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GRAND JURY: Jonesboro Guilty, Society and Christianity Indicted As Co-conspirators
by Toto 17 Dec '03

17 Dec '03

[Bienfait Nutly News:] A GRAND JURY CONVENING DURING HAPPY HOUR at the CoalDust Saloon took to heart the Arkansas Govenor's statement that, "We need to lay the blame for the Jonesboro tragedy squarely at the feet of the culture that breeds this kind of response in a child." The Grand Jury forebroad noted that the child perpetrators had neither been to Hollywood, nor to any art gallerys funded by the National Foundation for the Arts against the wishes of various 'Family Values' coalitions. "It's pretty clear that these murderous young monsters are an end result of the cultural influences they were exposed to in the course of being brought up in the community of Jonesboro. Accordingly we have returned an unasked- for verdict of 'guilty' against the citizens of that community, and have indicted two others who we feel acted as co-conspirators in this tragedy." The Grand Jury released two beer-stained items of evidence that they had used in their drunken deliberations: * "Road Rage" gets the attention, but more rages are coming into prominence: Pre-pay Rage, Albuquerque, N.Mex., January (a man wanted to pump his gas before he paid; fired several gunshots into the clerk's car). Late-Fee Rage, McLean, Va., January (former State Dept. lawyer was not allowed to rent a movie until he settled an old late fee; ran down the store owner with his car, knocking him through the window of a nearby restaurant). Rain Rage, Los Angeles, February (as two men passed in the rain, their umbrellas accidentally touched; one man then aimed his umbrella at the other's face and thrust the tip through his eye, piercing his brain, sending him to the hospital in critical condition). ~WEIRDNUZ.526 (News of the Weird, March 6, 1998) by Chuck Shepherd * According to a September federal indictment in Des Moines, Iowa, Kenneth Ray Bruner (who is the stepson of a Pentacostal minister in Oklahoma City) led his seven accomplices in prayer three weeks earlier, asking for God's protection just before they set out to knock off Hermans Fine Jewelry. Bruner acknowledged, according to the indictment, "that they were going to do bad things but that they were not bad people." No one was hurt in the robbery, and everyone was behind bars by the following day. ~WEIRDNUZ.526 (News of the Weird, March 6, 1998) by Chuck Shepherd "If these were aberrations," the forebroad slurred, wiping drool off the corner of her chin and slapping the hand of President Clinton, who had passed out in the bar the evening before and stayed over for the trial, "that would be one thing, but these examples are just the tip of the iceberg." "It has been obvious for quite some time that both society and Christianity are way out of control, and there is no telling how much greater the damage they cause would be if these two entities were able to operate without the calming influence of gun-bearing paramilitarists, who can only be pushed so far before they begin to push back, themselves." The Grand Jury's released statement went fairly easy on the parents of the child warriors, pointing out that, from the moment of their birth, they became the SSN-registered property of the government, with the majority of their upbringing being controled by the many laws regulating the manner and nature of education and discipline that their parents are allowed/required to provide for them. "Had the parents taken a strong hand in the discipline and direction of their children's education, they would have been vulnerable to prosecution for a variety of serious offenses, and it is likely the government would have revoked the parents' possession of the child-property in question. "As well, most members of the community of Jonesboro, the surrounding social community, and the Christian community, would have undoubtedly used every available law and law enforcement agency at their fingertips to prevent the parents from helping their children to escape beyond the reach of 'We the Sheeple.'" A barmaid with a Rose Tattoo on her butt nodded in agreement as this portion of the Grand Jury's statement was read. The woman had fled Jonesboro the day before the shootings with her own son, having kidnapped him from a Child Services detention center, where he was placed after a Christian neighbor had turned her in for allowing him to view her live-in boyfriend's Playboy magazines. "I feel kind of guilty for leaving other people's children behind, to suffer the consequences of living in such a dangerous community, but I'm already facing one count of kidnapping..." An informal tribunal of drunks and drug addicts returning from the restrooms questioned the Grand Jury's failure to indict the government. One gentleman paused from wiping foreign substances off of his shoes, to ask, "Since the government is the chief instigator and enforcer in the process of crushing the spirit of children, providing funding for most of the boxes that their free spirits are crammed into, as well as hunting down and putting in more secure boxes those who attempt to evade their responsibility to remain within the boundaries set aside to contain their number..." "Drawing outside the lines!" someone shouted. Nodding agreement, the gentleman continued, "...then surely they should have not only been indicted, as well, and found guilty, but they should have received the same penalty as those who backed the actions of the Waco murderers, according to the guidelines of the McVeigh Convention, as passed by the Mulatohma Citizen's Tribunal presided over by Judge Bell." "Well, we did return a few *secret* indictments," the forebroad grinned, with a wink to the gentleman, "but we're waiting for TruthMonger to figure out where the 'yellow wire' goes..." In the efforts of fairness, so not to be seen as engaging in yet another round of all-too-common Suburbian Christian bashing, the Grand Jury also released evidence that communities and religions far distanced from Jonesboro should think twice before gloating over "the anal-retentives finally getting theirs," as a dark-skinned, slant-eyed member of an obscure religious cult was heard to say, before suddenly dying of alcohol poisoning, whereupon his soul went up on the roof and the bartender dialed 911, asking them to send an ambulance and a Frisbeetarian Priest: * Dubious Salvations: In January in Jerusalem, self-described mystic rabbi David Batzri offered specialized blessings in person or by telephone for those who have sinned by masturbation (which he said is the principal cause of demons). And in Hong Kong in November, self-proclaimed "knight of God" Syed Atta Muhammad, 32, was committed to a psychiatric center after he assaulted a 22-year-old tour guide, whose breasts he thought were too big to serve God because they made her look like a prostitute. ~WEIRDNUZ.526 (News of the Weird, March 6, 1998) by Chuck Shepherd

