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from:
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Cypherpunks on Trail

Days 3 and 4 of the Carl Johnson Show Trial

Expert testimony on the nature of a "mailing list"

Subject: FC: Day 3 of Washington State Cypherpunk Trial
Date: Wed, 14 Apr 1999 23:59:02 -0700
From: Declan McCullagh
To: [EMAIL PROTECTED]
I am writing this from the 16th floor of the Sheraton in Tacoma,
Washington, overlooking a humorless and silent downtown. Somewhere
nearby -- I don' t know exactly where -- a cypherpunk is sitting behind
bars waiting for his trial to resume in the morning. The charge: That he
is guilty of posting three threatening messages to the cypherpunks
mailing list. The government is asking for years and years of prison
time as punishment. I suppose the exact number (a decade? 20 years?)
will depend on the federal sentencing guidelines, rules that I've never
been quite able to figure out myself.

On Thursday morning John Gilmore will take the witness stand again. He
testified on Wednesday about what a mailing list is, and the defense
counsel gets to ask him questions in the morning. A few government folks
are in line after him, but neither the prosecutor nor IRS agent Jeff
Gordon has revealed who will testify next.

I'm told there's no trial on Friday. So unless I get called to testify
Thursday-- a long shot, I'm told -- I will be back out here next week. I
don't know if the Department of Justice will try to force me to stay in
Tacoma over the weekend or not.

------------------------------------------------------------------------
Free Speech on Trial in Tacoma

by Declan McCullagh

Wired News, April 15, 1999
TACOMA, Washington -- Very few Americans like the IRS, especially when
April 15 rolls around.

But most taxpayers are discreet enough to keep their feelings to
themselves, and not mouth off about how nice it would be to see the IRS
eliminated. At least, not on an electronic mailing list populated with
Treasury Department agents.

Carl Johnson, however, is not someone known for his discretion.

The gruff, bearded man, an itinerant musician and longtime computer
geek, spent much of last year railing online against Bill Gates, various
federal officials, and IRS agents.

The IRS claims he went too far, crossing the line from hypothetical
discussions of violence against "Law Enfarcement Offals" to actual
threats. Based on three email messages allegedly typed by Johnson and
sent to the cypherpunks mailing list, prosecutors arrested him and
charged him with five counts of threats and obstruction of justice.

The trial began here this week. Through his attorney, Johnson has denied
the charges, saying anything he wrote is protected by the First
Amendment's guarantees of freedom of speech.

He may have a point. The vast majority of messages the government says
Johnson wrote are darkly rambling satire, a kind of ASCII performance
art, with titles such as "SPACE ALIENS HIDE MY DRUGS!!"

One message likened the author to Patrick Henry. "The irony, of course,
is that I do not pose a great danger to anyone but myself as long as I
continue to have my human rights and my liberty unthreatened."

The Supreme Court has said that advocating violence against government
officials cannot be punished. In a 1969 case, the justices debated
whether a Ku Klux Klan leader could be jailed for saying: "If our
President, our Congress, our Supreme Court, continues to suppress the
white, Caucasian race, it's possible that there might have to be some
revengeance [sic] taken." The verdict: No. Such a law punishes "mere
advocacy," the court decided. Earlier that year the court ruled that a
man's stated wish to kill the president was political hyperbole.

Johnson's attorney says his client's statements were also simple
hyperbole.

"They're outrageous statements made in a political forum as part of a
political forum as part of a political discussion. It's obviously a
parody and a spoof," Gene Grantham said in an interview Wednesday. "No
rational person would be incited to do anything on the basis of those
communications."

The political discussion in question? A lawsuit sponsored by the
Electronic Frontier Foundation that challenges the White House's
restrictions on overseas shipments of encryption products. On 8 December
1997, the Ninth Circuit Court of Appeals in San Francisco heard the
government's appeal in the case.

The next day, a message titled "Encrypted InterNet DEATH THREAT!!!"
appeared on the cypherpunks mailing list. The loose-knit group discusses
the social and political impact of privacy-protecting software.

The note, which mentioned the names of the judges hearing the case,
read: "I will share the same 'DEATH THREAT!!!' with Judges Fletcher,
Nelson, and Bright that I have shared with the President and a host of
Congressional and Senatorial representatives. 'You can fuck some of the
people all of the time, and all of the people some of the time, but you
are going to end up in a body bag or a pine box before you manage to
fuck all of the people all of the time.' Am *I* going to whack you out?
Maybe..."

But the message said the author was unlikely to do the deed himself. The
note was posted anonymously -- but was digitally signed with a copy of
the free encryption program PGP, or Pretty Good Privacy.

The IRS has tried to link the digital key used to sign the message with
a key owned by Johnson. That plan might well have worked, had Johnson
been found to be the only person with that particular key.

