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10-26-2009, 05:25 PM
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FBI Press Release Three Plead Guilty
FBI's press release: Department of Justice Press Release For Immediate Release October 23, 2009 United States Attorney's Office Southern District of California Contact: (619) 557-5610 Three Plead Guilty to Violating Digital Millennium Copyright Act United States Attorney Karen P. Hewitt announced that Jung Kwak, 33, also known as “Mr. Viewsat,” of Oceanside, California, Phillip Allison, 35, also known as “thebroken,” and Robert Ward, 54, also known as “TDG” and as “thedssguy,” both of Seminole, Florida, have tendered pleas of guilty to conspiring to violate the Digital Millennium Copyright Act. The three defendants were charged in a one-count indictment handed up by a federal grand jury sitting in San Diego on July 9, 2009. In connection with their guilty pleas, the defendants admitted that beginning in or about March 2008, they determined to hire computer hackers to break the latest DISH Network encryption scheme, known as Nagra 3, so that the line of satellite receiver boxes sold by defendant Kwak would continue to have a market. According to the indictment, and in connection with their guilty pleas, the defendants admitted that Mr. Kwak owns and operates Viewtech, Inc., in Oceanside, California. Viewtech imports “free-to-air” or “FTA” satellite receiver boxes and sells them to the public through a network of retailers under the brand name “Viewsat.” According to the indictment, there is a limited amount of free programming available by satellite to owners of FTA receiver boxes, much of it consisting of ethnic and religious programming in numerous languages. Yet, millions of Viewsat FTA boxes have been sold to the public. The popularity of FTA boxes is due to the fact that they are designed to make it a simple process for a purchaser to obtain subscription-based satellite television, such as that offered by Echostar’s DISH Network, for free. DISH Network licenses copyrighted works from the copyright holders, encrypts the signal, and sells the right to view to DISH subscribers. Subscribers to DISH Network programming obtain from DISH a “smart card,” which is inserted into a DISH satellite receiver box. The smart card decrypts the programming that the subscriber is authorized to view. Over the years, DISH has changed its encryption algorithms and employed other countermeasures to attempt to defeat theft of its signal. To illegally decrypt the DISH signal, the FTA boxes must appear to have DISH smart cards. That is done by reverse-engineering DISH smart cards and creating computer code which, when downloaded to an appropriate FTA box, will emulate the existence of a smart card and trick the system. In the past, as DISH encryption and countermeasures were defeated, the code has been posted on the Internet and made available for download to anyone. In the late fall of 2007, DISH announced that it had created a new encryption scheme and would start shipping new smart cards to its customers. As the new encryption scheme was deployed, owners of FTA boxes would no longer be able to view DISH programming without a subscription, and sellers of FTA boxes would lose their market. The defendants admitted in their plea that Mr. Kwak authorized Messrs. Allison and Ward to locate persons to work on cracking Nagra 3. Mr. Kwak agreed to provide funding and a substantial reward for success. Messrs. Allison and Ward admitted that they solicited a third party to join the scheme. Mr. Allison admitted purchasing a specialized microscope to be used in dissecting and analyzing smart cards for the third party and was reimbursed by Mr. Kwak. Mr. Kwak admitted meeting with and paying $20,000 in cash to the third party for photographs of a dissected smart card purported to be a Nagra 3 card. Mr. Kwak also admitted that he offered a reward of $250,000 if the EPROM (eraseable programmable read-only memory) for the Nagra 3 card could be obtained. The defendants tendered their guilty pleas before United States Magistrate Judge Anthony J. Battaglia, subject to final acceptance of the pleas by United States District Judge Janis L. Sammartino on January 22, 2010, at 9:00 a.m. This case was investigated by Special Agents of the Cybersquad of Federal Bureau of Investigation in San Diego. DEFENDANTS Case Number: 09cr2646 -JLS Jung Kwak Oceanside, California Age: 33 Phillip Allison Seminole, Florida Age: 35 Robert Ward Seminole, Florida Age: 54 SUMMARY OF CHARGE One Count — Title 18, United States Code, Section 371: Conspiracy to Violate the Digital Millennium Copyright Act Maximum Penalty: five years’ imprisonment and $250,000 fine  AGENCY Federal Bureau of Investigation |
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10-26-2009, 05:38 PM
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Kwak pleads guilty....
