Feeds

Ex-Exel president found guilty of hacking former employers

Turns out you really can't trust the boss

Build a business case: developing custom apps

The former president of transportation logistics firm Exel has been found guilty of hacking into the servers of his former employer to glean secrets for his new business.

A federal jury found Michael Musacchio, 61, guilty of one felony count of conspiracy to make unauthorized access to a protected computer (hacking) and two substantive felony counts of hacking. His two accomplices, Joseph Roy Brown and John Michael Kelly, have already pleaded guilty and the trio will be sentenced in June.

"Trial testimony and exhibits established that between 2004 and 2006, Musacchio, Brown, and Kelly engaged in a scheme to hack into Exel's computer system for the purpose of conducting corporate espionage," the FBI said in a statement.

"Through their repeated unauthorized accesses into Exel's e-mail accounts, the co-conspirators were able to obtain Exel's confidential and proprietary business information and use it to benefit themselves and their new employer."

Musacchio was promoted to president of Exel in 2002 and lasted for two years before leaving the firm to set up a rival in the same sector named Total Transportation Services. Over the next two years he and his two associates ran riot though Exel's servers, harvesting information about clients and operations.

It's unclear how much hacking Musacchio and his pals actually needed to do in this case, however. Based on this hack's experience, companies are very lax about shutting down old accounts from staff who have moved on (it took one former employer over six months), and Musacchio may have used this negligence to gain the information he was after.

He is now facing over a decade behind bars and financial ruin as a result of the case, although Total Transportation Services is still functioning, albeit with an entirely new management team. Neither it nor Exel responded to requests for comment. ®

Endpoint data privacy in the cloud is easier than you think

More from The Register

next story
14 antivirus apps found to have security problems
Vendors just don't care, says researcher, after finding basic boo-boos in security software
'Things' on the Internet-of-things have 25 vulnerabilities apiece
Leaking sprinklers, overheated thermostats and picked locks all online
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Only '3% of web servers in top corps' fully fixed after Heartbleed snafu
Just slapping a patched OpenSSL on a machine ain't going to cut it, we're told
Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
They're not emails, they're business records, says court
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
prev story

Whitepapers

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.
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.
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.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?