United States Attorney District

[Dark_Code_x]

United States Attorney
District of BLACK HAT
--------------------------------------------------------------
United States Courthouse, Eighth Floor
101 West Lombard Street
Baltimore, Maryland 20201
301/339-2940
301/922-4822


PRESS RELEASE FROM THE UNITED STATES ATTORNEY
FOR THE DISTRICT OF MARYLAND

FOR IMMEDIATE RELEASE

Breckinridge L. Willcox, United States Attorney for the District
of Maryland, and Joseph Coppola, Special Agent in Charge of the
United States Secret Service in Baltimore, today announced the
indictment of a Middletown, Maryland man on computer fraud and
related charges. Indicted by a federal grand jury was Leonard
Rose, 31, a computer consultant, of Willow Tree Drive, on charges
that between May, 1988 and January, 1990, he entered into a
scheme to steal and publish highly proprietary computer source
codes for AT&T UNIX computer systems to other computer hackers,
and that he distributed to other computer hackers various
programs designed to gain them unauthorized access to computer
systems. The five count Indictment charges Rose with Interstate
Transportation of Stolen Property, and violations of the Computer
Fraud and Abuse Act of 1986.

Specifically, the Indictment charges that Rose, also
known as "Terminus", received a copy of AT&T highly proprietary

- 1 -

and closely held UNIX 3.2 source code. The Indictment alleges
that on or about January 8, 1990, Rose, knowing the source code
to have been stolen converted, and taken by fraud, transfered the
source code to another computer hacker. The source code was
thereafter transmitted to other hackers. The Indictment charges
that Rose was associated with a closely knit group of computer
hackers known as the "Legion of Doom" whose members are involved
in numerous activities including gaining unauthorized access to
computer systems for a variety of illegal purposes. The
Indictment charges Rose with distributing two "trojan horse"
programs that allowed computer hackers to gain unauthorized
access to computer systems, and with the interstate
transportation of AT&S's stolen proprietary source code.

If convicted on all counts of the Indictment, Rose
faces a maximum possible prison sentence of (unreadable).

In announcing the return of the Indictment, Mr. Willcox
noted that the allegations of the Indictment have far reaching
implications for the security of computer systems throughout the
United States. Mr. Willcox stated, "People who invade the
computer systems of others for profit or personal amusement
create immediate and serious consequences for the public at
large. Unless checked by aggressive law enforcement, computer
hackers will interfere with the security and privacy of financial
records and data, telecommunications systems, and countless other
aspects of our daily life. The Indictment indicates that those
who choose to use their intelligence and talent to disrupt these
networks will be vigorously prosecuted."

Coppola added: "The Secret Service has been charged
with enforcement of the computer fraud statutes. The Baltimore
Office will aggressively pursue computer fraud in Maryland and
wherever else hackers may operate."

Willcox stated that the Indictment is the result of a
lengthy investigation by agents of the United States Secret
Service in Baltimore, Chicago, and elsewhere. This investigation
of the Legion of Doom members started in Chicago, let to
Missouri, and then to Maryland. Related federal indictments are
currently pending in Chicago and Atlanta. Willcox further noted
that technical and expert assistance was provided to the United
States Secret Service by the telecommunication companies including
AT&T. Willcox particularly praised the actions of AT&T for
bringing its intrusion problems to the attention of law
enforcement officials and for its assistance to the Secret
Service.

Willcox added "This investigation has revealed that
these hackers accessed a number of computer systems belonging to
federal research centers, educational institutions, and private
businesses. Our investigation is continuing in an effort to
identify all the participants and to establish the extent and
consequences of the unauthorized access."

Assistant United States Attorney David P. King
presented the case to the federal grand jury.

- 3 -

** END PRESS RELEASE **

++++++++++++++++++++++++++++++++++


>From CuD 1.12:
Date: Thu, 7 Jun 90 0:21:34 CDT
From: TELECOM Moderator <[email protected]>
Subject: Crackers, Kapor and Len Rose

[...]

Late Tuesday night, David Tamkin and I had a chance to speak at length with
someone close to the scene involving Len Rose. Some things were off the
record, at the request of Mr. Rose's attorney, and I agreed to honor that
request.

