Estonian pleads guilty in U.S. court to Internet advertising scam

NEW YORK (Reuters) – An Estonian man pleaded guilty on Friday in U.S. federal court for his role in a massive Internet scam that targeted well-known websites such as iTunes, Netflix and The Wall Street Journal.

The scheme infected at least four million computers in more than 100 countries, including 500,000 in the United States, with malicious software, or malware, according to the indictment. It included a large number of computers at data centers located in New York, federal prosecutors said.

Valeri Aleksejev, 32, was the first of six Estonians and one Russian indicted in 2011 to enter a plea. They were indicted on five charges each of wire and computer intrusion. One of the defendants, Vladimir Tsastsin, was also charged with 22 counts of money laundering.

In U.S. District Court in Manhattan on Friday, Aleksejev pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit computer intrusion. He faces up to 25 years in prison, deportation and the forfeiture of $ 7 million.

The scam had several components, including a “click-hijacking fraud” in which the malware re-routed searches by users on infected computers to sites designated by the defendants, prosecutors said in the indictment. Users of infected computers trying to access Apple Inc’s iTunes website or Netflix Inc‘s movie website, for example, instead ended up at websites of unaffiliated businesses, according to the indictment.

Another component of the scam replaced legitimate advertisements on websites operated by News Corp’s The Wall Street Journal, Amazon.com Inc and others with advertisements that triggered payments for the defendants, prosecutors said.

The defendants reaped at least $ 14 million from the fraud, prosecutors said. However, Aleksejev’s lawyer, William Stampur, said in court on Friday that Aleksejev has no assets.

Estonian police arrested Aleksejev and the other Estonians in November 2011. One other Estonian, Anton Ivanov, has been extradited, and the extradition of the other four is pending, according to the U.S. Attorney’s office in Manhattan. The Russian, Andrey Taame, remains at large, according to the U.S. Attorney’s office.

Aleksejev told Magistrate Judge James Francis he assisted in blocking anti-virus software updates on infected computers. Francis asked Aleksejev if he knew what he was doing was illegal.

“I thought it was wrong,” Aleksejev said in broken English after a long pause. “But of course I didn’t know all the laws in the U.S.”

Francis set a tentative sentencing date of May 31 for Aleksejev.

The case is USA v. Tsastsin et al, U.S. District Court in Manhattan, No. 11-00878.

(Reporting by Bernard Vaughan; Editing by Dan Grebler)

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Warm Bodies Tops Weekend Box Office

Audiences embraced Warm Bodies for its debut, making it the weekend's highest grosser at the box office.

RELATED: New on Blu-ray & DVD

The zombie rom-com (starring Nicholas Hoult, Teresa Palmer and John Malkovich) dug up $20 million, beating out Hansel & Gretel: Witch Hunters, which placed second with $9.4 million.

Academy Award Best Picture nominee Silver Linings Playbook trailed close behind with $8.1 million despite entering its 12th week in theaters. Fellow Best Picture nominees Zero Dark Thirty ($5.3 million), Django Unchained ($3 million), Les Miserables ($2.44 million) and Lincoln ($2.41 million) also made the top 10.

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Support for Gov. Cuomo, plan to legalize casinos slipped in past month, poll shows

ALBANY - Support for Gov. Cuomo and his plan to legalize casinos slipped over the past month, according to a new poll.

But the Siena College survey released today found far less damage to Cuomo's popularity after he signed a sweeping gun control bill than a Quinnipiac University poll last week - which showed a 30-point unfavorable swing in Cuomo's job approval rating over the past month.

The Siena poll found state voters strongly support the new gun law by 65-30 percent.

But it also showed voters remain split down the middle on the controversial practice of fracking for natural gas in upstate's Marcellus Shale.

Cuomo's favorablity rating of 67-29 and his job approval mark of 58-41 slid from 71-24 and 60-38, respectively, in Siena's January survey.

But the new poll, which also showed 56 percent of voters would re-elect Cuomo next year vs. 36 percent for someone else, found most Republicans (54-42) now view Cuomo unfavorably for the first time since he took office Jan. 1, 2011. He also lost support among upstaters, whose backing of the gun law was far weaker than that of suburbanites and city dwellers.

