Press Release
For Immediate Release
December 18, 2002
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U.S. Department of Justice
United States Attorney
Central District of California
Thom Mrozek
Public Affairs Officer
(213) 894-6947
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A West Los Angeles man pleaded guilty today to federal charges of illegally
manufacturing and selling more than 6,000 devices that circumvented the
encryption technologies of DirecTV and DISH Network and allowed people
to view pay television programming free.
Randyl Walter, 45, pleaded guilty to one felony count of manufacturing
and distributing hardware devices he designed to circumvent the encryption
technologies of DirecTV and DISH Network. The 6,000 devices manufactured
and sold by Walter caused nearly $15 million in losses to one satellite
broadcast company.
From at least January 2001 until March 2002, Walter used his company,
PC MED_TECH, INC., to manufacture and distribute electronic and mechanical
devices, knowing that the items would be used primarily to enable the
unauthorized decryption of satellite cable programming and other satellite
services. To market the satellite decryption devices, Walter maintained
various sites on the Internet, where he offered various items for sale.
Walter used his specialized knowledge as an electrician and a computer
programmer to develop hardware devices to facilitate satellite signal
theft, and Walter sold thousands of such devices knowing that they would
be used to steal satellite signals.
Walter sold approximately 6,000 Womper cards that enable a
properly configured satellite receiver to receive unlimited programming
from DISH Network. Unlimited programming on DISH Network would cost a
legitimate consumer $2,477 per year (based upon the annual cost to consumers
of the DISH Everything Pak, the local channel package, the superstations
package, the Playboy channel, Eclips, the Extasy package, one pay-per-view
event per month and 10 movies per month). Consequently, the 6,000 Wompers
sold by defendant from January 2001 through March 2002 cost DISH Network
approximately $14,862,960 in lost programming revenues.
Walter pleaded guilty before United States District Senior Judge Wm. Matthew
Byrne Jr. Walter, who is currently on bond, is scheduled to be sentenced
by Judge Byrne on April 7, 2003. At sentencing Walter faces a maximum
sentence of five years in prison and a $500,000 fine.
The case was investigated by the Federal Bureau of Investigation.
CONTACT: Assistant United States Attorney James W. Spertus (213) 894-5872
Release No. 02-177
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