Feeds

Kimble plans 'Ultimate Rally'

Fantasist's latest venture

  • alert
  • submit to reddit

The essential guide to IT transformation

Wannabe elite hacker-turned-convicted fraudster Kim 'Kimble' Schmitz has reinvented himself as the next Bernie Ecclestone.

His front company, Kimvestor, is planning to organise the "Ultimate Rally". The seven day race over 3,000 miles (route unspecified) is scheduled to take place sometime in 2006 and offer a prize of $2m. It promises participants "one of your top ten lifetime experiences". But before would-be Petter Solbergs (reigning World Rally Champion) sign up it's worth reviewing Kimble's colourful history of business ventures.

Kimble/Schmitz shot to prominence in Germany in the late 1990s by presenting himself as an elite hacker. He spun a myth of his supposed pre-eminence in the computer underworld, using a little fact interlaced with a lot of juicy bits taken from media accounts and movies.

An article mirrored by Attrition article exposes Kimble's self aggrandising personal mythology, recycled through numerous media interviews, of breaking into the systems of CitiBank, NASA and the Pentagon as a sham.

After being convicted of relatively minor telecoms fraud offences in 1998 - and sentenced to two years on probation - Schmitz re-emerged as a security advisor and venture capitalist. His near brush with prison had given him an unquenchable thirst for publicity.

Readers may recall Schmitz offered a $10m reward for information leading to the capture of Osama bin Laden. Keeping his hand in and demonstrating the hacking skill with which he'd become legendary, Kimble founded hacker crew called YIHAT (Young Intelligent Hackers Against Terrorism), which claimed to have penetrated Osama bin Laden's bank accounts and to be close to tracking him down.

These claims were never substantiated, but YIHAT's website was hacked by UK hacker Fluffi Bunny, to the amusement of much of the security community.

Around this time, Schmitz claimed his net worth was over $200m. Whatever the truth of these claims, he pursued a lifestyle of decadence and indulgence featuring fast cars, yachts, exotic trips and Playboy models until his dealings caught up with him.

In 2001 Schmitz offered to rescue online retailer Letsbuyit.com from collapse. This rescue mission was subsequently exposed as a sham. In May 2002, after being extradited from Thailand to Germany, he was convicted of stock price manipulation designed to net him €1.2m ($1.5m) and given a 20-month suspended prison sentence.

Schmitz was also fined €100,000 by a Munich court after pleading guilty to insider trading of Letsbuyit.com shares.

He then moved to Hong Kong, where he set-up a hedge fund -cum -"Money Making Machine" called Trendax. Trendax says it uses artificial intelligence technology which automatically "selects the optimal combination of trading strategies for current market conditions".

The bankruptcy last year of parent company Kimvestor left Trendax in limbo and must surely raise questions about the viability of the "Ultimate Rally". And that's just the beginning of Schmitz's problems. He faces charges of embezzlement over a "loan" of €280,000, paid by his company Monkey to his venture fund Kimvestor. ®

Related stories

Kimble/ Schmitz charged with embezzlement
Hoaxster hacker discovers infinite-wealth algorithm
Kimble/Schmitz gets 20 months suspended sentence
Kimble/Schmitz deported
YIHAT founder Kimble/Schmitz arrested
bin Laden hackmeister flees Germany
Bin Laden hackers denounce founder
Bin Laden hack-meister in defacement, financial debacles
Kimble.org offers $10m reward for arrest of bin Laden
Letsbuyit awakes from coma

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?