Welcome to the LSIS Investigative Journal
Welcome to the LSIS Investigative Journal
Wednesday, April 1, 2015
Blurring of Work, Personal Tech Drives Privacy Disputes
Blurring of Work, Personal Tech Drives Privacy Disputes
The Recorder
January 30, 2015
SAN FRANCISCO — Administrators at Granada Middle School had first grown suspicious of Charles Brautigam after noticing a 17-year-old former student seemed to spend a lot of time hanging around his classroom.
Brautigam, who taught social studies and language arts at the southern California school, assured them he was tutoring the girl—nothing more. Then, in 2008, shortly after she turned 18, the two married. Brautigam was 36.
Complaints began pouring in from parents. Brautigam photographed his underage students without permission, "stalked" them on Twitter at night, and humiliated them in front of their peers, according to a statement of charges filed against him by the East Whittier School District.
District officials placed Brautigam on administrative leave in 2013 and went to work building a case to fire him. During a search of Brautigam's work laptop, an administrator found passwords to his personal Facebook and Gmail accounts saved in the browser, and logged on. According to Brautigam's lawyers, the "online surveillance campaign," went on for months, during which time officials accessed messages Brautigam sent from home to his friends, family, attorneys and union representative.
"If plaintiff had left his house keys in his classroom," Brautigam's attorneys wrote in a 2014 suit against the district for violation of privacy, "one wonders whether defendants would have donned ski-masks and pried into his home."
Brautigam's case may be an extreme example, but disputes involving employees' personal accounts and communications represent a new front in the workplace privacy war. Today many workers use personal cellphones to conduct business or check private email from work computers, blurring the line between work and personal technology.
While U.S. companies have vast leeway to monitor computer use, it's unclear just how deep employers can pry into employees' online history or under what circumstances they can read private emails or social media posts.
Lawrence Julius Turman, an employment partner with Reed Smith in San Francisco, said clients are increasingly asking how to monitor their employees' online activities without setting themselves up for a lawsuit.
Supervisors may be concerned that employees are uploading trade secrets to the cloud or disparaging the company brand on social media, he said. But as the law evolves, often far more slowly than technology, employers aren't sure how to watch for those things without stepping on privacy rights.
"The rules change," Turman said, "and the employers have to keep up with that."
San Francisco lawyer Jeffrey Rosenfeld of Kronenberg Rosenfeld, who represents Brautigam, says the district's intrusion was out of bounds. But he concedes the boundary isn't perfectly defined.
"There's not a wealth of authority on these issues," he said. "Email is a relatively new technology. Monitoring people's email is even newer. So I think we're just starting to see the beginnings of these cases."The East Whittier City School District, represented by McCune & Harber in Los Angeles, says its monitoring of Brautigam's accounts was justified because his passwords were saved and anyone could "stumble upon" them. They say the messages uncovered "prove inappropriate conduct" by Brautigam and are "critically important" to the district's case.
Brautigam signed a employee computer-use policy, which stipulated the district could monitor activity on his work computer. But Rosenfeld, counsel for Brautigam, argues the policy said nothing about accessing personal messages sent from outside computers.
Dana McCune of McCune & Harber didn't respond to calls or emails seeking comment. So far judges have sided with the teacher. A Los Angeles County judge denied the district's demurrer in early January, and last year Administrative Law Judge Vincent Nafarrete ruled the school district cannot use the personal messages to make its case for Brautigam's removal, a decision the Whittier district has appealed.
Lothar Determann, a Baker & McKenzie partner not involved with the case, said such disputes often hinge on what is covered in an employer's computer-use policy. A worker might compromise his position by returning his work laptop with the passwords saved in the browser, Determann noted.
"Usually the employee would change the passwords," he said. "Or not store the passwords for confidential accounts."
A similar issue has surfaced in a suit pitting Lyft's onetime chief operating officer against his former employer. Travis VanderZanden, now vice president of international growth at Uber Technologies Inc., accused his ex-employers at Lyft Inc. of reading personal texts and emails he sent after his last day at the company.
