Technology/Services

Heartland Hacker Sentenced to 20 Years in Prison

Judge aims to send a message
BOSTON -- A Miami hacker received two 20-year sentences this past week for stealing millions of credit-card numbers from 7-Eleven convenience stores, TJX Cos., regional grocer Hannaford Brothers Corp. of Maine, and other major retailers, as well as for breaking into the computer systems of two other unnamed retailers.

In Boston Friday, U.S. District Court Judge Douglas Woodlock sentenced Albert Gonzalez to 20 years and a day in prison, plus a $25,000 fine, according to a report in the Boston Globe for his role in stealing an estimated 130 million card numbers largely [image-nocss] from Heartland Payment Systems Inc., one of the nation's largest processors of credit and debit card payments.

The sentence was also imposed for charges that Gonzalez, 28, helped to steal credit- and debit-card numbers from the 7-Eleven convenience store chain and regional grocer Hannaford Brothers Corp. of Maine, and for breaking into the computer systems of two other unnamed retailers. The new sentence will run simultaneously with the 20-year term imposed Thursday for stealing millions of card numbers from TJX Cos. of Framingham, BJ's Wholesale Club Inc. of Natick, and other major retailers, according to the report.

Woodlock said he wanted to impose a significant sentence to punish Gonzalez and deter other hackers from committing similar crimes, but didn't want to add years to the sentence imposed a day earlier. Woodlock noted that Gonzalez would probably not be released until he was in his mid-40s.

"This is a tremendous loss, and you'll feel it," Woodlock told Gonzalez. "This is real time and is meant to deliver deterrence to others."

Gonzalez asked for leniency in a brief statement to the judge, as his sister and parents watched from the front row of the courtroom. "I'm guilty of these crimes," said Gonzalez, who wore prison clothes, according to the newspaper report. "I accept full responsibility."

When U.S. Department of Justice attorneys first brought charges in the Heartland case in New Jersey last year, they called it the largest credit-card theft case ever prosecuted in the United States. Heartland alone said it racked up $129 million in losses because of the breach.

Gonzalez faced 17 to 25 years in the case under a plea agreement with prosecutors.

Defense lawyers urged Woodlock to issue a sentence at the lower end of the range. While they acknowledged Gonzalez was the central figure in the TJX case, his lawyers said he played only a "peripheral role" in the Heartland, Hannaford and 7-Eleven theftsproviding software and other assistance to two other hackers, the newspaper reported.

"Gonzalez did not even know of the Heartland intrusion prior to its occurrence," said Martin Weinberg, one of Gonzalez's lawyers, in a court brief.

Prosecutors acknowledged that Gonzalez did not obtain any of the card numbers in the case or receive any proceeds from the thefts. But they argued the case was in some ways more serious than the TJX case because it targeted a credit-card processor that served thousands of retailers.

Gonzalez played a greater role in hacking into two other unnamed retailers but did not obtain any customer data or profit from the breaches. The names of the companies are filed under seal. But Woodlock said he plans to lift the protective order, despite the firms' request for privacy. Woodlock said the privacy rights are designed to protect individuals such as rape victims in court casesnot businesses.

"There should be no privacy rights for corporations," Woodlock said. "They are a legal construction."

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