c/p I would like to comment on this very sad news and maybe offer a different perspective on why this whole bust could be very good for the community in the long run First off, all three of these gentlemen were carrying on like this was a perfectly legitimate business. TDG has been spouting off for the last three years and flaunting his knowledge and inside information almost daring the providers to catch him. Kwak to a much lesser extent, yet thru many hurdles over at VS over the years, he had often spoken up under his alas Mr Viewsat. Bob Ward of all people should have known better after all his experience in the old "card days" and the trouble he had then. He should have been the one advising to keep a low profile and releasing only enough info to keep the consumer informed and VS healthy.... So today these three gentlemen are facing fines and Fed time sad to say. What I like everyone to keep in mind is just how many VS units were sold, many, many millions and just to throw a number out there let's say the average unit went for 100 dollars a pop, we all know it's much higher. If the company sold even 2 million units what number are you coming up with, and again, we know they sold more them 2 million units over the companies life time. So lets low ball these numbers and say VS after expenses and all overhead profited 100 million dollars. An each of the small players Bob and Phil received a 15% share with Kwak holding the other 70%. So again, low ball numbers, Bob and Phil each earned 15 million and Kwak 70 million. I have yet to read anywhere that the providers is going after and personal assets and at this point seem satisfied with Fed fines and Jail time, although this many change over time. So the question I must ask every poster on this board is, would you be willing to server say 2 years in a Federal minimum security lockup and pay a 250.000 fine if it meant when you got out you had millions waiting to take care of you the rest of your life? Even Bob Ward at 54 would make that trade it think. So as crappy as this whole guilty plea deal is for them ,in the end if the situation stays status quo, it still could amount to one hell of a pay day..... An now why this situation might be very good for the community as a whole and for it long term survival. The fist point should be the lesson it should have taught all the principal players, keep your mouth shut, and remain in the shadows. Folks this is no less then industrial espionage and that is some serious **** which requires serious players. The last few years the top players in this "hobby" have gotten too full of themselves. Many, were drawn to the notoriety and adulation, like moths drawn to the light and flame and have been burned for it. Let us all hope that the lesson of both VS and CS have burned there way into the business end of this hobby and the mistakes of the last 2 years will not be repeated. |
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10-26-2009, 06:30 PM
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ddd thanks for the info, however what do you think the chances that vs will come with a stand alone fix is? i know your guess is as good as mine but you do read from other sites that maybe i dont
 USE YOUR STB FOR TRUE FTA ONLY
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10-26-2009, 07:32 PM
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and I have one question..........does anyone know if it truly was the VS team that put "Imminent" on the splash page, or was the splash page hacked by an outsider? I'm still holding on to hope, that the near future will bear positive results. Also, even though Kwak and associates have been indicted, didn't Cyphris say it's a whole different bunch of coders from other countries besides the U.S. involved in a fix. Y'all have a good night.
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10-26-2009, 07:39 PM
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Quote:
USE YOUR STB FOR TRUE FTA ONLY
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10-26-2009, 07:50 PM
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I've said it several times
" ADMIT NOTHING, DENIE EVERY THING".
There are many ears out there. Don't forget some hackers work for ****** B-Careful what you say. |
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10-26-2009, 08:23 PM
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i didnt say nothin lol
USE YOUR STB FOR TRUE FTA ONLY
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10-26-2009, 08:43 PM
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Considering the business those guys were in, they really should have known better. Why would you risk everything by blabbing about your business all over the place? If they had kept quiet maybe there could have been a fix by now.
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10-27-2009, 10:13 AM
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Oh you can bet you bippy the Feds will go after assets , This is just the first round they got the conviction now the civil suit part starts as the providers seek restitution to regain monetary losses now that the criminal part is over .
Ward like many just like being the big kid on the play ground as did DSS Guy I told him once they where not going to overlook him its the same scenario almost as when they took down the other sat Company's Card hackers in 2002 . Greed and Egos get them all sooner or later . Thats why I know for a fact real card coders are so deep under ground and very careful who gets into the circle they keep it all close to the vest.. The squeaky wheel sometimes gets the grease and sometimes it just gets replaced .. I mentioned the other day that FTA just made it to easy for harry home owner to get free T.V and the providers hated FTA and where going to take them down.. They did (: You can Kiss it bye bye now unless a source code is leaked by V/S so private hackers can get into it and we can write our own bin files that may happen ? Unless it comes back under a different name again all just guessing on my part. I know nothing (: As for who is next ? The FBI just starts at the top then they can scare most others out or they will take them all down aswell |
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