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Protecting your customers may lead to big penalties in today's police state

Ladar Levison had a thriving business.  His encrypted email service was heavily used by corporate users that valued protecting their trade secrets.  The Obama administration, however, stepped in and crushed this American success story.
I. Feds Demand Lavabit Hand Over Keys to All its Corporate Customers' Communications, Opening the Door for Corporate Espionage
Mr. Levison had a client whose name today is well known -- Edward Snowden.  It is perhaps unsurprising that a man who was smart enough to dupe supposed computer espionage experts into giving up their logins would be savvy enough to find a well encrypted email service to protect his work while he prepared to blow the lid off the Obama administration's unprecedented campaign of spying.
After it was revealed that the Obama administration was nullifying the Constitutional protections against search and seizure in order to execute warrantless seizures of the metadata of America's law abiding majority, the administration struck back.  Members of Congress, including numerous Republicans that showed a surprising solidarity with the Democratic President, labeled Edward Snowden a “traitor”.

Ladar Levison
Ladar Levison was forced to abandon his thriving email business to protect his users from spying by the Obama administration.  [Image Source: D Magazine]

In the aftermath, one of the Snowden reports carelessly showed his email -- revealing he had a Lavabit address.  Now President Obama and his bipartisan backers had a new victim to sink the teeth of the judicial system into.
Mr. Levison was ordered not just to hand over Mr. Snowden's encryption keys, but the keys of all of his users -- every single one.
Mr. Levison was faced with a tough choice.  He could give the government the keys, which federal officials could potentially use to conduct corporate espionage on behalf of their campaign donors without the victims or public ever knowing.  That was choice A.  Or he could defy the order and face imprisonment under the provision of 50 USC § 1861/18 USC § 2703 (which define the federal government's rights to unconstitutional seizures) and 50 USC § 1881a (which defines the punishment for exercising ones Constitutional rights and refusing to comply to said seizures).  That was choice B.
Instead he opted for choice C -- to act in civil disobedience while being careful not to directly defy the legal statutes of the USA PATRIOT Act.  He allegedly ducked out his back door when he first saw federal agents coming to his home, denying them a chance to deliver a subpoena.
The Obama administration's FISA court was not happy with this action.
It held Mr. Levison in contempt of court and authorized the U.S. Federal Bureau of Investigations (FBI) to install malware on Mr. Levison's servers -- R -- and fine him $5,000 for every day he did not turn over his customers' encryption keys.
Mr. Levison exercised his Constitutional rights and waited two days, before defiantly delivering a printout of the keys printed in size 4 font.  But by then he'd already shut down his business and purged his servers, leaving nothing for the feds to collect.
Mr. Levison stated in a brief release, "[I refuse] to become complicit in crimes against the American people."
D Magazine has written an excellent in-depth story about the scuffle and an interview with Mr. Levison.
II. I Fought the Law and I Won -- But It Cost Me
The Obama administration was outraged at that refusal.  The U.S. Department of Justice (DOJ) briefly considered seeking his imprisonment, according to sources.  But after Mr. Levison collected $100,000 USD in donations to support a legal defense, the DOJ declined to seek prison time for Mr. Levison's acts of civil disobedience.  Instead it opted to just punish Mr. Levison with the financial penalty stated in the original contempt order -- a fine of $10,000 USD.
Mr. Levison refused to accept even that punishment.  He has appealed the fine to the U.S. 4th Circuit Court of Appeals in Richmond, Virginia, arguing his Fourth Amendment protections against search and seizure were violated.  He asserts that his business was founded on U.S. privacy and that the government was behaving illegally when it order him to violate all of his users privacy by handing over everyone's encryption keys, in order to allegedly target just one user.
The DOJ is fighting back, looking to nail Mr. Levison with the $10,000 fine.  In a just-filed appellate brief it writes:

Mr. Levison [illegally] alerted all of Lavabit’s users, including the target of the investigation, that Lavabit was engaged in litigation with the government and that, rather than comply with the court’s orders, he decided to shut down his business.

The pen/trap order and the search warrant issued by the district court were plainly lawful. The information used by Lavabit to encrypt communications on its systems, what has been referred to as SSL or encryption keys, was both necessary to the installation and operation of a lawfully ordered pen register/trap and trace device as well as subject to disclosure pursuant to 18 U.S.C. § 2703. As such, it was within the district court's power to compel the production of those keys.


