Attorney General James Sues Gun Accessory Manufacturer for Aiding Buffalo Shooter

 

Mean Arms Sells a Magazine Lock that Can Easily Be Removed to Attach High-Capacity Magazines, Which Violates NY’s Ban on Assault Weapons

Buffalo Shooter Removed Mean Arms’ Magazine Lock on the Gun Used to Murder 10 People at Tops Grocery Store

New York Attorney General Letitia James today filed a lawsuit against a gun accessory manufacturer, MEAN LLC (Mean Arms), for aiding the illegal possession of assault weapons in New York, including the weapon used in the mass shooting in Buffalo in May 2022. New York law bans the possession of assault weapons and high-capacity magazines that hold more than 10 rounds of ammunition. Mean Arms manufactures, sells, and distributes a magazine lock, known as the MA Lock, that is marketed as a device to lock a magazine onto a semiautomatic rifle. However, the lock can easily be removed so that detachable magazines, including high-capacity magazines that hold more than 10 rounds of ammunition, can be inserted into a rifle.

In January 2022, the Buffalo shooter purchased a used AR-15 that had an MA Lock installed. According to his manifesto, he was able to easily remove the MA Lock from the AR-15 within a few minutes at home and add 30 round detachable magazines that he used to murder 10 people and injure three others. The lawsuit alleges that the company deceptively and falsely advertises that installing an MA Lock on a weapon makes it legal in New York, thereby aiding and abetting the illegal possession of assault weapons in New York. Through her lawsuit, Attorney General James seeks to stop Mean Arms from doing business in New York and to require the company to pay restitution, damages, and civil penalties for its illegal practices that violated state laws and caused irreparable harm.

“The racist mass shooting at the Tops grocery store in Buffalo was one of the darkest days in the history of our state and our nation,” said Attorney General James. “We lost 10 innocent lives because a hate-fueled individual was able to make an AR-15 even deadlier through a simple change at home. Mean Arms sells the MA Lock device knowing that it can be easily removed to make guns more dangerous, and even gives directions on how to take this action. We cannot undo the devastating harm that was done, but this lawsuit against Mean Arms is part of our ongoing effort to pursue justice for the ten innocent lives that were unjustly taken.”

Mean Arms is a Georgia-based company that makes, sells, and distributes the MA Lock, which according to Mean Arms, is a shear bolt mechanism designed to lock a detachable magazine in place on a semiautomatic rifle. The company sells the MA Lock to New York buyers directly and through third party sellers and deceptively and falsely claims that the product makes weapons compliant with New York’s gun laws. However, the MA lock does not remove a semiautomatic rifle’s capacity to accept a detachable magazine or convert illegal assault weapons into legal weapons in New York.

In fact, the Office of the Attorney General (OAG) found that the company provides step-by-step instructions on the back of its product packaging on how to easily remove the lock. The back of the packaging of the MA Lock states:

Removal Instructions:

1. Make sure the firearm chamber is CLEAR, UNLOADED and POINTED IN A SAFE DIRECTION!
2. Use any brand of screw extractor from your local hardware store (some brands may work better than others. We prefer a #2 Speed out).
3. To remove the threaded portion of the shear nut left in the MA LOCK sleeve, place the screw extractor into the center of the threaded portion of the shear nut and remove counterclockwise (Please refer to the screw extractor’s instructions for best use).
4. Now you may remove the MA LOCK SLEEVE.

Online videos also show how gun owners can easily remove the lock. Removing the lock allows shooters to use detachable magazines, including high-capacity magazines. The use of these magazines enables a shooter to keep firing rounds without stopping or pausing to reload, increasing the deadliness of an attack.

In January 2022, the Buffalo shooter purchased a semiautomatic rifle in New York with a MA Lock installed and a 10-round magazine. The shooter easily removed the MA Lock from the weapon within a few minutes using a #2 speed out drill bit, the same tool advised in Mean Arms’ removal instructions, and a power drill readily available in his family home.

On May 14, 2022, the shooter inserted multiple 30 round detachable magazines onto his weapon, because he was able to remove the MA Lock. With a pistol grip and the high-capacity magazines, he did not have to stop to reload and when he did reload, he could do so quickly, adding to the deadliness of the attack. He killed 10 people and injured three others.

Through her lawsuit filed in New York State Supreme Court, Attorney General James seeks to require Mean Arms to pay restitution and damages for its illegal practices that violated the statute and caused compensable injuries; stop selling, shipping, or distributing the MA Lock to any person within New York state; pay civil penalties; and disgorge all revenues wrongfully obtained. Attorney General James also seeks to require the company to issue corrective statements regarding their false and misleading public statements on the MA Lock.

