Posts with «crime & justice» label

Fugees rapper Pras accuses his lawyer of using AI in closing arguments

Rapper “Pras” Michel, one-third of the legendary hip-hop group The Fugees, accused his lawyer from a recent federal criminal case of using AI in his closing arguments. Ars Technica reports that the “Ghetto Supastar” artist claims his one-time attorney, David Kenner, used an AI program with which the lawyer potentially had a financial interest. Pras, whose legal name is Prakazrel Samuel Michel, was found guilty in April of 10 counts of conspiring and acting as an unregistered foreign government agent and faces up to 20 years in prison. The rapper is seeking a new trial.

Pras’ motion for a new trial says Kenner “used an experimental artificial intelligence (AI) program to draft the closing argument, ignoring the best arguments and conflating the charged schemes, and he then publicly boasted that the AI program ‘turned hours or days of legal work into seconds.’” That quote was pulled from a promotional article for EyeLevel.AI, “litigation assistance technology” that lists an entity called CaseFile Connect as a launch partner. The motion says CaseFile Connect’s principal address is the same as Kenner’s law firm.

“It is now apparent that Kenner and his co-counsel appear to have had an undisclosed financial stake in the AI program, and they experimented with it during Michel’s trial so they could issue a press release afterward promoting the program—a clear conflict of interest,” Pras’ motion alleges.

Attorney David Kenner
Kevin Dietsch via Getty Images

The Fugee claims Kenner’s use of the AI tool led him to make embarrassing musical misattributions in his closing arguments. It accuses the lawyer of attributing the lyrics “Every single day, every time I pray, I will be missing you” to Pras’ group, The Fugees. (That line was from Puff Daddy and Faith Evans’s 1997 Biggie Smalls tribute “I’ll Be Missing You.”) The motion also alleges Kenner credited Michel’s 1998 solo hit “Ghetto Supastar (That Is What You Are)” to The Fugees.

In addition to the AI accusations, the motion alleges that Kenner was “ineffective” and that his actions “severely prejudiced the defense.” It says the attorney “failed to familiarize himself with the charged statutes, causing him to overlook critical weaknesses in the Government’s case.” In addition, it accuses Kenner of failing to understand the facts or allegations while outsourcing trial prep and strategy to contract attorneys at a friend’s e-discovery company (among other allegations).

Pras was found guilty in April of funneling money from Malaysian financier Low Taek Jho to Barack Obama's 2012 reelection campaign. Prosecutors insisted Pras donated the money for Low, while the rapper argued he was only trying to help the businessman take a photo with Obama. Pras then allegedly tried to quash a DOJ investigation and influence an extradition case.

If Pras’ complaint sounds familiar, it parallels the “ChatGPT lawyer” Steven Schwartz, who cited fictional cases as an erroneous precedent in a legal document. Schwartz, his associate Peter LoDuca and their law firm Levidow, Levidow and Oberman were fined $5,000 for having “abandoned their responsibilities” in the case. Schwartz claimed he used the chatbot to “supplement” his research while insisting he was “unaware of the possibility that [ChatGPT’s] content could be false.”

This article originally appeared on Engadget at https://www.engadget.com/fugees-rapper-pras-accuses-his-lawyer-of-using-ai-in-closing-arguments-185311864.html?src=rss

Five former Ubisoft execs arrested following sexual harassment investigation

French police have arrested five former Ubisoft executives after an investigation into claims of abuse, harassment and discrimination at the company, according to the newspaper Libération. Ex-Chief Creative Officer Serge Hascoët and Tommy François, a former vice president of editorial and creative services, were among those taken into custody. Both men left Ubisoft in 2020 following accusations against them.

When asked about the arrests, Ubisoft told GamesIndustry.biz that it didn't have "knowledge of what has been shared and therefore can't comment."

In 2021, a French workers union and two ex-Ubisoft employees sued the publisher for allegedly enabling a culture of "institutional sexual harassment." Solidaires Informatiques claimed that, rather than addressing the issues head on, Ubisoft found it easier to tolerate alleged misconduct. Francois and Hascoët were among those named in the suit.

According to Libération, police spent more than a year investigating the case. They collected testimonies from approximately 50 staffers and former employees. A lawyer for the plaintiffs claimed (according to a translation) that "beyond simple individual behavior, [the case] reveals systemic sexual violence" in an environment where a "'schoolboy atmosphere' was tolerated."

Several senior employees resigned or were fired in 2020 after reports emerged of widespread misconduct at the company, including at Ubisoft studios in Montreal and Toronto. That summer, CEO Yves Guillemot laid out a plan to address such issues and clean up a culture of toxicity within the ranks.