But two months after Johnson's arrest, a copy of the same key was
anonymously distributed.

"On October 13, 1998, an anonymous poster posted to the Cypherpunks an
authentic copy of both the public and secret key used to encrypt the
December 9, 1997 death threat message," the IRS says in a court
document.

Translation: Anyone who had the key could have posted the death threat.

It's small wonder, then, that the IRS particularly dislikes anonymity,
which is common on the cypherpunks list. In its pretrial brief, the
government says: "Someone engaged in purely political speech would have
no reason to hide his identity in a free society."

Witnesses who have testified so far include government officials and
special agents. On Thursday, EFF cofounder John Gilmore will testify
about the nature of the cypherpunks mailing list and some of the
archives of the list that he has kept.

Editor's Note: Declan McCullagh has been subpoenaed by the government to
testify in the Johnson trial. His testimony will relate to a series of
articles that he wrote on Johnson's arrest last year.



------------------------------------------------------------------------
Day 4: IRS Tries to Save Face

Subject: FC: Day 4 of Washington State Cypherpunk Trial
Date: Thu, 15 Apr 1999 19:03:28 -0700
From: Declan McCullagh
To: [EMAIL PROTECTED]

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

My testimony in the U.S. v. Johnson trial is over. Finally. It was a near
thing, too. I finished at 4:20 pm today, and Judge Bryan halted proceedings
for the week ten minutes later.

I'm back at the Sheraton, in the bar on the top floor, overlooking the
water, watching the sun ponder whether or not it's time to set. And I'm
wondering about the trial that brought me and John and other folks out here
in the first place.

It is true that the defendant, cypherpunk Carl Johnson, is not someone
likely to evoke sympathy. He has Tourette's syndrome and is a large,
ungainly fellow. He is bearded and awkward. He doesn't have a lot of money.
In short, he was a perfect target for IRS agent Jeff Gordon and government
prosecutors looking to make a name for themselves as Internet savants.

It almost worked. But as the investigation progressed, the IRS realized CJ
was simply a fellow who ranted against the IRS and other agencies, usually
in the form of satire. He wasn't connected with militia or common-law
groups, as was a previous and well-publicized case that Gordon spearheaded
and for which he took credit. CJ was just a guy trying to sell his music,
which is actually pretty good, and who posted to cypherpunks in his spare
time.

So what did the IRS do to try and save face? Simple: Offer CJ a plea
bargain for time served. He rejected it and chose a trial -- and the
possibility of vindication.

Will he get it? I don't know. The case involves just three "threatening"
messages he allegedly sent to cypherpunks. Even if he did write them (which
may be difficult to prove), I think they're protected by the First
Amendment. I don't know if Judge Bryan will agree.

I had never met CJ or spoken with him until this trial. But I couldn't help
feeling sympathetic as he sat with his counsel today, deprived of not just
an Internet connection but basic human dignity. When his brother entered
the room, CJ tried to get up from his seat to say hello, but a horde of US
marshals moved in and physically prevented him from rising.

The trial resumes Monday. Now that John and I are done testifying, the
trial may turn to more routine evidentiary matters. It will likely be over
by Tuesday.

- -Declan

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Information Warfare

Arrest Made in Internet Stock Hoax

Faking Bloomberg's fake news

A 25-year-old computer engineer employed by Pairgain Technologies Inc.
was arrested Thursday in North Carolina and charged with securities
fraud in connection with the posting of a fake announcement on the
Internet last week about a takeover of the company.
The swift tracing of the suspected origin of the Internet posting, which
sent Pairgain's stock up more than 30 percent in heavy trading before
the false takeover report was debunked, demonstrates once again how
difficult it is to venture into cyberspace without leaving footprints.

Gary Dale Hoke, who has worked at Pairgain's engineering development
operation in Raleigh, N.C., since January 1997, was arrested at his home
in Raleigh on Thursday morning on federal securities-fraud charges.

After an appearance before a federal magistrate in North Carolina, he
was released on a $50,000 unsecured bond. He agreed to appear at a
future date in court in Los Angeles, where the charges were filed
against him late Wednesday. Pairgain, a telecommunications equipment
maker, is based in Tustin, Calif., southeast of Los Angeles in Orange
County.

Samuel Currin, an attorney representing Hoke, declined to comment on the
veracity of the charges. "Obviously these are very serious allegations,
and we're going to look very carefully at them," Currin said. Hoke could
not be reached. Securities fraud carries a maximum penalty of 10 years
in prison and a $1 million fine.

According to the federal complaint, Hoke used an account at Angelfire, a
service that allows people to create their own pages on the World Wide
Web, to post a fake news article on April 7 reporting that Pairgain had
agreed to be taken over by ECI Telecom Ltd., an Israeli company.

