Founder of Purported Cryptocurrency Company Sentenced to More Than Eight Years in Prison for Multi-Million-Dollar Fraud Scheme
BOSTON – A Massachusetts man was sentenced yesterday in U.S. District Court in Boston for hacking into and damaging the computer networks of his former employer and three of his former clients.
Kamlesh Patel, 39, of Lowell, was sentenced by U.S. District Court Judge Leo T. Sorokin to 24 days in jail, one year of home detention and five years of probation and ordered him to pay $137,896. In July 2016, Patel pleaded guilty to causing damage without authorization to internet-connected computers and using means of identification to commit the offenses.
Patel worked as a senior network engineer at Northborough-based Baesis Inc., a company that offered network maintenance and security services. In October 2010, after Baesis terminated Patel, he used a colleague’s network credentials to access Baesis’ computer network and delete the company’s image server, a computer that stored copies of clients’ network configurations.
Beginning in late January 2011, Patel again used his former colleague’s credentials to access Baesis’ network and access the networks of three former clients. Patel used specialized software to delete data from all four companies’ networks. Following Patel’s actions, the victim companies temporarily lost use of their networks, including internet and e-mail access. One company lost access to its internet telephone system for several weeks.
United States Attorney Carmen M. Ortiz and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The U.S. Attorney’s Office acknowledges Baesis, Inc. for its assistance with the investigation. Assistant U.S. Attorney Seth B. Kosto of Ortiz’s Cybercrime Unit prosecuted the case.