Support for amending the constitution to allow seven casinos dipped to 48-42 from 52-43 last month, with small majorities of Republicans, independents and suburbanites providing the edge.

"Passage of the amendment by voters is still an iffy proposition and far from a sure bet,” Siena poll spokesman Steven Greenberg said.

The gun law - first in the nation since last December's shooting massacre left 20 first-graders and six adults dead at Sandy Hook Elementary School in Newtown, Ct. - was needed and the right thing to do, 56 percent of voters said. But 42 percent, including nearly three quarters of Republicans and most upstaters, said the measure - which broadens New York's ban on assault weapons, reduces the limit on bullets in magazines to seven from 10, subjects more guns to registration and toughens penalties for illegal gun use - was rushed through without adequate consideration.

Most Republicans and conservatives oppose the gun law, Siena's Jan. 27-31 telephone survey of 1,154 registered voters found.

Though voters were divided on fracking - even in upstate's gas-rich Southern Tier - Siena found the Democratic-dominated opposition would be more upset if Cuomo allows high-volume drilling (88 percent, including 54 percent who'd be very upset) than Republican-dominated supporters would be if he doesn't (59, 20).

“The Governor is in a position that chief executives hate: making a decision on a controversial issue where voters

are split down the middle," Greenberg said of fracking, which opponents fear will harm the environment but supporters say will create badly needed jobs. "Unlike his position on guns, which angered a vocal minority, Cuomo’s decision on fracking is likely to anger far more voters – no matter what he decides.”

Siena also found 56 percent of voters like the unprecedented power-sharing coalition the 30 GOP and six Democratic state senators formed this year.

While Republicans, independents, suburbanites and upstaters all favor the coalition, 60 percent of Democrats think the breakaway Democratic senators should have stuck with their 27 fellow party members to take a 33-30 majority.

The poll has a margin of error of plus or minus 3.7 percentage points.

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Bright spots in Latin America despite global economic uncertainty

There are bright spots as Latin American and Caribbean economies begin the year but the uncertain health of the U.S. economy, the lingering financial crisis in Europe and more sluggish growth in China are casting shadows over the region.

A decade ago, dim prospects in those major markets would have delivered a knock-out punch in the region, but this year Latin American and Caribbean economies are expected to grow by 3.5 percent and average 3.9 percent growth in 2014 and 2015, according to a World Bank forecast. The United Nations’ Economic Commission has a slightly more sanguine forecast of 3.8 percent growth in 2013.

Both are better than the 2.4 percent growth the World Bank is forecasting for the global economy and the mere 1.3 percent increase it is predicting for high-income countries.

The U.S. economy grew by 2.2 percent in 2012. But the economy shrank 0.1 percent in the fourth quarter and the first quarter of 2013 also could be sluggish..

“That creates a soggy start for 2013 in Latin America,’’ said David Malpass, president of Encima Global, a New York economic consulting and research firm.

With a recession in Japan, even slower growth expected in Europe than in the United States, and questions about whether the dip in the Chinese economy has bottomed out and whether the United States will be making sharp cuts in defense spending and other federal programs come March 1, Latin American and Caribbean nations can’t really depend on the industrialized world to spur growth.

The region must look inward and undertake structural reforms that will allow growth from domestic factors, said Malpass, who was in Miami in January for an event organized by the University of Miami’s Center for Hemispheric Policy.

Panama’s $5.25 billion investment in expansion of the Panama Canal is an example of the inward focus that will pay off down the road, said Malpass. By 2015, Panama plans to have completed two new sets of locks on the Atlantic and Pacific sides of the canal and the deepening and widening of existing channels to accommodate the so-called Post-Panamax ships too big to traverse the current locks.

“It’s a difficult period but a period where developing countries are growing solidly but not as quickly as they might otherwise want to,’’ said Andrew Burns, the lead author of the World Bank’s annual Global Economic Trends report.

That means they should focus on investment in infrastructure and healthcare, structural policies, regulatory reforms and improvements in governance that will pay future dividends down the road, Burns said.

Such economic reforms, plus high commodity prices enjoyed by countries with fertile fields and mineral wealth, helped the region move beyond the global financial crisis of 2008 and 2009 far more quickly than it did when it was so dependent on economic cycles in the rest of the world.