Attorney General James would like to thank Everytown for Gun Safety for their partnership in this effort.

Today’s action continues Attorney General James’ efforts to protect New Yorkers from gun violence and enforce New York’s responsible gun safety laws. Last month, Attorney General James removed more than 3,000 guns off New York’s streets in a single day through the first-ever statewide gun buyback program, and has removed over 7,000 guns from New York since taking office. In March, Attorney General James took down a ghost gun and narcotics trafficking ring, removing 19 firearms including 12 ghost guns and six high-capacity magazines.

In June 2022, Attorney General James filed a landmark lawsuit against 10 national gun distributors for illegally bringing ghost gun kits into New York and fueling the gun violence crisis. In March, Attorney General James secured a court order stopping the 10 national gun distributors from selling and shipping ghost gun kits into New York. In November 2022, Attorney General James cracked down on online ammunition sellers for illegally shipping ammunition into New York and failing to keep records of the sale. In September 2019, Attorney General James sent cease and desist letters to a number of websites selling ghost gun parts and in July 2020, Attorney General James announced that all those companies had complied with her cease and desist letters. 

Statement from New York City Comptroller on Mayor Adams’ Executive Order on Right to Shelter

 

New York City Comptroller Brad Lander issued the following statement:

“The right to shelter is a longstanding legal obligation that makes New York City stand apart from our peers as a safe and humane place for people without a home of their own. We do not need to roll shelter safety protections back, and we should not. With more support from Washington and with overdue action from the Adams Administration to provide the assistance that will help asylum seekers get on their feet and move out of shelter, we can face this challenge with both compassion and common sense.”

MAYOR ADAMS SIGNS LEGISLATION REQUIRING NYPD TO TRAIN OFFICERS ON HOW TO INTERACT WITH PEOPLE WITH AUTISM SPECTRUM DISORDER

 

New York City Mayor Eric Adams today signed Intro. 273-B, which will require the New York City Police Department (NYPD) to provide training to officers on how to recognize and interact with people with autism spectrum disorder (ASD).

 

“Equipping ‘New York’s Finest’ with the tools to better interact with people with autism spectrum disorder is critical to advancing safety and justice for all New Yorkers,” said Mayor Adams. “The legislation we are signing today will ensure the NYPD continues to serve all communities across our city fairly and equitably, and we thank Councilmember Narcisse for her partnership.”

 

“Public safety depends on the respectful and fair treatment of all communities, and the Adams administration is committed to advancing that mission across our entire public safety apparatus,” said Deputy Mayor for Public Safety Philip Banks III. “This legislation will help us build on the gains we have made under Mayor Adams and ensure New York City remains the safest big city in America.”

 

“The women and men of the New York City Police Department are fully dedicated to our mission of enhancing public safety by meeting the needs of everyone we serve,” said NYPD Commissioner Keechant L. Sewell. “This new training will inform and educate our officers about the expression of autism spectrum disorder, and provide practical guidance about recognizing and interacting with people with autism.”

 

NYC PUBLIC ADVOCATE RESPONDS TO THE MAYOR'S EXECUTIVE ORDER WEAKENING THE 'RIGHT TO SHELTER' - Emergency Executive Order 402

 

"The right to shelter, a right codified by my Homeless Bill of Rights which passed last month, has been our legal and moral obligation for decades. The mayor attempting to weaken those rights now—in a moment of immense need for so many asylum seekers—is a misguided and harmful action in the face of the real, urgent challenge exacerbated by a lack of decisive and timely state and federal action.

"Denying rights and resources to people arriving in desperate need and fervent hope will not replace action needed from the President, who has failed to provide sufficient federal funding or a national response, or the Governor, who has failed to support the city, and therefore the state, by coordinating with other municipalities. Instead, this action will only harm our newest, aspiring and long-term New Yorkers and shift, not solve, the crisis. While it is clear that the current situation is unsafe and unsustainable, we need Democratic leaders on all levels of government to focus on getting the support needed to uphold the right to shelter, not undercut it."