Apparently the Secret Service seized *every single electronic item* in his
household -- not just his computers. I am told they even took away a box
containing his Army medals, some family pictures, and similar. It is my
understanding his attorney has filed a motion in court to force the Secret
Service to return at least *some* of his computer equipment, since without
any of it, he is unable to work for any of his clients at all without at
least one modem and computer.

I am told the Secret Service broke down some doors to a storage area in the
basement rather than simply have him unlock the area with a key. I am told
further that he was advised he could pick up his fax machine (which had
been seized, along with boxes and boxes of technical books, etc), but that
when he did so, he was instead arrested and held for several hours in the
County Jail there.

Mr. Rose believes he will be found innocent of charges (rephrased) that he
was the 'leader of the Legion of Doom', and that he had broken into
'numerous computers over the years'.

I invited Mr. Rose and/or his attorney to issue a detailed statement to the
Digest, and promised that upon receipt it would be run promptly. I don't
think such a statement will be coming any time soon since his attorney has
pretty much ordered him to be silent on the matter until the trial.

If the things he says about the Secret Service raid on his home are
determined to be factual, then combined with complaints of the same nature
where Steve Jackson Games is concerned I would have to say it seems to me
the Secret Service might have been a bit less zealous.

The revelations in the weeks and months ahead should be very interesting.
One of the items I will include in the special issues on Thursday night is
the report which appeared in the {Baltimore Sun} last weekend. This case
seems to get more complicated every day.


PT
--
>From CuD 1.13:

Computer Consultant Could get 32 Years If Convicted of Source-Code Theft

Baltimore - A Middletown, Md., man faces as many as 32 years in prison and
nearly $1 million in fines if convicted of being involved in the "Legion of
Doom" nationwide group of Unix computer buffs now facing the wrath of
federal investigators.

The U.S. Attorney's Office here on May 15 announced the indictment of
Leonard Rose, 31, a computer consultant also known as "Terminus," on
charges that he stole Unix source code from AT&T and distributed two
"Trojan Horse" programs designed to allow for unauthorized access to
computer systems. Incidents occurred between May, 1988 and January, 1990,
according to the indictment.

The five-count indictment, handed down by a federal grand jury, charges
Rose with violations of interstate transportation laws and the federal
Computer Fraud and Abuse Act. Rose faces as many as 32 years in prison,
plus a maximum fine of $950,000.

He is the third person to be indicted who was accused of being connected
with the so-called Legion of Doom. Robert J. Riggs, a 21-year-old DeVry
Institute student from Decatur, Ga., and Craig M. Neidorf, 19, a
University of Missouri student from Columbia, Mo., also have been indicted.

Rose's indictment stemmed from a federal investigation that began in
Chicago and led investigators to Missouri and Maryland, assistant U.S.
Attorney David King said. While executing a search warrant in Missouri,
investigators uncovered evidence Rose was transporting stolen Unix 3.2
source code, King said. Investigators then obtained a warrant to search
Rose's computer system and found the stolen source code, King added.

He said the Trojan Horse programs were substitutes for a legitimate sign-in
or log-in program, with a separate shell for collecting user log-ins or
passwords.

"Whoever substituted [the Trojan Horse program] could get passwords to use
the system any way he or she wanted to," King said.

The indictment was a result of a long-term investigation by the U.S. Secret
Service, and was issued one week after federal authorities raided computer
systems at 27 sites across the United States. Investigators seized 23,000
computer disks from suspects accused of being responsible for more than $50
million in thefts and damages. The Secret Service at that time announced
that five people have been arrested in February in connection with the
investigation.

King said he was unaware if Rose indictment was related to the raids made
earlier this month.

"We don't just go out and investigate people because we want to throw them
in jail. We investigate them because they commit an offense. The grand
jury was satisfied," King said.

The U.S. Attorney's Office said the investigation revealed individuals had
accessed computers belonging to federal research centers, schools and
private businesses. King would not name any of the victims involved.