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Deniable Cryptography [was winnowing, chaffing etc]
by Julian Assange 17 Dec '03

17 Dec '03

mgraffam(a)mhv.net writes: > I figure the best we can do is to hide the contents of S with crypto and > hide its existence through other means. Traditional stego works well > for this latter goal, but it does not give us a way to cough up something > meaningful in place of S, which could be very handy. > > In short, certainly the existence of S needs to be hidden, and it would be > best to do hide it in plain sight as it were, in a big junk pile with > everything else on the drive. > > Indexing this huge mess of data to allow for a practical system to work > with is certainly a challenge, and in all likelyhood impossible given the > parameters of the system. > Marutukku (my rubber-hose proof filing system) addresses most of these technical issues, but I'd like to just comment on the best strategy game-theory wise, of the person wielding the rubber-hose. In Marutukku the number of encrypted extents (deniable "virtual" partitions) defaults to 16 (although is theoretically unlimited). As soon as you get over about 4 pass-phrases, the excuse "I can't recall" or "there's nothing else there" starts to sounding highly plauseable. Ordinarily best strategy for the rubber-hose wielder is to keep on beating keys out of (let us say, Alice) indefinitely till there are no keys left. However, and importantly, in Marutukku, *Alice* can never prove that she has handed over the last key. As Alice hands over more and more keys, her attackers can make observations like "the keys Alice has divulged correspond to 85% of the bits". However at no point can her attackers prove that the remaining 15% isn't simply unallocated space, and at no point can Alice, even if she wants to, divulge keys to 100% of the bits, in order to get the un-divulged portion down to 0%. An obvious point to make here is that fraction-of-total-data divulged is essentially meaningless, and both parties know it - the launch code extent may only take up .01% of the total bit-space. What I find interesting, is how this constraint on Alice's behaviour actually protects her from revealing her own keys, because each party, at the outset can make the following observations: Rubber-hose-squad: We will never be able to show that Alice has revealed the last of her keys. Further, even if Alice has co-operated fully and has revealed all of her keys, she will not be able to prove it. Therefor, we must assume that at every stage that Alice has kept secret information from us, and continue to beat her, even though she may have revealed the last of her keys. But the whole time we will feel uneasy about this because Alice may have co-operated fully. Alice will have realised this though, and so presumably it's going to be very hard to get keys out of her at all. Alice: (Having realised the above) I can never prove that I have revealed the last of my keys. In the end I'm bound for continued beating, even if I can buy brief respites by coughing up keys from time to time. Therefor, it would be foolish to divulge my most sensitive keys, because (a) I'll be that much closer to the stage where I have nothing left to divulge at all (it's interesting to note that this seemingly illogical, yet entirely valid argument of Alice's can protect the most sensitive of Alice's keys the "whole way though", like a form mathematical induction), and (b) the taste of truly secret information will only serve to make my aggressors come to the view that there is even higher quality information yet to come, re-doubling their beating efforts to get at it, even if I have revealed all. Therefor, my best strategy would be to (a) reveal no keys at all or (b) depending on the nature of the aggressors, and the psychology of the situation, very slowly reveal my "duress" and other low-sensitivity keys. Alice certainly isn't in for a very nice time of it (although she she's far more likely to protect her data). On the individual level, you would have to question whether you might want to be able to prove that, yes, infact you really have surrendered the last remaining key, at the cost of a far greater likelihood that you will. It really depends on the nature of your opponents. Are they intelligent enough understand the deniable spect of the cryptosystem and come up with the above strategy? Determined to the extent they are will to invest the time and effort in wresting the last key out of you? Ruthless - do they say "Please", hand you a Court Order, or is it more of a Room 101 affair? But there's more to the story. Organisations and groups may have quite different goals in terms of key retention vs torture relief to the individuals that comprise them, even if their views are otherwise co-aligned. I'm not talking about some mega-complex multinational 8 level hierarchy. A simple democratic union of two or more people will exhibit this behaviour. When a member of a group, who uses conventional cryptography to protect group secrets is rubber-hosed, they have two choices (1) defecting (by divulging keys) in order to save themselves, at the cost of selling the other individuals in the group down the river or (2) staying loyal, protecting the group and in the process subjugating themselves continued torture. With Marutukku-style deniable cryptography, the benefits to the individual derived from choosing tactic (1) are largely eliminated. Individuals that are "otherwise loyal" to the group, will realise this and choose tactic (2). Presumably most people in the group do not want to be forced to give up their ability to choose defection. On the other hand, no one in the group wants anyone (other than themselves) in the group to be given the option of defecting against the group (and thus themselves). Provided no individual is certain* they are to be rubber-hosed, every individual will support the adoption of a group-wide Marutukku-style cryptographically deniable crypto-system. * Actually a complicated threshold. Cheers, Julian

