United States Attorney Paul J. McNulty and Michael Chertoff, Assistant
Attorney General for the Criminal Division, announced today the first
guilty plea in the Eastern District of Virginia in the largest international
online copyright piracy investigation conducted by federal law enforcement.
John Sankus, Jr., age 28, of Philadelphia, Pennsylvania, co-leader of
one of the oldest organized software piracy groups on the Internet, pled
guilty to one felony count of conspiracy to commit criminal copyright
infringement before U.S. District Court Judge Leonie M. Brinkema this
morning. Sankus, who will be sentenced on May 17, 2002, at 9:00 am, could
receive a maximum sentence of five years in federal prison and a $250,000
fine.
Sankus was the co-leader of an international Internet software piracy
group known as DrinkOrDie. DrinkOrDie engaged in the illegal distribution
of copyrighted software, games and movies over the Internet, specializing
in being the first to release high-end software applications and utilities.
DrinkOrDie is one of many highly structured, security conscious organizations
that illegally reproduce and distribute hundreds of thousands of copies
of copyrighted works around the world worth billions of dollars in losses
each year. Members rarely meet in person and frequently only know each
other through their screen nicknames.
"This is a crime against the integrity of our electronic infrastructure,
said U.S. Attorney Paul McNulty. It is imperative that we stop these
techno-gangs from exploiting new technologies for criminal
purposes. This plea is another significant step in our effort to eliminate
intellectual property crime on the Internet and to make it safe for individuals
and businesses to develop and use new software and technologies,
said U.S. Attorney Paul McNulty. As part of the plea agreement, the United
States and Sankus agreed that the amount of damage attributable to the
defendants actions, during the period charged, exceeds $2.5 million
but is less than $5 million.
As co-leader of DrinkOrDie, Sankus was principally responsible for the
management and supervision of the day-to-day operations of the criminal
enterprise. Sankus supervised approximately 60 individuals who acquired,
cracked, and distributed (released) the pirated software.
Company insiders (suppliers) often provided the group with
new software, frequently days or weeks before the software would be released
to the general public. Group members known as "crackers" would
defeat the softwares embedded copyright protections, allowing the
software to be illegally reproduced and used by anyone obtaining a copy.
The finished product was then quickly distributed to sites located throughout
the world for further distribution to an ever-expanding web of sites.
Within hours, a new release could be found on hundreds of illegal sites
throughout the world.
DrinkorDie concealed these sites and conducted business in closed invite-only
Internet relay chat channels. Sankus and other high ranking members of
DrinkOrDie used encryption to conceal all e-mails discussing the groups
illegal activities. "John Sankus and his group knew what they were
doing was illegal and they took every technological step possible to conceal
their activity," said McNulty.
DrinkOrDie was the primary group targeted by "Operation Buccaneer,"
a 15-month undercover investigation by the United States Customs Service
with assistance from the Department of Justices Computer Crime and
Intellectual Property Section (CCIPS) and the United States Attorney's
Office for the Eastern District of Virginia.
On December 11th, the primary investigative phase of Operation Buccaneer
culminated in the simultaneous execution worldwide of over 70 search warrants
against targets of the investigation. To date, warrants and/or arrests
have been executed in the United States, Australia, Norway, Sweden, the
United Kingdom and Finland. Numerous targets of the investigation were
arrested and taken into custody in the United Kingdom and investigations
are currently ongoing in each of these countries. "Operation Buccaneer
brought to light the severity and scope of a multi-billion-dollar software
swindle perpetrated over the Internet," said U.S. Customs Commissioner
Robert C. Bonner. "This investigation is the first of several cases
by the U.S. Customs Service to dismantle the top groups engaged in this
illegal activity."
Marty Stansell-Gamm, Chief of CCIPS, said, "The Internet makes it
essential for law enforcement to cooperate across international borders
in order to effectively target all members of these warez groups. Operation
Buccaneer is an excellent example of how international cooperation can
result in effective criminal enforcement on a global scale. We are committed
to protecting the intellectual property rights of this country and will
continue to work diligently, both here and abroad, to investigate and
prosecute those individuals and groups who traffic in pirated products."
In addition to the plea agreement entered this morning, the United States
Attorney expects additional prosecutions in the Eastern District of Virginia
as a result of the first phase of Operation Buccaneer. Assistant United
States Attorney Robert Wiechering, Michael DuBose, Senior Counsel, CCIPS,
and Michael OLeary, Trial Attorney, CCIPS, are prosecuting the case
for the United States.
Further questions may be directed to the United States Attorneys
Office.
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