http://ca.reuters.com/article/technologyNews/idCABREA261M320140307

NEW YORK (Reuters) - A New York businessman must face criminal fraud charges for trying to claim a billion-dollar stake in social media company Facebook Inc, a federal judge ruled on Friday.

Paul Ceglia, 40, is accused of forging a 2003 contract with Facebook CEO Mark Zuckerberg that supposedly entitled him to part ownership of the company.

After an hour-long hearing in New York, U.S. District Judge Andrew Carter rejected Ceglia's request to throw out the charges, finding he had failed to meet the "high standard" needed to dismiss a grand jury indictment.

Ceglia sued Zuckerberg and Facebook in 2010 in a federal court in Buffalo, New York, claiming that he and Zuckerberg had signed a contract while Zuckerberg was a freshman at Harvard University for Ceglia to invest $1,000 in a planned social networking website.

Zuckerberg had previously done some programming work for Ceglia's company, StreetFax.com. Facebook has argued that the only contract between the two men was related to that company and accused Ceglia of faking various documents as part of his lawsuit.

Last year, a magistrate judge in Buffalo recommended that Ceglia's lawsuit be dismissed, finding that it was "highly probable and reasonably certain" that the contract was fabricated in order to pursue the lawsuit. The federal judge overseeing the case has not yet ruled on that recommendation.

Prosecutors in New York charged Ceglia in 2012, accusing him of forging documents as part of the Buffalo litigation.

Ceglia has since filed a separate lawsuit against Manhattan U.S. Attorney Preet Bharara, whose office is prosecuting Ceglia, and U.S. Attorney General Eric Holder seeking to halt the criminal case.

On Friday, Ceglia's defense attorney, David Patton, argued that the government should be barred from prosecuting him for allegations he made in the context of a civil lawsuit, warning that it could discourage litigants from filing claims.

He also said the government's allegations do not constitute criminal fraud under federal law.

"They're alleging that it's simply a phony, sham litigation," he said. "That's not fraud."

Carter said the indictment was sufficient to move ahead, though he said he would consider Patton's arguments at a later date if the case goes to trial.

Following the hearing, Ceglia vowed to press forward with his claims against Facebook, while his civil attorney, Joseph Alioto, said they would prove the Zuckerberg contract is legitimate.

"Nothing is going to stop me," Ceglia said.

Ceglia's lawsuit created a bizarre backdrop as Facebook marched toward its initial public offering in May 2013. Facebook's origins were also the subject of a separate legal challenge by Zuckerberg's Harvard classmates, twins Cameron and Tyler Winklevoss, that was chronicled in the 2010 film, "The Social Network."

The criminal case is U.S. v. Ceglia, U.S. District Court, Southern District of New York, No 12-cr-00876. The lawsuit against Bharara and Holder is Ceglia v. Holder et al in the same court, No. 13-00256. The civil case is Ceglia v. Zuckerberg et al, U.S. District Court, Western District of New York, No. 10-00569.

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Jailed Anonymous hacker Jeremy Hammond: 'My days of hacking are done'

Source:
https://medium.com/p/7e15d7e16cb7

Jeremy Hammond, the Anonymous hacktivist who released millions of emails relating to the private intelligence firm Stratfor, has denounced his prosecution and lengthy prison sentence as a "vengeful, spiteful act" designed to put a chill on politically-motivated hacking.

Hammond was sentenced on Friday at federal court in Manhattan to the maximum 10 years in jail, plus three years supervised release. He had pleaded guilty to one count under the Computer Fraud and Abuse Act (CFAA) flowing from his 2011 hack of Strategic Forecasting, Inc, known as Stratfor. In an interview with the Guardian in the Metropolitan Correction Center in New York, conducted on Thursday, he said he was resigned to a long prison term which he sees as a conscious attempt by the US authorities to put a chill on political hacking.

He had no doubt that his sentence would be long, describing it as a "vengeful, spiteful act". He said of his prosecutors: "They have made it clear they are trying to send a message to others who come after me. A lot of it is because they got slapped around, they were embarrassed by Anonymous and they feel that they need to save face."

Most pointedly, Hammond suggested that the FBI may have manipulated him to carry out hacking attacks on "dozens" of foreign government websites. During his time with Anonymous, the loose collective of hackers working alongside WikiLeaks and other anti-secrecy groups, he was often directed by a individual known pseudonomously on the web as "Sabu", the leader of the Anonymous-affiliated group Lulzsec, who turned out to be an FBI informant.

