Source: United States Attorneys General
A Chinese national was sentenced today to four years in prison and three years of supervised release for writing and deploying malicious code on his then-employer’s network.
“The defendant breached his employer’s trust by using his access and technical knowledge to sabotage company networks, wreaking havoc and causing hundreds of thousands of dollars in losses for a U.S. company,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “However, the defendant’s technical savvy and subterfuge did not save him from the consequences of his actions. The Criminal Division is committed to identifying and prosecuting those who attack U.S. companies, whether from within or without, to hold them responsible for their actions.”
“The FBI works relentlessly every day to ensure that cyber actors who deploy malicious code and harm American businesses face the consequences of their actions,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “I am proud of the FBI cyber team’s work which led to today’s sentencing and hope it sends a strong message to others who may consider engaging in similar unlawful activities. This case also underscores the importance of identifying insider threats early and highlights the need for proactive engagement with your local FBI field office to mitigate risks and prevent further harm.”
In March, a jury convicted Davis Lu, 55, legally residing in Houston, of causing intentional damage to protected computers. According to court documents and evidence presented at trial, Lu was employed as a software developer for the victim company headquartered in Beachwood, Ohio, from November 2007 to October 2019. Following a 2018 corporate realignment that reduced his responsibilities and system access, Lu began sabotaging his employer’s systems. By Aug. 4, 2019, he introduced malicious code that caused system crashes and prevented user logins. Specifically, he created “infinite loops” (in this case, code designed to exhaust Java threads by repeatedly creating new threads without proper termination, resulting in server crashes or hangs), deleted coworker profile files, and implemented a “kill switch” that would lock out all users if his credentials in the company’s active directory were disabled. The “kill switch” code — which Lu named “IsDLEnabledinAD”, abbreviating “Is Davis Lu enabled in Active Directory” — was automatically activated when he was placed on leave and asked to surrender his laptop on Sept. 9, 2019, and impacted thousands of company users globally.
Additionally, on the day he was directed to turn in his company laptop, Lu deleted encrypted data. His internet search history revealed he had researched methods to escalate privileges, hide processes, and rapidly delete files, indicating an intent to obstruct the efforts of his co-workers to resolve the system disruptions. Lu’s employer suffered hundreds of thousands of dollars in losses as a result of his actions.
The FBI Cleveland Field Office investigated the case.
Senior Counsel Candina S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Daniel J. Riedl and Brian S. Deckert for the Northern District of Ohio prosecuted the case.
CCIPS investigates and prosecutes cybercrime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cybercriminals, and court orders for the return of over $350 million in victim funds.