Rose was associated with the Legion of Doom and operated his own computer
system known as Netsys, according to the indictment. His electronic mailing
address was Netsys!len, the document said.

The Legion, according to the indictment, gained fraudulent, unauthorized
access to computer systems for the purpose of stealing software; stole
proprietary source code and other information; disseminated information
about gaining illegal access, and made telephone calls at the expense of
other people.

Well that is the latest in the Summer '90 busts. I just hope that everyone
arrested by the government receives as fair a deal that Robert Morris
received for his little prank. Because I doubt Mr. Morris was given
special treatment because his dad works for the NSA...


>
>In reply to Frank Earl's note ... I would reckon one of the problems
>is that most people don't know where the FBI's jurisdiction begins or
>where the Secret Service's jurisdiction ends. I had a visit on Friday
>afternoon from an FBI agent and it seemed to be mostly reasonable,
>except he identified himself as being from a unit that I wouldn't
>associate with this sort of investigation.

Secret Service jurisdiction over computer crimes is set out in
18 USC 1030(d):

The United States Secret Service shall, in addition to any other agency
having such authority, have the authority to investigate offenses under
this section. [18 USC 1030 is titled "Fraud and related activity in
connection with computers.] Such authority of the United States Secret
Service shall be exercised in accordance with an agreement which shall
be entered into by the Secretary of the Treasury and the Attorney
General.

There is a similar provision in 18 USC 1029, which concerns
"Fraud and related activity in connection with access devices."


Mike Godwin, UT Law School
--

>From CuD 1.26:
Date: 28 July, 1990
From: Moderators
Subject: Moderators' Corner

+++++++++++++++++++
LEN ROSE UPDATE
+++++++++++++++++++

As of Friday, Aug. 3, Len Rose's case awaits trial in federal court in
Baltimore. According to one source, Len was offered an arrangement in which
he could plead guilty to one count of computer fraud and receive at least
some prison time, but would have his computer equipment returned, or take
the case to trial and take his chances.

Len is currently represented by a public defender because of lack of
resources to retain a specialist in computer crime cases. He remains
unemployed, and has moved into a motel with his family. He told us that,
because his equipment and crucial files were seized, his business was
essentially shut down and he was deprived of his livelihood. This means that
he not only cannot support his family, but cannot retain legal counsel of
his choice. He said he was feeling isolated and "abandoned" and wasn't
sure what his legal options were.

We will present a detailed update of Len's situation in CuD 1.27. Len's
public defender can be contacted at (301)-381-4646.


--

>From CuD 1.27:
Date: 9 August, 1990
From: Moderators
Subject: Moderators' Corner

+++++++++++++++++
Len Rose Update
+++++++++++++++++

We talked with Len Rose last night, and he indicates that his trial,
scheduled for this month, will most likely be delayed until February, 1991.
The counts against him resemble those of Craig Neidorf and the "Atlanta 3."
We will provide a detailed summary of our conversation as well as a copy of
the indictment in CuD 1.28 on Monday.

--

>From CuD 1.28:
Date: 11 August, 1990
From: Jim Thomas
Subject: Len Rose Interview

********************************************************************
*** CuD #1.28: File 2 of 4: Len Rose Interview ***
********************************************************************

The Len Rose case seems to present problems for many people. Some, who
ordinarily support Constitutional rights, seem to have backed away from
this case, perhaps because of the seriousness of the charges, or perhaps
because his case does not seem as "pure" as those of some other defendants.
Some people are also concerned that Len's brush with the law "taints" him.

We feel that Len's case deserves attention comparable to other recent
cases. The charges in the indictment, as explained to us, are no more
serious than those in the indictment's of others, and the charges do not
seem to be as serious as the media depicts them. More importantly, the duel
model process of justice that ostensibly guides criminal proceedings must
be applied to all equally, whether the defendant is squeaky clean or a
homicidal maniac. We are troubled by those who think that, because Len has
had a previous legal problem, he is less deserving of legal help. Often, it
is precisely those whose image is the most tarnished who are most at risk
in the judicial process. If the issues are worthy and potentially affect
others, then it is in everybody's interests to assure that justice is
served.

