undercover agents

Chinese Man Pleads Guilty in Copyright Violation Case

Nearly five years ago, a Chinese man named Xiang Li registered several domain names, including www.crack99.com, and embarked on an ambitious, and ultimately illegal, venture.

Mr. Li, who was based in Chengdu, paid a network of computer experts to scour the Internet to find commercial software they could “crack,” meaning they bypassed security protocols designed to prevent unauthorized access or reproduction.

Ultimately, Mr. Li offered more than 2,000 pirated software products that could be used as applications in the military, engineering, space exploration, mathematics and explosive simulation, and sold them at a fraction of their retail price, which federal prosecutors said was over $100 million.

Among his biggest customers were an electronics engineer at NASA and the chief scientist at a government military contractor, but his clients also included students, inventors and small-business owners. Mr. Li sold the products for $20 to $1,200, accepting payments by Western Union and MoneyGram, according to government documents.

But Mr. Li’s criminal enterprise officially ended last year when he was arrested by undercover agents. On Monday, he pleaded guilty in Federal District Court in Delaware to one count of conspiring to steal copyrighted software. He faces a maximum of five years in prison.

Mr. Li, who is 36, could not be reached for comment, nor could his lawyer, Mingli Chen. Mr. Li’s wife, Chun Yan Li, was also indicted on charges of participating in the illegal scheme; she remains at large, presumably in China, officials said.

Mr. Li was arrested in June 2011 in Saipan in the Northern Mariana Islands during a meeting that had been arranged by undercover agents posing as American businessmen. The agents arranged the meeting under the guise of picking up their purchase of pirated software, design packaging and 20 gigabytes of proprietary data, and to discuss a plan to transmit cracked software over the Internet so they could resell it to small businesses in the United States.

After the arrest, agents recovered six disks from Mr. Li containing an assortment of data pirated from an unidentified American software company, including military and civilian aircraft image models and a software module containing data about the International Space Station.

Edward J. McAndrew, one of the prosecutors on the case, said Mr. Li’s arrest was among the largest criminal copyright cases to be successfully prosecuted by the government.

Mr. McAndrew and his colleague, David L. Hall, explained in court documents that once Mr. Li obtained cracked software, he would advertise it on his Web sites, which also included www.cad100.net and www.dongle-crack-download.com. Mr. Li’s customers would then wire him money, some of which he deposited in an account at the Bank of China. From February 2008 to June 2011, Mr. Li and his customers exchanged more than 25,000 e-mails about pirated products, according to the government, which obtained a search warrant for his Gmail account.

Mr. Li used his Gmail account to orchestrate more than 500 illegal transactions with customers in at least 28 states and more than 60 foreign countries, according to court documents. Software was pirated from more than 200 manufacturers.

Mr. McAndrew said none of the pirated software obtained by the undercover agents from Mr. Li contained classified material. But Mr. McAndrew said the government could not determine whether any classified material was distributed to other buyers since it did not have access to all the pirated products that Mr. Li sold.

One of Mr. Li’s biggest customers was Cosburn Wedderburn, a NASA electronics engineer, who bought 12 cracked software programs with a retail value exceeding $1.2 million. Another was Dr. Wronald Best, chief scientist at an unidentified government contractor that provides services to the United States military and law enforcement, like radio transmissions, microwave technology and vacuum tubes used in military helicopters. Dr. Best exchanged more than 260 e-mails with Mr. Li to obtain 10 cracked software programs, with a retail value of more than $600,000, prosecutors said.

Both Mr. Wedderburn and Dr. Best pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Both are awaiting sentencing.

Starting in January 2010, undercover agents began buying pirated software from Mr. Li’s Web sites, receiving electronic files with the pirated software or hyperlinks that allowed the agents to download the software from servers in the United States.

In all, the agents paid the Lis $8,615 for the software.

For instance, in January 2010, the agents bought a pirated copy of Satellite Tool Kit 8.0, a software product from Analytical Graphics that has a retail value of more than $150,000. The software includes several functions used by the military and intelligence communities, including three-dimensional warfare simulations.

Mr. Li’s e-mails suggest he was aware of the illegality of his venture, prosecutors say. “I am not a crack production engineers (my job is to collect)(.) This is an international organization created to crack declassified document (s),” he said in a 2009 e-mail. In another he wrote, “I need to use your money to seek the help of experts to cracker master I earn 10 percent of the profits.”