This article originally appeared on Engadget at https://www.engadget.com/five-former-ubisoft-execs-arrested-following-sexual-harassment-investigation-135636454.html?src=rss

Trump's Georgia election interference trial will be livestreamed on YouTube

In an unprecedented decision, Fulton County Judge Scott McAfee announced on Thursday that he will allow not only a press pool, cameras and laptops to be present in the courtroom during the election interference trial of former President Donald Trump, but that the entire proceedings will be livestreamed on YouTube as well. That stream will be operated by the court.

Trump and 18 co-defendants are slated their trial on October 23rd. Tsplhey're facing multiple racketeering charges surrounding their efforts in the state of Georgia to subvert and overturn the results of the 2020 presidential election, what Fulton County DA Fanni Harris describes as "a criminal enterprise" to unconstitutionally keep the disgraced politician in power. Trump has pled not guilty to all charges. 

While recording court proceedings can be an uncommon occurrence in some jurisdictions, the state of Georgia takes a far more lax approach in allowing the practice. 

“Georgia courts traditionally have allowed the media and the public in so that everyone can scrutinize how our process actually works,” Atlanta-based attorney Josh Schiffer, told Atlanta First News. “Unlike a lot of states with very strict rules, courts in Georgia are going to basically leave it up to the judges.”

For example, when Trump was arraigned in New York on alleged financial crimes, only still photography was allowed. For his Miami charges, photography wasn't allowed at all. This means that the public will not be privy to the in-court proceedings of Trump's federal election interference case, only the Georgia state prosecution.

This article originally appeared on Engadget at https://www.engadget.com/trumps-georgia-election-interference-trial-will-be-livestreamed-on-youtube-193146662.html?src=rss

Tesla reportedly faces investigation over its mysterious glass house project

At least two government agencies are looking into Tesla's secret glass house project dubbed "Project 42," according to The Wall Street Journal. Back in July, the publication reported that the automaker's board launched an investigation over concerns that its CEO, Elon Musk, was using company funds for the project. Now, the US Attorney's Office for the Southern District of New York has reportedly asked for information on how much Tesla spent on the project and on personal benefits Musk enjoys. Likewise, the Securities and Exchange Commission (SEC) has also opened a civil probe, the Journal said, and has sought the same information.

The plans for Project 42 involved building a glass structure that appeared to be a living space with bedrooms, bathrooms and a kitchen near Tesla's facilities in Austin, Texas. A couple of concepts envisioned it as a "twisted hexagon" or a glass cube similar to Apple's 5th Avenue store. The Journal previously said that the board launched an investigation after employees raised concerns regarding the special glass ordered for the project, which they believe would cost the company millions of dollars. It's unclear if that investigation is finished and if the company's order for the special glass pushed through.

As the publication notes, SEC requires transactions over $120,000 when an executive has a material interest in them. Any personal benefits paid to executives that amount to over $10,000 must also be disclosed to investors. Authorities have only just started looking into the initiative, however, and these probes might not lead to any formal charges. 

In addition to investigations regarding Project 42, Tesla is also reportedly facing inquiries from federal prosecutors over the driving range of its vehicles. The company is being questioned after Reuters reported last month that its EVs frequently don't meet their range estimates and that the company set up a team specifically to cancel service appointments related to driving range complaints. 

This article originally appeared on Engadget at https://www.engadget.com/tesla-reportedly-faces-investigation-over-its-mysterious-glass-house-project-051518583.html?src=rss

'GTA VI' hacker leaked footage using a Fire TV Stick in a budget UK hotel room

In movies, a hacker typically sits at a large desk with a slew of cutting-edge technology in front of them. In real life, it turns out all you need is an Amazon Fire TV stick, smartphone, keyboard and mouse to steal and leak clips from a game like the hotly anticipated yet to be released Grand Theft Auto IV. That's exactly what Arion Kurtaj, a member of hacking group Lapsus$, did while already on bail for allegedly hacking NVIDIA, the BBC reports. The 18-year-old infiltrated Rockstar Games, which created GTA VI, going so far as to announce himself as an "attacker" in the company's slack channel. The scene of the crime? A UK Travelodge hotel officials had placed him in.

Kurtaj was moved to the hotel after hackers "doxxed" him, releasing detailed information about him and his family online, and compromising his safety. While there he was allowed no internet access — something he used the Fire TV Stick to get around. 

