Cybercrime & Technology

SANTA CRUZ -- Attorney General Kamala D. Harris today announced that Michael Anthony Gomez, Jr., 55, of Capitola, was sentenced in Santa Cruz Superior Court on Friday to 16 months in jail after pleading guilty to one count of selling pirated software.

As required by statute, the court ordered Gomez to forfeit any devices used to manufacture, reproduce, transport or assemble the counterfeit goods. He surrendered his computer to the California Department of Justice so it can be refurbished and donated to an appropriate local charity.  Gomez also agreed to pay restitution in the amount of $5,000 to AutoDesk and between $200-800 to each of the additional four victims.

“The sale of pirated software defrauds both the users and the developers of the programs, and undermines the strong technology-based segment of California’s economy,” said Attorney General Harris. “The eCrime Unit focuses on crimes involving technology, from piracy to identity theft, and I applaud their professionalism and success in securing this conviction.”

Gomez is alleged to have used Craigslist to sell illegally pirated versions of software programs, including Final Cut Studio III, Microsoft Office for Mac, Rosetta Stone Spanish and Mandarin, AutoDesk Revit and Filemaker 12.  These products retail for up to thousands of dollars, but he sold them for substantially less than the suggested retail prices.

The case was prosecuted by the Attorney General’s eCrime Unit and investigated by the Northern California Computer Crimes Task Force (NC3TF). The task force has its main office in Napa County and is one of five inter-agency Computer Crimes Task Forces in California. eCrime Unit prosecutors are assigned to all five task forces.

In April 2012, Gomez was contacted by an investigator with the NC3TF, who observed a post on Craigslist that offered for sale a copy of the program AutoDesk Revit.  On or about April 10, Gomez agreed to sell a 2013 version of the program for $50. Its suggested retail price is $5,000.

Gomez mailed the investigator a DVD containing a version of the program, but it would not load.  Gomez later provided the investigator with a software patch to ensure the program would function.  Properties embedded in the program indicated it was a copy downloaded from the Internet and then burned onto the DVD.

Gomez was charged with Counterfeit of a Registered Trademark Penal Code section 350(a) (2), a felony, as well as four counts of Counterfeit of a Registered Trademark.  Gomez was arrested on July 10.

Gomez is on probation for a 2010 conviction of previously selling pirated software.

In addition to the jail sentence and restitution, Gomez is restricted from having a computer or Internet access for three years. He forfeited his computer equipment to the Attorney General’s office and it will be donated for non-profit and charitable use.

This case was prosecuted by Deputy Attorney General Johnette Jauron of the eCrime Unit.  Attorney General Harris created the eCrime Unit in 2011 to identify and prosecute identity theft crimes, cyber crimes and other crimes involving the use of technology. More information available here: http://oag.ca.gov/cybersafety.

SANTA CRUZ -- Attorney General Kamala D. Harris today announced that bail has been set at $50,000 in the case of Michael Anthony Gomez, Jr., 55, of Capitola, who was charged in Santa Cruz Superior Court with five charges of selling pirated software.

“Illegally selling pirated software rips off both consumers and developers of the programs, and undermines the strong technology-based segment of California’s economy,” said Attorney General Harris. “Criminals are moving their crimes online, and law enforcement must embrace innovation to counter this emerging threat.”

Gomez is alleged to have used Craigslist to sell illegally pirated versions of software programs, including Final Cut Studio III, Microsoft Office for Mac, Rosetta Stone Spanish and Mandarin, AutoDesk Revit and Filemaker 12.  These products retail for up to thousands of dollars, but he sold them for substantially less than the suggested retail prices.

The case is being prosecuted by the Attorney General’s eCrime Unit and was investigated by the Northern California Computer Crimes Task Force (NC3TF). The task force has its main office in Napa County and is one of five inter-agency Computer Crimes Task Forces in California. eCrime Unit prosecutors are assigned to all five task forces.

In April 2012, Gomez was contacted by an investigator with the NC3TF, who observed a post on Craigslist that offered for sale a copy of the program AutoDesk Revit.  On or about April 10, Gomez agreed to sell a 2013 version of the program for $50. Its suggested retail price is $5,000.