Emergency Executive Order 402

May 10, 2023

WHEREAS, over the past several months, thousands of asylum seekers have been arriving in New York City, from the Southern border, without having any immediate plans for shelter; and

WHEREAS, the City now faces an unprecedented humanitarian crisis that requires it to take extraordinary measures to meet the immediate needs of the asylum seekers while continuing to serve the tens of thousands of people who are currently using the DHS Shelter System; and

WHEREAS, additional reasons for requiring the measures continued in this Order are set forth in Emergency Executive Order No. 224, dated October 7, 2022; and

WHEREAS, the state of emergency based on the arrival of thousands of individuals and families seeking asylum, first declared in Emergency Executive Order No. 224, dated October 7, 2022, and extended most recently by Emergency Executive Order No. 398, dated May 5, 2023, remains in effect;

NOW, THEREFORE, pursuant to the powers vested in me by the laws of the State of New York and the City of New York, including but not limited to the New York Executive Law, the New York City Charter and the Administrative Code of the City of New York, and the common law authority to protect the public in the event of an emergency:

Section 1. I hereby order that section 2 of Emergency Executive Order No. 398, dated May 5, 2023, is extended for five (5) days.

§ 2 I hereby suspend the following sections of the Administrative Code:

(a) 21-124;

(b) 21-313, to the extent it sets a deadline for the City’s temporary shelter placements; and

(c) 26-521, to the extent such provision gives rights to individuals in need of shelter or housing because of the circumstances that led to the state of emergency and who have been occupants of dwelling units for 30 or more days, or creates a landlord-tenant relationship between any individual assisting with the response to the state of emergency or any individual in need of shelter or housing because of the circumstances that led to the state of emergency, and any individual or entity, including but not limited to any hotel owner, hospital, not-for-profit housing provider or any other person or entity who provides temporary housing for a period of thirty days or more solely for purposes of assisting in the response to the state of emergency.

§ 3. This Emergency Executive Order shall take effect immediately and shall remain in effect for five (5) days unless it is terminated or modified at an earlier date whichever occurs first.

Eric Adams

Mayor

MAYOR ADAMS DELIVERS ADDRESS ON DEATH OF JORDAN NEELY

 

Mayor Eric Adams: My fellow New Yorkers, this has been a week of strong emotions in our city. One of our own is dead, a Black man, Black like me. A man named Jordan, the name I gave my son. A New Yorker who struggled with tragedy, trauma, and mental illness. A man whose last words were a cry for help. A man named Jordan Neely.

 

Jordan's death has devastated his family and shocked his fellow New Yorkers. Today, I'm here to talk about Jordan's life before he got on that train. The circumstances surrounding his death are still being investigated, and while we have no control over that process, one thing we can control is how our city responds to this tragedy. One thing we can say for sure, Jordan Neely did not deserve to die, and all of us must work together to do more for our brothers and sisters struggling with serious mental illness.

 

I want to state upfront that there were many people who tried to help Jordan get the support he needed, but the tragic reality of severe mental illness is that some who suffer from it are at times unaware of their own need for care. And all too often, they're caught up in this cycle of violence, sometimes as perpetrators or, far more often, as victims. In many cases, and through no fault of their own, they resist treatment, walk away from a chance for recovery, and disappear into the shadows. It is the nature of this cruel disease, and it breaks our hearts every time. We cannot and will not accept this state of affairs. We will not walk by those in need, step over those who are suffering, or ignore those calls for help. We will respond with care, compassion, and action. We can and must do everything possible to help and heal our brothers and sisters in crisis.

 

From the very beginning of this administration, I have called for changes and reforms to the way we address serious mental illness in our city, changes that will support and amplify the good work that so many dedicated people are already engaged in. I thought about this subject on the first day I walked into City Hall. I brought it up in my very first conversation with the governor, and I have directed our city government to do all they can to help those who are suffering from serious mental illness.

 

Tens of thousands of Americans and their families are forced to fend for themselves because we have not devoted the resources needed to provide appropriate mental healthcare. It is time to build a new consistence around what can and must be done for those living with serious mental illness and to take meaningful action despite resistance and pushback from those who misconstrue our intentions.

 

It starts with addressing the issues of mental health across the board, taking action to treat people before they are in crisis, and it means that we must give people in crisis the care they need for as long as they need it. In November of 2022, I announced that our city personnel and contractors must have a better understanding of the legal options and responsibilities when they engage with those who are unsheltered and experience a psychiatric crisis. And in March of this year, we released a mental health plan that outlined a comprehensive strategy for treating New Yorkers in need and preventing the condition that's so often led to severe mental illness. Our vision is to create a better system that goes beyond one incident or tragedy, a continuum of care that keeps people connected to the support they need to stay well.

