CPS News Brief

Hacker admits international cyber attacks

 

A hacker who was responsible for thousands of cyber-attacks on firms around the world including Skype and Google has been convicted.

Alex Bessell, 21, from Liverpool, pleaded guilty at Birmingham Crown Court on 4 December to a number of offences under the Computer Misuse Act.

He was also convicted of various other offences, including money laundering, which were linked to the hacks.

As well as the cyber-attacks, Bessell was responsible for creating programmes for sale allowing others across the globe to conduct Denial of Service (DoS) attacks and steal data.

When police raided his home, his computer was found to hold 750 names and passwords from infected computers. It also held two programmes which are designed to infect computers and retrieve email, banking and log-in details from a web data form before passing it over the internet to a secure server.

He also created an online marketplace and sold both his and others’ malware products which enabled users to spread viruses.

These included remote administration tools, denial of service packages, programmes to bypass anti-virus software and other malicious programmes. He took a cut of the sales and his earnings from cyber-crime exceeded US$50,000. 

Bessell’s site advertised 9,077 items and it had 1,000,000 recorded visitors with over 34,000 sales. 

He registered the company using a false address to give it a legitimate company status. 

He was arrested following an investigation by West Midlands police’s Cyber Regional Organised Crime Unit.

Hannah Sidaway, for the Crown Prosecution Service, said: “Bessell was responsible for the creation, use and distribution of computer malware from 2010 onwards – during which time law enforcement have seen this type of criminality grow at a phenomenal rate. 

“His actions enabled others across the world to commit thousands of criminal attacks. Such activity can result in the compromising of personal data, extortion, loss of valuable data or work, loss of custom for businesses and a high cost to rectify the damage sustained. 

“Bessell’s arrest and prosecution was a result of a lengthy and complex police operation, which spanned several countries and involved the collection and analysis of detailed data to identify him.  The CPS provided investigative advice to the police at an early stage to ensure a case was built that could lead to his charging and eventual prosecution.”

He will be sentenced on 5 January at the same court. 

 

NOTES TO EDITORS

Alex Bessell (dob 13.09.1996) pleaded guilty to the following at Birmingham Crown Court:

Two counts of: Doing an unauthorised act or acts with intent to impair, or with recklessness as to impairing the operation of a computer or computers, contrary to section 3 of the Computer Misuse Act 1990;

One count of: Unauthorised access with intent, contrary to section 2 of the Computer Misuse Act 1990;

Two counts of: Conspiracy to make an article for use in offences under Section 3 of the Computer Misuse Act 1990, contrary to section 1 (1) of the Criminal Law Act 1997;

One count of: Entering into or becoming concerned in a money laundering arrangement, contrary to section 328 (1) of the Proceeds of Crime Act 2002;

One count of: acquiring criminal property, contrary to section 329 (1) (a) of the Proceeds of Crime Act 2002;

Three counts of: conspiracy to make or supply an article for use in offences under section 3 of the Computer Misuse Act 1990, contrary to section 1 (1) of the Criminal Law Act 1997; and

One court of: Encouraging or assisting offences, contrary to section 46 of the Serious Crime Act 2007.

Businessman jailed for tax evasion and benefit fraud

A bar and garage owner who fraudulently avoided more than £340,000 in tax and national insurance by failing to register the premises has been jailed for four years.

Bernard Knutsen, 68, admitted evading the duties in relation to Chaplin’s Bar and the garage, both in Toxteth, Liverpool, over more than five years.

He also fraudulently claimed more than £85,000 in social security benefits – including council tax benefit, pension credit and income support - over more than a decade by failing to declare he was working.

His wife Maureen Knutsen, 62, and daughter Kelly Knutsen, 39, were both convicted of related charges following trials at Liverpool Crown Court. Kelly’s former boyfriend Gary Hyland, 50, whose name was on the bank account of Chaplin’s Bar, was convicted of linked benefit fraud offences.

At the sentencing hearing on Friday (December 1), the court heard how as a result of his deceit Bernard and Maureen Knutsen were able to pay for holidays to destinations including Dubai, Las Vegas and the Far East. The Knutsens also spent thousands on private school fees and a new kitchen.

During a search of the Knutsens’ home in Fell Street, Liverpool, investigators found almost £40,000 in cash concealed in the bedroom, split across handbags and above a wardrobe.

Stephane Pendered, from the CPS, said:

“Through failing to declare his income, Bernard Knutsen deliberately cheated taxpayers out of more than £425,000 in order to fund his lavish lifestyle.

“The prosecution case showed how Knutsen, along with the other defendants, showed a total disregard for the rules on tax and benefits in order to achieve significant financial gain for themselves.”

The prosecution followed a joint investigation by fraud investigators from Her Majesty’s Revenue and Customs, Liverpool City Council and the Department for Work and Pensions.

Action to recover the funds under the Proceeds of Crime Act is now under way.

Ends

Notes to Editors

·         Stephane Pendered is a Specialist Prosecutor with the CPS Specialist Fraud Division.

·         Bernard Knutsen pleaded guilty to nine charges at Liverpool Crown Court in April 2015. The charges were being knowingly concerned in the evasion of VAT and income tax, the fraudulent evasion of national insurance contributions and dishonestly making false representations for the purpose of obtaining benefit. He was sentenced to four years in prison on Friday 1 December.

·         Kelly Knutsen was convicted of fraudulently claiming £82,811.36 in benefits and of money laundering offences following a trial at Liverpool Crown Court which concluded in March 2017. She was sentenced to 21 months in prison, suspended for two years.

·         Maureen Knutsen was convicted of being knowingly concerned in the fraudulent evasion of VAT and dishonestly making a false representation for the purpose of obtaining benefit following a trial at Liverpool Crown Court which concluded in March 2017. She was sentenced to three years in prison.

·         Gary Hyland pleaded guilty at Liverpool Crown Court in August 2016 to fraudulently claiming £16,161.68 in social security benefits and to an offence of fraud by false representation on a loan application. In May 2017 he was sentenced to a two-year community order with a 12-month supervision requirement and a three-month curfew period.