Date: 04-12-2022

Case Style:

United States of America v. Frances Marie Eddings and Jude Denis

Case Number: 5:19-cr-00535-JFL

Judge: Joseph F. Leeson

Court: United States District Court for the Eastern District of Pennsylvania (Philadelphia County)

Plaintiff's Attorney: United States Attorney’s Office

Defendant's Attorney: Rhonda Lowe for Eddings

Dennis acted Pro Se with assistance and counsel from Mike Daigle

Description: Philadelphia, Pennsylvania criminal defense lawyer represented defendant charged with accessing a computer without permission for for pecuniary gain from a non-profit charity organization.

In September 2019, Frances Marie Eddings, 68, of Orlando, FL, and Jude Denis, 54, of Wyncote, PA, were charged with one count of conspiracy, three counts of unauthorized access to a computer, and aiding and abetting, stemming from their scheme to receive a payment of money from the Prostate Cancer Foundation (PCF), Denis’ former employer. In support of that scheme, they accessed internal documents obtained via unauthorized access to the computer system of PCF and threatened to release them to the public. Denis was hired by PCF in August 2014 but left her position shortly thereafter.

Evidence presented at trial showed that on several occasions over the course of several days after Denis left her employment, PCF computers were accessed, and documents were downloaded to her laptop and emailed to Eddings. In a series of emails sent by Eddings to PCF, the defendants demanded a payment of $150,000 in lost wages for Denis, as well as a $37,500 payment for Eddings for acting on Denis’ behalf. In those emails, Eddings threatened to release the documents to the public if their demands were not met. When their demands were ultimately not met, Eddings sent a series of emails to the PCF Board, PCF donors, and members of the media, sharing her previous correspondence and attaching the documents.

“Cyber-intrusion is a threat to all types of businesses, including non-profits,” said U.S. Attorney Williams. “Individuals who take advantage of a company’s vulnerability like these defendants did shows how easily sensitive information can be compromised. However, the defendants didn’t count on how decisively our Office would respond by holding them accountable for their illegal actions.”

“It should go without saying that committing cyber intrusions to settle a score is an incredibly bad idea,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Denis wanted payback from the nonprofit for its perceived unfairness and her friend Eddings was on board to help. Their short-sighted scheme has brought serious consequences, as evidenced by these convictions. The FBI is committed to tracking down and holding accountable cyber criminals, whatever their motivation for willfully breaking the law.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Alison Kehner and Kishan Nair.

18:1030(b) and (c)(2)(B)(I) - CONSPIRACY
(1)
18:1030(b) and (c)(2)(B)(i) - CONSPIRACY
(1s)
18:1030(a)(2), (c)(2)(B)(I) - UNAUTHORIZED ACCESS TO A COMPUTER; 18:2 - AIDING AND ABETTING
(2)
18:1030(a)(2) and (c)(2)(B)(i) - UNAUTHORIZED ACCESS TO A COMPUTER; 18:2 - AIDING AND ABETTING
(2s-4s)
§1030. Fraud and related activity in connection with computers

(a) Whoever—

(1) having knowingly accessed a computer without authorization or exceeding authorized access, and by means of such conduct having obtained information that has been determined by the United States Government pursuant to an Executive order or statute to require protection against unauthorized disclosure for reasons of national defense or foreign relations, or any restricted data, as defined in paragraph y. of section 11 of the Atomic Energy Act of 1954, with reason to believe that such information so obtained could be used to the injury of the United States, or to the advantage of any foreign nation willfully communicates, delivers, transmits, or causes to be communicated, delivered, or transmitted, or attempts to communicate, deliver, transmit or cause to be communicated, delivered, or transmitted the same to any person not entitled to receive it, or willfully retains the same and fails to deliver it to the officer or employee of the United States entitled to receive it;

(2) intentionally accesses a computer without authorization or exceeds authorized access, and thereby obtains—

(A) information contained in a financial record of a financial institution, or of a card issuer as defined in section 1602(n) of title 15, or contained in a file of a consumer reporting agency on a consumer, as such terms are defined in the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.);

(B) information from any department or agency of the United States; or

(C) information from any protected computer;

(3) intentionally, without authorization to access any nonpublic computer of a department or agency of the United States, accesses such a computer of that department or agency that is exclusively for the use of the Government of the United States or, in the case of a computer not exclusively for such use, is used by or for the Government of the United States and such conduct affects that use by or for the Government of the United States;

(4) knowingly and with intent to defraud, accesses a protected computer without authorization, or exceeds authorized access, and by means of such conduct furthers the intended fraud and obtains anything of value, unless the object of the fraud and the thing obtained consists only of the use of the computer and the value of such use is not more than $5,000 in any 1-year period;

(5)(A) knowingly causes the transmission of a program, information, code, or command, and as a result of such conduct, intentionally causes damage without authorization, to a protected computer;