 

Because we look to prevent and minimize the impacts of mental illness, there's an immediate need to address those who are clearly in need of treatment. We already have the authority to do so, and we must use it. Under New York State law, our mobile crisis clinicians can bring people having a mental health crisis to a hospital for medical evaluation, and if physicians at that hospital find that the person has a mental illness and is dangerous to themselves or others, they have the authority to admit that person and retain them for treatment, even if the person does not agree to it.

 

Our Coordinated Behavior Health Task Force, also known as CBHT, is the guiding force behind this effort, made up of key staff from across city government, our state partners, and the community-based groups we contract with for street and subway outreach. The task force meets weekly. Their job is to find solutions for those unsheltered New Yorkers who are struggling with mental illness and refusing efforts to connect them with housing and support.

 

Through the work of the task force, we have managed to bring many people in crisis to the hospital for desperately needed care. We are helping them stabilize and heal from the ravages of homelessness and long-term untreated psychosis, and most importantly, we are connecting them with supportive housing and all the care and services they will need to succeed when they return to the community. When people are referred to these kinds of services, whether by a court order or other means, a good outcome depends on their participation and cooperation. Service providers make repeated attempts to keep those who need help engaged in the programs that are available to them, but there's no guarantee that those efforts will succeed.

 

This is the kind of care Jordan needed and that so many were trying to get for him. It wasn't always successful. Over the last several years, Jordan interacted with many city agencies and community-based organizations and providers. He had various encounters with the criminal justice system and was provided services to help him live safely in the community, but those efforts were not enough, and we must find ways to strengthen our system.

 

It starts with investigation and accountability. Next week, we will bring together the leaders of the five organizations that we contract with to provide homeless outreach services for a summit on improving outcomes for people with serious mental illness. All of us will sit down at City Hall to develop an action plan to ensure accountability when there are missed opportunities to get those in crisis the help they need.

 

We're also opening this discussion up to other stakeholders as well, including our faith leaders. Later today, I'm convening a meeting with a group of our faith leaders to discuss how we can address this challenge together. They're on the front lines of this issue, and we need their help and support. I urge all New Yorkers to do what they can to help other New Yorkers in need by joining up with groups like New York Cares, a volunteering organization that does great work for our city, or the Street Homeless Advocacy Project, an outreach organization founded by my good friend, civil rights leader, Norman Siegel.

 

We know that New Yorkers care, and we want our laws to reflect that as well. That is why we are urging our partners in Albany to act on the legislative agenda that I first announced in November, which we have now put forward as a bill entitled the Supportive Interventions Act. This bill addresses a series of flaws and gaps in the New York State Mental Hygiene Law that are making it more difficult to help those who don't know they need help. We see this in one heartbreaking case after another. It's not the fault of those who are suffering. Severe mental illness causes this critical lack of insight that the only way they can be helped is through intervention. This is precisely why we need the law on our side. We need the tools to get people into treatment at critical moments when they are simply unable to self-direct.

 

And that is what the Supportive Interventions Act is about. The Supportive Interventions Act will make it clear in the law itself what New York courts have already said in interpreting it. When mental illness prevents a person from meeting their basic needs to such an extent that they are a danger to themselves, the state has the authority to intervene. The bill would also make it crystal clear to our hospitals that a person should not be released from psychiatric care simply because they have calmed down and appear stable in the moment. People in crisis often need extended hospital care to fully recover.

 

This legislation will also strengthen our successful Kendra's Law program, ensuring that court-ordered outpatient treatment is reaching all of those caught in the system's revolving door who need that additional care and monitoring to avoid relapse. We'll be making a major push on this legislation in the remaining weeks of the session. I'm proud of the strong support we have received for it from the folks during this important work in the trenches every day, such as BronxWorks and Project Renewal.

We'll be building out the coalition and urgent action from Albany. Action that can save lives. I urge our state lawmakers to pass this bill, and I urge the governor to increase mental health resources in her next budget as she did in this one. It's time to strengthen accountability, expand services, increase funding, and advocate for a new era of reform and progress in mental healthcare.

 

We need to be honest. There are more Jordans out there, people who are loved, people in need of compassion, treatment, and protection — people like Jordan. Jordan Neely's life mattered. He was suffering from severe mental illness, but that was not the cause of his death. His death is a tragedy that never should have happened. My heart goes out to Jordan's family who was suffering great pain and uncertainty about the circumstances of his death. No family should have to suffer a loss like this, and too many Black and brown families bear the brunt of a system long overdue for reform.

