    25. Re:And what about the people on the end? by datavirtue · · Score: 1

      I'm seven years into my liar loan you insensitive clod. People need liar loans, working class people have been using liar loans for many years now. My grandfather, who worked at GE, had his supervisor inflate his salary reference in order to buy a home over fifty years ago. I can imagine his was not the only case. I never understood the problem with no-doc loans, I think they should all be no-doc.

      --
      I object to power without constructive purpose. --Spock
    26. Re:And what about the people on the end? by LordKronos · · Score: 1

      Sorry, but you are wrong. Yes, there is lots of legalese in the contract, but mostly that stuff covers just the corner cases. The only information that more than 99% of people need to know is contained in the Truth-in-Lending Disclosure Statement, which is a federally required and (mostly) standardized form. This form indicates:
      the amount you are borrowing
      how much you will pay in interest over the life of the loan
      what interest rate
      if the rate can adjust and if so by how much and how often
      your initial monthly payment, and if it's an adjustable rate also what the maximum monthly payment will be after adjustment
      if you have any balloon payment due at the end of the loan term
      your fees for establishing the mortgage (which are detailed separately in the HUD-1 form, also federally required and standardized)
      what the fee will be for late payments
      if there is a prepayment penalty

      This information is as much as most people need to know to make an appropriate decision as to whether or not they should take the mortgage. I'm certainly not saying all of the legalese is unimportant, but if something in the mortgage is going to be a deal breaker, in almost all cases it's going to be something in the TIL or accompanying HUD-1 forms.

    27. Re:And what about the people on the end? by datavirtue · · Score: 1

      The dynamic you so succinctly describe is not capitalism--it is something else. When the stake-holders cannot experience failure you automatically have a terribly inefficient process in the works. Capitalism will always yield the most efficient distribution of risk. I think what we witnessed was criminal behavior. The people who took loans were not rewarded in balance with those giving the loans, that is predatory lending and is immoral and illegal. Society rejected this behavior thousands of years ago and we are still dealing with it? [The Asgard are shaking their heads.]

      --
      I object to power without constructive purpose. --Spock
    28. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      While this is what happened, the root cause is the Federal Reserve Bank. The only way this 'mania' could happen is with the Fed/Treasury/Fractional Reserve Banking increasing the fiat money supply. With a hard currency like Gold this couldn't have happened. Without an ever increasing money supply, for the price of something to go up, the price of something else has to go down. Money would have ran out and interest rates would have no longer made the shenanigans profitable. The boom and bust cycle is a direct result of central banking. Inflation of the money supply is theft of purchasing power also and the cause of the shrinking middle class.

    29. Re:And what about the people on the end? by KingMotley · · Score: 1

      The concept of loans is not difficult. All mortgages are REQUIRED BY LAW to have a truth-in-lending sheet given to an applicant, and in my state, it's required that it be given 24 hours before the actual agreement can be signed. Even after that, you have 5 days (I've heard 7, but I think it's 5, maybe 5 business days?) to back out of it. I've read every page of every contract I've ever signed, usually twice.

    30. Re:And what about the people on the end? by Stewie241 · · Score: 1

      Is that what is happening? Wikipedia says that term means "imposing unfair and abusive loan terms on borrowers." But suppose the terms of the loan are not at all abusive - say, a typical car loan, with a financing rate of say, 2% per year, which most would consider more than fair.

      Is it unethical to loan somebody money to buy a car at a fair and equitable rate if you know the person can't afford the loan?

    31. Re:And what about the people on the end? by andyteleco · · Score: 3, Informative

      I remember that when I lived in France, I wanted to get a loan for a car and the guy in the shop asked me how much money I made and how much rent I paid per month, and if I had any other fix expenses.

      He later told me that the French law forbids banks to give you any loan which will make you get into a situation of paying more than 33% of your salary for loans+rent. So if you earn 3000â a month and pay 500â rent you will only get a loan which has a maximum repayment of 500â per month.

      This was back in 2005. Now we can understand why France hasn't suffered the same real estate crisis as the greatest part of the rest of the world.

    32. Re:And what about the people on the end? by Sycraft-fu · · Score: 1

      No the bank took it in the shorts on his deal. House sold at auction for a fraction of the loan price, and it wasn't a FHA loan so there wasn't government insurance on it. They ate the loss. The banks and insurance companies lost quite a bit of money during the whole crisis. Did you not notice their balance sheets bleeding red ink? Several large companies (like, say, Bear Sterns) going under? The Federal National Mortgage Association getting nationalized by the government?

      It was not some huge win for the banks.

    33. Re:And what about the people on the end? by whereissue · · Score: 1

      "Is it unethical to loan somebody money to buy a car at a fair and equitable rate if you know the person can't afford the loan?"

      Unethical? No.
      Stupid? Incredibly.

      --
      where is sue? sue is idle.
    34. Re:And what about the people on the end? by sjames · · Score: 1

      What about those who raised any of the concerns you had mentioned but were convinced by dishonest loan officers that it would all be fine, that they could easily refinance before the time bomb went off and that this is all perfectly standard financial practice

      I have no doubt some people who got in a bind were being very foolish, but I suspect most are guilty of nothing more than imagining a bank might have some shred of ethics or integrity.