Economic growth slowed in Latin America and the Caribbean from 4.3 percent in 2011 to an estimated 3 percent but that was still better than the 1.3 percent growth high-income countries managed in 2012, according to The World Bank.

China will continue to play a major role in Latin America and the Caribbean this year but whether the slowdown in China has reached its low point is subject to debate. But it’s relative. Slow growth in China would be brisk growth elsewhere. China says its gross domestic product grew 7.8 percent in 2012, the most tepid growth in 13 years and a comedown from 9.3 percent growth in 2011.

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Plenty of opinions on fixing the nation’s broken immigration system

Most agree that the nation’s immigration system is broken, but there’s no agreement on fixing it.

This week, the debate over immigration reform emerged once again. President Barack Obama outlined his plan on a visit to Nevada on Tuesday. On Monday, a bipartisan group of eight senators, including Florida Sen. Marco Rubio, outlined their plan. Both similar, but one key difference is the time it takes for the nation’s 11 million undocumented immigrants to become legal U.S. residents and, eventually, U.S. citizens.

Obama’s plan would allow undocumented immigrants to receive work permits and, presumably, quickly begin the process of applying for permanent legal U.S. residency — more commonly known as a green card. The Senate proposal would put undocumented immigrants in line with everyone else trying to get into country, a process that could take decades to complete.

There is no specific bill on the table, but Obama and top Senate leaders from both sides of the aisle say they want to a bill passed by summer’s end.

The Miami Herald sought the opinions of members of HeraldSource by asking whether undocumented immigrants should be allowed to get on a path to citizenship and what requirements would have to be met to qualify.

The group is part of the popular Public Insight Network and helps The Herald explore timely issues in the news. Here’s a sampling of the comments:

Kirsten Llama, of Miami:

“Yes. As long as they do not commit crimes and make an effort to learn English. They are here. We need them. They take jobs many natives will not take. They will pay their fair share of taxes as citizens. If they serve in the military or work in humanitarian jobs, such as medical and education, they should be given a faster path [to citizenship]. Insist they go home for half a year before they reapply to return. If they do not fulfill their jobs, they should be sent home.

Ed Wujciak, of Hollywood:

Yes. The presence of “second-class residents,” which is what undocumented immigrants are, creates great strains in our society. These people are vulnerable, afraid, and powerless to participate in the society they live in. They are here because the U.S. government has had a “see no evil” attitude toward them. They were allowed to come and stay because they work cheap and boost corporate profits, but they are powerless to improve their situation. In other words, they’re perfect employees. Plus, their presence in such great numbers puts great downward pressure on the wages and working conditions of everyone else. Our policy toward these people has been dishonest and exploitative. Our policies acted as an unspoken invitation and we owe them the dignity of legal status.

Fred San Millan, of Miami:

No. It will open a floodgate and more people will invade the United States, creating a real social calamity that will definitely affect this country forever on all fronts, social and economic. I would keep the same rules of a balanced quota for each country, and register the illegal in this country without persecuting them, however. [I suggest] a nationwide referendum for this immigration problem.

Ed Gugliotta, of Miami Beach:

No. Not before all the others that are legally in line waiting for their chance, such as family members, professional workers [H1B or O visas, investors E1, L1] visas, who have been in the country for many years, abiding by the law, paying taxes, investing and waiting patiently their so slow process to obtain at least a green card. Ease the process of obtaining the Green Card for family members and workers that have shown good faith and honest intention on becoming valuable and productive residents, Undocumented immigrants can then follow the legal path to citizenship. Secure the borders so no more illegals can access the American soil, and undocumented already here (although they are technically felons) must learn the language, have a local resident or citizen as sponsor, no criminal background, and some kind of skill useful for the nation. Then they could obtain some kind of parole permit that would allow them to stay, have a job, get a driver’s license, pay taxes and a two-year test period before accessing a special, say, blue card that would allow them to stay for 5 years, and subsequently, if accepted, request the green card.

Sergio R. Bustos is The Miami Herald’s politics and state government editor. He can be reached at sbustos@MiamiHerald.com. Public Insight Journalism Analyst Stefania Ferro can be reached at sferro@ MiamiHerald.com. Sign up for the Public Insight Network by going to MiamiHerald.com/Insight.

