Law Enforcement

Sony BMG Settles FTC Charges Over Copy-Protected "Rootkit" CDs

Authored by Mark Hefflinger on January 30, 2007 - 1:38pm.
Washington - Major record label Sony BMG has settled Federal Trade Commission (FTC) charges that it sold CDs containing anti-piracy "rootkit" software that could open consumers' computers to attacks.

MySpace Donates Sex Offender Database to Missing Children Center

Authored by Mark Hefflinger on January 29, 2007 - 12:40pm.

Washington - News Corp.'s MySpace online social network announced on Monday that it will donate technology that allows websites to block convicted sex offenders to the National Center for Missing & Exploited Children, for use by law enforcement in investigations.

Apple CEO Jobs Questioned by Feds Over Role in Stock Option Grants

Authored by Mark Hefflinger on January 23, 2007 - 8:56am.

San Francisco - Apple CEO Steve Jobs was questioned last week by authorities from the U.S. Department of Justice and Securities and Exchange Commission about the company's admitted stock option grants that were "backdated" to make them more valuable for employees, The San Francisco Chronicle reported, citing "people familiar with the case."

U.S. Questions Investment Banks on Contacts With 'Net Gambling Firms

Authored by Mark Hefflinger on January 22, 2007 - 9:05am.

London - Following a string of arrests of online gambling company executives in the country, the U.S. Department of Justice has issued requests for information from several investment banks about their dealings with a number of gaming sites, Reuters reported, citing "banking sources."

Neteller Founders Charged With Laundering Online Gambling Proceeds

Authored by Mark Hefflinger on January 18, 2007 - 12:05pm.

New York - Two Canadian men who founded the U.K.-based online money transfer company Neteller have been arrested by U.S. authorities and charged with laundering billions of dollars in illegal online gambling proceeds.

MySpace to Block Registered Sex Offenders

Authored by Mark Hefflinger on December 5, 2006 - 2:40pm.
Los Angeles - News Corp.'s MySpace online social network announced on Tuesday that it has partnered with Sentinel Tech Holding Corp., a provider of online identity and background verification services, to block convicted sex offenders from accessing MySpace.

FBI Shuts Down Illegal Servers for NCsoft's Online Game "Lineage II"

Authored by Mark Hefflinger on November 20, 2006 - 5:53pm.
Austin, Texas - Following multiple raids in cities from California to Virginia, the FBI has shut down an illegal online game server operation for Korean developer NCsoft's "Lineage II" massively multiplayer online game.

NYPD Busts $3.3 Billion Gambling Ring That Used Website to Track Bets

Authored by Mark Hefflinger on November 16, 2006 - 2:18pm.
New York - The New York Police Department has arrested more than two dozen people and shut down a $3.3 billion illegal gambling operation that let bettors track their wagers and monitor point spreads on a secured website, the Associated Press reported.

Gizmondo Exec Takes Plea Deal; Will Serve 3 Years

Authored by Mark Hefflinger on November 8, 2006 - 1:34pm.
Los Angeles - Following last week's mistrial of a former executive at defunct handheld game maker Gizmondo, defendant Stefan Eriksson has accepted a plea agreement from prosecutors that includes three years in prison and a $5,000 fine.

Gizmondo Exec to be Retried on Car Theft Charges After Mistrial

Authored by Mark Hefflinger on November 6, 2006 - 7:39pm.
Los Angeles - A former executive at defunct handheld game maker Gizmondo, who crashed a rare Ferrari while driving 162 mph on Malibu's Pacific Coast Highway, will be retried on charges of fraud and grand theft after a jury failed to reach a decision Friday, the Associated Press reported.

Virginia Man Gets 5 Months in BitTorrent Copyright Conviction

Authored by Mark Hefflinger on October 30, 2006 - 2:49pm.
Roanoke, Va. - A Virginia man convicted of criminal copyright infringement for using the BitTorrent peer-to-peer network has been sentenced to five months in prison, another five months of house arrest, three years of probation and a $3,000 fine.

Former Gizmondo Exec Who Crashed Rare Ferrari Appears in Court

Authored by Mark Hefflinger on October 19, 2006 - 3:31pm.
Los Angeles - The Swedish former executive of defunct handheld video game maker Gizmondo, who destroyed a $1 million Ferrari in a high speed crash on Malibu's Pacific Coast Highway, appeared in court on Thursday to face charges of car theft, embezzlement and driving under the influence, Reuters reported.

Online Gambling Ban Will Hurt U.S. Advertising Market

Authored by Jay Baage on October 9, 2006 - 11:02am.
The flagship of the online gaming boom – PartyGaming - is being removed from the blue-chip FTSE100 index on Wednesday. Moreover, UK-listed gambling firm World Gaming has put its shares on hold, because the proposed US ban on internet gambling threatens to dry up a vital source of revenue for the company. The decision - effective immediately - comes after "fundamental uncertainty over [the firm's] ability to continue trading", World Gaming said. Like other gambling firms, it relies heavily on revenue from US customers.