(B) intentionally accesses a protected computer without authorization, and as a result of such conduct, recklessly causes damage; or

(C) intentionally accesses a protected computer without authorization, and as a result of such conduct, causes damage and loss.1

(6) knowingly and with intent to defraud traffics (as defined in section 1029) in any password or similar information through which a computer may be accessed without authorization, if—

(A) such trafficking affects interstate or foreign commerce; or

(B) such computer is used by or for the Government of the United States; 2

(7) with intent to extort from any person any money or other thing of value, transmits in interstate or foreign commerce any communication containing any—

(A) threat to cause damage to a protected computer;

(B) threat to obtain information from a protected computer without authorization or in excess of authorization or to impair the confidentiality of information obtained from a protected computer without authorization or by exceeding authorized access; or

(C) demand or request for money or other thing of value in relation to damage to a protected computer, where such damage was caused to facilitate the extortion;

shall be punished as provided in subsection (c) of this section.

(b) Whoever conspires to commit or attempts to commit an offense under subsection (a) of this section shall be punished as provided in subsection (c) of this section.

(c) The punishment for an offense under subsection (a) or (b) of this section is—

(1)(A) a fine under this title or imprisonment for not more than ten years, or both, in the case of an offense under subsection (a)(1) of this section which does not occur after a conviction for another offense under this section, or an attempt to commit an offense punishable under this subparagraph; and

(B) a fine under this title or imprisonment for not more than twenty years, or both, in the case of an offense under subsection (a)(1) of this section which occurs after a conviction for another offense under this section, or an attempt to commit an offense punishable under this subparagraph;

(2)(A) except as provided in subparagraph (B), a fine under this title or imprisonment for not more than one year, or both, in the case of an offense under subsection (a)(2), (a)(3), or (a)(6) of this section which does not occur after a conviction for another offense under this section, or an attempt to commit an offense punishable under this subparagraph;

(B) a fine under this title or imprisonment for not more than 5 years, or both, in the case of an offense under subsection (a)(2), or an attempt to commit an offense punishable under this subparagraph, if—

(i) the offense was committed for purposes of commercial advantage or private financial gain;

(ii) the offense was committed in furtherance of any criminal or tortious act in violation of the Constitution or laws of the United States or of any State; or

(iii) the value of the information obtained exceeds $5,000; and

(C) a fine under this title or imprisonment for not more than ten years, or both, in the case of an offense under subsection (a)(2), (a)(3) or (a)(6) of this section which occurs after a conviction for another offense under this section, or an attempt to commit an offense punishable under this subparagraph;

(3)(A) a fine under this title or imprisonment for not more than five years, or both, in the case of an offense under subsection (a)(4) or (a)(7) of this section which does not occur after a conviction for another offense under this section, or an attempt to commit an offense punishable under this subparagraph; and

(B) a fine under this title or imprisonment for not more than ten years, or both, in the case of an offense under subsection (a)(4),3 or (a)(7) of this section which occurs after a conviction for another offense under this section, or an attempt to commit an offense punishable under this subparagraph;

(4)(A) except as provided in subparagraphs (E) and (F), a fine under this title, imprisonment for not more than 5 years, or both, in the case of—

(i) an offense under subsection (a)(5)(B), which does not occur after a conviction for another offense under this section, if the offense caused (or, in the case of an attempted offense, would, if completed, have caused)—

(I) loss to 1 or more persons during any 1-year period (and, for purposes of an investigation, prosecution, or other proceeding brought by the United States only, loss resulting from a related course of conduct affecting 1 or more other protected computers) aggregating at least $5,000 in value;

(II) the modification or impairment, or potential modification or impairment, of the medical examination, diagnosis, treatment, or care of 1 or more individuals;

(III) physical injury to any person;

(IV) a threat to public health or safety;

(V) damage affecting a computer used by or for an entity of the United States Government in furtherance of the administration of justice, national defense, or national security; or

(VI) damage affecting 10 or more protected computers during any 1-year period; or

(ii) an attempt to commit an offense punishable under this subparagraph;

(B) except as provided in subparagraphs (E) and (F), a fine under this title, imprisonment for not more than 10 years, or both, in the case of—

(i) an offense under subsection (a)(5)(A), which does not occur after a conviction for another offense under this section, if the offense caused (or, in the case of an attempted offense, would, if completed, have caused) a harm provided in subclauses (I) through (VI) of subparagraph (A)(i); or

(ii) an attempt to commit an offense punishable under this subparagraph;

(C) except as provided in subparagraphs (E) and (F), a fine under this title, imprisonment for not more than 20 years, or both, in the case of—

(i) an offense or an attempt to commit an offense under subparagraphs (A) or (B) of subsection (a)(5) that occurs after a conviction for another offense under this section; or

