Wednesday, April 29, 2009

Minecode employees look to avoid jail time as hearings near

Minecode CEO Pradyumna Samal and project manager Sandeep Verma, who pleaded guilty to computer intrusion earlier this year, are expected to be sentenced in federal court in Seattle this week. The charges arose after the employees at the Bellevue Web development shop intentionally disabled the Web site of Vinado, an online wine shop that had allegedly failed to pay its bills.

Both Samal and Verma are expected to to avoid jail time, according to pre-sentencing court documents filed over the past week. Samal is asking the court to impose a sentence of probation, while attorneys for Verma are suggesting no probation and a $750 fine.

Samal -- who orchestrated the misdemeanor crime and then lied to FBI agents about it -- could face a maximum sentence of one year in prison. But the U.S. Attorney's Office is recommending [PDF, 10 pages] 90 days of home detention, 288 hours of community service and three years of probation. The feds also are suggesting that Samal pay a $30,000 fine and participate in "moral reconation therapy."

"Samal’ s illegal response to a contract dispute, his subsequent lies to FBI agents, and his instructions to Verma to lie on his behalf, are indicative of someone who lacks a strong moral foundation and not of someone who would likely promote a culture of
compliance and ethics within his company," the government wrote.

For Verma, the government is recommending two years of probation, 40 hours of community service and a $5,000 fine.

"Defendant (Verma) has no prior criminal history and he played a lesser role in the computer intrusion offense than codefendant Pradyumna Kumar Samal, who directed Defendant to enter the commands that disabled Vinado’s website," the government wrote.

In pre-sentencing documents, Samal's attorney paints the picture of an enterprising immigrant entrepreneur who was unfamiliar with U.S. law.

"The act which brings him before the Court was impetuous. It was and borne of frustration with a customer that insulted his companyand employees, took their work product, used it commercially and refused to pay for it. A more experienced businessman would have reacted differently. But good men do make bad judgments at times. Mr. Samal enforced a right in a way that broke the law, although he was unaware of the law at the time he acted."

Samal's attorney, Irwin Schwartz, said that the CEO has accepted responsibility for his actions and has apologized to employees and customers. He also noted that the financial impact has been significant on Minecode.

"Our community needs this man. His employees need him, and of course his family needs him. There is no need to worry about
him offending again," Schwartz wrote.

Verma is set to be sentenced on Wednesday morning, while Samal is slated for sentencing on Thursday. Minecode has agreed to pay restitution of $120,000 to Vinado, though the company is asking for more.




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