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-   -   "Cable guy" receives five years, 180 million (!) dollar fine (http://www.ironworksforum.com/forum/showthread.php?t=75912)

Grojlach 07-02-2003 01:36 AM

<h3>$180 million at $500 a month . . .
</h3>
TAMPA -- A man who schemed to steal satellite television signals now has something much bigger than a cable bill to pay -- a whopping $180 million restitution order on which he is to make $500 monthly payments.
A full payback would take 30,000 years.
Steven R. Frazier also will serve five years in federal prison on a conspiracy charge. Frazier, 28, had pleaded guilty to a scheme to manufacture and sell devices that would decrypt satellite television signals and allow people to get premium service free.
"He will have to lead a long and healthy life," quipped Kenton V. Sands, Frazier's defense attorney.
Frazier is not actually expected to pay off the entire amount, Sands added, but the $500 payments are going to put a bite on his budget once he's out of prison.
"He'll never end up paying a million of that. That's not a realistic figure," said Tampa attorney Richard Escobar, who also represented Frazier.
U.S. District Judge James Moody ordered the restitution Wednesday, based on a formula of how much Frazier's intended victims, Direct TV and Echostar, would have lost if his scheme had succeeded. The television companies estimate they could have lost $900 million in business.
"I think that's the largest one we received," said Larry Rissler, vice president of Direct TV's Office of Signal Integrity. "We take this very seriously."
Frazier of Sacramento, Calif., was arrested in Dallas in October by FBI and U.S. Customs agents while trying to board a flight to Mexico. The programming device, called the Mikobu III, which he helped design and develop, was bound for about 5,000 customers.
Assistant U.S. Attorney Tony Peluso said Frazier was no stranger to authorities when he was arrested. In 2000, he'd testified before a grand jury regarding satellite piracy and was allowed to return to California.
Instead of mending his ways, Peluso said, Frazier set out to create a better piracy system and soon was regarded among the upper echelon of international satellite pirates.
Frazier was in the middle of trying to hack Direct TV's latest satellite card and "he came within a hairbreadth" of doing so, Peluso said.
"He deserves credit for near-genius intellect," Peluso said.
Escobar disputes that his client is the masterful pirate the government describes.
Frazier was arrested in October 2002, when Customs agents tracking his operations found computer chips and hacking gear in his luggage on a flight from Canada.
Frazier again has agreed to cooperate. Peluso said there are 50 open cases stemming from the investigation.
An estimated 3 million people illegally watch satellite television using devices that unscramble satellite TV signals. The industry estimates it loses $4 billion a year in revenue.
<h6>Source: Orlando Sentinel</h6>

So what do you think... Is 180 million dollars a "fair" fine for someone to carry to his grave for this particular violation of the law? And does anyone know if this fine will carry on to his posterity? (I *hope* not...)
And I also wonder if he will regard the $500 installment as a warning to stay within the law for good with his dealings, or actually as a burden which forces him to (re)turn to crime just to be *able* to pay for it every month (even though I'm not sure how much money he's already made out of it, and if he already had to pay that back or not); as that's *quite* some money for someone who most likely won't have a job once he gets out of prison. http://www.ironworksforum.com/ubb/no...ons/icon37.gif

Chewbacca 07-02-2003 02:03 AM

I would hate to see the sentence if he hadn't cooperated. Kind of makes makes my head spin, the notion of 30,000 years of $500 a month payments for stealing T.V. He must have hooked up a whole lot of people with free dish!

Yorick 07-02-2003 02:17 AM

I think that is a stupid and unfair punishment that will encourage him to return to crime. There is no hope for his punishment to end. Ridiculous in my opinion. Just keep it to five years jail - bad enough - and be done with it.

And before the "oh five years jail is nothing" get's paraded, how would someone here feel spending ONE year in prison? One year of your life *poof* gone. Five years would be terrible. Say aged 25 - 30 were spent in prison. That's a huge deal in my book.

