Wednesday, April 29, 2009

Minecode's Verma given $2,500 fine, one year of probation

Minecode project manager Sandeep Verma was ordered to pay a $2,500 fine and sentenced to one year of probation today for his role in disabling the Web site for online wine shop Vinado in late 2006.

While U.S. Magistrate Judge Mary Alice Theiler said that Verma had led an "exemplary life" with no prior offenses and great support from his family, she noted that the 35-year-old software programmer's action did have severe repercussions on Vinado.

"I know that you will return to being a very constructive member of society," Theiler said in her ruling from the bench. Tomorrow, Minecode CEO Pradyumna Samal is set to be sentenced for the more serious issue of deleting Vinado's Web site after the online wine retailer allegedly failed to pay its bills to Minecode.

In brief remarks at the federal courthouse in downtown Seattle today, Verma said he was very sorry for the incident. He declined to comment after the hearing.

Verma, who remains employed at Minecode, had asked the court for a $750 fine and no probation. Attorney Amanda Lee said that Verma did not understand at the time that what he was doing was wrong, and he lied to FBI agents out of loyalty to his boss.

"He is not someone whose moral compass is misaligned," she said.

Because he is not a U.S. citizen, his attorneys expressed concern about how the sentencing would be interpreted by immigration officials. Government representatives said they took those factors into consideration when drafting their sentencing recommendations, which included at least one year of probation and a fine of $5,000.

The situation arose in late 2006 when Verma -- allegedly acting on orders from Samal -- disabled the Web site of Vinado. The following month, Samal deleted Vinado's Web site, which wiped out customer databases, graphics and other information, said federal prosecutor Jim Lord.

While Samal's involvement was much more serious, Lord said that Verma lied to the FBI and stuck to the company's "party line."

As part of the plea agreement, Minecode is set to pay at least $122,000 in restitution for the damage it caused to Vinado.




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