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NEW MITNICK EVIDENCE REVEALS CORPORATE FRAUD
Posted 22 Apr 1999 00:00:00 UTC

2600 has obtained the letters sent to the FBI that were used to help calculate "damages" caused by Kevin Mitnick. The following letters can be thought of as the main reasons why Kevin was able to be held without bail for so long and will no doubt be used at his sentencing on June 14 to impose more harsh conditions.

As far as we know, no mention of any of these "losses" was ever made to any of the stockholders of these companies, which to our understanding they are required to do if losses of this magnitude actually took place.

We're making these public because the public needs to know how individuals can be locked away for so long just for pissing off powerful corporations. We believe this also demonstrates how the FBI prodded these companies into giving as inflated a figure as possible.


Sun Microsystems
2550 Garcia Avenue
Mountain View, CA 94043
415 960-1300
415 336-0630 fax

March 9, 1995

Kathleen Carson
Federal Bureau of Investigation
11000 Wilshire Boulevard, Suite 1700
Los Angeles, California 90024

Re: Sun Solaris 2.x

Dear Ms. Carson:

As you are aware, Sun Microsystems, Inc. experienced a break-in of its
computer systems located in our Los Angeles office on or about June 30,
1993. During the break-in, a substantial portion of the source code of
Sun's Solaris 2.x software product was apparently copied and removed.

Solaris software is a UNIX-based product originally licensed by Sun from
AT&T. In March of 1994 Sun bought out its original license with AT&T with
a lump sum payment of more than $80 million. In addition, Sun has
invested very heavily for more than ten years in the continued development
of the Solaris software and values the current product in the hundreds
of millions of dollars.

Sincerely,

Lee Patch
Vice President, Intellectual Property Law
LP/kl
Enclosure

View letter

NEC America, Inc. 1555 W. Walnut Hill Lane Irving, Texas 75038-3796 Tel. 214-751-7000 March 9, 1995 Special Agent Kathleen Carson Federal Bureau of Investigation U.S. Department of Justice 11000 Wilshire Boulevard #1700 Los Angeles, CA 90024 Dear Ms. Carson: Please be advised that the software stolen from NEC America, Inc. and its affiliates involves the software design for a NEC cellular mobile telephone and is valued at one million seven hundred fifty thousand dollars ($1,750,000.00). The value is based on the development costs for the stolen software. Please contact me if I can be of any further assistance. Sincerely, Yutaka Ichikawa Vice President & General Manager Communications Terminals Group View letter
Nokia Mobile Phones Ilkka Roman Deputy Security Manager P.O. Box 86 FIN-24101 Salo Finland Telefax: +358 10 505 4303 Telephone: +358 10 505 5153 Mobile: +358 40 501 3773 To: FBI Los Angeles Attn: SA Kathleen Antena [sic] CC: Mr. Urho Ilmonen, Vice President, Legal Fax: +1-310-9963836 Date: Sep. 20, 1996 Subject: ESTIMATED VALUE FOR SOFTWARE ASKED TO BE SENT PRIVILEGED AND CONFIDENTIAL Nokia Mobile Phones was requested and tried to be mislead in early 1994 to send whole material of HD760 project on magnetic tape from Oulu to US as guided by the requesting person. We have estimated the value of the asked material to be: 2.5 M FIM which is according to the current rating (1 US $ = 4.48 FIM) 560,000 US $ This estimation is based on amount of work done to create the material of that project plus additional overhead caused by type approval and other featured necessary to finish the product. Ilkka Roman NMP Security Deputy Security Manager View letter
NOKIA Mobile Phones (UK) LTD CONFIDENTIAL Ms. Kathleen Carson Special Agent Federal Bureau of Investigation 11000 Wilshire Boulevard Los Angeles, CA 90024 USA February 23, 1995 Dear Ms. Carson: Regarding your telephone request of 21 February 1995 asking for Nokia to put a value on the costs of the software stolen, together with an estimate of the costs of the disruption, I have provided initial estimates of them for you as detailed below: A rough estimate of the development costs of stolen software and tools, including testing is US$ 7.5 Million. The disruption to the Nokia Mobile Phones development community caused by the incidents resulted in our local networks being completely closed for a week and the external networks closed for one month. Lost development time is estimated to have cost the company US$ 7.5 Million and probably a further US $120 Million in lost revenue due to new developments being delayed in reaching the market. There are some costs of disruption to our other divisions, Nokia Research and Nokia Telecommunications, I have not yet been able to ascertain estimates for those divisions. These could be provided in due course. This would lead to a minimum loss estimated to total US $135 Million. I hope that this information satisfies your needs. Yours sincerely John A. Talbot Vice President of Engineering Support Centre View letter
NOVELL February 23, 1995 Cathleen Carson (Via Fax 310-996-3359) Special Agent FBI 11000 Wilshire Blvd Suite 1700 Los Angeles, CA 90024 Dear Special Agent Carson, Novell is greatly relieved that Kevin Mitnick has been apprehended. As you know, several types of source code were taken by Mitnick. To attach a value of the source code taken is a very difficult thing to do, given that Novell's revenues exceed $2,000,000,000/year. However, the cost associated with the development of the source code is well in excess of $75,000,000. A more precise number would require additional research. If you have any questions, please contact me at 801-429-7888. Sincerely, Edward L. Morin Corporate Security View letter
Fujitsu February 22, 1995 VIA FACSIMILE 310/996-3359 & U.S. MAIL Kathleen Carson, Special Agent Federal Bureau of Investigation 11000 Wilshire Boulevard Los Angeles, California 90024 Re: Kevin Mitnick Dear Kathleen: Congratulations on the arrest of Kevin Mitnick. Pursuant to your request, I asked our Cellular group to assess the damages caused to Fujitsu Network Transmission Systems, Inc. ("FNTS") by Mitnick's theft of the source code for the PCX telephone. The information provided to me is as follows: Software development expenses... $1,100,000.00 Research & development expenses.. 1,000,000.00 Total... $2,100,000.00 Additionally, attached is a worksheet showing what it would (will) cost FNTS to recall the PCX phones in the marketplace if the source code has been compromised or is not safe. Please call me at (214) 479-2931 if you need further information. Very truly yours, Melanie W. Scofield Corporate Counsel MWS/lm Attachment cc: George Banash To: Nobuo Yamamolo PCX Recall Cost Analysis COMPANY CONFIDENTIAL Yoichiro Fujino DO NOT RELEASE PCX Recall for Software Rework COST ITEMS- DESCRIPTION PRICE COMMENT REFERENCE Shipping $17.31 Fed. Exp.=$7.50 X 2 + $2.31 (PACKAGE) B5 Pre-check $4.00 Bench test to confirm operational status - 6 min. B6 Labor to upgrade software $8.50 15 min. $ 34.00 per hour B7 QC Cost $4.00 After repair QC check - 6 min. B8 Packing & Handling labor $6.40 Overhead cost to unpack & pack and ticket - 9.6 min. B9 Customer Handling $15.00 Dealer, FASC, End-User Compensation B10 PCX Admin Overhead $2.00 Mass Mailing, Accounting, Repair Admin., Misc. B11 TOTAL $57.21 Total Cost per Recall Unit SUM(B5:B11) GRAND TOTAL $5,517,389.61 Total recall cost for 96,441 unit population Recall for source code rework. Based on population through December 1994. View letter View attachment

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