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http://abneyandassociateshuffmanada.tumblr.com/post/54140093594/abney-and-associates-eavesdropping-on-the-planet

The above is the title of an essay that I wrote in 2000 that appeared as a chapter in my book Rogue State: A Guide to the World's Only Superpower. Here are some excerpts that may help to put the current revelations surrounding Edward Snowden into perspective …

Can people in the 21st century imagine a greater invasion of privacy on all of earth, in all of history? If so, they merely have to wait for technology to catch up with their imagination.

Like a mammoth vacuum cleaner in the sky, the National Security Agency (NSA) sucks it all up: home phone, office phone, cellular phone, email, fax, telex … satellite transmissions, fiber-optic communications traffic, microwave links … voice, text, images … captured by satellites continuously orbiting the earth, then processed by high-powered computers … if it runs on electromagnetic energy, NSA is there, with high high tech. Twenty-four hours a day. Perhaps billions of messages sucked up each day. No one escapes. Not presidents, prime ministers, the UN Secretary-General, the pope, the Queen of England, embassies, transnational corporation CEOs, friend, foe, your Aunt Lena … if God has a phone, it's being monitored … maybe your dog isn't being tapped. The oceans will not protect you. American submarines have been attaching tapping pods to deep underwater cables for decades.

Under a system codenamed ECHELON, launched in the 1970s, the NSA and its junior partners in Britain, Australia, New Zealand, and Canada operate a network of massive, highly automated interception stations, covering the globe amongst them. Any of the partners can ask any of the others to intercept its own domestic communications. It can then truthfully say it does not spy on its own citizens.

Apart from specifically-targeted individuals and institutions, the ECHELON system works by indiscriminately intercepting huge quantities of communications and using computers to identify and extract messages of interest from the mass of unwanted ones. Every intercepted message - all the embassy cables, the business deals, the sex talk, the birthday greetings - is searched for keywords, which could be anything the searchers think might be of interest. All it takes to flag a communication is for one of the parties to use a couple or so of the key words in the ECHELON "dictionary" - "He lives in a lovely old white house on Bush Street, right near me. I can shoot over there in two minutes." Within limitations, computers can "listen" to telephone calls and recognize when keywords are spoken. Those calls are extracted and recorded separately, to be listened to in full by humans. The list of specific targets at any given time is undoubtedly wide ranging, at one point including the likes of Amnesty International and Christian Aid.

ECHELON is carried out without official acknowledgment of its existence, let alone any democratic oversight or public or legislative debate as to whether it serves a decent purpose. The extensiveness of the ECHELON global network is a product of decades of intense Cold War activity. Yet with the end of the Cold War, its budget - far from being greatly reduced - was increased, and the network has grown in both power and reach; yet another piece of evidence that the Cold War was not a battle against something called "the international communist conspiracy".

The European Parliament in the late 1990s began to wake up to this intrusion into the continent's affairs. The parliament's Civil Liberties Committee commissioned a report, which appeared in 1998 and recommended a variety of measures for dealing with the increasing power of the technologies of surveillance. It bluntly advised: "The European Parliament should reject proposals from the United States for making private messages via the global communications network [Internet] accessible to US intelligence agencies." The report denounced Britain's role as a double-agent, spying on its own European partners.

Despite these concerns the US has continued to expand ECHELON surveillance in Europe, partly because of heightened interest in commercial espionage - to uncover industrial information that would provide American corporations with an advantage over foreign rivals.

German security experts discovered several years ago that ECHELON was engaged in heavy commercial spying in Europe. Victims included such German firms as the wind generator manufacturer Enercon. In 1998, Enercon developed what it thought was a secret invention, enabling it to generate electricity from wind power at a far cheaper rate than before. However, when the company tried to market its invention in the United States, it was confronted by its American rival, Kenetech, which announced that it had already patented a near-identical development. Kenetech then brought a court order against Enercon to ban the sale of its equipment in the US. In a rare public disclosure, an NSA employee, who refused to be named, agreed to appear in silhouette on German television to reveal how he had stolen Enercon's secrets by tapping the telephone and computer link lines that ran between Enercon's research laboratory and its production unit some 12 miles away. Detailed plans of the company's invention were then passed on to Kenetech.

In 1994, Thomson S.A., located in Paris, and Airbus Industrie, based in Blagnac Cedex, France, also lost lucrative contracts, snatched away by American rivals aided by information covertly collected by NSA and CIA. The same agencies also eavesdropped on Japanese representatives during negotiations with the United States in 1995 over auto parts trade.

German industry has complained that it is in a particularly vulnerable position because the government forbids its security services from conducting similar industrial espionage. "German politicians still support the rather naive idea that political allies should not spy on each other's businesses. The Americans and the British do not have such illusions," said journalist Udo Ulfkotte, a specialist in European industrial espionage, in 1999.

