wessman
July 2nd, 2003, 07:46 PM
$180 Million for Piracy Conspiracy
from the arrrr-matie dept.
posted by michael on Saturday June 28, @17:00 (tv)
http://slashdot.org/article.pl?sid=03/06/28/181227
theCoder writes "According to an AP [0]story printed in the [1]Orlando Sentinel, Steven R. Frazier has been ordered to pay $180 million restitution for attempting to sell a device that would decrypt the satellite signals sent into everyone's homes. In addition to spending the next 5 years in Federal prison, Frazier will have to pay $500 a month for the next 30,000 years, though no one really expects him to live long enough to make all the payments. That value is based on estimated loses DirectTV and Echostar may have incurred had Frazier been able to sell his devices. Being ordered to pay restitution for actual damages is one thing, but paying for some made up number of future damages? Maybe if I catch someone trying to break into my car, I can sue him for the damage he would have caused if he succeeded..."
Links:
0. http://www.orlandosentinel.com/news/orl-locpayback28062803jun28,0,5719929.story?coll=orl-news-headlines
1. http://www.orlandosentinel.com/
$180 million at $500 a month...
By Vickie Chachere
The Associated Press
June 28, 2003
TAMPA -- A man who schemed to steal satellite television signals now has something much bigger than a cable bill to pay -- a whopping $180 million restitution order on which he is to make $500 monthly payments.
A full payback would take 30,000 years.
Steven R. Frazier also will serve five years in federal prison on a conspiracy charge. Frazier, 28, had pleaded guilty to a scheme to manufacture and sell devices that would decrypt satellite television signals and allow people to get premium service free.
"He will have to lead a long and healthy life," quipped Kenton V. Sands, Frazier's defense attorney.
Frazier is not actually expected to pay off the entire amount, Sands added, but the $500 payments are going to put a bite on his budget once he's out of prison.
"He'll never end up paying a million of that. That's not a realistic figure," said Tampa attorney Richard Escobar, who also represented Frazier.
U.S. District Judge James Moody ordered the restitution Wednesday, based on a formula of how much Frazier's intended victims, Direct TV and Echostar, would have lost if his scheme had succeeded. The television companies estimate they could have lost $900 million in business.
"I think that's the largest one we received," said Larry Rissler, vice president of Direct TV's Office of Signal Integrity. "We take this very seriously."
Frazier of Sacramento, Calif., was arrested in Dallas in October by FBI and U.S. Customs agents while trying to board a flight to Mexico. The programming device, called the Mikobu III, which he helped design and develop, was bound for about 5,000 customers.
Assistant U.S. Attorney Tony Peluso said Frazier was no stranger to authorities when he was arrested. In 2000, he'd testified before a grand jury regarding satellite piracy and was allowed to return to California.
Instead of mending his ways, Peluso said, Frazier set out to create a better piracy system and soon was regarded among the upper echelon of international satellite pirates.
Frazier was in the middle of trying to hack Direct TV's latest satellite card and "he came within a hairbreadth" of doing so, Peluso said.
"He deserves credit for near-genius intellect," Peluso said.
Escobar disputes that his client is the masterful pirate the government describes.
Frazier was arrested in October 2002, when Customs agents tracking his operations found computer chips and hacking gear in his luggage on a flight from Canada.
Frazier again has agreed to cooperate. Peluso said there are 50 open cases stemming from the investigation.
An estimated 3 million people illegally watch satellite television using devices that unscramble satellite TV signals. The industry estimates it loses $4 billion a year in revenue.
Copyright © 2003, Orlando Sentinel
from the arrrr-matie dept.
posted by michael on Saturday June 28, @17:00 (tv)
http://slashdot.org/article.pl?sid=03/06/28/181227
theCoder writes "According to an AP [0]story printed in the [1]Orlando Sentinel, Steven R. Frazier has been ordered to pay $180 million restitution for attempting to sell a device that would decrypt the satellite signals sent into everyone's homes. In addition to spending the next 5 years in Federal prison, Frazier will have to pay $500 a month for the next 30,000 years, though no one really expects him to live long enough to make all the payments. That value is based on estimated loses DirectTV and Echostar may have incurred had Frazier been able to sell his devices. Being ordered to pay restitution for actual damages is one thing, but paying for some made up number of future damages? Maybe if I catch someone trying to break into my car, I can sue him for the damage he would have caused if he succeeded..."
Links:
0. http://www.orlandosentinel.com/news/orl-locpayback28062803jun28,0,5719929.story?coll=orl-news-headlines
1. http://www.orlandosentinel.com/
$180 million at $500 a month...
By Vickie Chachere
The Associated Press
June 28, 2003
TAMPA -- A man who schemed to steal satellite television signals now has something much bigger than a cable bill to pay -- a whopping $180 million restitution order on which he is to make $500 monthly payments.
A full payback would take 30,000 years.
Steven R. Frazier also will serve five years in federal prison on a conspiracy charge. Frazier, 28, had pleaded guilty to a scheme to manufacture and sell devices that would decrypt satellite television signals and allow people to get premium service free.
"He will have to lead a long and healthy life," quipped Kenton V. Sands, Frazier's defense attorney.
Frazier is not actually expected to pay off the entire amount, Sands added, but the $500 payments are going to put a bite on his budget once he's out of prison.
"He'll never end up paying a million of that. That's not a realistic figure," said Tampa attorney Richard Escobar, who also represented Frazier.
U.S. District Judge James Moody ordered the restitution Wednesday, based on a formula of how much Frazier's intended victims, Direct TV and Echostar, would have lost if his scheme had succeeded. The television companies estimate they could have lost $900 million in business.
"I think that's the largest one we received," said Larry Rissler, vice president of Direct TV's Office of Signal Integrity. "We take this very seriously."
Frazier of Sacramento, Calif., was arrested in Dallas in October by FBI and U.S. Customs agents while trying to board a flight to Mexico. The programming device, called the Mikobu III, which he helped design and develop, was bound for about 5,000 customers.
Assistant U.S. Attorney Tony Peluso said Frazier was no stranger to authorities when he was arrested. In 2000, he'd testified before a grand jury regarding satellite piracy and was allowed to return to California.
Instead of mending his ways, Peluso said, Frazier set out to create a better piracy system and soon was regarded among the upper echelon of international satellite pirates.
Frazier was in the middle of trying to hack Direct TV's latest satellite card and "he came within a hairbreadth" of doing so, Peluso said.
"He deserves credit for near-genius intellect," Peluso said.
Escobar disputes that his client is the masterful pirate the government describes.
Frazier was arrested in October 2002, when Customs agents tracking his operations found computer chips and hacking gear in his luggage on a flight from Canada.
Frazier again has agreed to cooperate. Peluso said there are 50 open cases stemming from the investigation.
An estimated 3 million people illegally watch satellite television using devices that unscramble satellite TV signals. The industry estimates it loses $4 billion a year in revenue.
Copyright © 2003, Orlando Sentinel