After posting the fake article, which was designed to look like a page
from the Web site of Bloomberg News, Hoke placed a message on an
investment bulletin board operated by Yahoo alerting other investors to
the "news" and providing an electronic link to the Angelfire site.

The complaint does not specifically contend that Hoke traded in Pairgain
stock on April 7, when the false article caused the company's shares to
soar as high as $11.125, up from $8.50 the previous day. The shares
closed that day at $9.375, up 10 percent.

According to an affidavit filed in U.S. District Court in Los Angeles by
Craig Shackleford, a special agent of the FBI, Hoke has used online
brokerage accounts at ETrade and Ameritrade to buy and sell stocks,
trading in Pairgain shares as recently as January.

The Angelfire and Yahoo accounts used by Hoke employed fake identities,
according to the affidavit. But investigators were able to trace Hoke's
activities via the Internet protocol addresses of the computers used to
create and post the Angelfire and Yahoo messages, investigators said.

Every computer linked to the Internet can be identified through a unique
code known as an Internet protocol address, which can be used to trace
the origin of a message or connection.

Investigators said Hoke used computers at Pairgain, at his home and at
Accipiter Inc., a Raleigh, N.C., company where Hoke also worked, to gain
access to the Angelfire and Yahoo accounts and post the Internet
messages.

Charles McBrayer, Pairgain's chief financial officer, said in an
interview that Hoke was "a midlevel engineer" in the Raleigh facility,
which employs about 70 people and is Pairgain's largest operation
outside Tustin. He has been suspended without pay, McBrayer said.

As a midlevel engineer, Hoke would have had "a modest amount" of
Pairgain stock options, McBrayer said. But he said he was not aware
whether Hoke had exercised any options.

"To our knowledge, he is the only one involved" in the fraud, McBrayer
said. Christopher Painter, an assistant U.S. attorney in Los Angeles,
said federal officials were still investigating the incident.

The case demonstrates that some Internet sites are subject to abuse by
people posing under false identities, in part because the sites do
little to police who is setting up accounts. The Angelfire account used
by Hoke, for example, was set up under the name "News Headlines," an
unlikely name for an individual. An e-mail account set up with Hotmail,
a free e-mail provider, used the same name.

The message posted on the Yahoo bulletin board supposedly came from
Stacey Lawson of Knoxville, Tenn., who in signing up for the Yahoo
account claimed to be a 32-year-old information technology manager who
liked tennis, dancing and water sports. In fact, the complaint said,
that, too, was Hoke.

The New York Times, April 16, 1999


Medical Advances

THE RETURN OF THE HAND

It lives!

SURGEONS who sewed a dead man's hand on to the arm stump of a living
patient last year say today that the operation has been a long-term
success, opening an array of new possibilities in transplant medicine.
Hair has now re-grown around the join between the pinkish hand and
forearm of a 41-year-old accident victim and the forearm of Clint
Hallam, 48. The skin of the transplanted hand is "warm to touch, dry and
pale in colour" - and Mr Hallam can feel sensation if someone presses
hard on the palm.

"We have confirmed the technical feasibility of limb transplantation,"
the team says today in the Lancet. This is the first time that we have a
human experiment where we have demonstrated to ourselves and to the
world that it works," said Nadey Hakim, the surgical director of the
Transplant Unit at St Mary's Hospital, London, who is a member of the
team.

Surgeons in the United States and Europe were amazed last September when
the relatively unknown team announced its completion of the 13-hour
operation in Lyon, France. Many experts were critical, saying it was too
early in the science of transplants to attempt such a feat. They
questioned the wisdom of turning a healthy amputee into an unhealthy
two-hander.

Mr Hallam, a New Zealand businessman, ran into controversy immediately
after the operation when it transpired that he was a convicted fraudster
who had lost his hand in a prison sawmill accident in 1984 and was
wanted in Australia for questioning in relation to a marketing
investment scheme.

But the surgeons defend their choice in the Lancet, saying that Mr
Hallam had passed extensive psychological tests. He had persistently
refused offers of false arms and instead read up on medical literature
and put himself on the lists of units considering hand transplants.

His unconventional nature became apparent in January when he forsook
physiotherapy and medical supervision to tour America and appear on chat
shows. In Las Vegas he gambled at hotels along the "Strip" before the
CBS television programme 48 Hours flew him to New York for an interview.


In the Lancet report, the doctors acknowledge Mr Hallam's eight-week
disappearance but say that, despite the lack of physiotherapy during
this time, there appears to have been no damage. "He is living a
perfectly normal life," Mr Hakim said. About 14 weeks after the
operation, Mr Hallam developed feeling in his new wrist crease and by
six months the feeling had spread to the mid-palm, where he can now feel
deep pressure.

The London Telegraph, April 16, 1999
-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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