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Former Chief Computer Network Program Designer Arraigned for
Alleged $10 Million Computer "Bomb"

1998-02-17 -- Lloyd, Timothy -- Indictment -- News Release

Former chief computer network program designer arraigned for alleged $10 million computer "bomb"

NEWARK -- A former chief computer network program designer from Delaware was arraigned this morning for allegedly unleashing a $10 million programming "bomb" 20 days after his dismissal that deleted all the design and production programs of a New Jersey-based manufacturer of high-tech measurement and control instruments used by NASA and the U.S. Navy, U.S. Attorney Faith S. Hochberg announced.

The case is believed to be one of the most expensive computer sabotage cases in U.S. Secret Service history, according to C. Danny Spriggs, special agent in charge of the U.S. Secret Service's Philadelphia Office.

Timothy Allen Lloyd, (DOB 1967-10-16), of Wilmington, a former computer network programmer for Omega Engineering Corp. ("Omega"), a Bridgeport, Gloucester County, New Jersey corporation with offices in Stamford, Connecticut, and branches around the world, was arraigned before U.S. District Judge William H. Walls.

Judge Walls scheduled Lloyd's trial for April 20. 1998 and set a $25,000 secured bond, according to Assistant U.S. Attorney V. Grady O'Malley.

A two-count Indictment, returned Jan. 28, 1998 by a Camden Federal Grand Jury, alleges that, on July 30, 1996, Lloyd intentionally caused irreparable damage to Omega's computer system by activating a "bomb" that permanently deleted all of the company's sophisticated software programs.

The sabotage occurred on or about July 30, 1996. Lloyd had been terminated from Omega on July 10, after working for the company for approximately 11 years. The Indictment also reflects that the sabotage resulted in a loss to Omega of at least $10 million in sales and contracts.

Lloyd is also charged, in Count Two of the Indictment, with transporting interstate approximately $50,000 worth of computer equipment stolen from Omega to his Delaware residence.

Lloyd faces a maximum of five years in federal prison on Count One and 10 years on Count Two. Each count carries a maximum fine from $250,000 to twice the loss or gain from the crime. If convicted, Lloyd could also be ordered to make restitution.

An Indictment is a formal charge made by a grand jury, a body of 16 to 23 citizens, Hochberg noted. Grand jury proceedings are secret, and neither persons under investigation nor their attorneys have the right to be present. A grand jury may vote an Indictment if 12 or more jurors find probable cause to believe that the defendant has committed the crime or crimes charged.

Despite Indictment, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt following a trial at which the defendant has all of the trial rights guaranteed by the U.S. Constitution and federal law.

Under the Sentencing Guidelines, Judge Walls would, upon conviction, determine the actual sentence based upon a formula that takes into account the severity and characteristics of the offense and the defendant's criminal history,
if any, Hochberg said.

Hochberg credited Special Agents of the Secret Service in Philadelphia under the direction of Spriggs, for developing the case against Lloyd.

The Government is represented by Assistant U.S. Attorney O'Malley, senior litigation counsel in the U.S. Attorney's Criminal Division in Newark.


1998-02-17 -- Lloyd, Timothy
Indictment -- News Release

U.S. Attorney for the District of New Jersey
Faith S. Hochberg, United States Attorney
970 Broad Street, Seventh Floor, Newark, New Jersey 07102
Main Office Number: 973-645-2700

Public Affairs Office: 973-645-2888
Dick Lavinthal: Public Affairs Specialist
Alan Ables: Public Affairs Specialist
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