United States v. Timothy Lloyd

269 F.3d 228, 2001 U.S. App. LEXIS 21777, 2001 WL 1217049
CourtCourt of Appeals for the Third Circuit
DecidedOctober 12, 2001
Docket00-2409
StatusPublished
Cited by66 cases

This text of 269 F.3d 228 (United States v. Timothy Lloyd) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Timothy Lloyd, 269 F.3d 228, 2001 U.S. App. LEXIS 21777, 2001 WL 1217049 (3d Cir. 2001).

Opinion

OPINION OF THE COURT

SLOVITER, Circuit Judge.

A jury convicted Timothy Lloyd on one count of computer sabotage, a violation of federal law. After one of the jurors advised the court that she had learned from the media during the course of deliberations about off-site computer sabotage, the District Court granted Lloyd’s motion for a new trial. The government appeals.

I.

BACKGROUND

Omega Engineering Corp. (“Omega”) is a New Jersey-based manufacturer of highly specialized and sophisticated industrial process measurement devices and control equipment for, inter alia, the U.S. Navy and NASA. On July 31, 1996, all its design and production computer programs were permanently deleted. About 1,200 computer programs were deleted and purged, crippling Omega’s manufacturing capabilities and resulting in a loss of millions of dollars in sales and contracts.

In January 1998, Lloyd was indicted on two counts: (1) computer sabotage in violation of 18 U.S.C. § 1030(a)(5)(A) (criminalizing “knowingly causing] the transmission of a program, information, code or command, and, as a result of such conduct, intentionally causing] damage, without authorization, to a protected computer”) and 18 U.S.C. § 2, and (2) transportation of stolen goods, namely computer hardware and software equipment, in violation of 18 U.S.C. §§' 2314 and 2. Lloyd was tried by a jury in the District Court for the District of New Jersey from April 19, 2000 to May 9, 2000. The government’s theory of the ease was that Lloyd, an Omega employee, planted a computer “time bomb” in the central file server of Omega’s computer network while employed there, and that the “time bomb” detonated after he was fired from the company. The defense’s theory was that the massive deletion of files could have resulted from an accident or could have been caused by another employee, either intentionally or unintentionally. The defense contended that Lloyd could not have committed the act of sabotage because he did not have direct access to the system after he was fired and because he had no motive before he was fired, as his firing was without warning.

*232 During the course of the trial, the government presented 10 witnesses and the defense presented 10 witnesses. The testimony showed that from 1985 to July 10, 1996, Lloyd worked at Omega as its only computer system administrator. In September 1995, Lloyd received Novell training, obtained Novell certification, and installed the Novell computer network onto Omega’s computer system. With Novell, Omega was able to place all of its information on a central file server, which acted as a central storage device and allowed all the information on the server to be shared with other computers on the network. Government witnesses testified at trial that Lloyd was the only person who maintained the Novell computer network and had top-level supervisory access to it. One of the government’s computer experts explained that supervisory access “means that ... [an] account has full access to everything on the server.” App. at 552. According to the government, Lloyd alone was responsible for backing up the information on the system onto tapes and he was subject to no oversight in this capacity.

The government argued to the jury that beginning in 1994 or 1995, Lloyd became a difficult employee. Witnesses testified that he repeatedly elbowed, shoved, and bumped colleagues in the hallways, and that he became verbally abusive. Apparently he was counseled on several occasions about these problems, but never improved his behavior. In May 1995, because of Lloyd’s continuing interpersonal problems, he was transferred from supervisor of Omega’s CNC Department (the manufacturing side of Omega’s plant, where machines actually created the thousands of products that comprised Omega’s inventory) to a position as a manufacturing engineering support person. Lloyd’s supervisor, James Ferguson, testified for the government that, even though he told Lloyd this change in positions was only a “lateral move,” in fact it constituted a “demotion,” as it took supervisory capabilities away from Lloyd. App. at 62. Courtney Walsh, a former subordinate and close friend of Lloyd who had since become estranged from him, replaced Lloyd as supervisor of the CNC Department.

Government witnesses testified at trial that they hoped this change in positions would cause Lloyd to improve his behavior, but it had the opposite effect and his interpersonal problems increased. In February 1996, Lloyd received a performance review and raise. His performance was rated a “7” on a scale of 1 to 10, which meant “often exceeds expectations.” App. at 66. He also received a 4% raise, which was lower than his 7.2% raise in 1993, 4.6% raise in 1994, and 4.92% raise in 1995. App. at 67. The government argued at trial that the demotion, along with the substandard performance review and raise, indicated to Lloyd that he would soon be fired, thus providing him with the motive to sabotage Omega’s computer system.

Government witnesses also testified that Lloyd had instituted a policy at Omega in late June 1996 to “clean up” all individual computers in Omega’s CNC Department. The intention was to delete all unnecessary information from the individual computers. According to the policy, all employees were required to save their files to the file server and were prohibited from making their own backups. In accordance with this policy, Lloyd moved those portions of computer programs that ask end-users questions about safety precautions from the individual computers to the file server. Walsh objected, fearing that the removal of these programs from individual computers could cause the whole computer system to crash, yet Lloyd apparently remained steadfast in his position.

*233 According to the government, Lloyd’s behavior raised concerns with a number of Omega’s managers, in particular Ferguson, who decided in late June 1996 that it was time to fire Lloyd. Concerned that Lloyd had too much control over Omega’s network and that his termination would leave no one at Omega with access to the network, Ferguson testified that he asked Lloyd to give access to the file server to himself, A1 DiFrancesco in Human Resources, and another employee, William Wall. Lloyd never did so.

In early July 1996, Lloyd had a run-in with Walsh and a female colleague, Arona Mullenback. Lloyd met with DiFrancesco and Wall to discuss the matter, after which DiFrancesco realized it was time to fire Lloyd. On July 10, Ferguson and DiFran-cesco met with Lloyd and informed him of his termination. They stated it was due to his longstanding interpersonal problems and the repeated incidents of physical intimidation. The firing was effective immediately and Lloyd was quickly escorted from the premises.

On July 31, 1996, Ferguson learned that the file server on Omega’s computer system would not boot up. That same day Lloyd told representatives of W.L. Gore in response to the job application of Lloyd’s friend Raymond Nabb, another Omega employee, that “everybody’s job at Omega is in jeopardy.” App. at 601-602.

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Bluebook (online)
269 F.3d 228, 2001 U.S. App. LEXIS 21777, 2001 WL 1217049, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-timothy-lloyd-ca3-2001.