Canadian charged in Yahoo hacking case to plead guilty in U.S.

(Reuters) – A Canadian accused by the United States of helping Russian intelligence agents break into email accounts as part of a massive 2014 breach of Yahoo accounts is expected to plead guilty next week, according to court records.

A photo illustration shows a Yahoo logo on a smartphone in front of a displayed cyber code and keyboard on December 15, 2016. REUTERS/Dado Ruvic/Illustration

Karim Baratov, who earlier this year waived his right to fight a U.S. request for his extradition from Canada, is scheduled to appear in federal court in San Francisco on Tuesday for the plea hearing, according to a court calendar seen on Friday.

Baratov, a 22-year-old Canadian citizen born in Kazakhstan, was arrested in Canada in March at the request of U.S. prosecutors. He later waived his right to fight a request for his extradition to the United States.

Andrew Mancilla, Baratov’s lawyer, declined to comment. A spokesman for the U.S. Attorney’s Office in San Francisco did not respond to a request for comment.

The U.S. Justice Department announced charges in March against Baratov and three other men, including two officers in Russia’s Federal Security Service (FSB), for their roles in the 2014 theft of 500 million Yahoo accounts.

Verizon Communications Inc (VZ.N), the largest U.S. wireless operator, acquired most of Yahoo Inc’s assets in June.

Prosecutors said that the FSB officers, Dmitry Dokuchaev and Igor Sushchin, directed and paid hackers to obtain information and used Alexsey Belan, who is among the U.S. Federal Bureau of Investigation’s most-wanted cyber criminals, to breach Yahoo.

When the FSB officers learned that a target had a non-Yahoo webmail account, including through information obtained from the Yahoo hack, they worked with Baratov, who was who paid to break into at least 80 email accounts, prosecutors said.

The individuals associated with the accounts they sought to access included Russian officials, the chief executive of a metals company and a prominent banker, according to the indictment.

At least 50 of the accounts Baratov targeted were hosted by Google, the indictment said.

Tuesday’s proceedings before U.S. District Judge Vince Chhabria are scheduled as a “change of plea” hearing.

Baratov, the only person arrested to date in the case, previously in August pleaded not guilty to conspiring to commit computer fraud, conspiring to commit access device fraud, conspiring to commit wire fraud and aggravated identity theft.

Reporting by Nate Raymond in Boston; Editing by Tom Brown

Our Standards:The Thomson Reuters Trust Principles.

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Miramax, Weinstein, Hollywood and Sexual Harassment The number one way to gut-check your company's culture.

The flood of women coming forward in recent weeks to tell their stories of “Me Too” has shed a light on the fact that it’s not only Miramax, Harvey Weinstein, and Hollywood but our country at large that has created a culture of mindlessness when it comes to sexual harassment.

These revelations are raising awareness across the business sector as companies try to make sure they and their employees do not fall prey to a mindless culture.

Brenda’s story.

Brenda was a newly minted VP on her first business trip with Miramax. She had turned in early after dinner as to make a good impression on her boss and fellow employees leaving them in the bar downstairs.

When she woke up to a knock on her hotel room door, the voice on the other side was a familiar one, so she opened it.  

Before she knew what was happening, her boss pushed the door open and threw her on the bed. He pinned her down but was drunk and she managed to wriggle away, locking herself in the adjoining room.

Weeks later her boss had not spoken a word to her about that night. No conversations, no “I’m sorry,” it was business as usual.

When she mustered up the courage to confide in her boss’ boss, he apologized for the unfortunate incident, but he let her know that if she went public, he would deny their conversation ever happened.

I asked Brenda if the fear of it happening again stayed with her while she was at Miramax. She said, “Oh yeah, it wasn’t if, in my mind, it was when. I learned that’s how it was there.”

In business, we talk about culture. It’s a buzzword. How do you create a good, a healthy, a positive, a winning–the adjectives abound followed by the 4, 5 or 6 steps you need to create that culture.

But the culture of your business doesn’t live in your mission statement or in your HR manuals, it’s a living breathing thing. It lives in the decisions you make and in the way you handle people, especially those who have less power.

A culture is a set of set of norms, values, and behaviors of a group. One definition says it’s the way we do things around here. However, if those ideals are left to collect dust in the pages of your mission statement, your mission will get lost.

The biggest reason the culture of a business will fail is mindlessness. When a group or a company of people go mindless, they begin to accept things they would not normally accept under the banner of this is the way it’s done around here, regardless of what it says in the manuals.

In a mindless culture, all manner of bad, unsafe and repugnant behavior can become part of a company’s tacit traditions, including sexual harassment. These behaviors infect and redefine a group’s stated core values.

Mindlessness can become systemic, as employees old and new become acceptant of the prevailing culture that is practiced, not preached.

Brenda experienced the real values held at Miramax. At minimum, her bosses were supporting a culture of mindlessness with respect to women and they expected Brenda to drink the Kool-aid.

The systemic mindlessness of Hollywood is being exposed as scores of actresses are coming forward with remarkably similar stories of sexual abuse.

Many of these women, like Rachel Mcadams, were sent to hotel meetings with predators by their own agents, some of whom were also women, aware of the danger but gave no warning.

In order to weed out systemic mindlessness and any accepted norms that go against their core values, companies need to gut-check their culture.

Introducing mindfulness, the practice of being present and attuning to the people around us can help employers better monitor the direction their company’s culture has taken.

Employees trained in mindfulness are not as susceptible to the priming of a culture, especially if it is wrought with questionable values. Mindfulness practitioners are proving to be more compassionate toward others and are prone to make moral choices.

One surprising study showed that mindful people are less likely to fall prey to the “bystander-effect” and are more likely to speak up when confronted with the suffering of others or injustice.

Some of the old guard in Hollywood has admitted to knowing about the sexual misconduct of Weinstein and others but did nothing. The “bystander-effect” was a key reason so many in Hollywood stayed quiet for so long.

Creating a space that is safe and supportive for employees to speak openly and honestly about their experiences goes a long way toward maintaining a company’s integrity.

While sensitivity training is important, it falls short of creating a culture that is aware, compassionate and attuned to others.

We have an opportunity in this moment to become mindful of how power is wielded and lorded over others. It’s time for a gut-check, not only of our business culture but the culture of our country at large.

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