(ii) an attempt to commit an offense punishable under this subparagraph;

(D) a fine under this title, imprisonment for not more than 10 years, or both, in the case of—

(i) an offense or an attempt to commit an offense under subsection (a)(5)(C) that occurs after a conviction for another offense under this section; or

(ii) an attempt to commit an offense punishable under this subparagraph;

(E) if the offender attempts to cause or knowingly or recklessly causes serious bodily injury from conduct in violation of subsection (a)(5)(A), a fine under this title, imprisonment for not more than 20 years, or both;

(F) if the offender attempts to cause or knowingly or recklessly causes death from conduct in violation of subsection (a)(5)(A), a fine under this title, imprisonment for any term of years or for life, or both; or

(G) a fine under this title, imprisonment for not more than 1 year, or both, for—

(i) any other offense under subsection (a)(5); or

(ii) an attempt to commit an offense punishable under this subparagraph.

(d)(1) The United States Secret Service shall, in addition to any other agency having such authority, have the authority to investigate offenses under this section.

(2) The Federal Bureau of Investigation shall have primary authority to investigate offenses under subsection (a)(1) for any cases involving espionage, foreign counterintelligence, information protected against unauthorized disclosure for reasons of national defense or foreign relations, or Restricted Data (as that term is defined in section 11y of the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)), except for offenses affecting the duties of the United States Secret Service pursuant to section 3056(a) of this title.

(3) Such authority shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury and the Attorney General.

(e) As used in this section—

(1) the term “computer” means an electronic, magnetic, optical, electrochemical, or other high speed data processing device performing logical, arithmetic, or storage functions, and includes any data storage facility or communications facility directly related to or operating in conjunction with such device, but such term does not include an automated typewriter or typesetter, a portable hand held calculator, or other similar device;

(2) the term “protected computer” means a computer—

(A) exclusively for the use of a financial institution or the United States Government, or, in the case of a computer not exclusively for such use, used by or for a financial institution or the United States Government and the conduct constituting the offense affects that use by or for the financial institution or the Government; or

(B) which is used in or affecting interstate or foreign commerce or communication, including a computer located outside the United States that is used in a manner that affects interstate or foreign commerce or communication of the United States;

(3) the term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, and any other commonwealth, possession or territory of the United States;

(4) the term “financial institution” means—

(A) an institution, with deposits insured by the Federal Deposit Insurance Corporation;

(B) the Federal Reserve or a member of the Federal Reserve including any Federal Reserve Bank;

(C) a credit union with accounts insured by the National Credit Union Administration;

(D) a member of the Federal home loan bank system and any home loan bank;

(E) any institution of the Farm Credit System under the Farm Credit Act of 1971;

(F) a broker-dealer registered with the Securities and Exchange Commission pursuant to section 15 of the Securities Exchange Act of 1934;

(G) the Securities Investor Protection Corporation;

(H) a branch or agency of a foreign bank (as such terms are defined in paragraphs (1) and (3) of section 1(b) of the International Banking Act of 1978); and

(I) an organization operating under section 25 or section 25(a) 4 of the Federal Reserve Act;

(5) the term “financial record” means information derived from any record held by a financial institution pertaining to a customer's relationship with the financial institution;

(6) the term “exceeds authorized access” means to access a computer with authorization and to use such access to obtain or alter information in the computer that the accesser is not entitled so to obtain or alter;

(7) the term “department of the United States” means the legislative or judicial branch of the Government or one of the executive departments enumerated in section 101 of title 5;

(8) the term “damage” means any impairment to the integrity or availability of data, a program, a system, or information;

(9) the term “government entity” includes the Government of the United States, any State or political subdivision of the United States, any foreign country, and any state, province, municipality, or other political subdivision of a foreign country;

(10) the term “conviction” shall include a conviction under the law of any State for a crime punishable by imprisonment for more than 1 year, an element of which is unauthorized access, or exceeding authorized access, to a computer;

(11) the term “loss” means any reasonable cost to any victim, including the cost of responding to an offense, conducting a damage assessment, and restoring the data, program, system, or information to its condition prior to the offense, and any revenue lost, cost incurred, or other consequential damages incurred because of interruption of service; and

(12) the term “person” means any individual, firm, corporation, educational institution, financial institution, governmental entity, or legal or other entity.

(f) This section does not prohibit any lawfully authorized investigative, protective, or intelligence activity of a law enforcement agency of the United States, a State, or a political subdivision of a State, or of an intelligence agency of the United States.