That $500 per month is ludicrous. Say he get's married, in two years, has a child, three years later gets divorced and is hit with allimony payments. Say $500 per month. If he's not, his kid will suffer right?

So that's $1000 per month down. Getting up to a New York rental figure. :( ;)

Whatever, I don't agree.

Faceman 07-02-2003 04:19 AM

What I don't get is why US courts so easily agree with the fantastic numbers the victims calculate once they are big companies.
If some drunk guy for instance vandalizes my car I'd never think of sueing him

for 1.2mio.$ = the amount I would have won in high-speed chases with exactly this car (a 1989 Volkswagen Polo)

because I know (and the court knows) that there is NO way I'd have won even a single buck with this car.
But record companies can easily sue Napster for billions of dollars assuming that everybody who downloaded a song for free in a time of approx. 45 seconds would have taken 1 hour of his day to walk to the store and buy the whole album.
Same with this satellite companies. If he hadn't offered free/cheap service to all these people they would without a single exception all have bought the full price service.

WillowIX 07-02-2003 05:45 AM

Quote:

Originally posted by Yorick:
I think that is a stupid and unfair punishment that will encourage him to return to crime. There is no hope for his punishment to end. Ridiculous in my opinion. Just keep it to five years jail - bad enough - and be done with it.

And before the "oh five years jail is nothing" get's paraded, how would someone here feel spending ONE year in prison? One year of your life *poof* gone. Five years would be terrible. Say aged 25 - 30 were spent in prison. That's a huge deal in my book.

My sentiment exactly. 5 years (or more?) in prison would be enough. It's not only the jail tinme that will punish him. Getting a new job afterwards will prove difficult etc.

The figure is based on what the companies could lose if he had succeeded. So if I tried to fool my government in the same way, I would have to pay Canada's entire budget? :eek: [img]graemlins/idontagreeatall.gif[/img] OK so the comparison isn't that valid.

pritchke 07-02-2003 01:02 PM

Quote:

Originally posted by Faceman:
What I don't get is why US courts so easily agree with the fantastic numbers the victims calculate once they are big companies.
If some drunk guy for instance vandalizes my car I'd never think of sueing him

for 1.2mio.$ = the amount I would have won in high-speed chases with exactly this car (a 1989 Volkswagen Polo)

because I know (and the court knows) that there is NO way I'd have won even a single buck with this car.
But record companies can easily sue Napster for billions of dollars assuming that everybody who downloaded a song for free in a time of approx. 45 seconds would have taken 1 hour of his day to walk to the store and buy the whole album.
Same with this satellite companies. If he hadn't offered free/cheap service to all these people they would without a single exception all have bought the full price service.

I have to agree with Faceman if they are downloading from Napster they are unlikely to go to the record store and buy a full album. Same with satellite, if people getting their full service would likely only get the basic tier if they had no other alternative. What to stop piracy? Drop prices so they are reasonable to the normal consumer. If that means the high officials only make a few 100 grand as opposed to a few million per year so be it. I doubt it would affect there salaries though because more people would buy. The $150 million is crazy, 5 years should be enough.

[ 07-02-2003, 01:05 PM: Message edited by: pritchke ]

Zero Alpha 07-03-2003 07:15 PM

I still dont get what *exactly* he did that was illegal. so far as i can make out those signals are transmitted free through the air. after all i cant choose not to have their signals anywhere near me, even if i were to belive something like the signals are evil. (the electromagnetic spectrum gets everywhere, you would be supprised! these siganls even if inteded for america will still reach the rest of the planet :( ). so all he did was find a way to decrypt free signals! just because the companys didnt like it becase they were selling there own decryption, how does that warrant such a huge punishment? he should get a medal [img]smile.gif[/img]

Night Stalker 07-03-2003 08:01 PM

Unfortunatly for him it violates the Digital Millenium Copy protection Act.