      As for jail and such, I'll bet if we picked out the top ten offenders and sent them away (and not to Club Fed) AND wiped out their personal assets to pay for the mess they've made, we'd see a lot of the financial sector at least acting as if it had ethics for a while.

    35. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      There's a lot to be said for environmental factors on this. Remember the 0% financing that the Big Three dangled in front of everyone? W up there on the podium encouraging Americans to continue spending like its 1997?

      I've seen people go belly-up because they toed B's way of thinking but with the added spin that they 'are propping up the economy.' Cognitive Dissonance, indeed.

      BTW, I work at a casino!

    36. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      When I bought my places ($100k-$150k range), the first loan place I went to, the guy I talked to tried to convince me to get a more expensive house (you are approved for up to $350k! You should look at something nicer!)

      I would *not* be able to pay the mortgage on such a house, let alone cover food and utilities.

      Huh? Doesn't everyone do that? Buy This New Car! Get This New Phone! You Need More NAME_OF_SHINY_OBJECT!

      Have you ever seen an ad that said "What you have is good enough, you don't need to buy this new SHINY_OBJECT"?

      The loan officer telling you that you can buy a bigger house is just doing what everyone else is doing, it's up to you to say "I can't afford that new house/car/truck/phone/etc"

      Mortgage crisis is our fault. I know no one wants to hear that but it's true. We bought more than we could pay for.

    37. Re:And what about the people on the end? by iamhassi · · Score: 1

      I remember that when I lived in France, I wanted to get a loan for a car and the guy in the shop asked me how much money I made and how much rent I paid per month, and if I had any other fix expenses. He later told me that the French law forbids banks to give you any loan which will make you get into a situation of paying more than 33% of your salary for loans+rent. So if you earn 3000â a month and pay 500â rent you will only get a loan which has a maximum repayment of 500â per month.

      It's the exact same in the US, there's still a debt-to-income ratio of 50%, difference is people were lying on their mortgage paperwork saying they were making far more than they were and banks were not checking on it. Sometimes the loan officer would tell them to put down higher than they were really making, but the buyers still put down a number they knew wasn't true.

      I was a loan officer until 2006, that's how I know. After the market fell I went back to IT, but it was fun while it lasted, made a lot of money fast and I was my own boss, now I'm back 9 to 5 in a cubical on a timeframe :(

      --
      my karma will be here long after I'm gone
    38. Re:And what about the people on the end? by ByOhTek · · Score: 1

      Yeah, but he had more than enough info to know I wouldn't be able to pay for it, and in the end, he'd be screwing over both myself, and the group the mortgage got sold to.

      The difference is, most of those groups are shot-gun advertising, a lot of people CAN afford what they are selling. Also, if you screw up on many of those, compared to a house, it is an annoyance, not a catastrophe.

      --
      Self proclaimed typo king, and inventor of the bear destroying coffee table (patent not pending).
    39. Re:And what about the people on the end? by Darinbob · · Score: 1

      My feeling is that most were suckered in to loans they couldn't afford. There was a lot of hard sell, there was this belief that the market could never go down, and you were called stupid if you doubted the popular wisdom. This didn't just come from the banks, but from coworkers and friends and family.

      And there's always a risk with buying a house. Typically they are more expensive than renting initially, the payoff is that over time rents will go up but the mortgage won't. If you lose a job then you're in big trouble, or if you're relocated, an unexpected medical expensive arises, etc. It's a scary thing buying a house.

      Next the real estate world is confusing. You rely on the advice of your agent and the banks. When they tell you that you can afford it then you tend to believe them. It comes down to how much a month you're willing to pay and they do the math and tell you what you can afford. So you're told that mortgage rates are at an all time low (good) and that the market is going up (good) and that historically markets continue to go up, and then you sign the dotted line. It is the responsibility of the bank to ensure that the customer can pay, after all it's the bank's money that can be lost.

      And when it's all said and done, it's just a contract. People act like walking away from a bad loan is some sort of moral failure or a sin. It is not, it is just a contract. Both sides are prefect free to break the contract as long as they put up with the penalties that are in the contract. So the banks had full knowledge that if they sold something that the client could not afford that they'd be left holding the bag. Which is why so many banks just sold those loans to someone else as fast as they could (never trust a bank that sells your mortgage).

    40. Re:And what about the people on the end? by Darinbob · · Score: 1

      My loan officer did things right. Was never pressured to buy something else. But I already had the house picked out first. And the loan was never sold to another bank, the same person was there when I refinanced, everything was on the up and up. I also resisted all my coworkers who told me to use a broker. However this was Washington Mutual which went under, kind of sad since they had done everything right by me.

    41. Re:And what about the people on the end? by rastoboy29 · · Score: 1

      Yeah, but not all the folks involved got bailouts, in spite of the responsibility they should have held.

      And still got bonuses.

      That's the difference, to me.

    42. Re:And what about the people on the end? by AK+Marc · · Score: 1

      The crisis was caused by the derivatives. The foreclosure rate was well below historical norms when the crisis started. But the rich white bankers blamed the blacks, and the racist conservatives jumped on the bandwagon and ran with it. The issue was the fraudulent derivatives. The foreclosure rate didn't have anything to do with it, other than the first one causing the house of fraudulent cards to collapse.