(g) Any person who suffers damage or loss by reason of a violation of this section may maintain a civil action against the violator to obtain compensatory damages and injunctive relief or other equitable relief. A civil action for a violation of this section may be brought only if the conduct involves 1 of the factors set forth in subclauses 5 (I), (II), (III), (IV), or (V) of subsection (c)(4)(A)(i). Damages for a violation involving only conduct described in subsection (c)(4)(A)(i)(I) are limited to economic damages. No action may be brought under this subsection unless such action is begun within 2 years of the date of the act complained of or the date of the discovery of the damage. No action may be brought under this subsection for the negligent design or manufacture of computer hardware, computer software, or firmware.

(h) The Attorney General and the Secretary of the Treasury shall report to the Congress annually, during the first 3 years following the date of the enactment of this subsection, concerning investigations and prosecutions under subsection (a)(5).

(i)(1) The court, in imposing sentence on any person convicted of a violation of this section, or convicted of conspiracy to violate this section, shall order, in addition to any other sentence imposed and irrespective of any provision of State law, that such person forfeit to the United States—

(A) such person's interest in any personal property that was used or intended to be used to commit or to facilitate the commission of such violation; and

(B) any property, real or personal, constituting or derived from, any proceeds that such person obtained, directly or indirectly, as a result of such violation.

(2) The criminal forfeiture of property under this subsection, any seizure and disposition thereof, and any judicial proceeding in relation thereto, shall be governed by the provisions of section 413 of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), except subsection (d) of that section.

(j) For purposes of subsection (i), the following shall be subject to forfeiture to the United States and no property right shall exist in them:

(1) Any personal property used or intended to be used to commit or to facilitate the commission of any violation of this section, or a conspiracy to violate this section.

(2) Any property, real or personal, which constitutes or is derived from proceeds traceable to any violation of this section, or a conspiracy to violate this section 6

Outcome: 04/12/2022 153 Minute Entry for proceedings held before HONORABLE JOSEPH F. LEESON, JR : Jury Trial (day 6) as to FRANCES M. EDDINGS, JUDE L. DENIS held on 4/12/22.Jury returned with a verdict: Guilty as to counts 1 through 4 as to both defendants. The Court released Defendant Eddings on her current bail conditions with the addition that she be permitted to speak to Barbara Redmond. The Government recommended that Defendant Denis be released on bail with the added condition she participate in mental health evaluation as pretrial release sees fit. Court Reporter ESR.(er) (Entered: 04/12/2022)
04/12/2022 154 Jury Verdict Sheet as to FRANCES M. EDDINGS, JUDE L. DENIS. (er) (Entered: 04/12/2022)
04/12/2022 155 ORDER AS TO FRANCES M. EDDINGS, JUDE L. DENIS THAT JUDE DENIS'S BAIL IS HEREBY REINSTATED PENDING HER SENTENCING HEARING SUBJECT TO ALL PRIOR CONDITIONS AS WAS PREVIOUSLY SET, SEE NO. 5:19-CR-00506 AT ECF NO. 6, AND SUBJECT TO THE FOLLOWING ADDITIONAL CONDITIONS: 1. JUDE DENIS MUST APPEAR FOR HER SENTENCING HEARING; AND 2. JUDE DENIS MUST SUBMIT TO A NEW MENTAL HEALTH EVALUATION AT THE DISCRETION OF PRETRIAL SERVICES. Signed by HONORABLE JOSEPH F. LEESON, JR on 4/12/22.4/12/22 Entered and Copies Mailed to Pro Se, E-Mailed. (er) (Entered: 04/12/2022)
04/12/2022 156 ORDER AS TO FRANCES M. EDDINGS, JUDE L. DENIS THAT FRAN EDDINGS'S BAIL IS CONTINUED AS PRESENTLY SET PENDING HER SENTENCING HEARING, SEE ECF NO. 18, AND SUBJECT TO THE FOLLOWING MODIFICATIONS TO HER RELEASE CONDITIONS: 1. FRAN EDDINGS MUST APPEAR FOR HER SENTENCING HEARING; AND 2. FRAN EDDINGS MAY COMMUNICATE/ASSOCIATE WITH BARBARA REDMOND. Signed by HONORABLE JOSEPH F. LEESON, JR on 4/12/22.4/12/22 Entered and Copies Mailed to Pro Se and E-Mailed. (er) (Main Document 156 replaced on 4/12/2022) (er). (Entered: 04/12/2022)
04/12/2022 157 NOTICE OF HEARING as to FRANCES M. EDDINGS Sentencing is set for Wednesday, August 3, 2022 at 9:00 AM in Allentown, Courtroom 3C, before THE HONORABLE JOSEPH F. LEESON, JR.. (jfw) (Entered: 04/12/2022)
04/12/2022 158 NOTICE OF HEARING as to JUDE L. DENIS Sentencing is set for Wednesday, August 3, 2022 at 2:00 PM in Allentown, Courtroom 3C, before THE HONORABLE JOSEPH F. LEESON, JR.. (jfw) (Entered: 04/12/2022)

Plaintiff's Experts:

Defendant's Experts:

Comments: