United States v. Middleton

231 F.3d 1207 (9th Cir. 2000)

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Nature of the Case

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Facts

D worked as the personal computer administrator for Slip.net. He installed software and hardware on the company's computers and providing technical support to its employees. He had extensive knowledge of Slip.net's internal systems, including employee and computer program passwords. D quit. He then began to write threatening e-mails to his former employer. After logging in to Slip.net's system, D used a computer program called 'Switch User' to switch his account to that of a Slip.net receptionist, Valerie Wilson. D then took advantage of the benefits and privileges associated with that employee's account, such as creating and deleting accounts and adding features to existing accounts. Slip discovered the intrusion into their systems and terminated D's account. D continued his attack and logged into a test account to gain access to the company's main computers. D created two new accounts and used them to perform internal administrative functions and to host customers' websites. D changed all the administrative passwords, altered the computer's registry, deleted the entire billing system (including programs that ran the billing software), and deleted two internal databases. It took 160 hours of work to repair the damage done. Slip also had to buy new software to replace that which D deleted. Slip also had to hire an outside consultant for technical support. D was arrested and charged with a violation of 18 U.S.C. § 1030(a)(5)(A). D argued that Slip was not an 'individual.' The district court denied the motion, holding that 'the statute encompasses damage sustained by a business entity as well as by a natural person.' D was convicted and sentenced to three years' probation, and to pay $9,147 in restitution. D appealed.