It remains to be seen whether the appellate judges will uphold the $10,000 fine.  But for now the worst is presumably over and Mr. Levison can celebrate victory to an extent.  He won.  His client's data is safe from the Obama's administration's PATRIOT Act seizure attempt.  And despite that he's a free man.

Yet the victory is also bitter and Pyrrhic.  Lavabit was a thriving business.  Now it is but a memory, in an era where digital privacy is slowly becoming illegal in the U.S. as Big Brother tightens his grip.

Sources: U.S. Appellate Brief, D Magazine

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RE: All the keys ?!?!
By Reclaimer77 on 11/13/2013 6:06:47 PM , Rating: 2
Well sure if you want to piss away your vote and virtually guarantee a Democrat win, vote 3'rd party by all means.

RE: All the keys ?!?!
By ClownPuncher on 11/13/2013 6:45:44 PM , Rating: 2
I will. What's the fastest growing political party in the US? Libertarian. I vote for them because Romney is just as big of a jerkoff as Obama.

RE: All the keys ?!?!
By Chaser on 11/13/2013 11:55:21 PM , Rating: 2
Gov elect of VA, Terry McAuliffe, would like to thank all the Libertarian voters and the exercise of their "powerful voting voice".

Well done libertarians. All of you made a big difference, as always.

RE: All the keys ?!?!
By ebakke on 11/14/2013 1:09:32 AM , Rating: 3
That's such a tired and worn out argument. Ken Cuccinelli lost because the voters didn't like particular product he was peddling. It just so happens that his product was less appealing to people when provided with another alternative. Ken also could've "won" if he was the only one the ballot.

If my only option were to buy a Volt, and I needed an automobile, I'd buy a Volt. If there are other options, I'll evaluate all of them and make the best choice for me. Thank god for me, I have more options. Political candidates are no different.

If you're blaming Libertarians for McAuliffe being elected you should also be "blaming" Democrats. If you're upset that your party lost, you should be looking inward for how to better sell your ideas to the public in the future.

RE: All the keys ?!?!
By ClownPuncher on 11/14/2013 11:40:38 AM , Rating: 1
Sorry your party fucked up. Don't blame me. Man up.

RE: All the keys ?!?!
By Reclaimer77 on 11/14/2013 4:41:32 PM , Rating: 1
The Republican party is run by fuckups, sadly. 100% agree.

They've pretty much entirely shunned their Conservative base, which is why the Libertarian party and "Tea Party" has been seeing it's growth. Conservatives like me are beyond frustrated and are leaving the party in droves.

Unfortunately no such dichotomy appears to exist within the Democrat party and their base. They are unified in their desire to transform America into a "Progressive" (socialist) state.

RE: All the keys ?!?!
By ClownPuncher on 11/14/2013 6:48:26 PM , Rating: 2
That's largely because the Libertarians have absorbed quite a few of the old school blue dog voter base. We will continue to grow until they drop the Democrat or Liberal moniker and just label themselves as Progressives or Socialists.

It will make spotting your enemy much easier. You're going to have to kick out the bad Republicans, too.

RE: All the keys ?!?!
By Cerin218 on 11/14/2013 3:59:39 PM , Rating: 2
So because of your wasted vote, we got Obama. Nice job. When your libertarian party can carry more than 5% of the voting population, let me know.

RE: All the keys ?!?!
By lyeoh on 11/14/2013 1:28:48 PM , Rating: 2
It's voters like you who are the problem.

Always trying to vote for "lesser evil" and complaining that you still get evil and nothing can be done about it. How stupid is that?

That "don't waste your vote" strategy is the optimum strategy for the case where you have only one last election and no future elections, but this is NOT the case for the US elections. When there are future elections not too far away the "wasted votes" become a signal to the voters, losers and winners.

The day more than 10% vote for someone else, even if that someone doesn't win is the day the D and R will pay a bit more attention. As it is, between the two of them they've got about 98% of the votes. So why should they bother to change things much? Change too much and they might lose votes.

p.s. the Libertarians are pretty stupid too - always complaining about Big Government. Hey stupid people, it's quality not quantity that's the problem. If you don't know what the problem really is how are you going to fix things? Small Corrupt Gov + Big Corrupt Corps will screw you over just as much as Big Corrupt Gov if not more. Especially since many of your nice "Amendments" and Acts e.g. FOIA only apply to the government and not corporations. Corporations don't even have to bother holding elections to let the "serfs" vote for Twiddledumb and Twiddledumber. If one day you find yourself living in a Modern Day Company Town where the Corps own almost everything, you might find the First Amendment doesn't help you as much anymore.

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