The issues were complex, the prosecution's tactics somewhat unorthodox, but the Chicago Task Force had proved sure-footed to date. "Shadowhawk" had been bagged on the wing in 1989 by the Task Force, and sentenced to nine months in prison, and a $10,000 fine. The Shadowhawk case involved charges under Section 1030, the "federal interest computer" section.
Shadowhawk had not in fact been a devotee of "federal-interest" computers per se. On the contrary, Shadowhawk, who owned an AT&T home computer, seemed to cherish a special aggression toward AT&T. He had bragged on the underground boards "Phreak Klass 2600" and "Dr. Ripco" of his skills at raiding AT&T, and of his intention to crash AT&T's national phone system. Shadowhawk's brags were noticed by Henry Kluepfel of Bellcore Security, scourge of the outlaw boards, whose relations with the Chicago Task Force were long and intimate.
The Task Force successfully established that Section 1030 applied to the teenage Shadowhawk, despite the objections of his defense attorney. Shadowhawk had entered a computer "owned" by U.S. Missile Command and merely "managed" by AT&T. He had also entered an AT&T computer located at Robbins Air Force Base in Georgia. Attacking AT&T was of "federal interest" whether Shadowhawk had intended it or not.
The Task Force also convinced the court that a piece of AT&T software
that Shadowhawk had illicitly copied from Bell Labs, the "Artificial Intelligence
C5 Expert System," was worth a cool one million dollars. Shadowhawk's attorney
had argued that Shadowhawk had not sold the program and had made no profit
from the illicit copying. And in point of fact, the C5 Expert System was
experimental software, and had no established market value because it had
never been on the market in the first place. AT&T's own assessment
of a "one million dollar" figure for its own intangible property was accepted
without challenge by the court, however. And the court concurred with the
government prosecutors that Shadowhawk showed clear "intent to defraud"
whether he'd gotten any money or not. Shadowhawk went to jail.