 

Our work starts with acknowledging that we must reverse the effects of decades of disinvestment in housing, healthcare, and social services. We must recommit to our shared civic responsibility to look after each other as a city, as a society, as human beings who care. There were many people who did care about a man named Jordan, but it wasn't enough this time, and we must keep trying before we lose another Jordan.

 

Statement from NYGOP Chair Ed Cox Re: George Santos Indictment

 

NYGOP Chair Ed Cox today released the following statement:

“The writing has been on the wall for months: George Santos will not be a member of the next Congress.

“Santos’ indictment was timed perfectly by Joe Biden’s DOJ to distract from the release of Rep. James Comer’s revelations that the Biden family pocketed over ten million dollars from corrupt foreign nationals while Joe Biden was Vice President.

“The story of George Santos is over. The story of the unraveling of the Biden family’s influence peddling scheme is just beginning.”

Attorney General James Secures $615,000 from Companies that Supplied Fake Comments to Influence FCC’s Repeal of Net Neutrality Rules

 

Three Companies Supplied Fake Comments to FCC Impersonating Millions of Americans Without Their Knowledge or Consent to Influence Internet Policy

New York Attorney General Letitia James today secured $615,000 from three companies, LCX, Lead ID, and Ifficient, that supplied millions of fake public comments to influence a 2017 proceeding by the Federal Communications Commission (FCC) to repeal net neutrality rules. Net neutrality prohibits broadband providers from blocking, slowing down, or charging companies to prioritize certain content on the internet. An investigation by the Office of the Attorney General (OAG) found that the fake comments used the identities of millions of consumers, including thousands of New Yorkers, without their knowledge or consent. Collectively, the three companies have agreed to pay $615,000 in penalties and disgorgement. This is the second series of agreements secured by Attorney General James with companies that supplied fake comments to the FCC.

“Public comment opportunities are a chance for Americans to give their input on important government policies, and these companies abused that for their own selfish purposes,” said Attorney General James. “No one should have their identity co-opted by manipulative companies and used to falsely promote a private agenda. Through this agreement, we are holding three more companies accountable for impersonating Americans without their knowledge or consent. We will always fight to ensure that consumers’ identities are protected and fraudulent companies are stopped.”

Today’s agreements are the result of an investigation by OAG that uncovered widespread fraud and abusive practices surrounding efforts to sway the FCC in the agency’s 2017 net neutrality rulemaking proceeding. As detailed in a report by OAG, the nation’s largest broadband companies funded a secret campaign to generate millions of comments to the FCC in 2017. These comments provided “cover” for the FCC to repeal net neutrality rules. 

To help generate these comments, the broadband industry engaged commercial lead generators that used advertisements and prizes, like gift cards and sweepstakes entries, to encourage consumers to join the campaign. However, nearly every lead generator that was hired to enroll consumers in the campaign instead simply fabricated consumers’ responses. As a result, more than 8.5 million fake comments that impersonated real people were submitted to the FCC, and more than half a million fake letters were sent to Congress. 

Two of the companies, LCX and Lead ID, were each engaged to enroll consumers in the campaign. Instead, each independently fabricated responses for 1.5 million consumers. The third company, Ifficient, acted as an intermediary, engaging other lead generators to enroll consumers in the campaign. Ifficient supplied its client with more than 840,000 fake responses it had received from the lead generators it had hired.

The OAG’s investigation also revealed that the fraud perpetrated by the various lead generators in the net neutrality campaign infected other government proceedings as well. Several of the lead generation firms involved in the broadband industry’s net neutrality comment campaigns had also worked on other, unrelated campaigns to influence regulatory agencies and public officials. In nearly all of these advocacy campaigns, the lead generation firms engaged in fraud. As a result, more than 1 million fake comments were generated for other rulemaking proceedings, and more than 3.5 million fake digital signatures for letters and petitions were generated for federal and state legislators and government officials across the nation.

LCX and Lead ID were responsible for many of these fake comments, letters, and petition signatures. Across four advocacy campaigns in 2017 and 2018, LCX fabricated consumer responses used in approximately 900,000 public comments submitted to the Environmental Protection Agency (EPA) and the Bureau of Ocean Energy Management (BOEM) at the U.S. Department of the Interior. Similarly, in advocacy campaigns between 2017 and 2019, Lead ID fabricated more than half a million consumer responses. These campaigns targeted a variety of government agencies and officials at the federal and state levels.