Further details of Kurtaj's illegal stunt became public following a seven-week trial and his being found guilty of hacking Rockstar, neobank Revolut and Uber. A 17-year-old was also convicted but, unlike Kurtaj, is still out on bail. The two individuals are autistic, and psychiatrists deemed them ineligible to stand trial. This meant that the jury only weighed in on if they believed the crimes were committed, not if they were done with criminal intent.

Lapsus$, referred to in court as a group of "digital bandits," is believed to be comprised mostly of teenagers from Brazil and the UK — Kurtaj and the unnamed 17-year-old are two of seven members arrested in the UK. Between 2021 and 2022, Lapsus$ also allegedly hacked Samsung, T-Mobile and Microsoft. Though the group requested ransoms, it's unclear how much it made from these exploits, if much at all.

This article originally appeared on Engadget at https://www.engadget.com/gta-vi-hacker-leaked-footage-using-a-fire-tv-stick-in-a-budget-uk-hotel-room-121548381.html?src=rss

DOJ charges Tornado Cash co-founders for laundering over $1 billion in crypto

The Department of Justice (DOJ) has charged Toronto Cash's founders with counts of money laundering and sanction violations. The cryptocurrency mixer first faced US sanctions last year for allegedly laundering over $7 billion in stolen funds. The DOJ now alleges that Toronto Cash facilitated $1 billion in money laundering, including $455 million funneled through the mixer by a North Korean cybercrime organization, the Lazarus Group. The overall charges include "conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business." Co-founder Roman Storm was arrested in Washington State, while the other half of Toronto Cash, Roman Semenov, is still at large.

The US government is attempting to send a strong message about using cryptocurrency for illegal purposes. "These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes," Attorney General Merrick B. Garland said in a statement.

If you're unfamiliar, a cryptocurrency mixer is a service that makes it harder to track funds from their origin to the new owner. Most blockchains, like Bitcoin and Ethereum, are visible, so a mixer helps individuals hide their money flow — whether it be for reasonable or illegal activities. Chainalysis, a cryptocurrency analysis firm, found that in 2022, crypto addresses known for unlawful activity used mixers in almost 10 percent of transactions.

This article originally appeared on Engadget at https://www.engadget.com/doj-charges-tornado-cash-co-founders-for-laundering-over-1-billion-in-crypto-101017912.html?src=rss

Ex-OpenSea employee receives prison sentence for NFT insider trading

Former OpenSea employee Nathanial Chastain has been sentenced to three months in prison over an NFT (non-fungible token) insider trading scheme. Chastain, who was found guilty of wire fraud and money laundering, used "confidential information about which NFTs were going to be featured on OpenSea’s homepage for his personal financial gain," according to the US Attorney's Office for the Southern District of New York.

Back in 2021, an X (then known as Twitter) user claimed that Chastain was buying NFT drops before the public could get their hands on the digital items. Chastain, who selected which NFTs would appear on OpenSea's homepage, was accused of selling the tokens he bought in advance for a profit after they became broadly available and interest in them soared. OpenSea admitted that Chastain had carried out such a scheme and said it would ban employees from using confidential information to trade NFTs.

The incident caught the attention of federal prosecutors, who treated the case in a similar fashion to regular insider trading. The US Attorney's Office noted that Chastain sold the NFTs for between two and five times the original purchase price.

Along with his prison sentence, Chastain must serve three months of home confinement and three years of supervised release. He also needs to pay a $50,000 fine and forfeit the Ethereum he obtained from his illicit NFT trading.

"Nathanial Chastain faced justice today for violating the trust that his employer placed in him by using OpenSea’s confidential information for his own profit," US attorney Damian Williams said in a statement. "Today’s sentence should serve as a warning to other corporate insiders that insider trading — in any marketplace — will not be tolerated.”

This article originally appeared on Engadget at https://www.engadget.com/ex-opensea-employee-receives-prison-sentence-for-nft-insider-trading-153628983.html?src=rss

Sam Bankman-Fried sent to jail for witness tampering

FTX Founder Sam Bankman-Fried (SBF) was sent to jail Friday after the judge overseeing his case revoked his bail. US District Judge Lewis Kaplan found probable cause that the disgraced former CEO repeatedly tampered with witnesses. In addition, Kaplan rejected Bankman-Fried’s attorneys’ request to delay his detention pending appeal.

Prosecutors argued that Bankman-Fried tried to harass a crucial witness last month when he showed a New York Times reporter the personal writings of his former partner Caroline Ellison, a cooperating witness who pleaded guilty in December to criminal charges related to defrauding FTX investors. The prosecution said SBF’s actions were an attempt to damage her reputation and influence prospective jurors. Meanwhile, SBF’s defense team accused prosecutors of using evidence laden with “innuendo, speculation, and scant facts.” Judge Kaplan sided with prosecutors, saying Bankman-Fried attempted to “tamper with witnesses at least twice.”