Lyft has its own gripes with VanderZanden, who the company's lawyers claim made off with thousands of sensitive documents before defecting to Uber. In a countersuit, VanderZanden insists Lyft learned of his job talks with the company's rival by sifting through his private communications.
The heavily redacted complaint filed in San Francisco Superior Court doesn't make clear just how VanderZanden believes Lyft accessed the messages. A Lyft spokeswoman has said the claims are baseless, though the company has acknowledged conducting a full forensic investigation on VanderZanden's work computer.
Orrick, Herrington & Sutcliffe partner Joseph Liburt said clients have legitimate reasons for monitoring computer use and workplace privacy has become a hot topic at legal seminars. Companies come to him, Liburt said, looking for "bright line" rules.
So far courts haven't created a clear framework. In August, U.S. District Judge Saundra Brown Armstrong of the Northern District of California ruled for equipment rental company Sunbelt Rentals Inc. A Sunbelt sales representative had synced his work iPhone and iPad to his personal Apple account and neglected to remove the devices when he left the company, allowing his former employer to read messages sent from his new iPhone. In Sunbelt Rentals v. Victor, Armstrong ruled "the transmission of those messages was entirely Victor's doing" and said the company couldn't be faulted for reading them.
A federal judge in Ohio came down differently in a 2013 case, allowing a claim to proceed against Verizon Wireless Inc. under the Stored Communications Act. The judge ruled Verizon had no authority to read 48,000 personal emails still viewable when a former employee turned in her BlackBerry without first closing her Gmail account.
Brautigam's suit in Los Angeles Superior Court includes a federal Wiretap Act claim, which Fenwick & West special counsel Robert Brownstone said can be a difficult one to win. The law, passed in 1968 to address telephone eavesdropping, was last updated in 1986. The archaic language doesn't fit perfectly with email snooping.
Courts in the past have interpreted the Wiretap Act narrowly, Brownstone said. But that could be changing.
"It's possible that over time judges have grown impatient waiting for Congress to update the rules," Brownstone said.
He said the best defense for companies is an airtight computer-use policy.
"What I work with clients on is being very, very clear in the written policy that there's no expectation of privacy," he said, "and it extends to any and all information passing through, received, stored or transmitted on any network device not only provided by the employer, but cost-reimbursed or supported by the employer."
Still, he wouldn't suggest clients draft policies that explicitly say they can log in to employees' personal email accounts. That, he said, is "going to run afoul of too many laws."
Contact the reporter at mkendall@alm.com.
Blurring of Work, Personal Tech Drives Privacy Disputes
Sunday, March 8, 2015
Private investigator pleads guilty in NY hacker-for-hire case
Private investigator pleads guilty in NY hacker-for-hire case
By Jonathan Stempel
NEW YORK Fri Mar 6, 2015 7:14pm EST
(Reuters) - A private investigator pleaded guilty on Friday in New York to conspiracy to engage in computer hacking, in what prosecutors said was a five-year scheme to access email accounts of people his clients were paying him to investigate.
Eric Saldarriaga, 41, of Queens, New York, entered his plea before U.S. District Judge Richard Sullivan in Manhattan.
The defendant is scheduled to be sentenced on June 26, and under a plea agreement could face six months in prison. His lawyer Peter Brill declined to comment after the hearing.
According to court papers, Saldarriaga used the online alias "Emmanuela Gelpi" to locate hackers who helped him infiltrate more than 60 email accounts.
The defendant would then provide information he learned from email communications to his clients, or else use it for personal reasons, the papers show.
"Eric Saldarriaga didn't honorably serve his clients," FBI Assistant Director Diego Rodriguez said in a statement. "Unlawfully accessing personal information is no minor crime."
The New York Times said Saldarriaga's plea followed a roughly year-long investigation by federal prosecutors and the FBI into the "hacker-for-hire" business, and could lead to attention on some of the defendant's clients.
Saldarriaga in 2013 incorporated Iona Research and Security Services Inc. In a message board posting, he said he has worked with 19 law firms in the New York City area, mainly in the areas of personal injury, medical malpractice and divorce.
At Friday's hearing, Saldarriaga admitted to having paid money to access personal email accounts of people he was investigating.