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China May (or May Not) Be Behind the Twitter Hack

You may not have heard, but roughly 250,000 Twitter accounts may have been compromised by hackers. There’s a theory that — if you read between the lines — Twitter is implying the Chinese are to blame for compromising their security. 

RELATED: The Chinese Want to Know Why Their News Is on Twitter and They Aren’t

Twitter revealed that roughly a quarter million accounts may have been compromised by hackers in a blog post Friday evening. (A classic Friday evening news dump if there ever was one; they got a $ 10 billion valuation the same day.) 

RELATED: A Punk Prince, Women in the Military, a New Tennis Controversy

Bandits might have made away with “usernames, email addresses, session tokens and encrypted/salted versions of passwords – for approximately 250,000 users.” They think. A Twitter representative stressed to the Verge that they’re still investigating; there’s a chance we’re all safe. 

RELATED: World Languages Mapped by Twitter

But was China behind it all?! That’s an emerging theory. We don’t know who was behind it. Twitter doesn’t say directly. None of the usual suspects have claimed ownership of the attack. (Yet.)

RELATED: The Good, the Bad, and the Fuzzy of Twitter’s New Censorship Rules

But Twitter mentions the New York Times and Wall Street Journal hacks in their opening paragraph, apropos of nothing, really. It could mean the company was just trying to show they’re not alone in being targeted — look at these bullies picking on these other kids, too. Or it could mean they’re subtly implying China is behind it all. 

RELATED: Did the Berlin Wall’s Fall Save China?

The last paragraph in Twitter’s statement is where the theory really gets its legs. Emphasis ours: 

This attack was not the work of amateurs, and we do not believe it was an isolated incident. The attackers were extremely sophisticated, and we believe other companies and organizations have also been recently similarly attacked. For that reason we felt that it was important to publicize this attack while we still gather information, and we are helping government and federal law enforcement in their effort to find and prosecute these attackers to make the Internet safer for all users. 

So, did they do it? These sophisticated hackers who targeted other companies and organizations sure sounds like they’re implying it was China.

Was it China in the basement with the Cheetos and Red Bull and impressive coding skill? We don’t know for sure, but we’re definitely looking for any and every clue we can find. 

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Buzzmakers: SAG Winners Pics and Nicole Kidman Explains Jimmy Kimmel Lap Dance

What had ET readers buzzing this week?

1. PICS: SAG Winners with their Statues!

Some of Hollywood's biggest stars gathered Sunday night to honor acting achievements at the 2013 Screen Actors Guild Awards. Anne Hathaway -- winner of the award for Outstanding Performance by a Female Actor in a Supporting Role for Les Misérables -- kicks off our gallery of the stars accepting their handsome statuettes!

Click here for all the pics!

2. Nicole Kidman on Her Lap Dance for Jimmy Kimmel

Nicole Kidman raised eyebrows during Matt Damon's Jimmy Kimmel Live! takeover when she greeted Kimmel -- who was strapped to a chair -- with a lap dance. On the SAG Awards red carpet, the Oscar winner explained the move to Nancy O'Dell.

Kidman described the dance as "impromptu," saying that she was just following the lead of another one of the night's guests.

"Robin Williams had done it before, so I thought, 'Well, why not?'" Kidman explained.

For years Kimmel has had a running joke where he ends every episode by apologizing to Matt Damon for running out of time for him. On last week's special episode of the late-night show -- nine years in the making -- Damon recruited some friends (which included Andy Garcia, Sheryl Crow, Ben Affleck, Jennifer Lopez, Robert DeNiro, Sarah Silverman, Demi Moore and Oprah Winfrey.

3. Top-Earning 'American Idol' Alums

American Idol is in the business of making music stars, and in turn, has made lots of money for some of their contestants. Forbes released their list of the top-earning Idol alums of 2012 a few names on this list are sure to surprise you.

Click here for the entire list!

4. Jennifer Lawrence Suffers Wardrobe Malfunction

It seemed like disaster for Jennifer Lawrence when her dress came apart just as she was called up to accept the award for Best Actress during the 2013 SAG Awards.

The Silver Linings Playbook star's apparent wardrobe malfunction caught the eye of both Marion Cotillard and Nicole Kidman, whose reaction to the getup coming apart at the seams was caught on camera. No disaster, here, though -- it turns out the dress was designed that way! A source close to designer Dior told ET that the dress did not rip -- that it was made with different layers of tulle and satin.

