Online Porn Site Said to Have Duped U.S. Army

[InfoSec News <isn () c4i org>]

http://www.reuters.com/news_article.jhtml;jsessionid=WCNVJDNZNR5S2CRBAELCFFAKEEARKIWD?type=internetnews&StoryID=676202

March 07, 2002 05:50 PM ET 

NEWARK, N.J. (Reuters) - A computer specialist was charged Thursday
with operating a sex show Web site on a high-speed line which he got
the U.S. army to pay for by telling them it was used for communicating
with forces in Bosnia.

Gilbert Benjamin, 49, was arrested at his Neptune, New Jersey, home by
special agents of the Army Criminal Investigation Division and the
Defense Criminal Investigative Service.

A 68-count indictment charges him with mail and wire fraud and
submitting false claims with the intention of defrauding the
government, said assistant U.S. Attorney Michael Guadagno.

The indictment alleges Benjamin charged the Army more than $100,000
for the cost of running the T-1 Internet line between 1997 and 1998,
telling officials at the Fort Monmouth, New Jersey, Army base it was
needed to back up the base's communications with U.S. military forces
in Bosnia.

Instead, Benjamin was using the line to operate an adult entertainment
Web site called Blue Sky whose paid subscribers could participate in
two-way video hook-ups including live sex shows, Guadagno said.

In a second ploy, Benjamin allegedly ordered computers and computer
parts claiming they were needed for Army-related activities. But he
used them for his venture then resold them to an electronics company
owned by his brother in Berlin, New Hampshire.

The total loss to the government is estimated at more than $300,000,
Guadagno said.

Benjamin faces a maximum penalty of five years in prison and $250,000
fine on each count.



-
ISN is currently hosted by Attrition.org

To unsubscribe email majordomo () attrition org with 'unsubscribe isn' in the BODY
of the mail.