Feds charge 17 with stealing satellite TV signals

[John Corn]

LOS ANGELES, Feb 11 (Reuters) - Seventeen people allegedly involved in the theft of satellite TV signals, causing millions of dollars in losses for satellite broadcasters, have been arrested after a year-long undercover FBI investigation, prosecutors said on Tuesday.

Six of those nabbed as part of the FBI's nationwide "Operation Decrypt" were accused of violating the Digital Millennium Copyright Act, marking only the second grand jury indictment under that statute, prosecutors said.

"This case demonstrates our commitment to identifying and prosecuting sophisticated computer hackers who steal the intellectual property of others for their own economic benefit," Debra Yang, U.S. attorney for the central district of California, said in a statement.

"No matter how sophisticated the criminals are we will uncover the devices they create and the strategies they use to steal the lifeblood of the business community," Yang said.

One defendant, 43-year-old Randyl Walter of Los Angeles, has pleaded guilty to manufacturing satellite signal decryption devices and has admitted causing nearly $15 million in economic damage, U.S. Attorney's spokesman Thom Mrozek said.

Nine more defendants have agreed to plead guilty, he said.

Mrozek said Operation Decrypt had exposed a murky world of sophisticated computer hackers who used secret chat rooms to exchange methods of circumventing the security systems of services such as DirecTV and DISH Network of EchoStar Communications Corp. (nasdaq: DISH - news - people), based in Littleton, Colorado.

Rest of the story (http://www.forbes.com/newswire/2003/02/11/rtr877033.html)

[DarrellP]

theft of satellite TV signals, causing millions of dollars in losses for satellite broadcasters
This is BS. I agree they are wrong in pirating signals, but to say they have lost million$ is bogus. How many of these "pirates" would legitimately pay for the service if they couldn't get it for free? Same goes for Micro$oftware and CD's.

[Cyclone]

It its if you add up all of the PPV stations being access simutaniously. (40 PPV channels at $2/hr * 24hrs * 365 days * 2 years) would be $1,401,600. Thats just for stolen PPV channels after two years. Throw in the movie channels, Pr0n channels, Special events, Regular Monthly rates and everything else that a Satellite company charges for (not to mention uncollected taxes) and this is over a million for a single account.

Now Mulitply that by a several dozen or hundred and the millions of dollars grows even more.

Don't forget, even if you can't watch 40 PPV channels at once, doesn't mean you can't steal 40 PPV channels at once. Even if you are out of the house, you are still stealing the signal being sent.

Lock em up boys!

[ramcm7]

The defendants vowed to boycott all GM products during their incarceration, insisting they had the opportunity to use the smart card programmers to something other than pirating satellite cards, despite the other evidence compiled against them.
:angel:

[raj2001]

Originally posted by DarrellP

This is BS. I agree they are wrong in pirating signals, but to say they have lost million$ is bogus. How many of these "pirates" would legitimately pay for the service if they couldn't get it for free? Same goes for Micro$oftware and CD's.

While that's true, I still want to see those who steal get caught, even though they won't become legit subscribers. Stealing is stealing.

[Mike123abc]

I do not think it was theft they were doing for themselves, but they were selling devices to other people that would allow the other people to recieve DBS for free. Pirates make $$ by selling hack devices and cards to the average american. Sell a few thousand hack kits and you could cause millions in damage.

[MarkB49]

I think D* has treated me pretty good this year!
I paid a total of 603 & change for 2 rec.T choice plus.
3 Free PPV
3 M Free HBO & Cax
MLB Free view 1 week or wk/end can't remember.
2 Starz freeview's
1 weekend Total choice premier
2 weekend nba pass
1 weekend sports package
1 weekend showtime & Tmc.

I may have missed 1 or 2 the point is your rewarded a little for being HONEST !!

Mark

[waydwolf]

Originally posted by DarrellP

This is BS. I agree they are wrong in pirating signals, but to say they have lost million$ is bogus. How many of these "pirates" would legitimately pay for the service if they couldn't get it for free? Same goes for Micro$oftware and CD's.

    I would never ever be caught driving much less buying a Yugo but if I drove off with one that didn't belong to me, it would still be theft and they would still have taken a loss. Tangible or intangible, it doesn't matter.

    Put another way, the work you do is not exactly always tangible, so does that mean your boss should be able to compel it for free?

    The fact is that most of the pirates would have paid and claiming otherwise is a non-issue and a lie on top of it, and the pirates' usual useless excuse. There are people living solely on welfare who have digital cable with all the pay channels. Most of those engaging in piracy are gainfully employed, can easily afford the services legally, and are not stupid but technically adept.

    Those who cater to them by running the piracy rings have even less than useless excuses.

     Don't feel sorry for them. I work both satellite and cable and in every single city I've worked, I've noted the shadow cadre of pirates ready to install service illegally, seen their work in cable lockboxes they've gotten into, and seen pirate cards and unloopers sitting out in the open at second receiver upgrades in DBS. They encourage people who would never think of stealing fruit from a stand to engage in a major felony and encourage them to think they have a right to it.

[Richard King]

How many of these "pirates" would legitimately pay for the service if they couldn't get it for free? This is the same crap answer that has been used for years to "justify" their theft. "I wouldn't be buying the service anyway, so why should I pay for it." The vast majority of these thieves would be buying some kind of video service, be it satellite or cable if they were not the thieves that they are. Additionally, the above crap explanation doesn't cover the cost of the receivers which are heavily subsidized by the program provider, the cost of which is never recouped by the provider.