Reutersreports that the 31-year-old former FTX boss was ushered out of the court by US Marshals “after removing his shoelaces, jacket and tie and emptying his pockets.” The former CEO had been under house arrest in California (at his parents’ home in Palo Alto) since he was extradited in December following his arrest in the Bahamas last December. His $250 million bail package tightly controlled his internet usage.

This article originally appeared on Engadget at https://www.engadget.com/sam-bankman-fried-sent-to-jail-for-witness-tampering-202906192.html?src=rss

Bitfinex hackers who stole billions in cryptocurrency plead guilty

Ilya Lichtenstein and Heather Morgan, the couple who were arrested last year for the massive 2016 Bitfinex hack involving billions of dollars of cryptocurrency, have pleaded guilty in court. Lichtenstein has admitted that he used multiple advanced hacking tools and techniques to gain entry into the cryptocurrency exchange's network. He then authorized 2,000 transactions to move 119,754 bitcoins to wallets he controlled. To cover his tracks, he said he deleted access credentials, logs and other digital breadcrumbs that could give him away. Morgan, his wife, helped him move and launder the stolen funds. 

If you'll recall, the Justice Department seized 95,000 of the stolen bitcoins at the time of their arrest. Back then, that digital coin hoard was worth a whopping $3.6 billion and was the largest financial seizure in the agency's history. Authorities were able to trace more of the stolen funds after that to recover an additional $475 million worth of cryptocurrency.

According to the DOJ, Lichtenstein and Morgan used false identities to set up online accounts on darknet markets and cryptocurrency exchanges. They then withdrew the funds and distributed the bitcoins from there by converting them into other forms of cryptocurrency and keeping them in crypto mixing services. By doing so, they obfuscated the coins' sources and made them harder to trace. The couple also set up businesses in the US to make their banking activities look legitimate — Morgan had a TikTok where she talked about establishing a "multimillion dollar business" with "zero outside funding" — and they apparently used the stolen money to purchase physical gold coins that Morgan then buried. 

lol she has a TikTok https://t.co/VITAoQeFwypic.twitter.com/MVZmM1bYBQ

— Liz Franczak (@liz_franczak) February 8, 2022

To be precise, Lichtenstein pleaded guilty to conspiracy to commit money laundering and could spend up to 20 years in prison. Meanwhile, Morgan pleaded guilty to one count of money laundering conspiracy and one count of conspiracy to defraud the United States. Each one carries a maximum prison sentence of five years. 

This article originally appeared on Engadget at https://www.engadget.com/bitfinex-hackers-who-stole-billions-in-cryptocurrency-plead-guilty-051317291.html?src=rss

Kevin Mitnick, formerly the world’s ‘most-wanted’ hacker, has passed away

Kevin Mitnick, who was once one of the world's most wanted computer hackers, has passed away at 59 on July 16th. According to his obituary, Mitnick battled pancreatic cancer for more than a year and was undergoing treatment at the University of Pittsburgh Medical Center. "[M]uch of his life reads like a fiction story," his obituary reads, and that's perhaps the perfect way to describe his tale. The first time Mitnick infiltrated a computer system was way back in 1979, but it wasn't until 1988 that he was convicted and sentenced to 12 months in prison for copying a company's software.

He broke into Pacific Bell's voicemail computers when he was under supervised release and then continued to hack into cell networks, as well as company and government websites, as a fugitive in the 90s. Mitnick was also involved in the theft of thousands of files and credit card numbers, but his obituary says he "never took one dime from any of his 'victims.'" He was eventually caught in 1995 and charged with illegal use of a telephone access device and computer fraud. Apparently, authorities believed he had access to corporate trade secrets worth millions of dollars at the time.

Mitnick spent five years in prison, which he described as a "vacation" by the time he was freed. From there, he changed the course of his career and chose to become a White Hat hacker and cybersecurity consultant. In 2011, he became part owner and chief hacking officer of KnowBe4, which provides security awareness training and a simulated phishing platform to clients. Before all these happened, Mitnick figured out how to game LA's public transportation system at 12 years old by memorizing bus schedules and punch cards and then obtaining his own punch tool systems so he could ride buses all day. Mitnick is survived by his wife, Kimberley Mitnick, and their unborn child.

This article originally appeared on Engadget at https://www.engadget.com/kevin-mitnick-formerly-the-worlds-most-wanted-hacker-has-passed-away-084912966.html?src=rss