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by siowie5＠msn.com 17 Dec '03

17 Dec '03

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sec file
by Mihai Tarabuta 17 Dec '03

17 Dec '03

Hi folks, I'm a newbie so I my be in a wrong place,. Anyway, can someone tell me what kind of program(MSDOS/WINDOWS) encrypts file(s) and as a result, it makes a file with ".sec" extension. The result file contains a header string "PNCICRYPT". Thanks. ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com

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NRA support for crypto [was Rivest's Wheat & Chaff - A crypto alternative]
by Julian Assange 17 Dec '03

17 Dec '03

"Marcus J. Ranum" <mjr(a)nfr.net> writes: > >Since when have you been a cryptographer, Marcus? > > Ever since I independently re-invented ROT-12 at the age of 12. :) I guess that was a bit mean. I'm just not sure one is really a cryptographer till one is spending the majority of their time doing it and earning a living (or a lot of respect) due to the quality of the work produced. i.e dabbling in cryptography != I've made significant contributions to the state of the art (I know you have made useful contributions to other parts of the security world). We .... is often used as a psychological ploy, to convince people the argument that follows is their own. Given that I strongly disagreed with the substance of your message, perhaps I took a dislike to the We .... business a little too eagerly. > >> Has anyone considered approaching the NRA for support for > >> cryptography?? If it is a munition, isn't our right to use it > >> domestically protected under the second amendment, just like > >> our right to keep and bear arms? > > > >Guns are made for killing people. Terrorists use guns. Terrorists > >kill people. Cryptography is guns. Terrorists use cryptography. > >Cryptography kills people. What a fantastic public relations ploy. > >The genius of it. > > D'uh, that's what FBI is saying already! So your suggesting putting your weight behind a tactical metaphor of the FBI? Effectively letting them control the landscape of the debate, by implanting into the public's minds that guns equal cryptography. Ok. You now have a situation where all strong cryptography is out-lawed (err, when was the last time you purchased a A42 tank cannon?) domestically, everything requires export permits (wadda ya mean I can't post my 10 gauge to Zurich without a license?!) and weak cryptography is exposed to a whole host of restrictions, including key size limitation (small arms only), speed limitations (it's dangerous to be able to encrypt too many messages quickly and automatically), usage registration (1 32 bit 8 round IDEA cipher and 2 40 bit barrel-loaded RC4's in farmer Jones' bedroom), cooling off periods (can't let people encrypt on a 'whim), exclusion of un-desirables (you want a crypto license and you haven't been in the state 3 months/had a psychiatric illness/were convicted of an offence/are under the age of 21/listen to NPR?!), necessity (I need that there 56 bit 8 rounder for rabbit 'crypting; I had to encrypt, officer, in a suburban environment - it was self defence against hardened criminal hackers!). > Cryptography is a tool for liberty! Cryptography was used to > save lives in the war! It's been used throughout history by > freedom loving men and women to fight oppression! It's as > American as apple pie! Breaking cryptography saved lives in the war, this is extensively documented over hundreds of clearly defined cases [see Kahn's epic work]. How many lives both-sides using cryptography saved is intangible. I suspect the completely unreal situation of all-sides having open communications would have saved a truly huge number of lives. > >> I will give up one time pad when you pry it from my cold dead > >> left hand. My rifle will be in my right hand. > > > >Tell me this is fabricated Macrus. > > I wrote that. What's your beef? Having a bad hair day or > something? <shrug> I honnestly believed you had been done over by D. Vulis there for a moment. Cheers, Julian.