One customer asked who did the cracking. “Experts crack,” Mr. Li wrote. “Chinese people. Sorry can not reveal more.”

Article source: http://www.nytimes.com/2013/01/09/business/chinese-man-pleads-guilty-in-copyright-violation-case.html?partner=rss&emc=rss

Former C.I.A. Officer Is the First to Face Prison for a Classified Leak

In his years as a C.I.A. operative, after all, Mr. Kiriakou had worked closely with F.B.I. agents overseas. Just months earlier, he had reported to the bureau a recruiting attempt by someone he believed to be an Asian spy.

“Anything for the F.B.I.,” Mr. Kiriakou replied.

Only an hour into what began as a relaxed chat with the two agents — the younger one who traded Pittsburgh Steelers talk with him and the senior investigator with the droopy eye — did he begin to realize just who was the target of their investigation.

Finally, the older agent leaned in close and said, by Mr. Kiriakou’s recollection, “In the interest of full disclosure, I should tell you that right now we’re executing a search warrant at your house and seizing your electronic devices.”

On Jan. 25, Mr. Kiriakou is scheduled to be sentenced to 30 months in prison as part of a plea deal in which he admitted violating the Intelligence Identities Protection Act by e-mailing the name of a covert C.I.A. officer to a freelance reporter, who did not publish it. The law was passed in 1982, aimed at radical publications that deliberately sought to out undercover agents, exposing their secret work and endangering their lives.

In more than six decades of fraught interaction between the agency and the news media, John Kiriakou is the first current or former C.I.A. officer to be convicted of disclosing classified information to a reporter.

Mr. Kiriakou, 48, earned numerous commendations in nearly 15 years at the C.I.A., some of which were spent undercover overseas chasing Al Qaeda and other terrorist groups. He led the team in 2002 that found Abu Zubaydah, a terrorist logistics specialist for Al Qaeda, and other militants whose capture in Pakistan was hailed as a notable victory after the Sept. 11 attacks.

He got mixed reviews at the agency, which he left in 2004 for a consulting job. Some praised his skills, first as an analyst and then as an overseas operative; others considered him a loose cannon.

Mr. Kiriakou first stumbled into the public limelight by speaking out about waterboarding on television in 2007, quickly becoming a source for national security journalists, including this reporter, who turned up in Mr. Kiriakou’s indictment last year as Journalist B. When he gave the covert officer’s name to the freelancer, he said, he was simply trying to help a writer find a potential source and had no intention or expectation that the name would ever become public. In fact, it did not surface publicly until long after Mr. Kiriakou was charged.

He is remorseful, up to a point. “I should never have provided the name,” he said on Friday in the latest of a series of interviews. “I regret doing it, and I never will do it again.”

At the same time, he argues, with the backing of some former agency colleagues, that the case — one of an unprecedented string of six prosecutions under President Obama for leaking information to the news media — was unfair and ill-advised as public policy.

His supporters are an unlikely collection of old friends, former spies, left-leaning critics of the government and conservative Christian opponents of torture. Oliver Stone sent a message of encouragement, as did several professors at Liberty University, where Mr. Kiriakou has taught. They view the case as an outrage against a man who risked his life to defend the country.

Whatever his loquaciousness with journalists, they say, he neither intended to damage national security nor did so. Some see a particular injustice in the impending imprisonment of Mr. Kiriakou, who in his first 2007 appearance on ABC News defended the agency’s resort to desperate measures but also said that he had come to believe that waterboarding was torture and should no longer be used in American interrogations.

Bruce Riedel, a retired veteran C.I.A. officer who led an Afghan war review for Mr. Obama and turned down an offer to be considered for C.I.A. director in 2009, said Mr. Kiriakou, who worked for him in the 1990s, was “an exceptionally good intelligence officer” who does not deserve to go to prison.

Article source: http://www.nytimes.com/2013/01/06/us/former-cia-officer-is-the-first-to-face-prison-for-a-classified-leak.html?partner=rss&emc=rss

Chinese Man Pleads Guilty in Copyright Violation Case

Former C.I.A. Officer Is the First to Face Prison for a Classified Leak

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