Blog Archive: October 2009

  Yesterday, the US-China Economic and Security Review Commission (USCC), a congressional advisory panel, released a joint analysis with Northrop Grumman reporting that the Chinese government is building up their hacking and cyber warfare abilities. The report is based on case studies of prior cyber attacks, People's Liberation Army releases, scholarly contributions from experts, and journals from the Chinese National Defense University and the Academy of Military Sciences.     According t...

  Stewart Nozette (pictured left, from nasa.gov), a former NASA, DARPA (Defense Advanced Research Projects Agency), and U.S. Naval Research scientist, was arrested Monday for allegedly trying to sell national secrets to FBI agents posing as Israeli government agents for $11,000. This is not the first time Nozette has been under investigation. He was investigated in 2006 for allegedly submitting false expense forms to NASA.     Nozette was arrested on Monday, and indicted Wednesday afternoo...

The FCC has posted its anticipated proposal for Net Neutrality rules, and seeks comment on the proposal. According to the FCC press release:   "Under the draft proposed rules, subject to reasonable network management, a provider of broadband Internet access service:   would not be allowed to prevent any of its users from sending or receiving the lawful content of the user’s choice over the Internet; would not be allowed to prevent any of its users from running the lawful applications or ...

  The word on the street is that the FCC is about to release notice of proposed rules to enforce net neutrality. Keep your eyes peeled!     http://www.fcc.gov/  

  Raj Rajaratnam, the billionaire founder of the Galleon Group that I wrote about in my last post has also been charged by the SEC in Federal court. The SEC claims Rajaratnam's scheme was massive (as illustrated in the diagram above), and generated more than $25 million. Other companies allegedly involved are IBM, Intel, and Mckinsey & Company.     What makes this development interesting is that the SEC is suing in civil court, unlike what Federal Prosecutors have done in the Federal c...

Listed by Forbes as number 559 of the worlds richest people, Raj Rajaratnam was worth $1.3 billion. Sadly, some of those funds may have been ill-begotten. Yesterday the US Attorneys of the Southern District of New York charged Rajaratnam with securities fraud pursuant to the insider trading portions statutes 15 U.S.C. §§ 78j(b), 78ff; 17 C.F.R. §§ 240.10b-5, and 240.10b5-2. AllegedlyRajaratnam obtained inside information from another hedge fund operator, and traded upon it, making several...

  Michael Palermo, 50, a 16 year veteran of the New York and New Jersey Port Authority Police Department (PAPD) and an 11 year FBI task force officer investigating violent crimes was arrested on charges of mail fraud. According to the FBI, Palermo had received a number of personal services from a cooperating witness that he worked with as part of his task force career. Allegedly, Palermo received from the cooperating witness favorable prices on high end automobiles, free automobile work, and...