Gomez mailed the investigator a DVD containing a version of the program, but it would not load.  Gomez later provided the investigator with a software patch to ensure the program would function.  Properties embedded in the program indicated it was a copy downloaded from the Internet and then burned onto the DVD.

Gomez was charged with Counterfeit of a Registered Trademark Penal Code section 350(a) (2), a felony, as well as four counts of Counterfeit of a Registered Trademark.  He pled not guilty to all charges.  Gomez was arrested on July 10 and a preliminary hearing on the charges is set for July 23.

Gomez is on probation for a 2010 conviction of previously selling pirated software.

This case is being prosecuted by Deputy Attorney General Johnette Jauron of the eCrime Unit.  Attorney General Harris created the eCrime Unit in 2011 to identify and prosecute identity theft crimes, cyber crimes and other crimes involving the use of technology. More information available here: http://oag.ca.gov/cybersafety.

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced that Facebook has become the seventh company to sign the Joint Statement of Principles to strengthen privacy protections for consumers around the world who use online applications on their smartphones, tablets and other electronic devices. The agreement extends the reach of California’s privacy protections beyond mobile apps to include social apps in Facebook’s App Center, which are used daily by millions of consumers. Among other protections, the agreement seeks to improve compliance with California law requiring apps that collect personal information to have a privacy policy.

“Consumers deserve to be able to make informed choices about how much personal information they want to share with others when using social apps,” said Attorney General Harris. “We are delighted that Facebook has joined Amazon, Apple, Google, Hewlett-Packard, Microsoft, and Research in Motion to provide consumers with greater control and information about how their personal data is used.  We need to protect privacy while we foster innovation.”

In a letter to Attorney General Harris released today, Facebook wrote “…we hope that you will consider us a signatory to the Joint Statement.” Facebook joins an agreement that was first announced in February when Amazon.com Inc., Apple Inc., Google Inc., Hewlett-Packard Company, Microsoft Corporation, and Research in Motion Limited all signed on to a Joint Statement of Principles. 

In the letter, Facebook’s Chief Privacy Officer Erin M. Egan wrote, “As you know, the Joint Statement’s principles embodied essential protections for Californians and others who use mobile apps by encouraging companies that provide mobile app markets to give developers the ability to provide a link to their privacy policies and to display those links along with other app details….As we built the App Center, we were guided by the principles contained in the Joint Statement.”

Starting in 2011, Attorney General Harris worked with Amazon, Apple, Google, Hewlett-Packard, Microsoft, and Research In Motion to forge the Joint Statement to ensure that emerging online technologies such as mobile apps comply with California’s Online Privacy Protection Act (Simitian, 2004).  The Act requires operators of commercial web sites and online services, including mobile and social apps, who collect personally identifiable information about Californians to conspicuously post a privacy policy.  The posting of a privacy policy promotes transparency and provides consumers with more informed control over their personal information. Today’s agreement recognizes the Facebook App Center’s role as a clearinghouse for a variety of social apps.

A letter from the Attorney General’s Office to Facebook said, “California law requires all operators of commercial web sites and online services, including mobile and social apps, who collect personally identifiable information about Californians to conspicuously post a privacy policy.  We are very pleased that Facebook has incorporated the Principles into the design of the App Center and that Facebook requires, as a condition of participating in the App Center, that developers submit a link to a privacy policy.  We are also pleased to see that Facebook is prominently displaying the link to an app’s privacy policy in the App Center, and is implementing a means to report and remediate privacy issues.”

In addition to signing the Joint Statement, Facebook will participate in a multi-stakeholder Advisory Group on Mobile Privacy Practices that the Attorney General’s Office and the California Office of Privacy Protection have convened to develop best practices for mobile privacy generally and to develop model mobile privacy policies in particular.

Copies of both letters are attached to the electronic version of this release at: http://oag.ca.gov/news

The February 2012 press release announcing the apps agreement can be found here: http://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-secures-global-agreement-strengthen-privacy

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced the outcomes of two cases investigated by her office’s eCrime Unit in which defendants “skimmed” credit card information of Chase Bank customers across the state.

Both cases involved a type of crime frequently referred to as a “skimmer operation.” In both cases, the defendants, organized as “crews,” replaced the card readers at Chase Bank ATM vestibules with ones that allowed them to retrieve customers’ card information. Additionally, both crews installed micro cameras to capture the card holders’ PIN entry. With this information, they created bogus ATM access cards.

“Technology benefits consumers, but also opens them up to risks that law enforcement must respond to,” said Attorney General Harris. “ATM skimming cases like these are fast-growing, can lead to identity theft and significant financial losses.  I applaud the state and local collaboration that shut down these two criminal schemes.”

Gnel Snapyan, 35, was sentenced today in San Luis Obispo County Superior Court to 364 days in state prison and five years probation. His co-conspirator, Gervork Aroutiounyan, 48, was sentenced in March 2012 to three years and eight months in state prison. The men were ordered to pay restitution to Chase Bank.     

In a separate scam, Santiago Alcantar, 37, Genea Antoine, 39, and Anthony Garcia, 30, entered a plea of guilty today in San Luis Obispo County Superior Court to one count of conspiracy to commit grand theft, computer access fraud, identity theft, second degree burglary and forgery of access cards. They were charged in March with 14 counts of felony fraud.

Between July 2010 and February 2011, Snapyan fraudulently withdrew approximately $220,000 from the bank accounts of more than 300 victims in Santa Clara, Marin, Fresno, San Luis Obispo counties. 

The case was investigated by the San Luis Obispo County Police Department and the Attorney General’s eCrime Unit. In September 2011, the Attorney General’s office charged Snapyan and Aroutiounyan with 28 counts of felony fraud. On March 1, the defendants entered a plea of guilty to one count of conspiracy to commit grand theft, computer access fraud, identity theft, second degree burglary and forgery of access cards. Additionally, each pled guilty to three counts of second degree burglary.  

Between October 2010 and February 2011, Alcantar, Antoine, and Garcia ran their skimmer operation in Los Angeles, San Luis Obispo, San Bernardino and Ventura counties. The crew stole approximately $217,000 from more than 200 victims. 

Sentencing is scheduled for July 27, at which time Alcantar will be sentenced to four years in state prison; Antoine to two years in state prison and Garcia to a sentence that will not exceed one year and 4 months.

In both cases, Chase Bank has reimbursed customers for their losses.

The California Department of Justice eCrime Unit was created last year to identify and prosecute identity theft crimes, cyber crimes and other crimes involving the use of technology. 

Photos are attached to the online version of this release at  https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-announces-crackdown-atm-%E2%80%9Cskimming%E2%80%9D-and-identity .      

LOS ANGELES -- Attorney General Kamala D. Harris today announced that two Los Angeles residents have each been sentenced to 300 days in county jail and 3 years probation for selling counterfeit CDs containing popular music.

Juan Lucas Camacho, 39, and Jose Pablo Almaraz, 38, each pled guilty to one felony count of failure to disclose the origin of a recording that they offered for sale. Camacho had been convicted in 2008 for a similar crime. They were sentenced on May 21 in Los Angeles Superior Court.

“Copyright theft like this infringes upon the rights of writers, musicians, and producers,” said Attorney General Harris. “California’s eCrime Unit is dedicated to prosecuting cases involving the trafficking of intellectual property, whether online or on the street.”

The charges are based on the sale of 800 counterfeit CDs to undercover Department of Justice agents on April 17, 2012 in the parking lot of a Los Angeles Home Depot store for $480, or approximately $.60 per CD. Artists whose counterfeit CDs were sold included Jorge Santa Cruz and Pitbull. Camacho claimed the ability to fabricate 80,000 to 100,000 CDs per week and that 800 CDs was too small of a sale to repeat.

In April, the defendants were arrested and charged with five felony counts, including conspiracy and counterfeit of a registered trademark. Upon admitting guilt, the remaining counts were dismissed as part of a plea agreement. Camacho was given credit for 36 days already served, and Almaraz for 19 days served.

This case was investigated and prosecuted by the Department of Justice’s eCrime Unit, which identifies and prosecutes crimes involving technology and identity theft.

Photos of the pirated CDs are attached to the electronic version of this release at http://oag.ca.gov/

SAN DIEGO -- Attorney General Kamala D. Harris and San Diego County District Attorney Bonnie Dumanis today announced the arrest of an individual who ran a sophisticated scheme at San Diego area Lowe’s and Home Depot stores in which he replaced the bar codes on expensive merchandise with bar codes that scanned at lower prices.

Steve Allen Koski, 42, of San Diego, was arraigned yesterday in San Diego Superior Court on 11 felony counts, including grand theft and 10 counts of burglary. His bail has been set at $250,000. He is being held in San Diego County Jail.

Koski stole or attempted to steal more than $30,000 in copper wire and other merchandise from Lowe’s and Home Depot stores. He then re-sold that merchandise to California recycling centers for over $180,000.

“For all the efficiency and conveniences that modern technologies provide, we are continuing to see criminals use these same technologies to defraud California businesses and consumers,” Attorney General Harris said. “The eCrime Unit is devoted to aggressively pursuing criminals who misappropriate modern technologies for their own benefit.”

Surveillance video showed Koski entering various home improvement stores and replacing legitimate bar codes on copper wire and other expensive merchandise with counterfeit bar codes that scanned at lower prices. Through this scheme, Koski fraudulently purchased copper wire for $60 to $90 and then re-sold it at California recycling centers for $200 to $300. To appear legitimate and sidestep the State’s efforts to crack down on recycling fraud, Koski created a phony business called “iRecycle”. The evidence suggests Koski may have netted over $180,000 through this scheme.

In February, the Attorney General’s eCrime Unit launched an investigation after Lowe’s reported to the offices of the Attorney General and the San Diego District Attorney that Koski ran this scheme at multiple stores throughout San Diego.

“Our office is holding Steve Allen Koski responsible for his actions,” said San Diego County District Attorney Bonnie Dumanis. “We do not tolerate scams and we are aggressive about prosecuting perpetrators who think they can get away with bilking businesses and consumers.”

California is among the top five states with the highest reported incidences of copper theft. The National Insurance Crime Bureau reports 1,342 metal theft claims in California from January 2009 to December 2011, with approximately 96% of these claims pertaining to the theft of copper.

Last year, Attorney General Harris created the eCrime Unit to identify and prosecute identity theft crimes, cyber crimes and other crimes involving the use of technology. More information available here: http://oag.ca.gov/cybersafety.

A copy of the complaint is attached to the online version of this release at www.oag.ca.gov

RIVERSIDE -- Attorney General Kamala D. Harris announced today that two men were sentenced to more than 30 years in state prison for stealing millions of dollars through an illegal pyramid scheme and phony stock sales.

In April 2011, James A. Sweeney, II, 64, of Afton, Tennessee, and Patrick M. Ryan, 35, of Canyon Lake, California, were found guilty on 65 counts of grand theft and securities fraud. Sweeney was sentenced to 33 years in state prison and Ryan to 31 years in state prison today in Riverside County Superior Court. Each was ordered to pay restitution of approximately $8.2 million.

Sweeney and Ryan, co-founders of Riverside-based Big Co-op, Inc., stole approximately $8.2 million from more than 1,000 Californians through an illegal pyramid scheme and phony stock sales.

Big Co-op, also operating as Ez2Win.biz, purported to be an online shopping hub where consumers could go to purchase goods and services at discounted prices from big-name retailers including, Sears, Target and Macy’s.

From 2005 to 2006, Big Co-op generated $1.2 million in revenues through an illegal pyramid scheme. Consumers were informed that if they purchased a Big Co-op membership, they could save money on their own purchases plus earn commissions and rewards by convincing others to shop at the site. In reality, consumers never received rebates or rewards. Instead, their monetary gains were based on recruiting others to purchase memberships, and having those purchasers recruit others to purchase memberships (and so on).

Individuals who were recruited paid Big Co-op between $19.95 and $99.95 in monthly membership fees to be part of the Ez2Win.biz pyramid scheme.

In addition to the pyramid scheme, the two men sold phony stock in Big Co-op as a stand-alone investment.
At seminars and meetings across California, Sweeney and Ryan pitched Big Co-op as the future of online commerce, compared it to Google and EBay, and falsely informed investors the company was turning huge profits. Investors were also told that an initial public offering (IPO) was imminent and that when the company went public, the stock would double or triple and their investment could climb to well over $100 per share.

In reality, Big Co-op was never profitable, there was not an impending IPO, and the only significant revenue generated was as a result of the sale of phony stock and the payment of membership fees for the pyramid scheme.

Sweeney and Ryan sold shares for $0.50 to $5 and offered two-for-one deals to investors willing to pay cash. From 2005 to 2006, they took in more than $7 million from this scheme.

With investor cash, Sweeney and Ryan bought homes, country club memberships, several luxury cars, and ran up $30,000 to $50,000 in monthly credit card bills. Investor funds were also used to pay for an elaborate bachelor party in Las Vegas, a $23,000 wedding ring and a $100,000 wedding.

In October 2006, after receiving numerous complaints, the California Department of Corporations issued a desist and refrain orders against Sweeney, Ryan and other associates directing them to cease selling stock in the company. In May 2007, a second order directed them to cease selling memberships in the company. At that time, the case was referred to the Attorney General’s office for prosecution.

The case was prosecuted by Deputy Attorney General Patricia M. Fusco, with assistance from lead investigator Andy Thomas, both of the Special Crimes Unit.

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced that Gervork Aroutiounyan, 48, was sentenced for an ATM identity theft scam that spanned seven counties.

Aroutiounyan and Gnel Snapyan, 35, were charged for “skimming” debit card information of Chase Bank customers and stealing $320,728. The Department of Justice eCrime Unit was able to charge the entirety of the scheme across seven counties, including the counties of Santa Clara, Marin, Fresno, San Bernardino, San Diego and Los Angeles.

Aroutiounyan was sentenced today in San Luis Obispo County Superior Court to three years and eight months in state prison, and ordered to pay restitution to Chase Bank of $320,728. The sentencing of Snapyan was delayed until June 15.

“These criminals stole not just money, but people’s identity,” said Attorney General Harris. “While modern technology provides many advantages, it is also increasingly being used by criminals, which is why I created the eCrime unit within the Department of Justice.”

In September 2011, the Attorney General’s office charged the defendants with 28 counts of felony fraud. On March 1, the defendants entered a plea of guilty to one count of conspiracy to commit grand theft, computer access fraud, identity theft, second degree burglary and forgery of access cards. Additionally, each plead guilty to three counts of second degree burglary.

Between July 2010 and February 2011, Aroutiounyan and his co-conspirator replaced the card readers at Chase Bank ATM vestibules. The readers they installed allowed them to retrieve the card information of customers using the ATM. Additionally, the crew installed micro cameras to capture the card holders’ PIN entry. With both the card information and the PIN information, they created bogus ATM access cards. These cards were used to fraudulently withdraw $320,728. This type of crime is frequently referred to as a “skimmer operation.”

Chase Bank has reimbursed customers for their losses. The case was investigated by the San Luis Obispo County Police Department.

The California Department of Justice eCrime unit was created last year to identify and prosecute identity theft crimes, cyber crimes and other crimes involving the use of technology.

SAN FRANCISCO – Attorney General Kamala D. Harris today announced an agreement committing the leading operators of mobile application platforms to improve privacy protections for millions of consumers around the globe who access the Internet through applications (“apps”) on their smartphones, tablets and other mobile devices.

Attorney General Harris forged the agreement with six companies whose platforms comprise the majority of the mobile apps market: Amazon, Apple, Google, Hewlett-Packard, Microsoft and Research In Motion. These platforms have agreed to privacy principles designed to bring the industry in line with a California law requiring mobile apps that collect personal information to have a privacy policy. The majority of mobile apps sold today do not contain a privacy policy.