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17 Dec '03

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Re: Deniable Cryptography [was winnowing, chaffing etc]
by Brian B. Riley 17 Dec '03

17 Dec '03

-----BEGIN PGP SIGNED MESSAGE----- On 3/28/98 5:53 PM, mgraffam(a)mhv.net (mgraffam(a)mhv.net) passed this wisdom: >In this case, I figure that their best option is to beat Alice >everyday forever or until she dies. Whichever comes first. > >The longer they beat her, the better chance there is that she broke >down and gave them her most important secrets. Even if she can't >prove it.. so what? The rubber-hose group isn't exactly the boy >scouts. They beat her the next day too, this time a little harder. > >Alice may hold up, she may not.. I don't really see the >cryptosystem helping here. You can't win a game when the other >player doesn't use your rules. You have to use the same set of >rules. We know that the rubber-hose wielding guys aren't going to >play by Alice's rules. So, the only way for Alice to win is to do >the impossible (because this is reality, not TV) and that is to >grab the rubber hose and beat them with it. The whole point is that since such a system offers no way to verify that Alice has indeed at any point given them 'everything' she has to tell, they will keep beating Alice; Alice, recognizing this at the outset has no reason to give them anything because she knows that since she cannot prove she has given them everything they will beat her again and again no matter what she does. The idea of successive keys unlocking more and more important data means that she can chose to give them some of her keys and then just grit out the beatings til they either develop conscience (unlikely), lose patience, (more likely), or figure they have gotten all there is to get. While this method guarantees a beating, it really does offer the best chance of getting away with the withholding of the most secure keys. The only chink in the system would be independent knowledge from a coworker or some such that there is more there. -----BEGIN PGP SIGNATURE----- Version: PGP for Personal Privacy 5.0 Charset: noconv iQEVAwUBNR2H/z7r4fUXwraZAQFbUgf/V97xgxpNs0wIcvUvoUK0p4gShYrzqDRm qXMz6rVTwMKNhBF/0Jdsfu8PMq7M6ZoU051I5FqYEgI2uaqUMxoPx9qjrGOJnOv3 pXr5usa4rRVv5k7mQOJjd1zXXbcJNo6QWWk35zbLS5ecXQgN98Ex2DgApxACzKin 6+rpaTPFzOaktIzSVvM0on2TcC7ifkhkzDjsqIYx3b3gp73p+kzlWgkxngSM2rXZ Od2eEQDSJDnQc4n5DU7xxmwQ5qxz5GCcQiONHkL4pXSHvkbvGkNkPS8Ms/hsF2nJ SiSlmoYQBem3YB/Ik1UEFrqOhRispsYU9NAgii7EtqyAReEnYMI1gQ== =0JND -----END PGP SIGNATURE----- Brian B. Riley --> http://members.macconnect.com/~brianbr For PGP Keys <mailto:brianbr@together.net?subject=Get%20PGP%20Key> "Do not go where the path may lead, go instead where there is no path, and leave a trail" - Ralph Waldo Emerson