"You knew it was against the law?" Sullivan said.
"Yes, your honor," Saldarriaga replied.
Prosecutors said Saldarriaga's scheme began in 2009 and ran through at least March 2014.
The case is U.S. v. Saldarriaga, U.S. District Court, Southern District of New York.
(Reporting by Jonathan Stempel; Editing by Lisa Shumaker)
Friday, February 13, 2015
San Jose: Private eyes hacked computers, feds say
San Jose: Private eyes hacked computers, feds say
Posted: 02/11/2015 12:11:07 PM PST
SAN JOSE
-- A loose-knit group of private investigators has been indicted on
federal charges of hacking into private computer accounts to aid clients
who were embroiled in lawsuits against rival companies.
Nathan Moser, 41, of Menlo Park, Peter Siragusa, 59, of Novato, Carlo Pacileo, 44, of El Segundo, Trent Williams, 24, of Martinez, and Sumit Gupta, 26, who lives in India, were named in an indictment returned by the grand jury in early January.
Moser, Siragusa and Williams made their first court appearance Tuesday and were released on $100,000 bond. Pacileo appeared in federal court in Los Angeles, and the FBI is working on bringing Gupta back from India.
The key figures in the alleged conspiracy were Moser, who owns a Menlo Park-based private investigation firm, and Siragusa, head of a Novato-based outfit.
The indictment alleges they enlisted computer hackers to gain information to aid Pacileo and others involved in lawsuits against rival companies.
The indictment names several companies victimized by the hacking, including Silvaco, a Santa Clara software company, and Ocean Avenue, a Utah network marketing company. Those companies were competitors to ViSalus, which had sued them for raiding their employees.
Howard Mintz covers legal affairs. Contact him at 408-286-0236
San Jose: Private eyes hacked computers, feds say
Friday, December 12, 2014
D.A. says private investigators illegally tracked Costa Mesa councilmen
D.A. says private investigators illegally tracked Costa Mesa councilmen
Men allegedly put a GPS device on the car on the city's mayor, followed mayor pro tem ahead of the 2012 election.
Orange County Register
Published: Dec. 11, 2014 Updated: 7:34 p.m.
Two private investigators for a defunct police legal firm have been charged with illegally harassing two Costa Mesa councilmen, the Orange County District Attorney said Thursday.
Scott Alan Impola, 46, and Christopher Joseph Lanzillo, 45, were arrested Wednesday and Thursday on suspicion of using a GPS tracking device to tail one councilman and phoning in a false DUI report on another, in an attempt to sully the politicians before the November 2012 election.
Lanzillo, a former Riverside police officer from Lake Arrowhead, and Impola, a former Riverside police detective from Canyon Lake, were hired by a law firm retained by the Costa Mesa Police Association to dig up dirt on Mayor Steven Mensinger and Mayor Pro Tem Jim Righeimer, prosecutors allege. The firm, Lackie, Dammeier, McGill & Ethir, has been accused by cities throughout California of bullying them into supporting police unions and granting pay raises.
Mensinger’s car was parked in his driveway when the private investigators planted the electronic tracking device, which they used to track him from July to August 2012, according to authorities.
Then, the investigators on Aug. 22, 2012, followed Righeimer from a Costa Mesa bar and called 911 to make the phony DUI report, prosecutors said. Righeimer was detained outside his home, where he passed a field sobriety test. The councilman later produced a receipt at a news conference showing he had been drinking only Diet Coke at the bar.
Senior Deputy District Attorney Robert Mestman said the Costa Mesa police union retained the law firm specifically to hire the investigators to track the councilmen, but the union wasn’t charged because prosecutors had no evidence the union knew about the illegal conduct beforehand. Surveiling the councilman was not illegal, he said.
The Costa Mesa Police Association and its former Upland-based law firm of Lackie, Dammeier, McGill, and Ethir have vehemently denied having anything to do with the DUI report or GPS tracking device. After the incidents came to light, the police union fired the law firm, which openly promoted in seminars and on their website hardball tactics to coerce elected officials.
