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Here's the The Lowdown
from DN Journal,
updated daily
to
fill you in on the latest buzz going around the domain name industry.
The Lowdown is
compiled by DN Journal Editor & Publisher Ron
Jackson. |
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Domain
Thief Lands in Jail After Picking the Wrong
People to Steal From
If
you have spent any time in this business
you know that domain
hijacking is a serious, ongoing
problem, one exacerbated by the fact
that the criminals who perpetrate the
thefts have little fear of
prosecution. In the past victims
have found that most law enforcement
agencies |
have little
interest in helping recover assets they
don't understand, much less trying to
run down crooks who execute these crimes
with a keyboard rather than a gun. Many
agencies consider domain theft a civil
issue rather than a criminal offense (Gary
Kremen eventually recovered Sex.com
from career criminal Stephen Michael
Cohen through a civil suit rather
than a criminal prosecution).
With
little chance that he would ever have to
answer for his crime, a thief stole P2P.com
from co-owners Marc Ostrofsky, Albert
Angel and his wife Lesli Angel
in 2006 and sold it on Ebay four
months later for $111,000 (the
victims had purchased the domain for $160,000
in 2005). However,
the thief overlooked one thing. Marc
Ostrosky is an industry pioneer (who
sold |
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Business.com
in a deal valued at $7.5 million)
and Albert Angel is a noted
attorney and former Justice
Department prosecutor who wasn't
going to rest until justice was
served. |
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Last
Thursday it was when 24-year-old Daniel
Goncalves was arrested at his Union
City, New Jersey home and charged
with the theft. The Angels' persistence
got the New Jersey Cyber Crimes
unit involved in the case and they are
now credited with a landmark bust,
believed to be the first ever
criminal prosecution for domain theft in
the U.S. |
The
Angels and Ostrosfky sent us details of
the fascinating case which we have been
going through today. Adam Strong
at DomainNameNews.com also
received the information and he posted
an excellent
article this morning that runs
down how this particular theft occurred
and what it took to put Goncalves behind
bars - at least temporarily. He is
currently out on bail but he will have
to answer the felony charges against him
in court.
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In
the meantime the victims have
filed a pending federal civil
lawsuit that aims to recover
the domain from NBA
player Mark Madsen who,
not knowing it was stolen,
purchased it on Ebay. The Angels
and Ostrofsky are also trying to
recover damages from the hacker
and co-conspirators by applying
common law theft, conversion,
breach of contract claims, RICO
claims, and to apply federal
Computer Fraud and Abuse and
Anti-Cyber Piracy statutes.
Registrar Godaddy.com is
also named in the suit for
negligence and contributory
trademark infringement under the
Anti-Cyber Piracy statute.
We
are hopeful that this arrest
will be just |
the
first of many that will bring
some security and peace of mind
to domain owners who have been
victimized without
repercussions in the past. The
entire community owes a debt of
gratitude to the Angels and
Ostrofsky for putting domain
theft in a spotlight that could
keep similar crimes from being
swept under the rug in the
future.
Colonel
Rick Fuentes,
Superintendent of the New
Jersey State Police, said
“The domain name industry is
in some respects still like the wild
west. Many of the
rules are not yet codified into
state laws, let alone federal or
international laws. There is no
deed for ownership of a domain
name. In most cases they
are protected solely by a login
and password for the site
through which they are
registered. Nevertheless, theft
is theft, and that law that
can be applied whenever
possession of an own-able thing
is improperly transferred for
gain.” |
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