Game Industry Lauds $9 Million Verdict Against "Mod Chip" Traffickers

Authored by Mark Hefflinger on October 5, 2006 - 3:37pm.
Washington - The Entertainment Software Association (ESA), a video game industry trade group, on Thursday applauded a recent federal court decision in California that ordered makers of "mod chips" that allow game consoles to play pirated games to pay $9 million in damages. The Sept. 11 verdict from U.S. District Court Judge Claudia Wilken said that a company called Divineo and several individuals violated the Digital Millennium Copyright Act (DMCA) by trafficking in mod chips and HDLoaders, which allow copies of games to be downloaded directly onto a game console's hard drive.

PC Lightning Damage Forces Sweden to Drop File-Sharing Charges

Authored by Mark Hefflinger on October 5, 2006 - 3:28pm.
London - Lightning damage to the PC of a Swedish politician who admitted to being an avid file-swapper and encouraged others to do the same has forced Swedish authorities to drop copyright infringement charges against him, TheRegister reported. Ivan Wenster revealed his support for file-sharing in the wake of a raid on The Pirate Bay, a popular site for downloading free media files, by Swedish authorities. After legislation outlawing illicit downloading was passed in Sweden in July 2005, Wenster turned himself into authorities, and would have faced up to two years in jail. But the freak lightning incident that burned his PC intervened. "They laughed when I told them," Wenster told Swedish site The Local. "It was my children's and wife's PC, too."

Remote XT Software Sounds Alarm, Erases Data on Stolen Mobile Phones

Authored by Mark Hefflinger on October 2, 2006 - 1:34pm.
Marlow, England - Remote XT on Monday launched its mobile phone software that emits an ear-piercing screech and instantly disables the phone if the owner reports it stolen. The U.K.-based service is aimed at consumers who carry sensitive information on their mobile phones, and is available as part of a service that includes encryption, virus protection, mobile e-mail and secure data back-up for about $18.85 per month.

Online Gambling Executives Arrested in France

Authored by Mark Hefflinger on September 19, 2006 - 6:42pm.
London - Following the lead of their U.S. counterparts, French authorities have detained two executives at an Internet gambling firm, on allegations they violated French gambling laws. The arrests of co-CEOs Manfred Bodner and Norbert Teufelberger of Austria-based BWin International Entertainment -- the parent company of gambling site Betbull -- were condemned by the company, which maintains that it accepts no business from France. "The arrest of Manfred Bodner and Norbert Teufelberger is an attempt to intimidate an entire industry," said Betbull CEO Gunter Schmid. "To the national courts, the European Courts, and the European Commission it will send the signal that it is not the general public that requires protection from abstract and unfounded threats of privately operated gaming but it is the operators that require protection from the real violation of their basic human rights from overpowering executive bodies across Europe." The illicit gambling charges against BWin executives follow the revocation of the company's betting license in Germany, and the arrest of two executives of online gambling firms by U.S. authorities.

China Destroys 13 Million Pirated Discs During 100-Day Piracy Crackdown

Authored by Mark Hefflinger on September 18, 2006 - 1:33pm.
Beijing - Chinese government authorities destroyed some 13 million pirated CDs, DVDs and software titles on Saturday as part of a 100-day crackdown on piracy, the Xinhua News Agency reported. Ten ministries and national departments are involved in the campaign, which has also shut down a total of over 8,900 shops and street vendors, 480 publishing companies and 942 illegal websites during ongoing raids that have so far targeted more than 537,000 publication markets, shops, street vendors and distribution companies. In a related story, last week six Hollywood movie studios sued two Chinese retail stores for selling pirated movies, seeking a total of about $247,000 in damages, according to U.S. News & World Report.

Justice Dept. Gets First BitTorrent-Related Piracy Conviction

Authored by Mark Hefflinger on September 18, 2006 - 1:29pm.
Washington - The U.S. Justice Department recently announced its first conviction on criminal copyright infringement charges related to the BitTorrent peer-to-peer file-sharing network. Scott R. McCausland, 24, of Erie, Pa. pleaded guilty to one count of conspiracy to commit copyright infringement and one count of criminal copyright infringement in violation of the Family Entertainment Copyright Act. McCausland admitted to his involvement with Elite Torrents, a BitTorrent tracker site that the Justice Dept. said at its prime claimed 133,000 members and hosted 2 million copies of pirated works. McCausland provided Elite Torrents with its copy of "Star Wars Episode III: Revenge of the Sith" six hours before it premiered in theaters -- a file that was downloaded more than 10,000 times in the following 24 hours. The U.S. District Court for the Western District of Pennsylvania has scheduled a sentencing hearing for Dec. 12, where McCausland will face up to five years in prison and a $250,000 fine.

Second Online Gambling Executive Arrested by U.S. Authorities

Authored by Mark Hefflinger on September 8, 2006 - 2:17pm.
New York - U.S. authorities have arrested an executive from another overseas online gambling company, this time targeting the chairman of U.K.-based Sportingbet, Peter Dicks, Reuters reported. Dicks was arrested in New York on Thursday and charged with using a computer to gamble, as part of an investigation by authorities in Louisiana.