    43. Re:And what about the people on the end? by AK+Marc · · Score: 1

      A good number of the acquisitions were encouraged by the feds to prevent the crisis. BofA and Wells Fargo both were mostly clean for the crisis, and bought some others who, if they entered bankruptcy, would have embarrassed many people or governments, so encouragement was given to make the problem go away.

    44. Re:And what about the people on the end? by ByOhTek · · Score: 1

      After ditching the first guy, I did use a broker, and I didn't get any more pressure. I don't like the company I am with. Their political campaign contributions in Ohio have really helped hurt the state, but that's another matter... didn't know it at the time.

      Anyway, I already had the house picked out too (by the time I talked to the first loan officer). Didn't stop him.

      --
      Self proclaimed typo king, and inventor of the bear destroying coffee table (patent not pending).
    45. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      BoA is not as innocent as you'd like to believe. They underwrote AIG's mess before the shit hit the fan and were culpable in letting Lehman Brothers fail by siding with Goldman Sachs in the determinations over a loan to LB that would have kept the company alive, BoA paid the price now in their stock value, GS made out like bandits by shortselling everyone. This directly led into the crash which could have been completely avoided had LB been propped up and given time to offload some debt.

      TBH, when BoA got into trouble, I was hoping the SEC and DoJ would have forced them to split up into smaller companies. Goldman Sachs...still can't believe that den of thieves hasn't been burned to the ground and all of their current and former execs thrown into prison for life. They had the largest finger in the pie when it came to causing this entire mess and profiteering on the misery of millions.

    46. Re:And what about the people on the end? by Krneki · · Score: 1

      Didn't know, thanks for the info.

      --
      Love many, trust a few, do harm to none.
    47. Re:And what about the people on the end? by Anonymous Coward · · Score: 0

      does it make any difference? generic pharmacy

  20. WTF? by Nexion · · Score: 1

    Shouldn't Oregon man be charged in federal court in Oregon instead of Massachusetts? WTF happened to our country? Federal failure.

    1. Re:WTF? by Nexion · · Score: 1

      Damn, where are the trolls to tell me you have to answer your charges in whatever state from which they originate? Eh, I kninda think you should have to go to the state where your issue originated from instead of cherry picking where you want to challenge your nemesis. Sigh, not only my country is depressing me, but the trolls are failing. :(

  21. Scary Dictatorship by Anonymous Coward · · Score: 0

    This kind of news i would expect from a cracy scary dictatorship, so i guess the whole "freedom" thing is like when china says its communist...

    20 years in prison is more then many murderers and rapists get.

    something is wrong with that country. Seriously wrong. But well nobody ever does anything to change it, so i guess you deserve it.

  22. Comment removed by account_deleted · · Score: 1

    Comment removed based on user account deletion

  23. site by Anonymous Coward · · Score: 0

    http://cube-ddl.com

  24. well, by Anonymous Coward · · Score: 0

    i simply leave my router open - i have so much bandwidth, my neighbors are welcome to it

  25. oh I don't know by Shivetya · · Score: 1

    I am quite willing to see Timothy Geitner go to jail for his allowing all the shenanigans to go on in the banking industry when he had direct oversight http://www.cato-at-liberty.org/tim-geithners-amnesia/ (use it while you can, the Koch brothers are trying to take it over)

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
  26. Tubes by Mike+Mentalist · · Score: 1

    Where did he keep all those tubes?

    --
    I put my books on Amazon, Smashwords, Demonoid, ISOHunt and Pirate Bay. Search for 'Michael Cargill'
  27. Is it ok if I copy your PERSONAL data, then? by msobkow · · Score: 1

    Is it all right with you if I get you to install a trojan or something and make a copy of your PERSONAL data, then?

    According to you, no harm is done because it's only a copy, so you should be ok with that.

    Also based on your theory, it's ok for me or an advertising company to collect whatever data they want, because they're actually just creating a COPY of your surfing requests. So there's no harm, no foul, right?

    I will never understand freetards.

    --
    I do not fail; I succeed at finding out what does not work.
    1. Re:Is it ok if I copy your PERSONAL data, then? by heathen_01 · · Score: 1

      Is it all right with you if I get you to install a trojan or something and make a copy of your PERSONAL data, then?

      According to you, no harm is done because it's only a copy, so you should be ok with that.

      The problem with that is not the copy, but using the information in the copy to empty my bank account.

      I will never understand freetards.

      Ignorance can be resolved. If that is not your specific problem, then you have my sympathy.

    2. Re:Is it ok if I copy your PERSONAL data, then? by GmExtremacy · · Score: 1

      Is it all right with you if I get you to install a trojan or something and make a copy of your PERSONAL data, then?

      Assuming you can get me to install the trojan, I'd say no harm would be done. I'd prefer it didn't happen since I value privacy, but I'd say no harm would be done.

      Unless you then used the information to actually steal from me. That's a very real possibility (Why else would someone wan that information?). That's why people aren't willing to give up such information, and that's why it's a false analogy. Copying a movie, for instance, does not give someone the ability to clear out your (or the artist's) bank account (which contains money that you already have).

      If all we had to be afraid of was people copying the information and then doing nothing that would affect us with it (as is the case with copyright infringement), then there wouldn't be too much to fear (outside of a loss of privacy).

    3. Re:Is it ok if I copy your PERSONAL data, then? by msobkow · · Score: 1

      Buddy, I've been around since the BBS days in the 80s.