This minor outfit hitch comes after it was announced that Lawrence, 22, has walking pneumonia, making this one of the best and worst weeks for the award-winning actress.

5. Kris Jenner Lands Talk Show

Are you ready for a daily dose of Kris Jenner?

The TV personality will test the talk show waters this summer when Fox premieres a preview episode of Kris, a one-hour entertainment talk show. "This is something I have wanted to do all my life so it's definitely a dream come true," Jenner said in a statement! "I can't wait for this new adventure to begin and look forward to working alongside Twentieth Television and the Fox Television Stations."

Kris will be rolled out in a similar fashion to how Bethenny Frankel's talk show was last summer, with the network testing the waters to see if there's an audience appetite for more of this famous family. According to a press release, the show will "offer daytime viewers a daily jolt of celebrity guests, fashion & beauty trends; plus a mix of lifestyle topics -- all through the distinctive and unpredictable perspective of Kris Jenner. Filmed in Los Angeles, CA, the pop culture driven talk show will bring a cool blast of fun and high energy to summer television."

The trial run of Kris will launch this summer, with the program available on select Fox-owned stations in markets, including New York and Los Angeles.

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Deadly deserts

Ralph Peters

Violence in Allah’s name in northern Africa won’t end in my lifetime — and probably not in yours. The core question is: To what extent can the savagery be contained?

From the Atlantic coastline to the Suez Canal, struggling governments, impoverished populations and frankly backward societies struggle to find paths to modernization and to compete in a ruthless global economy. Religious fanatics for whom progress is a betrayal of faith hope to block development.

Still, if the only conflict was between Islamist terrorists and those who want civilized lives, the situation could be managed over time. But that struggle forms only one level in a layer cake of clashing visions and outright civil wars bedeviling a vast region. Much larger than Europe, the zone of contention encompasses the Maghreb, the countries touching the Mediterranean, and the Sahel, the bitterly poor states stretching down across desert wastes to the African savannah.

AFP/Getty Images

Figthers of the Islamic group Ansar Dine

The Sahel is the front line not only between the world of Islam and Christian-animist cultures in Africa’s heart, but between Arabs and light-skinned tribes in the north, and blacks to the south. No area in the world so explicitly illustrates the late, great Samuel Huntington’s concept of “the clash of civilizations.”

If racial and religious differences were not challenge enough, in the Maghreb the factions and interest groups are still more complicated. We view Egypt as locked in a contest between Islamists and “our guys,” Egyptians seeking new freedoms. But Egypt’s identity struggle is far more complex, involving social liberals, moderate Muslims, stern conservative Muslims (such as the Muslim Brotherhood) and outright fanatics. The military forms another constituency, while the business community defends its selfish interests. Then there are the supporters of the old Mubarak regime, the masses of educated-but-unemployed youth and the bitterly poor peasants.

Atop all that there’s the question of whether the values cherished by Arab societies can adapt to a globalized world.

The path to Egypt’s future will not be smooth — yet Egypt’s chances are better than those of many of its neighbors. Consider a few key countries in the region:

Mali

Viva la France! (Never thought I’d write that in The Post.) Contrary to a lot of media nonsense, the effective French intervention in Mali demonstrates that not every military response to Islamist terror has to become another Afghanistan: The French are welcome.

As extremists invariably do, al Qaeda in the Islamic Maghreb (AQIM) and its allies rapidly alienated their fellow Muslims — after hijacking a local uprising. The local version of Islam is far more humane and tolerant than the Wahhabi cult imposed by Islamist fanatics. To the foreign extremists, the Malian love of Sufi mysticism, ancient shrines and their own centuries of religious scholarship are all hateful — as is the Malian genius for music that’s pleased listeners around the world.

Have a comment on this PostOpinion column? Send it in to LETTERS@NYPOST.COM!

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At University of Miami, Justice Sonia Sotomayor gets real

From her days as a young girl in the Bronx being raised by her mother after the death of her father to becoming the first Hispanic on the highest judicial body in the country, U.S. Supreme Court Justice Sonia Sotomayor told the story of her journey before a captivated audience at the University of Miami on Friday night.

Sotomayor spoke with University of Miami President Donna E. Shalala at the BankUnited Center to University of Miami students, Coral Gables residents and perhaps a future Supreme Court justice about the inspiration behind her recently published memoir My Beloved World.

“Love and passion, that is the only way you do something well,” Sotomayor said. “Do a few things, but do them well.”

Sotomayor, 58, spoke of the many things that inspired her to share her story with the world, one of which was in responses to questions she hadn’t expected during her confirmation process, such as how children cope when a parent dies, especially if they don’t have a mother like hers.

“I began to understand that I couldn’t talk to every child in the country,” Sotomayor said. “I could give them the answers in a book.”

One child she did embrace and speak with on Friday evening was a young girl in the audience named Madeline. Madeline, who was introduced by Shalala, and Sotomayor turned out to have one thing in common: a love for Nancy Drew.

Sotomayor credits the lessons she learned from the fictional tales of a young girl detective as one of the motivations for her successful career.

“When she [Nancy Drew] was trying to solve people’s problems,” Sotomayor told Madeline, “she was trying to help people.”

“I think too many young lawyers forget that the law is the noblest profession you can enter,” Sotomayor said. “What you do is helping people.”

When asked what other profession she would have ever considered going into, Sotomayor said there was not one. “This fish found her pond, and she ain’t changing it,” Sotomayor said.

Shalala questioned Sotomayor about her life as a diabetic, which her memoir speaks of at great length.

“If you have diabetes and want to live a full life, you figure out how to have both things,” Sotomayor said.

She was diagnosed with juvenile diabetes at 8 and she credits living with the chronic illness with teaching her discipline. “Every moment of every day I am self-monitoring inside,” Sotomayor said.

That constant discipline, she said, teaches you to do things like monitoring diet, something she feels everybody should do.

With many students in the audience, she was asked about her scariest experience in law school.

“Being there,” Sotomayor chuckled. “If you think you are smart in college, you realize how dumb you are.”

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GS: Ignore the chatter, BlackBerry rebound is coming

BlackBerry’s (RIMM) next-generation BlackBerry 10 platform has received mixed reviews out of the gate, but most seem to agree that the new OS and first two BlackBerry 10 smartphones will do little to attract interest from users of rival platforms. But as analysts continue to back off BlackBerry and investors lose confidence, Goldman Sachs sees a big opportunity for clients.

[More from BGR: Here comes the PlayStation 4: Sony announces February 20th PlayStation event [video]]

In a recent research note to clients picked up by Barron’s, Goldman Sachs analyst Simona Jankowski urged investors to take advantage of BlackBerry’s recent slide and buy shares at a discount.

[More from BGR: BlackBerry 10 browser smokes iOS 6 and Windows Phone 8 in comparison test [video]]

“We continue to see significant upside to estimates over the next three quarters, as BB10 devices drive upside to the Street’s ASP and margin forecasts,” Jankowski wrote. ”With 110 carriers completing lab testing by February, 50 carriers offering integrated billing, and Verizon getting an exclusive for the white Z10, we continue to see strong carrier support for BB10. Consumer adoption will decide the ultimate outcome, but estimate revisions should be a positive catalyst in the meantime.”

Jankowski also noted that BlackBerry Z10 sales could reach roughly 1 million units in the UK and Canada alone. The analyst believes BlackBerry World is off to a solid start with more than 70,000 available BlackBerry 10 apps, and the new platform includes a number of novel features that will attract attention.

“Consistent with BB10s browser superior performance on industry benchmarks – the Ringmark and HTML 5 tests – our preliminary tests show it to be much faster than leading competitive offerings. Additionally, while the company provided a full demo of the BB10 OS, we believe the details around Hub, Flow, Peek, and Balance were largely known. BlackBerry believes its Keyboard functionality will be a key differentiator, with the capability to ‘flick’ entire words to the screen with a single thumb. It can also recognize multiple languages within a single text or email.”

She continued, adding that the new BBM, BlackBerry Remember, Story Maker and enhanced camera functionality are all compelling features that will draw attention to the new platform.

Jankowski reiterated a Buy rating on BlackBerry shares with a $ 19 price target.

This article was originally published on BGR.com

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