Thomson Reuters News & Insight
Featured Content from WESTLAW
Beginning in June, Thomson Reuters News & Insight content will be available exclusively on WestlawNext®, as part of its Practitioner Insights offering. On June 21, the Thomson Reuters News & Insight website, iPhone® app and newsletters will be discontinued. See Frequently Asked Questions to learn more.

Legal

  •  
  •  

Computer keyboard, file 2012. REUTERS Kacper Pempel

Accused hacker seeks recusal of N.Y. federal judge

2/13/2013 COMMENTS (0)

By Bernard Vaughan

NEW YORK, Feb 13 (Reuters) - The chief judge of the U.S. District Court in Manhattan will hold a hearing next week in which she will consider demands that she step down from a high-profile computer hacking case because her husband may have been among the victims of the cyber attack.

U.S. District Judge Loretta Preska is presiding over the criminal case against Jeremy Hammond, who is accused of hacking into the computers of security research company Strategic Forecasting Inc, or "Stratfor."

Hammond's lawyer, Elizabeth Fink, has filed court papers seeking Preska's recusal, while the loose-knit cyber-activist group Anonymous has also issued a statement calling for a new judge to be put on the case.

Hammond, who prosecutors say was known by the moniker "Anarchaos," among other nicknames, has been held without bail since his arrest in March. He has pleaded not guilty to charges including computer hacking and conspiracy and faces up to 42 years in prison if convicted.

A work email address for the judge's husband, Thomas Kavaler, a partner at law firm Cahill Gordon & Reindel, is included on a website, http://dazzlepod.com/stratfor, that purported to list accounts that were stolen from Stratfor computers.

Kavaler, a member of the law firm's executive committee, said in a December court filing that Stratfor has never been a client of his or his firm's.

He said he sometimes receives unsolicited emails from the security firm, but that he never provided Stratfor with his credit card number or other personal information and has not knowingly been a Stratfor customer. Stratfor's confidential clients include multinational companies, foreign governments and media companies.

But Fink wrote in a memorandum in support of the recusal motion that Kavaler's status "as both a victim of the alleged crimes of the accused and an attorney to many other victims creates an appearance of partiality too strong to be disregarded, requiring disqualification."

Major Cahill Gordon clients, including Merrill Lynch & Co and American International Group Inc, were also victims of the Stratfor attack, Fink wrote.

A hearing is set for Feb. 21. Judge Preska and Kavaler declined to comment.

Fink and a spokesman for Stratfor also declined to comment.

The U.S. Attorney's office in Manhattan, which is prosecuting the case, has filed papers opposing the recusal motion. The office declined to make further comment.

Hammond was among five people charged last year in a wide-ranging case tied to the Anonymous group, which has wreaked havoc on the websites of government agencies and large corporations. Preska is presiding over all of the cases.

A sixth person, Hector Monsegur, pleaded guilty in 2011 to hacking-related charges and has been cooperating with investigators.

Prosecutors said Hammond was a member of an Anonymous-affiliated group that mounted a "cyber assault" on Stratfor from December 2011 until about March 2012, according to a superseding indictment. The group, AntiSec, stole approximately 60,000 credit card numbers, some of which they used to make at least $700,000 worth of charges, prosecutors said.

The case is USA v. Ackroyd, U.S. District Court in Manhattan, No. 12-00185.

For Hammond: Elizabeth Fink.

For the government: Rosemary Nidiry and Thomas Brown, U.S. Attorney's office for the Southern District of New York.

Follow us on Twitter @ReutersLegal | Like us on Facebook 


Register or log in to comment.

© 2013 Thomson Reuters