Three Plead Guilty to Computer Hacking

CHARLOTTE, N.C. -- United States Attorney Gretchen C.F. Shappert and Kevin Kendrick, Special Agent in Charge of the FBI in North Carolina, announced that three defendants, BRIAN A. SALCEDO, ADAM W. BOTBYL, and PAUL G. TIMMINS, have pled guilty to various charges in connection with the hacking of the Lowe Companies, Inc.'s computer system in North Wilkesboro, North Carolina in November of 2003.

According to the indictment in this case, from October 2003 through November 9, 2003, SALCEDO, BOTBYL, and TIMMINS conspired and schemed to gain unauthorized access to the nationwide computer system used by Lowe's and, after gaining access, to download and steal credit card account numbers from that computer system. In order to carry out this scheme, the defendants secretly compromised the wireless network at a Lowe's retail store in Southfield, Michigan, and thereby gained unauthorized access to Lowe's Companies, Inc.'s central computer system in North Wilkesboro, North Carolina and, ultimately, to computer systems located in Lowe's retail stores around the United States. Having gained this unauthorized access, the defendants then attempted to install and installed a computer program on the computer system of several Lowe's retail stores, which program was designed to capture the credit card information of customers conducting transactions with those stores.

Defendant BRIAN A. SALCEDO pled guilty to four counts of the indictment pursuant to a plea agreement with the Government. Pursuant to the terms of his plea agreement, defendant SALCEDO has agreed to plead guilty to Counts One, Five, Eleven, and Fourteen of the indictment, charging conspiracy, transmitting computer code to cause damage to a computer, unauthorized computer access, and computer fraud. These charges carry a total maximum prison sentence of twenty-five (25) years. Under the terms of the plea agreement, the Government and the defendant have agreed to recommend to the Court that SALCEDO serve a prison term of at least 151 months without the possibility of parole. It is believed that the longest federal prison sentence ever previously imposed for a computer hacking offense was the 68-month sentence imposed on notorious computer hacker Kevin Mitnick. (http://www.cybercrime.gov/cccases.html)

Defendant ADAM W. BOTBYL pled guilty to Count One of the indictment, charging conspiracy, pursuant to a plea agreement with the Government. This conspiracy charge carries a maximum prison sentence of five (5) years. Under the terms of the plea agreement, the Government and the defendant have agreed to recommend to the Court that BOTBYL serve a prison term of at least 41 months without the possibility of parole.

Finally, in what is believed to be the first conviction in the nation for "wardriving," defendant PAUL G. TIMMINS was charged yesterday, by way of a Bill of Information, with a single count of unauthorized access to a protected computer and pled guilty to this charge pursuant to a plea agreement with the Government.

U.S. Attorney Shappert credits Special Agents Dorris Gardner and Gerard Senatore of the Federal Bureau of Investigation with leading the investigation that resulted in the filing of these charges. The Government is represented in this matter by Assistant U.S. Attorney Matthew T. Martens of the U.S. Attorney's Criminal Division in Charlotte. Defendant BOTBYL is represented in this matter by Christopher C. Fialko, Esq. of Charlotte, North Carolina and Frank D. Eaman, Esq. of Detroit, Michigan. Defendant SALCEDO is represented in this matter by Samuel Winthrop, Esq. of Statesville, North Carolina. Defendant TIMMINS is represented by Michael Skladd, Esq. of Clinton Township, Michigan.