14 DAY TRIAL // A hacker from New Hampshire will be sentenced later this month for his role in a fraud scheme that involved installing malware on the computers of German dial-up users.
The fraudulent operation lasted from 2003 until 2007, during which time Asu Pala, 37, of New Hampshire, and his co-conspirators used a custom malicious program to abuse the modems of computers they infected.
The program silently dialed premium rate phone numbers set up by the hackers in Germany, racking up fraudulent charges on people's telephone bills.
According to prosecutors, Pala's role was to recruit programmers to work on the malicious application and to distribute it to the targets.
In total, the hacker is believed to have earned $7,941,336. He is also accused of failing to pay $2,287,993 in income taxes.
In April 2010, Pala pleaded guilty to one count of conspiracy to commit computer fraud and five counts of failure to file income tax return.
The man faces a maximum of ten years in prison, but under the plea agreement the US Attorney will recommend 92 months. In addition, he will forfeit his illegal income and will pay a fine, as well as restitution to the victims and the IRS.
Because the targeted users were located outside of the United States, particularly in Germany, but possibly in other European countries as well, the authorities are asking victims to complete and submit impact statement forms via email until February 23.
Asu Pala is scheduled for sentencing on February 28 in the Boston Federal Court. "Potential victims will not be contacted individually. Any persons determined to be a victim by the court will be contacted through appropriate law enforcement officials following the sentencing hearing," the United States Department of Justice announced.