Intellectual Property Law

Court Rejects Request to Consolidate TJX Hacker Cases

By Kim Zetter

A federal judge in Massachusetts has rejected a request from U.S. attorneys to consolidate a New Jersey case against Albert Gonzalez, who has admitted hacking more than 120 million credit card numbers from Heartland Payment Systems, with two other cases against him in Massachusetts.

Gonzalez, a former Secret Service informant known by the online nicks “segvec” and “Cumbajohnny,” was charged in New Jersey in August with stealing more than 130 million debit and credit cards. The feds say Gonzalez, along with two unnamed Russian hackers, stole the card from New Jersey-based card processor, Heartland Payment Systems, and networks for Hannaford Brothers, 7-Eleven and two other unnamed national retailers.

Gonzalez and 10 others were also charged in May 2008 in New York and in August 2008 in Massachusetts with network intrusions into TJX, OfficeMax, the Dave & Busters restaurant chain and other companies. Gonzalez pleaded guilty to these charges in August and was scheduled to be sentenced in Massachusetts on Dec. 21 in both cases. He is expected to get a sentence of between 15 to 25 years in those cases.

On Monday, Gonzalez’s New Jersey attorney filed a document with the court indicating that his client had agreed to plead guilty to the charges in that state as well. Federal prosecutors requested the New Jersey case be moved to Massachusetts to be consolidated with the two other cases against Gonzalez.

The case was transferred to Massachusetts on Tuesday, but Judge Patti Saris rejected the consolidation request. This means that the New Jersey case will stay in Massachusetts, but Gonzalez will be sentenced in that case separately by a different federal judge, District Judge Douglas Woodlock. Judge Saris indicated that she would be willing to delay her sentencing hearing in the Massachusetts and New York cases to coordinate with sentencing in the New Jersey case if Judge Woodlock requests it.

The rejection is odd, because both the prosecution and defense agreed with the motion. Saris did not indicate the reason behind her ruling.

The U.S. Attorney’s office in New Jersey did not respond to a call for comment.

Photo courtesy U.S. law enforcement

See also:

• TJX Hacker to Plead Guilty to Heartland Breach
• TJX Hacker Charged with Heartland, Hannaford Breaches
• TJX Suspect Was Near Plea Agreement Until New Charges Halted Talks
• Accused TJX Hacker Agrees to Guity Plea ? Faces 15 to 25 Years
• Card Processor Admits to Large Data Breach
• TJX Hacker Was Awash in Cash; His Penniless Coder Faces Prison
• Former Teen Hacker’s Suicide Linked to TJX Probe
• I Was a Cybercrook for the FBI
• Bullion and Bandits: The Improbable Rise and Fall of E-Gold
• Hacking Godfather ‘Maksik’ Sentenced to 30 Years by Turkish Court
• Stakeouts, Lucky Breaks Snare Six More in Citibank ATM Heist

Full post as published by Threat Level on December 10, 2009 (boomark / email).