      I download media for previewing/prelistening all the time, as allowed to by Canadian law.

      I've spent time cracking system security, and working with the security implementors to close the holes I've found.

      I've studied, argued, and read about just about every tack and take on copyright and intellectual property there is in those years.

      But NO ONE has ever convinced me that anyone has the RIGHT to make a copy of media to keep, share, or sell.

      Maybe that's because I'm a programmer. Code is data. I get paid for code. So when you advocate that it's "just a copy", you take away my employers' revenue streams, you put them out of business, and you thereby take away MY food. I have NEVER advocated the "it's just data" viewpoint.

      A gun is "just steel and plastic." But I dare you to come up against me with a crowbar if I've crafted a 9mm and tell me they're the same thing.

      --
      I do not fail; I succeed at finding out what does not work.
  28. What an idiotic punishment by betterunixthanunix · · Score: 1

    With all the talent this guy has, let's throw him in prison for 20 years (the sentence he faces for each count). Oh right, he is a super-dangerous hacker who defeated cable modem security (oh what a terrible crime!), so clearly he cannot walk the streets and endanger the general public.

    The punishments for hacking are almost always out of proportion to the crime itself.

    --
    Palm trees and 8
  29. Meanwhile... by Tasha26 · · Score: 5, Informative

    prison term of up to 20 years and a fine of up to US$250,000

    ...the real criminals in the banking and mortgage industry got away scoff free even after they caused damages in the trillions. Is the law blind?

    1. Re:Meanwhile... by Anonymous Coward · · Score: 0
    2. Re:Meanwhile... by Anonymous Coward · · Score: 0

      Checking my sources after posting, I find the original article is wrong. The person who stole $100 did get 15 years in jail, but the person who helped steal 3 billion dollars was not sentenced to three years, it was 3 months. Here's another report from the Cornell Journal of Law and Public Policy:

      http://www.jlpp.org/2011/11/17/a-tale-of-two-criminals/

      Captcha: 'polisher'

    3. Re:Meanwhile... by steelfood · · Score: 1

      Only when a rich man is involved.

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    4. Re:Meanwhile... by sjames · · Score: 1

      It may or may not be able to see skin color, but it seems to have no problem seeing how much green you have.

    5. Re:Meanwhile... by ScentCone · · Score: 1

      Is the law blind?

      No, but you are if you think that large scale theft of services isn't a crime. Fine: argue that you think re-selling a bundle of debt racked up by people who signed up for mortgages they couldn't possibly pay back should be a crime. But that doesn't make ripping off services providers a not-crime.

      --
      Don't disappoint your bird dog. Go to the range.
    6. Re:Meanwhile... by Anonymous Coward · · Score: 0

      ...got away scoff free ...

      I'm sure it was just a typo, but in case not the expression is scot-free.

  30. FFS, it's not stealing, it's fraud. by subreality · · Score: 4, Insightful

    I'm tired of "stealing" getting applied to every instance of "underhandedly doing something you weren't supposed to".

    1. Re:FFS, it's not stealing, it's fraud. by ScentCone · · Score: 1

      I'm tired of "stealing" getting applied to every instance of "underhandedly doing something you weren't supposed to".

      So, when the "thing you're not supposed to do" is being invovled instealing services, you don't think the word "stealing" should trotted out?

      What's next ... killing someone who's going to tell the authorities about your racket is just ... what? An End Of Life decision?

      --
      Don't disappoint your bird dog. Go to the range.
    2. Re:FFS, it's not stealing, it's fraud. by subreality · · Score: 1

      You can't steal services, ever. Theft is something you only do with physical things.

      Obtaining services without proper payment is simply fraud. In person you're committing a fraud by promising payment without intent to pay. In this case it's deceiving the server that your cable modem is on a paid account.

    3. Re:FFS, it's not stealing, it's fraud. by ScentCone · · Score: 1

      You can't steal services, ever.

      Give it a rest. There's a reason that the term theft of services is used. It's distinctly different than the theft of goods.Do you consider shoplifting to be fraud? I make no implicit promise to pay when I walk in a store. Have a defrauded someone when I walk out with something they're in the business of providing, having never intereacted with them in any way? Never mind. You know you're just making a fuss about this because it helps to make people numb to the notion that ripping off other stuff (like people's creative works) is also a bad thing.

      --
      Don't disappoint your bird dog. Go to the range.
    4. Re:FFS, it's not stealing, it's fraud. by subreality · · Score: 1

      Nope, shoplifting is definitely theft. "Theft of services" is often (not always) a form of fraud, not theft, and indeed it says so in the article you linked. Making copies of a creative work is copyright infringement, as opposed to stealing an existing copy, which IS theft.

      I make these points about other things too - "doing something where people get irrationally scared" is not terrorism, and I'm just as ready to point it out if people start painting it with the T word. I'm not just nitpicking terminology. My goal is to get people to think deeper about the different forms of crime, and WHY they ARE different instead of lumping them all together... just like you're throwing me in the "just another self-justifying pirate" archetypical bin just because I said something about "it's not stealing".

  31. Putting into perspective.. by 3seas · · Score: 0, Troll

    Join the U.S. military go to another country kill many many civilians and maybe get a medal.
    Morally I'd rather commit wire fraud by giving the people information access.
    Ethically, Id spend my time exposing excessive profiting of telecommunications.

