For Immediate Release

AUGUST 9, 1999

KEVIN MITNICK SENTENCED TO NEARLY FOUR YEARS IN PRISON;
COMPUTER HACKER ORDERED TO PAY RESTITUTION
TO VICTIM COMPANIES WHOSE SYSTEMS WERE COMPROMISED

Kevin Mitnick, who pleaded guilty to a series of federal offenses related to a 2½-year computer hacking spree, was sentenced today to 46 months in federal prison, United States Attorney Alejandro N. Mayorkas announced.

 Mitnick, 37, pleaded guilty in March to four counts of wire fraud, two counts of computer fraud and one count of illegally intercepting a wire communication. Mitnick's prolific and damaging hacking career, which made him the most wanted computer criminal in United States history, was ended when he was arrested in North Carolina in February 1995.

 In a global plea agreement filed in United States District Court in Los Angeles, Mitnick admitted that he broke into a number of computer systems and stole proprietary software belonging to Motorola, Novell, Fujitsu, Sun Microsystems and other companies. Mitnick admitted using a number of tools to commit his crimes, including "social engineering," cloned cellular telephones, "sniffer" programs placed on victims' computer systems and hacker software programs.

 As part of his scheme, Mitnick acknowledged altering computer systems belonging to the University of Southern California and using these computers to store programs that he had misappropriated. He also admitted that he stole E-mails, monitored computer systems and impersonated employees of victim companies, including Nokia Mobile Phones, Ltd., in his attempt to secure software that was being developed by those companies.

 "Our vigorous prosecution of Kevin Mitnick sends a message to anyone else who believes that the new technological frontier can be abused for criminal purposes," said United States Attorney Mayorkas. "We will track you down, electronically or by any other means, prosecute you and put you in prison."

 Mitnick was sentenced today by United States District Senior Judge Mariana R. Pfaelzer. The 46-month term was agreed to by Mitnick and the United States Attorney's Office. Mitnick was previously sentenced by Judge Pfaelzer to an additional 22 months in prison, this for possessing cloned cellular phones when he was arrested in North Carolina in 1995 and for violating terms of his supervised release imposed after being convicted of an unrelated computer fraud in 1989. He admitted to violating the terms of supervised release by hacking into PacBell voicemail and other systems and to associating with known computer hackers, in this case codefendant Louis De Payne.

 Although the many victims of Mitnick's conduct suffered millions of dollars in damages resulted from lost licensing fees, marketing delays, lost research and development, and repairs made to compromised computer systems, Judge Pfaelzer ordered Mitnick to pay only totalling just over $4,125. Judge Pfaelzer said she was issuing this nominal restitution order based on the Court's determination that the defendant would have limited earnings in the future. Judge Pfaelzer rejected Mitnick's claim that he should not be ordered to pay any restitution, as well as his claim that the government overstated losses suffered by his victims. Additionally, pursuant to the plea agreement with the government, Mitnick has agreed that any profits he makes on films or books that are based on his criminal activity will be assigned to the victims of his crimes for a period of seven years following his release from prison.

 Once he is released from prison, Mitnick will be on supervised release for three years, during which time his access to computers and his employment in the computer industry will be severely restricted.

 Lewis De Payne, 39, who was charged along with Mitnick in the scheme to obtain proprietary software, pleaded guilty earlier this year to a federal wire fraud count for attempting to obtain software from a cellular phone company. By pleading guilty, DePayne acknowledged that he and Mitnick participated in a scheme to defraud Nokia Mobile Phones, Ltd. De Payne specifically admitted that he posed as a Nokia employee and attempted to convince Nokia personnel in Florida to ship a computer program worth approximately $240,000 to Southern California.

 De Payne is currently scheduled to be sentenced by Judge Pfaelzer on September 13. The government has agreed to recommend a sentence of five years of probation, which will include a six-month period of confinement in either a community corrections center or home detention and 225 hours of community service. The agreement to recommend probation is contingent upon De Payne's promise to cooperate with investigators and by any company victimized by him or Mitnick.

 The sentencing today brings to a close an investigation that started in 1992 when Mitnick, then a fugitive, commenced an unprecedented series of computer intrusions and electronic thefts from technology companies throughout the United States and the world. His combined sentence of 68 months incarceration is the longest sentence given to any computer hacker. If Mitnick violates the terms of his supervised release after he is released from prison, he could be sent back to prison for additional time.

 This case is the result of an investigation by the Federal Bureau of Investigation.

 CONTACT:  Assistant United States Attorney Christopher M.E. Painter, (213) 894-0358
                     Assistant United States Attorney David J. Schindler, (213) 894-0336
 
 

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