Forwarded from: "eric wolbrom, CISSP" <ericat_private> http://www.nytimes.com/2002/12/18/technology/18SABO.html December 18, 2002 By ROBERT HANLEY NEWARK, Dec. 17 - A former computer expert with UBS PaineWebber was indicted today on federal charges of trying to manipulate the stock price of the brokerage's parent company by sabotaging its computer system last spring, the authorities said. The United States attorney for New Jersey, Christopher J. Christie, said the suspect, Roger Duronio, 60, of Bogota, N.J., hoped to cash in on a resulting drop in the stock value of the parent company, UBS. The indictment said Mr. Duronio spent nearly $22,000 in February and March buying a type of security known as a put option contract, which increases in value as a company's stock price declines. Mr. Christie said the plan failed when a computer virus that Mr. Duronio personally transmitted to 1,000 of the 1,500 computers used by PaineWebber brokers across the country failed to disrupt work seriously or cause a sharp change in the stock price. Mr. Duronio's lawyer, Justin P. Walder, said his client would plead not guilty. "Mr. Duronio clearly is innocent and intends to contest these allegations," Mr. Walder said. "Their analysis of Mr. Duronio's stock trading is out of context. It was not directed to perpetuate any securities fraud at any time." Mr. Duronio was released today on $1 million bond after an appearance in United States District Court here. He was charged with one count of securities fraud and one count of computer fraud. The charges carry maximum penalties of 20 years in prison and $7 million in fines. Mr. Duronio earned $175,000 as a computer systems administrator in PaineWebber's office in Weehawken, law enforcement officials said, but the indictment said he thought he should be paid more. Before leaving the company on Feb. 22, he designed and transmitted the disruptive virus, the indictment charges. It was intended to prevent brokers from placing clients' orders at 9:30 a.m. - the start of daily stock trading - every Monday in March, April and May, the indictment said. It caused problems briefly only on the first Monday, March 4, Mr. Christie said. A spokesman for PaineWebber, Paul Marrone, said today that back-up computer programs had started operating immediately and that the company was able to place all clients' orders. Mr. Marrone said PaineWebber spent $3 million restoring disrupted systems and hiring investigators to trace the virus. The price of UBS's stock closed on March 4 at $48.20, up from a close of $46.69 on the previous Friday. The company's stock has traded between a high of $51.99 in June and a low of $34.54 in October and closed today at $49.82. _______________________________________________________________________ eric wolbrom, CISSP Safe Harbor Technologies President & CIO 190 Goldens Bridge Ct. Voice 914.767.9090 ext. 6000 Katonah, NY 10536 Fax 914.767.3911 http://www.shtech.net _______________________________________________________________________ - ISN is currently hosted by Attrition.org To unsubscribe email majordomoat_private with 'unsubscribe isn' in the BODY of the mail.
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