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- ------------------------------
-
- From: Gene Spafford <spaf@CS.PURDUE.EDU>
- Subject: Northern District (Ill.) Press Release on Len Rose
- Date: Fri, 29 Mar 91 19:10:13 EST
-
- ********************************************************************
- *** CuD #3.11: File 4 of 5: Chicago Press Release on Len Rose ***
- ********************************************************************
-
- Information Release
- US Department of Justice
- United States Attorney
- Northern District of Illinois
-
- March 22, 1991
-
- FRED FOREMAN, United States Attorney for the Northern District of
- Illinois, together with TIMOTHY J. McCARTHY, Special Agent In Charge
- of the United States Secret Service in Chicago, today announced the
- guilty plea of LEONARD ROSE, 32, 7018 Willowtree Drive, Middletown,
- Maryland to felony charges brought against him in Chicago and in
- Baltimore involving Rose trafficing with others in misappropriated
- AT&T computer programs and computer access programs between May 1988
- and February 1, 1990. Under the terms of plea agreements submitted to
- the United States District Court in Maryland, Rose will serve an
- agreed, concurrent one year prison term for his role in each of the
- fraud schemes charged.
-
- In pleading guilty to the Baltimore charges, Rose admitted that on
- October 5, 1989, he knowingly received misappropriated source code(1)
- for the AT&T UNIX computer operating system from a former AT&T technical
- contractor. The UNIX operating system is a series of computer programs
- used on a computer which act as an interface or intermediary between a
- user and the computer system itself. The UNIX operating system, which is
- licensed by AT&T at $77,000 per license, provides certain services to
- the computer user, such as the login program which is designed to
- restrict access to a computer system to authorized users. The login
- program is licensed by AT&T at $27,000 per license.
-
- In pleading guilty to the Chicago charges, Rose admitted that, after
- receiving the AT&T source code, he modified the source code governing
- the computer's login program by inserting a secret set of instructions
- commonly known as a "trojan horse." This inserted program would cause
- the computer on which the source code was installed to perform
- functions the program's author did not intend, while still executing
- the original program so that the new instructions would not be detected.
- The "trojan horse" program that Rose inserted into the computer
- program enabled a person with "system administrator" privileges to
- secretly capture the passwords and login information of authorized
- computer users on AT&T computers and store them in a hidden file. These
- captured logins and passwords could later be recovered from this
- hidden file and used to access and use authorized users' accounts
- without their knowledge. The program did not record unsuccessful login
- attempts.
-
- In connection with the Chicago charge, Rose admitted that on January
- 7, 1990, he transmitted his modified AT&T UNIX login program containing
- the trojan horse from Middletown, Maryland to a computer operator in
- Lockport, Illinois, and a student account at the University of
- Missouri, Columbia Campus.
-
- In pleading guilty to the Chicago charges, Rose acknowledged that when
- he distributed his trojan horse program to others he inserted several
- warnings so that the potential users would be alerted to the fact that
- they were in posession of proprietary AT&T information. In the text of
- the program Rose advised that the source code originally came from
- AT&T "so it's definitely not something you wish to get caught with."
- and "Warning: This is AT&T proprietary source code. DO NOT get caught
- with it." The text of the trojan horse program also stated:
- Hacked by Terminus to enable stealing passwords.
- This is obviously not a tool to be used for initial
- system penetration, but instead will allow you to
- collect passwords and accounts once it's been
- installed. (I)deal for situations where you have a
- one-shot opportunity for super user privileges..
- This source code is not public domain..(so don't get
- caught with it).
- Rose admitted that "Terminus" was a name used by him in
- communications with other computer users.
-
- In addition to these warnings, the text of Rose's trojan horse program
- also retained the original warnings installed in the program by AT&T:
- Copyright (c) 1984 AT&T
- All rights reserved
- THIS IS UNPUBLISHED PROPRIETARY
- SOURCE CODE OF AT&T
-
- This copyright notice above does
- not evidence any actual or intended
- publication of the source code.
-
- Inspection of this modified AT&T UNlX login source code by AT&T's UNIX
- licensing group revealed that the modified source code was in fact a
- "derivative work" based upon the standard UNIX login source code, which
- was regarded by AT&T as proprietary information and a trade secret of
- AT&T, which was not available in public domain software.
-
- In pleading guilty to the federal charges in Chicago and Baltimore, Rose
- also acknowledged that, after being charged with computer fraud and
- theft in federal court in Baltimore, he became employed at Interactive
- Systems Inc. in Lisle, Illinois. He acknowledged that his former
- employers at Interactive would testify that he was not authorized by
- them to obtain copies of their AT&T source code which was licensed to
- them by AT&T. Rose further admitted that John Hickey, a Member of
- Technical Staff with AT&T Bell Laboratories in Lisle, Illinois,
- correctly determined that Rose had downloaded copies of AT&T source code
- programs from the computer of Interactive to Rose's home computers in
- Naperville. The computers were examined after they were seized by the
- Naperville Police Department, executing a State search warrant,
-
- As part of the plea agreement charges filed by the DuPage County State's
- Attorney's Office will be dismissed without prejudice to refiling. The
- forfeited UNIX computer seized will be retained by the Naperville Police
- Department.
-
- Commenting on the importance of the Chicago and Baltimore cases, Mr.
- Foreman noted that the UNIX computer operating system, which is involved
- in this investigation, is used to support international, national, and
- local telephone systems. Mr. Foreman stated, "The traffic which flows
- through these systems is vital to the national health and welfare.
- People who invade our telecommunications and related computer systems
- for profit or personal amusement create immediate and serious
- consequences for the public at large. The law enforcement community and
- telecommunications industry are attentive to these crimes, and those who
- choose to use their intelligence and talent in an attempt to disrupt
- these vital networks will find themselves vigorously prosecuted."
-
- Mr. Foreman also stated that the criminal information filed in Chicago
- and a companion information in Baltimore are the initial results of a
- year long investigation by agents of the United States Secret Service in
- Chicago, Maryland, and Texas. Mr. Foreman praised the cooperation of the
- DuPage County State's Attorney's Office and the Naperville Police
- Department in the investigation. He also acknowledged AT&T's technical
- assistance to the United States Secret Service in analyzing the computer
- data seized pursuant to search warrants in Chicago, Baltimore and
- Austin, Texas.
-
- TIMOTHY J. McCARTHY, Special Agent ln Charge of the United States Secret
- Service in Chicago, noted that Rose's conviction is the latest result of
- the continuing investigation of the computer hacker organization, the
- "Legion of Doom." This investigation being conducted by the United
- States Secret Service in Chicago, Atlanta, New York and Texas, and has
- resulted in convictions of six other defendants for computer related
- crimes.
-
- Assistant United States Attorney William J. Cook, who heads the Computer
- Fraud and Abuse Task Force, and Assistant United States Attorneys
- Colleen D. Coughlin and David Glockner supervised the Secret Service
- investigation in Chicago.
-
- ----------
- (1) The UNIX operating system utility programs are written initially
- in a format referred to as "source code," a high-level computer
- language which frequently uses English letters and symbols for
- constructing computer programs. The source code was translated, using
- another program known as a compiler, into another form of program
- which a computer can rapidly read and execute, referred to as the
- "object code."
-
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