    If enough of us do this we can start our own country within a country, different than the country of Washington DC... as it'd be much bigger and we'd have our own fence, food, clothing, shelter, medicine, even security, etc.... paid for by those in the outer country. And the diff from DC would be... not having the command to order the kill of many many people w'd never meet.

    Wire fraud huh? What if it we wireless?

    1. Re:Putting into perspective.. by Anonymous Coward · · Score: 0

      You know, it's ignorant people like you who say, "JOIN ARMY KILL CIVILANS". That's just flat-out ignorant. You appear to be an ESL speaker, do you know what ROE means? If not, I suggest looking it up.

      The seperatism is disgusting. We in America already had this seperatist thing, it was called "Civil War". I suggest you look that up as well, to find out how well it turned out for seperatists such as yourself.

    2. Re:Putting into perspective.. by cojsl · · Score: 1

      Daniel Suarez writes about this in his excellent novels Daemon and Freedom. Here's a video by him along those lines http://fora.tv/2008/08/08/Daniel_Suarez_Daemon_Bot-Mediated_Reality

    3. Re:Putting into perspective.. by DaveV1.0 · · Score: 1

      Yeah, because fiction is always a great representation of reality~

      --
      There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
    4. Re:Putting into perspective.. by DaveV1.0 · · Score: 1

      Join the U.S. military go to another country kill many many civilians and maybe get a medal.

      Your ignorance of military operations is staggering. Let me guess, every single civilian killed in Iraq was slaughtered by the U.S. military, right?

      --
      There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
    5. Re:Putting into perspective.. by 3seas · · Score: 1

      Why are there more U.S. Soldiers dying from suicide than have been killed in Iraq?
      Why does not the military train its soldiers how to heal from the damage war does psychologically?

      As to the topic considering someone is facing potentially life in prison for providing internet access to others vs. insane charges for texting over ...well.... http://consumerist.com/2008/12/nyt-text-messaging-virtually-no-cost-to-carriers.html

      I really don't think the punishment fits the crime, only if they would apply the same crime/punishment ratio to persons called corporations.

      Is that a better "putting into perspective" example (maybe not as extreme on a spectrum?

         

    6. Re:Putting into perspective.. by DaveV1.0 · · Score: 1

      It is a shame you can't keep a coherent argument. First you say we are slaughtering innocent civilians. Then, when I call you out on it, you talk about soldiers committing suicide. You ignore the fact that war is traumatic. Oh, and have you ever actually served in the military? Have you met what used to pass for a service member? A bunch of soft whiners who joined thinking they would get a free education and never have to actually fight.

      Comparing the carriers to what this guy did is comparing apples to fudge and you are an idiot for trying it.

      And, the NYT was wrong. Mostly because Keshav didn't figure in the cost of 99.999% uptime, servers, licenses, sysadmins, ops and prod support, DR, data center costs, SLA payouts, the cost of tower and equipment upgrades, spectrum, etc. Do you work in telecom? Do you even work in the IT industry? Do you even work?

      Want things put in perspective? You are so brainwashed, you failed to read the NYT article where they just guess at the costs.

      Seriously, you shouldn't talk about things with which you have no experience or even knowledge.

      --
      There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
  32. Stealing internet murder? by walterbyrd · · Score: 3, Interesting

    I don't think most people get that kind of a sentence for murder.

    I saw one case on this "I Survived" show they have on Biography channel: a woman shot her husband six times in the chest, and she was sentenced to six days for aggravated assault. Six days for unloading a gun into somebody's chest, 20 years for stealing internet; what a wonderful justice system we have.

  33. How does one steal internet access? by Anonymous Coward · · Score: 0

    And after he was caught, was the internet access recovered and returned to its rightful owner or did it develop Stockholm Syndrome and want to stay with its captor?

    It sounds a lot more like he helped people gain unauthorized access to a network. I don't think they actually stole anything. Maybe there was some cost associated with higher bandwidth use, but even calling that stealing is an abuse of English that might also deserve a lengthy prison sentence.

    Theft:
              1. (Law) The act of stealing; specifically, the felonious
                    taking and removing of personal property, with an intent
                    to deprive the rightful owner of the same; larceny.

  34. Curious theft choice... by lythander · · Score: 1

    So as a consumer already paying for cable (because I have an outlet to connect to, unless I've gone to heroic effort to run my own in from the street,) I choose to pay money to one guy's company to get internet access for free instead of paying an incremental increase in service fee for internet access that's "legitimate?" Seems like a fair amount of work and money to "steal" something.

    I'm all for sticking it to the man, especially cable companies, but this seems to make not a whole lot of sense.

    1. Re:Curious theft choice... by DaveV1.0 · · Score: 1

      So, I come buy your house and ask you how much you want for your car. You say $9,000.00. I go to your neighbor and tell him I want to buy your car. He breaks into your house and steals the title and keys and then sells the car to me for $1,000.00.

      'Seems like a fair amount of work and money to "steal" something.' but he made $1,000.00 and I saved $8,000.00.

      I'm all for sticking it to the man, especially cable companies

      You are all for ripping off people and companies you don't like. Isn't that interesting.