That same year, Germany demanded that the United States recall three CIA operatives for their activities in Germany involving economic espionage. The news report stated that the Germans "have long been suspicious of the eavesdropping capabilities of the enormous U.S. radar and communications complex at Bad Aibling, near Munich", which is in fact an NSA intercept station. "The Americans tell us it is used solely to monitor communications by potential enemies, but how can we be entirely sure that they are not picking up pieces of information that we think should remain completely secret?" asked a senior German official. Japanese officials most likely have been told a similar story by Washington about the more than a dozen signals intelligence bases which Japan has allowed to be located on its territory.

In their quest to gain access to more and more private information, the NSA, the FBI, and other components of the US national security establishment have been engaged for years in a campaign to require American telecommunications manufacturers and carriers to design their equipment and networks to optimize the authorities' wiretapping ability. Some industry insiders say they believe that some US machines approved for export contain NSA "back doors" (also called "trap doors").

The United States has been trying to persuade European Union countries as well to allow it "back-door" access to encryption programs, claiming that this was to serve the needs of law-enforcement agencies. However, a report released by the European Parliament in May 1999 asserted that Washington's plans for controlling encryption software in Europe had nothing to do with law enforcement and everything to do with US industrial espionage. The NSA has also dispatched FBI agents on break-in missions to snatch code books from foreign facilities in the United States, and CIA officers to recruit foreign communications clerks abroad and buy their code secrets, according to veteran intelligence officials.

For decades, beginning in the 1950s, the Swiss company Crypto AG sold the world's most sophisticated and secure encryption technology. The firm staked its reputation and the security concerns of its clients on its neutrality in the Cold War or any other war. The purchasing nations, some 120 of them - including prime US intelligence targets such as Iran, Iraq, Libya and Yugoslavia - confident that their communications were protected, sent messages from their capitals to their embassies, military missions, trade offices, and espionage dens around the world, via telex, radio, and fax. And all the while, because of a secret agreement between the company and NSA, these governments might as well have been hand delivering the messages to Washington, uncoded. For their Crypto AG machines had been rigged before being sold to them, so that when they used them the random encryption key could be automatically and clandestinely transmitted along with the enciphered message. NSA analysts could read the messages as easily as they could the morning newspaper.

In 1986, because of US public statements concerning the La Belle disco bombing in West Berlin, the Libyans began to suspect that something was rotten with Crypto AG's machines and switched to another Swiss firm, Gretag Data Systems AG. But it appears that NSA had that base covered as well. In 1992, after a series of suspicious circumstances over the previous few years, Iran came to a conclusion similar to Libya's, and arrested a Crypto AG employee who was in Iran on a business trip. He was eventually ransomed, but the incident became well known and the scam began to unravel in earnest.

In September 1999 it was revealed that NSA had arranged with Microsoft to insert special "keys" into Windows software, in all versions from 95-OSR2 onwards. An American computer scientist, Andrew Fernandez of Cryptonym in North Carolina, had disassembled parts of the Windows instruction code and found the smoking gun - Microsoft's developers had failed to remove the debugging symbols used to test this software before they released it. Inside the code were the labels for two keys. One was called "KEY". The other was called "NSAKEY". Fernandez presented his finding at a conference at which some Windows developers were also in attendance. The developers did not deny that the NSA key was built into their software, but they refused to talk about what the key did, or why it had been put there without users' knowledge. Fernandez says that NSA's "back door" in the world's most commonly used operating system makes it "orders of magnitude easier for the US government to access your computer."

In February 2000, it was disclosed that the Strategic Affairs Delegation (DAS), the intelligence arm of the French Defense Ministry, had prepared a report in 1999 which also asserted that NSA had helped to install secret programs in Microsoft software. According to the DAS report, "it would seem that the creation of Microsoft was largely supported, not least financially, by the NSA, and that IBM was made to accept the [Microsoft] MS-DOS operating system by the same administration." The report stated that there had been a "strong suspicion of a lack of security fed by insistent rumors about the existence of spy programs on Microsoft, and by the presence of NSA personnel in Bill Gates' development teams." The Pentagon, said the report, was Microsoft's biggest client in the world.

Recent years have seen disclosures that in the countdown to their invasion of Iraq in 2003, the United States had listened in on UN Secretary-General Kofi Annan, UN weapons inspectors in Iraq, and all the members of the UN Security Council during a period when they were deliberating about what action to take in Iraq.

It's as if the American national security establishment feels that it has an inalienable right to listen in; as if there had been a constitutional amendment, applicable to the entire world, stating that "Congress shall make no law abridging the freedom of the government to intercept the personal communications of anyone." And the Fourth Amendment had been changed to read: "Persons shall be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, except in cases of national security, real or alleged."