Zero Alpha 07-03-2003 08:26 PM

Quote:

Originally posted by Night Stalker:
Unfortunatly for him it violates the Digital Millenium Copy protection Act.
the what? i understand there may be an act to cover this but i didnt know of one. any elaboration please ? [img]smile.gif[/img]

Grojlach 07-04-2003 07:36 AM

Quote:

Originally posted by Zero Alpha:
the what? i understand there may be an act to cover this but i didnt know of one. any elaboration please ? [img]smile.gif[/img]
DMCA
More info on the DMCA
And while we're at it, here's the Anti-DMCA site. ;)

[ 07-04-2003, 07:38 AM: Message edited by: Grojlach ]

Zero Alpha 07-04-2003 08:17 AM

Quote:

Originally posted by Grojlach:
</font><blockquote>quote:</font><hr />Originally posted by Zero Alpha:
the what? i understand there may be an act to cover this but i didnt know of one. any elaboration please ? [img]smile.gif[/img]

DMCA
More info on the DMCA
And while we're at it, here's the Anti-DMCA site. ;)
</font>[/QUOTE]so that means we have no rights to access material that is being forced into the air around us? [img]graemlins/saywhat.gif[/img] but also no rights to complain about its transmition? [img]graemlins/saywhat.gif[/img] i really dont understand :(

khazadman 07-04-2003 10:54 AM

I don't think they should have fined him that much. Maybe fifty million would have been better. :D I would have given him twenty years not five. And a million dollar fine. I think they should give out harsher sentences to people like him as well as hackers. Stop babying them.

johnny 07-04-2003 11:17 AM

He probably knew what the consequences would be, and still continued with his little scheme. He can cry all he wants, but he had it coming to him. I think the sentence is an outrage though, maybe they used him to set an example in the trend of "screw with the cablecompany, and you'll get burned".

I also think the guy could use a new lawyer, the last one didn't do a very good job. :D

HolyWarrior 07-05-2003 12:27 AM

What an asinine sentence. He's better off staying in jail. So now it becomes life in prison. What a bunch of assholes. Companies like that deserve to get ripped off.
Of course, if we had tort reform...

Sir Degrader 11-19-2004 08:56 PM

What about the 8th amendment (nor shall excessive fines imposed...), or does it not apply in this case?

Illumina Drathiran'ar 11-20-2004 12:38 AM

Holy thread necromancy, Batman!

Melusine 11-20-2004 04:53 AM

Quote:

Originally posted by Illumina Drathiran'ar:
Holy thread necromancy, Batman!
Hehe... yeah man, I was like "OMG!! Khazadman finally got his ass suspended" and I was all ready to go find the thread where it happened, when I noticed the date. Bummer. I really felt like a little action around here. ;)

Khazadman Risen 11-20-2004 09:30 AM

"Hehe... yeah man, I was like "OMG!! Khazadman finally got his ass suspended" and I was all ready to go find the thread where it happened, when I noticed the date. Bummer. I really felt like a little action around here."

I don't think it was this thread that got me suspended. I think it had something to do with US European politics.

Hey, is there any way I can get that account reactivated, Or has it been deleted already?

Grojlach 11-20-2004 09:46 AM

Well, it doesn't seem to be deleted; maybe you should send Ziroc or Memnoch a PM about it.

Melusine 11-21-2004 08:42 AM

Quote:

Originally posted by Khazadman Risen:


Hey, is there any way I can get that account reactivated, Or has it been deleted already?

It's supposed to be given back to you once the suspension period is over - but Ziroc may have forgotten if he was busy at the time. So like Groj said, best to drop him or the Genie a line and ask them if it's possible to get your old account back.

Chewbacca 11-21-2004 11:31 AM

Yah, my ass was suspended not to long ago and I sent Ziroc and Memnoch emails after my sentence ended to ask for posting priviliges restored.

Stratos 11-21-2004 12:56 PM

Is there a rational reason for this thread's resurrection?

Timber Loftis 11-21-2004 01:45 PM

I think it's too bad he didn't put Direct TV out of business -- they're assholes.


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