The law firm closed in January after it was accused by the Peace Officers Research Association of California of bilking the organization’s statewide police defense fund.
Mestman wouldn’t say whether the law firm would be charged for its role in Costa Mesa and said the investigation was ongoing.
Both Righeimer and Mensinger have been vocal critics of public unions and their sway over government proceedings, and have supported outsourcing many Costa Mesa city services. In the months leading up to the GPS tracking and DUI report, both councilmen approved a budget that cut police expenditures, restructured the department and reduced the number of sworn officers.
Both councilmen are suing Lanzillo, the Costa Mesa Police Association and its former law firm over the surveillance tactics.
“I’m very disappointed the Costa Mesa police union retained LDME to conduct candidate research, which included surveilling the council members,” Mensinger said Thursday. “The citizens of our community should understand that nobody should be extorted to make decisions on taxpayer funded compensation.”
“I have no doubt in the end, when the facts come out, that there will be additional attorneys sitting in jail,” he added.
Prosecutors charged Lanzillo and Impola each with two felony counts of conspiracy to commit a crime through the unlawful use of an electronic tracking device, one felony count of false imprisonment by deceit, and one felony count of conspiracy to commit a crime by falsely reporting a crime.
The second GPS-tracking charge stems from prosecutors’ accusation that Lanzillo and Impola also planted an electronic surveillance device on the vehicle of an attorney at a competing law firm.
If convicted, the private investigators face up to four years and four months in jail and loss of their private investigator licenses.
Police arrested Impola Wednesday night in Riverside County and Lanzillo was arrested Thursday morning in San Bernadino County.
In September 2011, Impola pleaded guilty to misdemeanor burglary and was placed on 36 months probation and 30 days in a work-release program for a 2009 incident in which police said he forced his way into the apartment of his estranged wife and beat her male companion, according to court documents. He was also charged with running an unauthorized license plate check.
Impola was initially arrested on suspicion of assault with a deadly weapon, but prosecutors later dropped the assault and license plate check charges.
Staff writers Tony Saavedra and Brian Rokos contributed to this report.
Men allegedly put a GPS device on the car on the city's mayor, followed mayor pro tem ahead of the 2012 election.
Orange County Register
Published: Dec. 11, 2014 Updated: 7:34 p.m.
Two private investigators for a defunct police legal firm have been charged with illegally harassing two Costa Mesa councilmen, the Orange County District Attorney said Thursday.
Scott Alan Impola, 46, and Christopher Joseph Lanzillo, 45, were arrested Wednesday and Thursday on suspicion of using a GPS tracking device to tail one councilman and phoning in a false DUI report on another, in an attempt to sully the politicians before the November 2012 election.
Lanzillo, a former Riverside police officer from Lake Arrowhead, and Impola, a former Riverside police detective from Canyon Lake, were hired by a law firm retained by the Costa Mesa Police Association to dig up dirt on Mayor Steven Mensinger and Mayor Pro Tem Jim Righeimer, prosecutors allege. The firm, Lackie, Dammeier, McGill & Ethir, has been accused by cities throughout California of bullying them into supporting police unions and granting pay raises.
Mensinger’s car was parked in his driveway when the private investigators planted the electronic tracking device, which they used to track him from July to August 2012, according to authorities.
Then, the investigators on Aug. 22, 2012, followed Righeimer from a Costa Mesa bar and called 911 to make the phony DUI report, prosecutors said. Righeimer was detained outside his home, where he passed a field sobriety test. The councilman later produced a receipt at a news conference showing he had been drinking only Diet Coke at the bar.
Senior Deputy District Attorney Robert Mestman said the Costa Mesa police union retained the law firm specifically to hire the investigators to track the councilmen, but the union wasn’t charged because prosecutors had no evidence the union knew about the illegal conduct beforehand. Surveiling the councilman was not illegal, he said.
The Costa Mesa Police Association and its former Upland-based law firm of Lackie, Dammeier, McGill, and Ethir have vehemently denied having anything to do with the DUI report or GPS tracking device. After the incidents came to light, the police union fired the law firm, which openly promoted in seminars and on their website hardball tactics to coerce elected officials.
