Indiana teen charged in $100M international hacking ring

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WASHINGTON – (Oct. 2, 2014)– On Tuesday, four members of an international computer hacking ring were charged with breaking into computer networks of technology companies and the U.S. Army and stealing more than $100 million in intellectual property and other data.

One of the individuals charged is Austin Alcala, 18, of McCordsville.

The alleged cyber theft included software and data related to the Xbox One gaming console and Xbox Live online gaming system; popular games such as “Call of Duty: Modern Warfare 3” and “Gears of War 3”;  and software used to train military helicopter pilots.

“As the indictment charges, the members of this international hacking ring stole trade secret data used in high-tech American products, ranging from software that trains U.S. soldiers to fly Apache helicopters to Xbox games that entertain millions around the world,” said Assistant Attorney General Caldwell.  “The American economy is driven by innovation.  But American innovation is only valuable when it can be protected.  Today’s guilty pleas show that we will protect America’s intellectual property from hackers, whether they hack from here or from abroad.”

“Electronic breaking and entering of computer networks and the digital looting of identities and intellectual property have become much too common,” said U.S. Attorney Oberly.  “These are not harmless crimes, and those who commit them should not believe they are safely beyond our reach.”

Charged are:

  • Nathan Leroux, 20, of Bowie, Maryland
  • Sanadodeh Nesheiwat, 28, of Washington, New Jersey
  • David Pokora, 22, of Mississauga, Ontario, Canada
  • Austin Alcala, 18, of McCordsville, Indiana

The charges in the indictment include conspiracies to commit computer fraud, copyright infringement, wire fraud, mail fraud, identity theft and theft of trade secrets.  The defendants are also charged with individual counts of aggravated identity theft, unauthorized computer access, copyright infringement and wire fraud.

According to the superseding indictment and other court records, from January 2011 to March 2014, the four men and others located in the United States and abroad allegedly hacked into the computer networks of Microsoft Corporation, Epic Games Inc., Valve Corporation, Zombie Studios and the U.S. Army.

The value of the intellectual property and other data that the defendants stole, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million.  To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.

In addition to those charged in the United States, an Australian citizen has been charged under Australian law for his alleged role in the conspiracy.

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