“Your personal privacy should not be the cost of using mobile apps, but all too often it is,” said Attorney General Harris.

“This agreement strengthens the privacy protections of California consumers and of millions of people around the globe who use mobile apps,” Attorney General Harris continued. “By ensuring that mobile apps have privacy policies, we create more transparency and give mobile users more informed control over who accesses their personal information and how it is used.”

Privacy policies are an important safeguard for consumers. Privacy policies promote transparency in how companies collect, use and share personal information. The agreement with the platforms is designed to ensure that mobile apps comply with the California Online Privacy Protection Act. The Act requires operators of commercial web sites and online services, including mobile apps, who collect personally identifiable information about Californians to conspicuously post a privacy policy.

This agreement will allow consumers the opportunity to review an app’s privacy policy before they download the app rather than after, and will offer consumers a consistent location for an app’s privacy policy on the application-download screen. If developers do not comply with their stated privacy policies, they can be prosecuted under California’s Unfair Competition Law and/or False Advertising Law.

The agreement further commits the platforms to educate developers about their obligations to respect consumer privacy and to disclose to consumers what private information they collect, how they use the information, and with whom they share it. The platforms will also work to improve compliance with privacy laws by giving users tools to report non-compliant apps and committing companies to implement processes to respond to these reports.

In six months, Attorney General Harris will convene the mobile application platforms to assess privacy in the mobile space.

There are more than 50,000 individual developers who have created the mobile apps currently available for download on the leading platforms. There are nearly 600,000 applications for sale in the Apple App Store alone, and another 400,000 for sale in Google’s Android Market. These apps have been downloaded more than 35 billion times.

These figures are expected to grow. An estimated 98 billion mobile applications will be downloaded by 2015, and the $6.8 billion market for mobile applications is expected to grow to $25 billion within four years.

The rapid growth and expansion in the mobile market exposes consumers to a wide variety of privacy invasions. Smartphones are often on and tethered to their user, transmitting rich data to the app developers. Users of mobile devices are vulnerable to privacy intrusion and abuse by numerous entities, app developers, analytic services and advertising networks. These entities could have access to sensitive information, including a user’s location, contacts, identity, messages and photos. Without a privacy policy, what companies do with the personal data they collect is largely invisible to consumers.

It is estimated that a majority of the mobile apps currently available for download through the platforms do not include even the most basic privacy protection: a privacy policy setting forth how personal data is collected, used and shared. One recent study found that only 5 percent of all mobile apps have a privacy policy.

A recent report by the Federal Trade Commission (FTC), Mobile Apps are Disappointing, evaluated the lack of privacy information available to parents before downloading mobile apps for their children. The FTC report recommended that mobile apps platforms do more to help parents and kids by providing a consistent means for app developers to display information about their privacy practices. The FTC specifically recommended that the platforms provide a designated space for developers to disclose their information in the app stores and markets and that the platforms improve enforcement of requirements for app developers to disclose the private data they collect.

Attorney General Harris, in August, 2011, convened Amazon, Apple, Google, Hewlett-Packard, Microsoft and Research In Motion as the most direct way to improve compliance with California law requiring that mobile apps have privacy policies. The platforms have committed to these principles today and are now working to implement them.

“California has a unique commitment to protecting the privacy of our residents. Our constitution directly guarantees a right to privacy, and we will defend it,” added Attorney General Harris. “Forging this common statement of mobile privacy principles shows the power of collaboration -- among government, industry and consumers -- to create solutions to problems no one group can tackle alone.”

Last year, Attorney General Harris also established an eCrime Unit to prosecute identity theft, data intrusions, and crimes involving the use of technology.

SAN JOSE -- Attorney General Kamala D. Harris today announced the creation of the eCrime Unit, staffed with Department of Justice attorneys and investigators, and charged with identifying and prosecuting identity theft crimes, cyber crimes and other crimes involving the use of technology.

“Today’s criminals increasingly use the Internet, smartphones, and other digital devices to victimize people online and offline,” said Attorney General Harris. “I am creating the eCrime Unit so that California can be a leader in using innovative law enforcement techniques to target these criminals. The eCrime Unit will be comprised of investigators and prosecutors charged with working across jurisdictions and leading task forces to protect California consumers and businesses.”