The law firm closed in January after it was accused by the Peace Officers Research Association of California of bilking the organization’s statewide police defense fund.
Mestman wouldn’t say whether the law firm would be charged for its role in Costa Mesa and said the investigation was ongoing.
Both Righeimer and Mensinger have been vocal critics of public unions and their sway over government proceedings, and have supported outsourcing many Costa Mesa city services. In the months leading up to the GPS tracking and DUI report, both councilmen approved a budget that cut police expenditures, restructured the department and reduced the number of sworn officers.
Both councilmen are suing Lanzillo, the Costa Mesa Police Association and its former law firm over the surveillance tactics.
“I’m very disappointed the Costa Mesa police union retained LDME to conduct candidate research, which included surveilling the council members,” Mensinger said Thursday. “The citizens of our community should understand that nobody should be extorted to make decisions on taxpayer funded compensation.”
“I have no doubt in the end, when the facts come out, that there will be additional attorneys sitting in jail,” he added.
Prosecutors charged Lanzillo and Impola each with two felony counts of conspiracy to commit a crime through the unlawful use of an electronic tracking device, one felony count of false imprisonment by deceit, and one felony count of conspiracy to commit a crime by falsely reporting a crime.
The second GPS-tracking charge stems from prosecutors’ accusation that Lanzillo and Impola also planted an electronic surveillance device on the vehicle of an attorney at a competing law firm.
If convicted, the private investigators face up to four years and four months in jail and loss of their private investigator licenses.
Police arrested Impola Wednesday night in Riverside County and Lanzillo was arrested Thursday morning in San Bernadino County.
In September 2011, Impola pleaded guilty to misdemeanor burglary and was placed on 36 months probation and 30 days in a work-release program for a 2009 incident in which police said he forced his way into the apartment of his estranged wife and beat her male companion, according to court documents. He was also charged with running an unauthorized license plate check.
Impola was initially arrested on suspicion of assault with a deadly weapon, but prosecutors later dropped the assault and license plate check charges.
Staff writers Tony Saavedra and Brian Rokos contributed to this report.
Wednesday, June 25, 2014
Supreme Court: Police Need Warrants to Search Cellphone Data
Supreme
Court: Police Need Warrants to Search Cellphone Data
Unanimous
Supreme Court Says Privacy Interests Outweigh Police Convenience
ByJess
Bravin
June
25, 2014
WASHINGTON—A
unanimous Supreme Court ruled Wednesday that police must obtain a warrant to
search the vast amount of information on a suspect's cellphone, broadly
protecting Americans' privacy rights in the digital age.
The
opinion, by Chief Justice John Roberts, dismissed law-enforcement arguments
that no legal distinction existed between smartphones and the pocket litter
that police long have been permitted to search when arresting a suspect—for
instance, wallets, cigarette wrappers and address books.
"That
is like saying a ride on horseback is materially indistinguishable from a
flight to the moon," Chief Justice Roberts wrote. "Modern cell
phones, as a category, implicate privacy concerns far beyond those implicated
by the search of a cigarette pack, a wallet or a purse," he wrote.
Warrantless
searches have been justified by the need to protect officers from hidden
weapons and to prevent suspects from destroying evidence. Neither rationale
applied to the digital data accessible through a cellphone or other mobile
devices, the court found, in erecting a requirement that police go to court before
rifling through email, text messages, phone records or other data.
The
chief justice acknowledged that mobile devices are essential tools for today's
criminals, as they are for most Americans, and that requiring police to seek a
magistrate's permission to search them could impede some investigations.
But
individual rights sometimes outweigh the convenience of government, he wrote,
adding: "Privacy comes at a cost."
The
decision, which built on several privacy rulings in recent years, was one of a
pair Wednesday in which the high court forcefully applied age-old doctrines to
a society rapidly being transformed by new technology. The warrant ruling, in
particular, could have consequences for privacy questions that are likely to
arise as technology advances.
The
second decision involved online video technology by Aereo Inc., which was
challenged by traditional broadcasters arguing it violated their copyrights. In
Aereo, the court effectively said the company couldn't use technology
workarounds to escape copyright restrictions for a service that captured
broadcasting signals, recorded them and distributed someone else's content over
the Web.
