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Print 21 comment(s) - last by Fritzr.. on May 9 at 11:37 PM

Men still face a single count of wire fraud for exploiting bug in the machines

Following an outburst of public outcry over a pair of men facing up to five years in federal prison for "exceeding authorized use" and exploiting a bug in video poker casino machines to win big, the two charged counts under the Computer Fraud and Abuse Act of 1986 (18 USC § 1030) have been dropped.

U.S. District Court for the District of Nevada by Federal Judge Miranda Du cited a recent Ninth Circuit Court of Appeals ruling [PDF], which sought to more strictly confine the ambiguous wording of the CFAA to prevent abuse.  She demanded prosecutors to justify their use under the 9th Circuit's Nosal ruling; federal prosecutors were unable to so they dropped the CFAA charges against co-defendants John Kane, 54, and Andre Nestor, 41.

Assistant U.S. Attorney Michael Chu wrote in a court order [PDF] obtained by Wired, "The United States of America, by and through the undersigned attorneys, hereby moves this Court to dismiss Counts 2 and 3 of the Indictment."

Prosecutors had argued previously that the sequence of buttons needed to activate the programming error constituted "hacking".  But they were unable to defend that opinion in the face of the recent regional scale-back of the CFAA, when defense lawyers argued that the co-defendants were simply playing by the rules of the machine (rules which were broken).

Game King
The pair used their trick on the Game King multi-game machine. [Image Source: IGT]

That leaves a single count of wire fraud against each man.  The wire fraud charges (18 U.S.C. § 1343) are built on the premise that the defendants used phone conversations to plan to defraud the plaintiffs (the casinos), a federal offense.  Of course, given that the feds couldn't even make the accusation that they "hacked" (a form of fraud) stick, the fraud-based claim seems pretty questionable.

Mr. Kane's counsel -- Andrew Leavitt, a veteran LV lawyer -- comments, "The case never should have been filed under the CFAA, it should have been just a straight wire fraud case. And I'm not sure its even a wire fraud. I guess we'll find out when we go to trial.'"

In a previous interview he had stated, "They’re going to have real tough time with the wire fraud.  I never really understood why the federal government took this case in the first place."

Now with one victory in hand he looks to beat back this final federal charge.

Source: U.S. District Court for the District of Nevada via Wired [PDF]



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RE: what rules
By AntiM on 5/8/2013 11:07:46 AM , Rating: 3
Yes, I would say he operated the machines exactly in the manner in which they were designed/programmed, maybe not in the way they were intended to operate, but nonetheless, a machine can only operate in a manner in which it was designed.
He was rather stupid and greedy though. He could have easily made 50 or 60 thousand a year without raising too many suspicions. If I discovered such a flaw, I wouldn't tell a soul. He killed the proverbial egg laying goose with his greed.


RE: what rules
By BRB29 on 5/8/2013 11:16:59 AM , Rating: 3
Yep, I wouldn't tell anyone either. I would just do it once a month at different casinos. I would also intentionally lose a few.


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