- How Many US Consumers Will Shop this Weekend?
- Tuesday's Heavy Dose of Data to Dictate 'Risk' Behavior
- World's Largest Share Issue Priced at Deep Discount
- GE Capital Losses May See Dramatic Fall: JP Morgan
- Obama says Boosting US Jobs is Top Priority
- Why the Dollar Will Likely Stay Weak for Some Time
- Playboy to Outsource Most Magazine Operations: Report
- General Motors to Cut up to 9,500 Jobs in Europe
- EU Drops Proceedings Against Qualcomm
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Why Amazon Rules Retail
- Wave of Debt Payments Facing US Government
- China Eastern to Complete Shanghai Air Buy by End '09
- Paul: Audit the Fed
- The Social Media Gaming Threat
- Gold Will Collapse Like Oil Did in 2008: Charts
- Prepare For Large Decline In Stocks, Next Year?
- JAL Slides to Record Low on Bankruptcy Jitters
- Lyondell Urged to Consider Reliance Takeover Offer
Text Size 
The man accused of masterminding the largest identity theft in U.S. history agreed to plead guilty to federal charges in Massachusetts, according to court papers filed Friday.
 |
Albert Gonzalez is accused of leading a ring of hackers who stole millions of credit card and debit card numbers from major U.S. retail chains including TJX and Barnes & Noble, leading to tens of millions of dollars in fraudulent transactions.
His alleged scheme stood out for its simplicity — it started with accomplices driving around Miami with laptops looking for unsecured computer networks — and its brazenness, as the former informant used details he learned from government officials to help fellow hackers avoid arrest.
Gonzalez, 28, has agreed to plead guilty to all charges in U.S. District Court in Boston by Sept. 11. He faces a prison sentence of 15 to 25 years, and has consented to forfeit $1.65 million, a Miami condominium, a previously seized $1.1 million and other assets, according to court papers.
Video: Albert Gonzlez agrees to plead guilty of running a record-setting identity theft ring, with CNBC's Mary Thompson.
Separate charges filed in New Jersey stand.
"The scary thing is that Albert Gonzalez wasn't a super genius, he was just your ordinary bad guy and there are others out there who can do the same things," said Charlie Miller, principal analyst at consulting firm Independent Security Evaluators. "Hopefully, this punishment will serve as a deterrent."
If accepted by a federal judge, the sentence would likely be the longest on record for a U.S. hacking case, said Mark Rasch, a former Justice Department official.
Legal Mystery
Gonzalez was working as an informant in a separate U.S. Secret Service hacking investigation when authorities learned he was using information from their probe to help fellow hackers avoid arrest.
In Boston, Gonzalez and 10 others were indicted a year ago on charges including computer fraud and wire fraud, compromising more than 40 million payment numbers. Victims also included BJ's Wholesale Club, OfficeMax, and DSW. The plea would also resolve New York federal charges related to hacking a restaurant's network.
Separate charges facing Gonzalez in New Jersey — which stand as the largest identity theft in U.S. history — are not affected by the Boston plea, a spokesman at the U.S. District Court in New Jersey said.
On Aug. 17, Gonzalez was indicted there for allegedly stealing more than 130 million card numbers from data processor Heartland Payment Systems and retailers 7-Eleven and Hannaford Brothers.
A mystery is why Gonzalez would agree to settle the Boston and New York charges but not the potentially more serious charges in New Jersey, an attorney not involved in the case said. There, Gonzalez faces up to 25 years if convicted.
The attorney, Stefan Jouret, who specializes in financial litigation, said it is possible the New Jersey prosecutors were not far enough along with their case to accept a plea deal, or disagreed about the evidence. Alternatively, Gonzalez's attorneys may have judged the evidence in the Boston and New York cases more damaging and wanted to settle them first.
Gonzalez's lawyer, Rene Palomino, did not return calls seeking comment.
- A diet high in fat and sugar might actually be good for your portfolio.
- Warren Buffett and Bill Gates discuss the economy and other subjects with CNBC's Becky Quick.
- From the AIG&T to the Merrill Lychee, Jane Wells lists this year's fashionable holiday cocktails.
- One shopper explains why – aside from the prices – he gets up at 3am on the day after Thanksgiving to go shopping every year.
- Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
Data is a real-time snapshot *Data is delayed at least 15 minutes