COMPUTER CRIMINAL PLEADS GUILTY TO FRAUD CHARGES

Daily News of Los Angeles (LA) - TUESDAY March 28, 1995
By: Keith Stone Daily News Staff Writer
Edition: Valley
Section: News
Page: N4
Word Count: 339


A computer hacker who admitted rigging radio station contests in Los Angeles
pleaded guilty Monday to additional charges that he used his electronic
skills to take $150,000 from Glendale company in 1994.

Justin  Tanner  Petersen, 34, entered his guilty plea in U.S. District Court
in Los Angeles to conspiracy to commit computer fraud and committing wire
fraud while he was a fugitive.

Petersen  faces  a  possible  maximum  prison  term of 60 years and $2
million  in  fines. He is scheduled to be sentenced June 5 by Judge Stephen
Wilson.

Assistant  U.S.  Attorney  David  Schindler  said  Petersen  used  his
computer knowledge to illegally obtain passwords for Heller Financial Inc.,
in  Glendale.  On  Aug.  17,  1994, Petersen entered Heller's computers and
transferred $150,000 to Union Bank, Schindler said.

The  money was sent to the account of an unnamed co-conspirator at the Union
Bank branch in Bellflower, Schindler said. No charges have been filed
against that person, but an investigation is under way, Schindler said.

On Monday, Petersen also pleaded guilty to illegally obtaining about 40
computer passwords belonging  to Heller, the popular computer service
America On-Line, and the credit company TRW.

Petersen's court-appointed attorney Morton H. Boren said Petersen is
contrite. "I think Justin realizes he has a price he has to pay for what he
has done," Boren said.

Investigators  contend  that Petersen committed the crimes just before his
capture  in  Westwood  in  August  1994. Known in cyberspace under the
alias,  "Agent  Steal," Petersen had been working with federal agents as an
informant against other hackers.

But  when  agents  discovered he also was using his computer skills to
enrich himself, Petersen ran and led them on a chase that lasted 10 months.

Petersen also has pleaded guilty to seizing control of telephone lines to
win  cash  prizes, cars and vacations in radio giveaway contests in Los Angeles.