The eCrime Unit investigates and prosecutes crimes that include a substantial technology component. Examples and descriptions of the kinds of crimes that the unit will prosecute are:

• Identity theft – The Internet provides new ways for criminals to steal personal information and identities whether through email phishing scams or trolling the Internet for personal information about others.
• Fraud committed using the Internet – This includes scams perpetrated via email and on Internet auction websites.
• Theft of computer components or services – Burglary and robbery of computers or other electronic devices by highly-organized gangs at manufacturing sites, storage facilities and retail stores.
• Intellectual property crimes, such as counterfeiting or piracy – Large numbers of websites and online networks exist solely for the unauthorized distribution of copyrighted material, such as movies, music and software.
• Child exploitation – Disrupting online child pornography networks and those who commit sex crimes against children using the Internet or social media.

Many of these crimes are multi-jurisdictional and are better suited for prosecution on a statewide level. The eCrime Unit, which began operations in August, consists of 20 attorneys and investigators, many of whom have spent years working on complex technology crimes.

Technology crimes affect consumers, businesses and the state government’s operations. California had 10 of the top 25 metropolitan areas for identity-theft related consumer complaints in 2010. According to the Federal Trade Commission, California has the most identity theft complaints of any state and third highest per capita. In fact, every year, more than 1 million Californians are victims of identity theft. Total losses throughout the state exceeded $46 million last year.

“Every year, California loses millions of dollars because the intellectual capital of our state is being hijacked by criminal elements,” said Assemblywoman Nora Campos, D-San Jose. “The addition of the eCrime Unit to California’s fight against technology crimes sends a clear message that we are determined to root out this type of illegal activity.”

The eCrime Unit will also provide investigative and prosecutorial support to the five California regional high-tech task forces funded through the High Technology Theft Apprehension and Prosecution Trust Fund Program and provide coordination for out-of-state technology-crime investigation requests. The eCrime Unit also will develop and provide training for law enforcement officers, prosecutors, the judiciary, and the public on cyber safety and the importance of strong information-security practices.

“As the importance of the Internet to our economy has grown, criminals have moved online to steal valuable information and goods from individuals and businesses,” said Santa Clara District Attorney Jeffrey Rosen. “In the 21st Century, law enforcement will be increasingly combating online criminal activity. The Attorney General's eCrime Unit will provide much needed resources and expertise to thwart and prosecute online criminals who cause billions of dollars in damage every year.”

Attorney General Harris outlined several cases that exemplify the work of the eCrime Unit. In July, George Bronk, a Sacramento-area man was sentenced to more than four years in state prison after hacking into email addresses and Facebook accounts of victims by finding answers to email security questions. He found indecent pictures and video and then blackmailed the victims. The victims in this case were located in at least 17 states and United Kingdom. More information on the case can be found http://www.oag.ca.gov/news/press_release?id=2541&y=&m=6

Attorney General Harris also announced the filing of five felony charges against Chen Zhang on December 8, 2011, in San Joaquin Superior Court. Zhang is being charged with possession of unauthorized and counterfeit jewelry from five different companies. Investigators for the Attorney General’s Office seized an estimated $1.5 million of counterfeit goods from her residence in Tracy, California on November, 3, 2011. A copy of the complaint, and photographs of the counterfeit jewelry, are attached to the electronic version of this press release.

In another case, defendants allegedly ran an identity theft scam at ATM vestibules across seven counties. They allegedly used a card reader to capture victims’ card numbers and a hidden camera to capture the PIN numbers. Total losses are estimated to be $2 million. The case (California v. Aroutiounyan) originated in San Luis Obispo County, but the Department of Justice eCrime Unit was able to investigate and charge the entirety of the scheme across all seven counties.

The Attorney General also announced the launch of a new web site devoted to cyber safety, which can be found at http://oag.ca.gov/cybersafety. The website contains information about online child safety, identity theft prevention tips and help for victims.