Three Plead Guilty in Satellite TV Hacking Case

By  Mike Allen
San Diego Business Journal Staff

10/26/2009

http://www.sdbj.com/industry_article.asp?aID=141924


Three men indicted on a single count of violating the federal copyright 
law pleaded guilty before U.S. District Judge Anthony Battaglia Oct. 23.

According to federal prosecutors, the defendants, Jung Kwak of 
Oceanside, and Phillip Allison and Robert Ward, both of Seminole, Fla., 
admitted that beginning in March 2008 they hired computer hackers to 
break the latest Dish Network encryption design so that the line of 
satellite receiver boxes sold by Kwak would continue to have a market.

Kwak is the owner of Viewtech, an importer of the satellite boxes that 
allow users to obtain a limited amount of free programming, most of it 
consisting of ethnic and religious programs. But by reverse engineering 
smart cards provided by Dish, the boxes could obtain more signals 
illegally, prosecutors said.

By late 2007, Dish created a new encryption scheme that would prevent 
the boxes from gaining access to the signal without purchasing a 
subscription, prosecutors said.

In his pleading, Kwak admitted meeting and paying $20,000 in cash to 
another person to dissect the Dish smart card. Kwak also admitted he 
offered a $250,000 reward to hackers to obtain the latest Dish smart 
card, according to federal prosecutors.

The three defendants face maximum prison time of five years and $250,000 
in fines at their scheduled sentencing on Jan. 22.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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