      --
      There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
  35. Oh, thought experiments are fun. by msauve · · Score: 2

    For example, let's imagine a thought experiment: if a company is selling 100,000 copies of some digital media product and then piracy comes along and now 1 million people are pirating it and only 50,000 copies are being sold. We could say that piracy halved the sales - causing a "loss" of 50,000 sales. However, since there are 1 million people pirating it, we could calculate that 95% of them (950,000/1,000,000) wouldn't have bought it.

    Now, let's suppose they're selling 100,000. Piracy comes along, 1 million pirating, and they're selling 200,000. We could say that piracy doubled the sales, causing a "gain" of 100,000 sales. This is fun! Complete and utter bullshit, but fun!

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
  36. REALLY?!?!? by NoSalt · · Score: 0

    Let's reflect, again. How much time did Dr. Conrad Murray receive for his MAJOR contribution to the death of Michael Jackson? It just goes to show that the American criminal "justice" system has been bought and paid for.

  37. Where is the line where it isn't pathetic? by Anonymous Coward · · Score: 0

    Is "Conflict of interest" a crime? What about "crimes against humanity"? Of course, the definition of "crimes against humanity" must be defined; but I would define it as simply denying someone access (to information, facilities, etc) or being involved in the process of forcing someone into a situation not of their choosing (one-way contract, etc) -- Yes, I realize the "definition" by governments is far more draconian and meant for far more serious crimes but that is the governments problem, not mine.

    The cable company in my area (just one, localized monopoly) is spending money and effort to get the OTA channels OFF the air; thereby forcing everyone who wants even local weather reports to have to buy a cable subscription. I would call this a crime. If I cut the cable companies lines (that run through my property and look god-awful) I would be arrested for damaging my own property (of course, they justify this in saying it is NOT my property; convenient since I get the land-tax bill every month). So why is this allowed? Why is this legal? Perhaps the definition of Legal doesn't mean what it should?

    Now, that same cable company, for their cheapest plan is $60.00 +tax +fees per month and you are ONLY allowed to use it on ONE TV in your house. It comes with about 30 channels, of which only 4 are not free OTA channels across the country and the cable company doesn't pay a CENT for that content (and the other four are third-rate shite that no one would watch anyways). I watch 2 channels, of which one is gone come Aug 31, 2012.... Down to one, wonder how long before that one goes too... :(

    Now, under a "fair" system, would/should I not be able to run a wire to the cable that is ON my property and set my TV up to get those two channels which this company has assaulted? Why is this illegal but their actions are not? I'll tell you why, because people have been brainwashed, simply put they think like you do, that the laws are fair as they are right now and that is the saddest part of our whole system.

    1. Re:Where is the line where it isn't pathetic? by Richard_at_work · · Score: 1

      I'd actually answer all your points, but I rarely feel any benefit is gained from engaging an Anonymous Coward in actual discussion.

      Especially one that just insults me at the end of their post.

    2. Re:Where is the line where it isn't pathetic? by Anonymous Coward · · Score: 0

      Sorry for the insult, that was stupid of me, got carried away and didn't re-read it. Please ignore the last sentence, if I could edit it I would. I have to admit though, I am interested in your points as I usually come back to re-read later and, truth be told, I like anything that can point me in a new direction of understanding or reduce my fears for the future:

      My fears are two fold:
      1. That revolution may become necessary and I really don't want to see that day.
      2. I have way too many friends (not stupid or reckless either) that have now been screwed over by large corporations and/or the government for what should have been common sense; and truthfully, I can easily see how I will become a statistic like this too in the future - and thus why I post AC :(

  38. Wrong by Anonymous Coward · · Score: 0

    If a business is not making 50% profit they would not even be looked at by banks or exchanges....

    You mention four people that went so far overboard to be absolutely mind-blowing in how bad they covered their tracks. If a cashier steals 20 dollars to get extra food he/she will be jailed, is the proportion the same? How many cashiers are arrested each year versus financial managers? Is the crime payment (jail time) the same? 20 dollars a week for a few months, 1-2 years in jail; millions, 120 years in jail, probably good-behaviour he'll be out in 10-15 max... Corporations get to write off the losses from the cashier, what about the people who lost the millions? -- Note, I am NOT saying the cashier is right to take the $20, I'm just using it to demonstrate how out of skew our laws and punishments are.

    As for those cable companies and their poor 8% profits... this is the scary part; the problem is the owners (board directors, etc) all own spin-off business that sell services to that company (especially in locally controlled monopoly situations) where those "service" companies are private and don't have to provide any financials. Therefore, the parent company, that has to show the books can show that they have very little profit while spending a fortune for the "services" and justifying this by saying they have to get these services since no one else provides them.... It's a great scam that large businesses have been doing for many, many, many years.

    This is similar to how RIAA, MPAA member businesses can say they never make any money as well; truthfully, they don't. They spend all the money buying services from spin off companies that are privately owned (like the RIAA and MPAA). Therefore, they can show, on paper, their income and expenses and write off the expenses (a great tax hole there), and break even (on almost every MOVIE!!! -- you know it has to be rigged to be this consistent).