The agreements announced today require the three companies and their principals to pay penalties and disgorgement. LCX and its principals will pay $400,000 in penalties and disgorgement to New York and $100,000 to the San Diego District Attorney’s Office. Lead ID and its principal will pay $30,000 in penalties and disgorgement to New York. Ifficient will pay $63,750 in penalties and disgorgement to New York, and $21,250 to Colorado. 

The OAG wishes to thank the offices of the Attorney General of Colorado and the San Diego District Attorney for their assistance in this matter.

Former Employee Of Technology Company Sentenced To Six Years In Prison For Stealing Confidential Data And Extorting Company For Ransom

 

Defendant Also Caused the Publication of Misleading News Articles About the Company’s Handling of the Breach the Defendant Perpetrated, Resulting in Loss of Over $4 Billion in Company’s Market Capitalization

 Damian Williams, the United States Attorney for the Southern District of New York, announced that NICKOLAS SHARP, a former employee of a public New York-based technology company (“Company‑1”) was sentenced today to six years in prison.  In December 2020, SHARP secretly stole gigabytes of Company-1’s data.  While purportedly working to remediate the security breach he created, SHARP extorted the company, as an anonymous hacker, for nearly $2 million for the return of the files and the identification of a remaining purported vulnerability.  SHARP subsequently re-victimized his employer by causing the publication of misleading news articles as a purported anonymous whistleblower about the company’s handling of the breach that he perpetrated, which were followed by the loss of over $4 billion in Company-1’s market capitalization.  SHARP previously pled guilty to intentionally damaging a protected computer, wire fraud, and making false statements to the Federal Bureau of Investigation (“FBI”) before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence.

According to the Indictment, court filings, and statements made in court:

At all times relevant to the Indictment, Company-1 was a technology company headquartered in New York that manufactured and sold wireless communications products and whose shares were traded on the New York Stock Exchange.  SHARP was employed by Company-1 from in or about August 2018 through on or about April 1, 2021.  SHARP was a senior developer who had access to credentials for Company-1’s Amazon Web Services (“AWS”) and GitHub Inc. (“GitHub”) servers.

In about December 2020, while interviewing for a position at another company, SHARP repeatedly misused his administrative access to download gigabytes of confidential data from his employer.    During the course of this cybersecurity incident (the “Incident”), SHARP caused damage to Company-1’s computer systems by altering log retention policies and other files in order to conceal his unauthorized activity on the network.  SHARP modified session file names to attempt to make it appear as if other coworkers were responsible for his malicious sessions. 

In or about January 2021, while working on a team remediating the effects of the Incident, SHARP sent a ransom note to Company-1, posing as an anonymous attacker who claimed to have obtained unauthorized access to Company-1’s computer networks.  The ransom note sought 50 Bitcoin — which was the equivalent of approximately $1.9 million, based on the prevailing exchange rate at the time — in exchange for the return of the stolen data and the identification of a purported “backdoor,” or vulnerability, to Company-1’s computer systems.  After Company-1 refused the demand, SHARP published a portion of the stolen files on a publicly accessible online platform.

On or about March 24, 2021, FBI agents executed a search warrant at SHARP’s residence in Portland, Oregon, and seized certain electronic devices belonging to SHARP, including a laptop SHARP had used to steal Company-1’s data.  During the execution of that search, SHARP made numerous false statements to FBI agents.

Several days after the FBI executed the search warrant at SHARP’s residence, SHARP caused false news stories to be published about the Incident and Company-1’s response to the Incident.  In those stories, SHARP identified himself as an anonymous whistleblower within Company-1 who had worked on remediating the Incident and falsely claimed that Company-1 had been hacked by an unidentified perpetrator who maliciously acquired root administrator access to Company-1’s AWS accounts.  In fact, as SHARP well knew, SHARP himself had taken Company-1’s data using credentials to which he had access, and SHARP had used that data in a failed attempt to extort Company-1 for millions of dollars.

Following the publication of these articles, between approximately March 30, 2021, and March 31, 2021, Company-1’s stock price fell approximately 20%, losing over $4 billion in market capitalization.  SHARP also attempted to cause domestic and foreign regulators to investigate Company-1 based on his false allegations about the security breach he secretly caused.

SHARP, 37, of Portland, Oregon, pled guilty on February 2, 2023, to one count of transmitting a program to a protected computer that intentionally caused damage, one count of wire fraud, and one count of making false statements to the FBI.  In addition to the prison sentence, SHARP was sentenced to three years of supervised release and ordered to pay restitution of $1,590,487 and to forfeit personal property used or intended to be used in connection with these offenses.

Mr. Williams praised the outstanding investigative work of the FBI.