Houston Woman Pleads Guilty to Computer Hacking
HOUSTON – In a shocking case of corporate espionage, a 54-year-old Houston woman has pleaded guilty to accessing a protected computer without authorization. Velvet Smith, the former office manager of Next Day Four Color (ND4C), a printing and marketing company, admitted to hacking into the company’s password-protected website at least 20 times to steal confidential information.
According to the plea agreement, Smith used the information to benefit a competitor, a company she started working for in January 2015. As part of her duties at ND4C, Smith had access to the login credentials of new employees, which she used to intrude into the company’s website without permission.
On May 31, 2016, Smith used an employee’s login credentials to view the company’s client list, which she then sorted by location and purchase size. She downloaded the list and combined it with information about her then-employer’s existing customers. The combined list was used to send out promotional materials to at least 1,300 of ND4C’s clients.
Smith continued accessing ND4C’s website without authorization until at least July 2016. The case is set for sentencing on June 15, 2017, at which time Smith faces up to five years in federal prison and a $250,000 maximum fine.
The FBI Houston Area Cyber Task Force conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.
The case highlights the importance of cybersecurity and the consequences of corporate espionage. As a society, we rely on companies like ND4C to keep our personal and financial information safe. When individuals like Smith compromise this trust, it has serious consequences.
Smith’s actions caused an actual loss of approximately $275,810. The exact amount of the loss is still being determined.
Related Federal Cases
- Brian Neal Bond, Computer Hacking, Texas 2017 · Virginia
- Symplicity Chief, Computer Hacking, California 2024 · North Carolina
- David W. Kent, Corporate Database Hacking, Texas 2023 · North Carolina
- Alonzo Knowles, Computer Email Hack Scheme, Texas 2023 · Florida
- Mark Allan James, $14M Computer Equipment Scheme, Texas 2023 · Texas
Key Facts
- State: Texas
- Category: Cybercrime
- Source: DOJ Press Release â†â€â€
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