CuD recently talked at length with Len about his current situation. We
have not talked with Len's attorney nor have we seen copies of motions or
of the evidence. Len's current attorney is a public defender who has been
busy in the multiple calls we made daily for three days. He has not
returned our calls. Those who have the time to try to obtain information
>from him may contact him at:

Jim Kraft (the attorney)
Kraft, Balcerzak and Bartlett
7050 Oakland Mills Road
Columbia, MD 21046 (phone: 301-381-4646).

Len informs us that the case number is CR-90-0202, Federal Court, Baltimore.

*******************************************************************


Computer tampering carries either a Class 4 felony sentence, which can
include prison time of from one to three years, or a Class A misdemeanor
sentence. With determinate sentencing, the judge selects a number between
this range (for example, two years), and this is the time to be served.
With mandatory good time, a sentence can be reduced by half, and an
additional 90 days may be taken off for "meritorious good time." Typical
Class 4 felonies include reckless homicide, possession of a controlled
substance, or unlawful carrying of a weapon.

A Class A misdemeanor, the most serious, carries imprisonment of up to one
year. Misdemeanants typically serve their time in jail, rather than prison.
Ironically, under Illinois law, it is conceivable that if an offender were
sentenced to prison for a year or two as a felon, he could be released
sooner than if he were sentenced as a misdemeanant because of differences
in calculation of good time.


From: bill <[email protected]>
Subject: Len Rose Outcome (from AP wire)
Date: Sat, 23 Mar 91 14:29:14 EST

********************************************************************
*** CuD #3.10--File 3 of 5: AP Story on Len Rose ***
********************************************************************

BALTIMORE (AP) -- A computer hacker pleaded guilty Friday to stealing
information from American Telephone & Telegraph and its subsidiary
Bell Laboratories.

Under an agreement with prosecutors, Leonard Rose pleaded guilty in
U.S. District Court to one count of sending AT&T source codes via
computer to Richard Andrews, an Illinois hacker, and a similar wire
fraud charge involving a Chicago hacker.

Prosecutors said they will ask that Rose be sentenced to two
concurrent one-year terms. Rose is expected to be sentenced in May.

Neither Rose nor his attorney could be immediately reached for comment
late Friday.

"Other computer hackers who choose to use their talents to interfere
with the security and privacy of computer systems can expect to be
prosecuted and to face similar penalties," said U.S. Attorney
Breckinridge L. Willcox.

"The sentence contemplated in the plea agreement reflects the serious
nature of this new form of theft," Willcox said.

Rose, 32, was charged in May 1990 in a five-count indictment following
an investigation by the Secret Service and the U.S. Attorney's offices
in Baltimore and Chicago.

He also had been charged with distributing "trojan horse" programs,
designed to gain unauthorized access to computer systems, to other
hackers.

Prosecutors said Rose and other hackers entered into a scheme to steal
computer source codes from AT&T's UNIX computer system.

The plea agreement stipulates that after he serves his sentence, Rose
must disclose his past conduct to potential employers that have
computers with similar source codes.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++

From: Anonymous
Subject: Len Rose Pleads Guilty (Washington Post)
Date: Mon, 25 Mar 91 11:22:13 PST

********************************************************************
*** CuD #3.10--File 4 of 5: Washington Post Story on Len Rose ***
********************************************************************

Source: Washington Post, March 23, 1991, pp A1, A10

===================================================
THIS ARTICLE HAS BEEN REMOVED DUE TO THE FOLLOWING:
===================================================

An employee of The Washington Post (www.wpni.com) sent ]-[ackrman
an email, which is shown below exactly how it was recieved:

(Some areas of that email are explained by ]-[ackrman in an 'easy
to understand' format, those areas are placed between tripple '$'
symbols for simple reading)

$$$ This is the header... duh! $$$

Date: Mon, 18 Oct 1999 16:40:56 -0400
From: Julie Briggs <[email protected]>
Organization: Washingtonpost.Newsweek Interactive
X-Mailer: Mozilla 4.61 [en] (Win95; U)
X-Accept-Language: en
Cc: Katharine Scully <[email protected]>
Subject: Copyright