United States Attorney Kevin J. O'Connor and Special-Agent-in-Charge
Robin Avers of U.S. Immigration and Customs Enforcement announced today
that TRAVIS MYERS, age 29, of Yakima, Washington; TERRY KATZ, age 26,
of Yorktown Heights, New York; WALTER KAPECHUK, age 55, of Schenectady,
New York; and WARREN WILLSEY, age 53, of East Berne, New York, all waived
indictment and pleaded guilty to charges of Conspiracy to Commit Criminal
Copyright Infringement. These criminal prosecutions are the first cases
to be brought as a result of the fifteen-month, software piracy investigation
known as Operation Safehaven.
According to documents filed in federal court, MYERS, KATZ, and KAPECHUK
were all participants in the "warez scene" -- an underground
online community that consists of individuals and organized groups who
use the Internet to engage in the large-scale, illegal distribution of
copyrighted software. In the warez scene, certain participants (known
as "suppliers") are able to obtain access to copyrighted software,
video games, DVD movies, and MP3 music files, often before those titles
are even available to the general public. Other participants (known as
"crackers") then use their technical skills to circumvent or
"crack" the digital copyright protections; and yet others (known
as "couriers") distribute the pirated software to various file
servers on the Internet for others to access, reproduce, and further distribute.
"Stealing the intellectual property of others is no different from
any other form of thievery," said U.S. Attorney Kevin J. O'Connor.
"It is a priority of this Office and the Department of Justice to
protect the intellectual property rights of our nation's inventors and
creators." John Malcolm, Deputy Assistant Attorney General for the
Criminal Division of the U.S. Department of Justice, added that "over
the past two years, the Department of Justice has conducted the most aggressive
and successful prosecutions of online piracy to date. Operation Safehaven
is just another step in our continuing effort to target organized online
piracy at all levels."
In pleading guilty, MYERS admitted that he was a member of several leading
warez groups, including "DrinkOrDie," and acted as a distributor
or "courier" for those groups. KATZ admitted that he was responsible
for operating and maintaining several computers used in the warez scene,
including a file server that was used to illegally collect, store, and
distribute tens of thousands of pirated software titles, games, movies,
and music files. Likewise, KAPECHUK admitted that he was responsible for
operating and maintaining a number of warez servers located at the State
University of New York at Albany, which were used to illegally collect,
store, and distribute thousands of warez titles. And WILLSEY admitted
that he assisted periodically in the maintenance of the SUNY-Albany warez
sites.
These defendants were all prosecuted as a result of Operation Safehaven,
a fifteen-month investigation conducted by U.S. Immigration and Customs
Enforcement ("ICE") and the ICE Cyber Crimes Center, in conjunction
with the U.S. Attorney's Office for the District of Connecticut and the
Department of Justice, Computer Crime and Intellectual Property Section
("CCIPS"). Building off the success of a previous Customs investigation
called "Operation Buccaneer," Operation Safehaven targeted a
broader swath of warez participants. The investigation culminated in April
2003 with the simultaneous execution of over twenty (20) search warrants
nationwide, resulting in the seizure of thousands of pirated CDs and DVDs,
plus dozens of computers and servers, including the largest warez site
ever seized in the United States to date.
"Software piracy is a growing, multi-billion dollar crime that hurts
both businesses and consumers," said Michael J. Garcia, Acting Assistant
Secretary for U.S. Immigration and Customs Enforcement. "ICE will
continue to use its vital resources, such as the National Intellectual
Property Rights Coordination Center and the ICE Cyber Crimes Center to
dismantle organizations using the Internet to facilitate IPR crime."
When sentenced by United States District Judge Ellen Bree Burns, MYERS,
KATZ, and KAPECHUK each face a possible punishment of up to five years'
imprisonment, three years' supervised release, and a fine of up to $250,000.
WILLSEY faces a possible punishment of up to one year's imprisonment,
one year's supervised release, and a fine of up to $100,000.
United States Attorney O'Connor stated that, in addition to the guilty
pleas entered yesterday and today, he expects additional prosecutions
in the District of Connecticut as a result of Operation Safehaven.
United States Attorney O'Connor and Special-Agent-in-Charge Robin Avers
praised the investigative efforts of Special Agent Peter F. Ross and ICE
Analyst David E. Collins.
These cases were investigated by U.S. Immigration and Customs Enforcement,
and are being prosecuted by Assistant United States Attorneys Shawn J.
Chen and Mark G. Califano, and CCIPS Trial Attorney Kenneth L. Doroshow.
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