Texas Man Indicted for Hacking Eden Prairie Business, Stealing $274,000

A federal indictment unsealed earlier today alleges that a 35-year-old Texas man hacked into the computer network of an Eden Prairie business, stealing approximately $274,000. The indictment, filed in Minneapolis on October 13, 2010, charges Jeremy Parker of Houston, Texas, with one count of unauthorized access to a protected computer to further fraud and one count of wire fraud. It was unsealed following Parker’s initial appearance in United States District Court. The indictment claims that from December 23, 2008, through October 15, 2009, Parker hacked into the computer network to obtain money belonging to Digital River, Inc., through a subsidiary, SWReg, Inc.

SWReg pays independent software developers who write code that can run on Digital River’s system. Royalties owed to these developers accumulate at SWReg, allowing developers to view their royalty balances online and cash out those accounts. When a developer cashes out, SWReg electronically transfers the money into the developer’s account, mails a check, or credits the developer’s PayPal account.

The indictment alleges that Parker hacked into SWReg’s system and caused the money to be wire transferred to his bank account instead of the accounts of several developers. If convicted, Parker faces a maximum penalty of 20 years in prison for wire fraud and 10 years for computer hacking. A federal district court judge will determine all sentences. This case resulted from an investigation by the Federal Bureau of Investigation.

The United States Department of Justice, prosecuted by Assistant United States Attorney John Docherty, is handling the case. The Justice Department actively investigates and prosecutes cybercrimes, having created the Task Force on Intellectual Property (<https://www.justice.gov/dag/iptaskforce/&gt;) to combat intellectual property crimes both domestically and internationally. According to the FBI’s Internet Crime Complaint Center’s annual report, the FBI received 22.3 percent more cybercrime complaints in 2009 than in 2008, with total dollar losses from all cases referred to law enforcement reaching $559.7 million, more than double the 2008 figure of $264.4 million.

The FBI and the Minnesota United States Attorney’s Office remind people to protect themselves from cybercrime. For more information, visit <https://www.justice.gov/criminal/cybercrime/index.html&gt;. An indictment is a determination by a grand jury that there is probable cause to believe offenses have been committed by a defendant. A defendant is presumed innocent until proven guilty at trial or through a guilty plea.

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