    My favorite was an Electric company, they asked everyone to reduce their power usage or the power rates would increase; the government spent millions helping people reduce their "energy" consumption. They even came door-to-door to give out pamplets and show the "savings" you can get with the government subsidies, etc. 6 months later my electric bill went up; the reason: (and I love this) power usage has reduced and therefore the electric company didn't meet its financial expectations and thus needed the increase to maintain its profitability.... Screwed if you do, screwed if you don't!

    As for one sided contracts (like not being able to sue); this is where the legal and justice system has 100% failed us and where we have failed to take the measures necessary to ensure the system is "fair". To say it's "your" fault for signing such a contract is foolishness, try traveling without a credit card, or having a job without a cell-phone, or a mortgage without a credit history, etc. We HAVE NO CHOICE but to accept the one sided terms or become beggars, this to me is an ethical and moral issue that is needs to be treated FAR HIGHER than a corporations profits; this falls under life and liberty type issues; which unsurprisingly, is what these large corporations are attacking (and your ignorance is helping them nicely).

  39. Words by zooblethorpe · · Score: 1

    FWIW, Asgard is the "gard" of the "Æsir" (singular "As"). "Gard" is the root from which we get the modern English words garden and yard. In Norse, it apparently meant something similar, but with extended meanings of world or realm. More at http://en.wikipedia.org/wiki/Asgard.

    Cheers,

    --
    "What in the name of Fats Waller is that?"
    "A four-foot prune."
  40. Wrong. So wrong. by DeadCatX2 · · Score: 2

    I imagine you're also lumping Community Reinvestment Act (CRA) loans into the culpability for the crisis. This is a thirty-year old law. You may want to look into that; CRA-approved mortgages were less likely to be subprime and less likely to be resold.

    Also, Fannie and Freddie have rules that stipulate they would cover only 80% of a mortgage. Where did the other 20% come from? Ask Angelo Mozilo; Countrywide would just give you a second mortgage to cover the other 20%. Ta-da, 0% down payment home mortgages.

    Fannie and Freddie also would not take Jumbo loans. So those McMansions could not be financed that by them.

    As far as "liar loans"(or NINJA loans), the fault lies 100% with the broker. While consumers are morally obligated to be honest, it's supposed to be the broker's responsibility to keep liars from getting money they can't pay back. Instead we had brokers facilitating fraud.

    The biggest cause of the problem was the large secondary market for mortgages. It's all basic Supply and Demand. If there had been no market for selling shitty mortgages, the brokerage firms would never have been able to get rid of the bad mortgages and they would have crushed under the weight of their own defaulted loans (as they did when the big banks finally stopped buying their trash). But back then Wall Street was more than willing to buy up this crap, so the fly-by-nights had a willing buyer for their doomed-to-fail mortgages.

    And make no mistake; Fannie and Freddie were not big players in subprime loans until Countrywide said what amounted to "if you don't buy these loans, Wall Street will, and you will lose all your market share". Fannie and Freddie didn't really get into subprime loans until about 2005. And in 2010, their loans had a foreclosure rate 30% lower than the national average.

    Oh, and let's not forget the SEC decision in 2004 that exempted the banks from the capital reserve requirements. Without this ruling, they wouldn't have been able to lever up their balance sheet as highly as they did.

    And all the deregulation and mega-mergers that made banks too big to fail, and allowed a shadow banking system to grow in the derivatives market which then began to exceed the size of the real banking system. And the Credit Ratings Agencies which were complicit in labeling toxic CDOs which were designed to fail as AAA-worthy.

    --
    :(){ :|:& };:
  41. A factual inaccuracy by DeadCatX2 · · Score: 1

    we wouldn't even know about the ~$14 trillion the Fed loaned to the banks at ~0%

    The Fed never loaned $14 trillion to the banks. What they did is make guarantees that the money would be there if the banks needed it. The Fed actually only loaned about $2 trillion to banks at the peak of the crisis.

    http://timiacono.com/index.php/2011/12/07/when-guarantees-are-not-loans/

    --
    :(){ :|:& };:
  42. Re:Wrong. So wrong. by ravenshrike · · Score: 1

    Countrywide went from an utterly bit player in the mortgage market in 94 prior to the CRA revisions to the largest holder of subprime mortgage loans by 2006. This was with direct collaboration from Fannie and Freddie. You think this happened through magic perhaps?

  43. Definition of "Free" by DarthVain · · Score: 1

    It wasn't FREE internet, as people had to PAY him to get it (as he supposedly made millions).

    As I see it this is more of a situation of a business that didn't pay for the lines it was reselling.

    Anyway I am sure his argument will be "I have done nothing physically wrong myself, I only provided the information to do so", you want to prosecute someone go after all my customers, they are the ones that are doing the actual stealing.

    I am sure they can get him on something like "facilitation", but that is a pretty slippery slope.

    All he did was tell people how to modify cable modems to take advantage of security (LAZY) loopholes that large ISP's failed to do anything about.

    Personally I would say what he did is ethically questionable, but illegal? I am not sure of that. Is it illegal to subvert a network for free internet access? Probably. Is it illegal to simply tell someone how to do it?

    This reminds me of the time *I* got suspended from school for showing a friend how to encrypt a floppy disk, and then he went and accidentally crashed the whole computer lab network by encrypting whole computers. I also had to help wipe and re-install all the machines after school. I did nothing wrong, yet got punished for it, simply by sharing information, never seemed right to me. In this case, the "intent" isn't quite the same, as clearly the "intent" was to subvert and to make money by others doing so. Even still I have my doubts.

