Feds Charge 10 More in Warez Wars


Federal authorities continued their national crackdown on warez dealers this
week, charging 10 more individuals with violating the No Electronic Theft
Act (NET Act).


The law enforcement campaign is targeted at the “first providers” of pirated
online movies, software music and games. The networks operate as the
original sources for the majority of pirated works distributed and
downloaded on the Internet.


In addition to filtering down to P2P networks, warez groups often are the
primary source for the for-profit criminal distribution networks of DVDs and
CDs since the digital files can be easily converted to optical disks.


The maximum sentence for violating the NET Act is three years in prison and
two years of supervised release. A maximum fine of $250,000 applies to each
offense, and a mandatory special assessment of $100 applies for each
conviction.


Wednesday’s indictments stem from federal raids
conducted last June. The strike resulted in the dismantling of at least
eight major online distribution networks.


The Department of Justice (DoJ) claims the raids seized pirated works worth
$50 million.


Indictments were issued to Matthew Fong, 19, of Miami, Fla.; Matthew
Thompson, 22, Lubbock, Tex.; David Siloac, 27, Clinton Township, Mich.; Eric
Rolf, 22, Columbia, Missouri; and Phillip Templeton, 24, Kingsport, Tenn.


Also indicted were Ali Ghana, 28, of Irvine, Calif.; Jose Soler, 30,
Elmhurst, N.Y.; Donovan Kargenian, 31, El Cajon, Calif.; and Gregory
Dickman, 25, Wilmington, N.C.


In addition to violations of the NET Act, Fong was also charged with two
counts of criminal copyright infringement by distributing a copyrighted work
on a computer network, and aiding and abetting that conduct.


According to the DoJ, the two charges are based on the Family Entertainment
and Copyright Act, which was signed into law last April. Fong faces a
maximum penalty of five years in prison and three years of supervised
release.


The law prohibits the infringement of a work being prepared for commercial
distribution by making it available on a computer network accessible to
members of the public, where the individual knew or should have known the
work was intended for commercial distribution.


The indictment also contains forfeiture allegations to forfeit computer and
other equipment used to violate the criminal copyright laws.


The ten defendants will be arraigned on the indictment on Feb. 22 before
U.S. Magistrate Judge Richard Seeborg in San Jose, Calif.

Get the Free Newsletter!

Subscribe to our newsletter.

Subscribe to Daily Tech Insider for top news, trends & analysis

News Around the Web