“Hacking the System” Ӫ How Eagle Owls Dare Bring Down ↘ Energy “Shite-Hawks”

Lure of an “easy kill” comes natural to man and beast. Sanctions are not reserved only for countries. “The president of Creative Pipe…repeatedly destroyed evidence in bad faith…and lied under oath about his actions.”  

News of the company Colonial Pipeline reportedly paying ransom after being hacked, reminded me of an article I read in January 2011 California Lawyer, “To Preserve and Protect” by Tony Schoenberg. In it, Schoenberg points to the case, VICTOR STANLEY, INC. Plaintiff v. CREATIVE PIPE, INC., et al. Defendants.

Schoenberg notes “Although many lawyers are familiar with horror stories about e-discovery, they had not heard of an executive going to jail for defying court orders to preserve electronically stored information (ESI).”

Naturally, it occurred to me how easily a company, especially an energy company, could feign being hacked and data ultimately “deleted” from their systems. When in reality, it was a ploy to avoid being caught “red handed” with a horde of breaches.

Yet, “where there is smoke, there’s fire.” Shite Hawks are drawn by smoldering flames, an ideal inferno storm to capture fleeing targets. In essence, practicing unfair competition.   

Guilty. Jailed and Sanctioned!

After the gavel went down, “Concerned that the company president had not learned his lesson, the court used its civil contempt power to order the two-year jail sentence and sanctions.” According to casetext.com, Marvin J. Garbis, United States District Judge , SO ORDERED, on Monday, August 14, 2017:

“1. The Court finds proven, by clear and convincing evidence, that Defendants have failed to comply with the Magistrate Judge’s April 20, 2016 Order [ECF No. 722] requiring Defendants to pay Plaintiff $1,281,315.91 by May 23, 2016, and holds both Defendants in contempt of Court for failure to comply with the payment obligation.”

How did this all come about?  In the “MEMORANDUM AND ORDER RE: SANCTIONS/CONTEMPT” we find that:

“Plaintiff Victor Stanley Inc. (“VSI”) has, since 1962, been manufacturing and selling site furnishings with a reputation for producing high quality merchandize. Beginning in or about 2004, Defendant Mark Pappas (“Pappas”) and his company, Defendant Creative Pipe, Inc. (“CPI”) competed with VSI, producing and selling similar (sometimes identical) products under the trade name “Fuvista.”  

Adding insult to injury, it was found in the evidence presented that “Fuvista” was a name selected by Pappas as standing for “f— you Victor Stanley.”  Yes, quite some b@##$ on Pappas, right.

It wasn’t long before the “gig was up” and “In 2006, VSI filed the instant law suit, asserting various claims against Pappas and CPI that were ultimately “boiled down” to claims based upon copyright infringement, unfair competition, false advertising, and design patent infringement.”

Key to an “Easy Kill”

Sure, the lure of an “easy kill” comes natural to man and beast. But what of machine? As I noted on Breaking Code Laws in my June paper, “Catching the Trapper at “Ransom Drops,” like our ‘real world’ the internet attempts to enforce its “code of law.”

Or, as Larry Lessig terms “Code is Law” in his book, “Code and Other Laws of Cyberspace,” where he “explores the ways in which code in both senses can be instruments for social control.” However, unlike the physical spaces of legal dictum, these are unregulated spaces where a code or key can gain one entry to a competitor or enemy accessing ESI and/or locking up the system holding it for ransom.

Ironically, as some people have faked their own kidnapping, hacks or corporations have reported being hacked. Careful what you wish for or COPY as the lie becomes the truth.

Black Kites, heads up as you get flushed out into the open spaces and get pounced on by Eagle Owls.