  44. Not stealing by Anonymous Coward · · Score: 0

    He gave people unauthorised access, but nothing was stolen.

  45. So very wrong... by DeadCatX2 · · Score: 1

    http://www.dc.state.fl.us/pub/timeserv/annual/section2.html

    The average time spent behind bars for someone who commits a violent crime in Florida is about 7.1 years.

    Murder used to mean an average sentence of about 10 years. Lately it's an average sentence of about 20 years.

    Sex crimes are around 6 years. This includes lewd acts on a child.

    Armed Robbery is around 10 years.

    http://www2.fbi.gov/ucr/cius2009/offenses/violent_crime/index.html

    Violent crime is declining, even during a recession.

    http://bjs.ojp.usdoj.gov/content/pub/pdf/p08.pdf

    About 50% of state prisoners in 2006 were incarcerated for non-violent crimes.

    About 90% of federal prisoners in 2008 were incarcerated for non-violent crimes.

    America is very much a non-violent place. If you don't believe me, go live in Afghanistan or Pakistan or Sudan or Israel or Syria or Libya or Iraq or Burma.

    --
    :(){ :|:& };:
  46. Never said they were by Sycraft-fu · · Score: 1

    In fact I believe I said "he crisis was caused by failures and greed at so many levels. The government, the bond rating companies, the investors, the banks, the loan officers, and yes the individuals."

    I do not spare the loan officers from blame, nor the banks. No do I spare the government, who should have been regulating all this shit. There is lots of blame to go around.

    However I don't spare the individuals either. I don't buy in to this narrative of how people who participated were poor defenseless victims who couldn't do anything. Bullshit. A great many share in part of the blame. They let greed cloud their judgement, they did things they should have known better about.

    You are a good example of why I hold that position: Even when presented with a bad option you noticed it was a bad option and didn't go with it. Why? Well because the person ultimately responsible for your finances is you and you wanted to make a good decision regarding them.

  47. Re:Stealing internet murder? by sjames · · Score: 1

    To be fair, usually such short sentences are reserved for cases where the 'victim' was a long time abuser who finally went a bit too far.Nevertheless, 20 years for each count of 'cable theft' is excessive.

    If the CEOs of the crooked banks got even 1 day per $1000 worth of fraud they'd die in prison.

  48. Re:DOLLEE by Anonymous Coward · · Score: 0

    That summary sucked balls.

  49. Comment removed by account_deleted · · Score: 1

    Comment removed based on user account deletion

  50. 20 years for hacking, only 15 for child molesters! by Frank+T.+Lofaro+Jr. · · Score: 1

    He faces 20 years for a cyber crime. Had he molested a child, he'd only get 15 years! (*).

    (*) 18 USC 2243. http://www.law.cornell.edu/uscode/text/18/2243

    Where is our sense of priorities or of justice?

    They need to rename the Department of Justice, it is a mockery. Call it the Department of Investigation and Punishment. Justice is dead.

    --
    Just because it CAN be done, doesn't mean it should!
  51. Ferrari by Anonymous Coward · · Score: 0

    By some moron's logic above. I'm going to drive away with that Ferrari down the street. But Officer I wasn't going to buy it anyways so it can't be stealing.

  52. Lucky he's not in Iran by jamessnell · · Score: 1

    If he were convicted of this in Iran, they'd probably sentence him to having to murder all his friends and family with a belt-sander... Followed up by his own demise induced by stoning. Their gov't is nuts. Which sucks, cause there's some great people over there. Oh, yeah, by the way don't steal stuff. Helping people communicate while not paying others for enabling it is WRONG. And as such, you should be isolated and psychologically assaulted... You know.. For the greater good.

  53. Good thing that did not happen to steve jobs by Anonymous Coward · · Score: 0

    http://www.slate.com/articles/technology/the_spectator/2011/10/steve_jobs_and_the_little_blue_box_how_ron_rosenbaum_s_1971_arti.html
    http://www.youtube.com/watch?v=HFURM8O-oYI

  54. Yes, but: by jsfs · · Score: 1

    My house is not being sold, rented, licensed, or otherwise traded for value to members of the public. I make no contract with nor representation to others that they may use my property for any purpose or feel secure while so doing. I suspect that this was not the case with the ISP. While a large fine might not be in order (you'll note Sony got a slap on the wrist for their breaches last year, confirmed to have released millions of credit card numbers), something to discourage poor practices by commercial vendors isn't a bad idea. Think of it as a higher insurance premium for people known to be prone to break-ins who keep failing to lock their doors (or, if you prefer, a lack of a discount for a good alarm system and high-quality locks). Just because the person breaking in is unquestionably in the wrong doesn't make the corporation being broken into unquestionably in the right.

  55. in my book, by Anonymous Coward · · Score: 0

    anybody who sticks it to comcast is a good guy

  56. It was a shotgun wedding by Sycraft-fu · · Score: 1

    The feds encouraged the deal. While they didn't force it, they really pushed it. Now B of A was happy in general, it meant more money for them in the long run since they picked up Contrywide for a song. However it wasn't a case of them deliberately ignoring problems and saying "fuck it" it was the federal government going to both companies and saying "We think this needs to happen because Countrwide failing would be a problem."