Privacy
advocates hailed the cellphone ruling as a signal that the court would protect
constitutional privacy interests from the vast powers of modern technology.
"By recognizing that the digital revolution has transformed our
expectations of privacy, today's decision is itself revolutionary and will help
to protect the privacy rights of all Americans," said Steven Shapiro,
legal director of the American Civil Liberties Union.
Law-enforcement
officials were disappointed. Technology "is making it easier and easier
for criminals to do their trade," while the court "is making it
harder for law enforcement to do theirs," said Thomas Zugibe, district
attorney in Rockland County, N.Y., who signed a friend-of-the-court brief
arguing warrantless device searches were constitutional.
The
Supreme Court has been grappling with modern technology's implications for core
constitutional rights, alternately siding with law enforcement and the
individual. Wednesday's opinion, however, was a watershed, showing that all
nine justices are keen to re-examine categorical rules written for an earlier
era.
The
government, for instance, had argued a phone's call log could be searched under
the 1979 precedent Smith v. Maryland, which held police didn't need a warrant
to install an electronic device to record phone numbers dialed by a caller. The
court dismissed that argument in the cellphone context.
That
1979 precedent also underlies the government's rationale for the vast
surveillance apparatus tracking digital communications' "metadata"
implemented since the Sept. 11, 2001, attacks. While the Smith case's validity
wasn't at issue Wednesday, it could face scrutiny should it come before the
justices.
"Cell
phones differ in both a quantitative and qualitative sense from other objects
that might be kept on arrestee's person," Chief Justice Roberts wrote.
"Many of these devices are in fact minicomputers" that "could
just as easily be called cameras, video players, rolodexes, calendars, tape
recorders, libraries, diaries, albums, televisions, maps, or newspapers."
Moreover,
the information a cellphone contains—or can access through the Internet
cloud—can "reveal much more in combination than any isolated record"
that might have previously been found in a suspect's pocket. "The sum of
an individual's private life can be reconstructed" through photos, email,
phone records, Internet search histories and other data, the court said.
"It
is no exaggeration to say that many of the more than 90% of American adults who
own a cell phone keep on their person a digital record of nearly every aspect
of their lives," it continued.
That
an individual can now carry such a record so casually "does not make the
information any less worthy of the protection for which the Founders
fought," the chief justice wrote.
The
cellphone ruling came in a pair of cases from different ends of the country
that had opposite results. A federal appeals court in Boston had found a
cellphone search violated the Fourth Amendment protection against
"unreasonable searches and seizures," which generally requires
authorities to obtain a warrant from a magistrate before conducting a search.
But
state courts in California ruled that anything found on a suspect's person—be
it a cellphone or matchbook—could be searched under recognized exceptions to the
warrant requirement.
Spokesmen
for both the U.S. and California departments of justice promised to work with
the law-enforcement agencies they supervise to implement Wednesday's decision.
"The
department will work with its law-enforcement agencies to ensure full
compliance with this decision," U.S. Justice Department spokeswoman Ellen
Canale said. "Our commitment to vigorously enforcing the criminal laws and
protecting the public while respecting the privacy interests protected by the
Fourth Amendment is unwavering."
Chief
Justice Roberts suggested that would be simple. "Our answer to the
question of what police must do before searching a cellphone seized incident to
an arrest is accordingly simple—get a warrant," he wrote.
In
those rare events where it truly would endanger public safety or risk a loss of
evidence, police can act without a warrant and later argue in court their
actions were justified by "exigent circumstances," he wrote.
Justices
Antonin Scalia, Anthony Kennedy, Clarence Thomas, Ruth Bader Ginsburg, Stephen
Breyer, Sonia Sotomayor and Elena Kagan joined the Roberts opinion in full.
Justice Samuel Alito, who agreed in part, wrote separately to urge legislatures
to take the lead in determining privacy rights, rather than leaving the matter
to the courts.
Link to Supreme Court Opinion
Supreme Court Opinion
Link to Wall Street Journal Article
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