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CypherPunks -- The Early Years Part II
by Toto 17 Dec '03

17 Dec '03

Eric Hughes, secretly writing Prologue 15/0 of SPACE ALIENS HIDE MY DRUGS, quoted L.M. Boyd as saying: Among black bears, a mother rules a territory. When her daughter is a year and a half old, the mother assigns a portion of the territory to said daughter. This doesn't happen to the black bear son. When he's about three years old, he's just flatout driven off the property. Look, there's one down at the end of the bar, saying, "My mommy kicked me out when I was three." ~~~~ A Toto To Be Or Not To Be Named Earlier <toto(a)sk.sympatico.ca> (aka - F. Bacon)

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17 Dec '03

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Laws? We don't need no stinking laws!!!
by Janet Reno 17 Dec '03

17 Dec '03

From: "Janet Reno" <jr(a)dev.null> To: "CypherPunks" <cypherpunks(a)toad.com> Bcc: <barry.nemmers(a)chadbourne.com>, <toto(a)sk.sympatico.ca> Subject: Laws? We don't need no stinking laws... Date: Sat, 28 Mar 1998 23:59:15 -0800 MIME-Version: 1.0 Content-Type: multipart/related; type="multipart/alternative"; boundary="----=_NextPart_000_0072_01BD5AA5.83C87CA0" X-Priority: 3 X-MSMail-Priority: Normal X-Mailer: Microsoft Outlook Express 4.72.2106.4 X-MimeOLE: Produced By Microsoft MimeOLE V4.72.2106.4 This is a multi-part message in MIME format. ------=_NextPart_000_0072_01BD5AA5.83C87CA0 Content-Type: multipart/alternative; boundary="----=_NextPart_001_0073_01BD5AA5.83C87CA0" ------=_NextPart_001_0073_01BD5AA5.83C87CA0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Announcing Those who still labor under the illusion that the Royal WE need the = existence of real, constitutionally enforceable laws to arrest, charge = and financially ruin (conviction or not) those who oppose US and our = financial supporters may, if they wish, go ahead and submit to the = inevitable by reporting immediately to the Reptilian Nazi labor camps = recently finished at Lost Alamo, and in Mule Shoe, Texas. ****************************** = =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D INTERNATIONAL COMPUTER LAW OBSERVER March, 1998 -- No.4 = =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D ****************************** ---UNITED STATES--- [BOTTOM LINE] UNITED STATES CHARGES 6 OFFSHORE COMPANIES WITH ILLEGAL OFFSHORE SPORTS BETTING [WHAT HAPPENED] On March 4, authorities led by the FBI charged 14 = owners and managers of 6 companies with illegal use of interstate telephone = lines for on-line betting on amateur and professional sports. All 14 = defendants are American citizens. The 6 companies are located in Central America = and the Caribbean; some have offices in the United States. No bettors were charged. Three of the 14 were arrested in the United States and the FBI was said to be contacting the 10 who were known to be outside the United States to "arrange for their surrender." Web sites of at least several = of the 6 claim that they are operating within their local national gaming laws. The FBI and U.S. Attorney in New York City targeted sports books = and not casino gaming sites. The U.S. Attorney's office said it had called various telephone companies telling them to stop service to each of the companies. The defendants could be sentenced to a maximum of 5 years in prison and $250,000 in fines. In the only other federal action against on-line betting, FBI agents = raided the Pennsylvania offices of International Gaming and Communications = Corp. in February 1997 but no federal charges were filed. That company had operated a sportsbook and on-line casino in Grenada. [WHY IT HAPPENED] It is speculated by some that pressure from Congressional sponsors of legislation restricting and/or banning on-line gambling was behind the charges. The Department of Justice has said in = the past that the federal Wire Communications Act is not written well enough = to support its use against on-line betting. While bills to rewrite the Act are pending, some in Congress and among the public are impatient that no federal enforcement actions have been taken. Others speculate that = state governments are concerned that their lucrative take from lotteries and other state-sponsored non-sports betting could be reduced if on-line betting is not discouraged. [THE SIGNIFICANCE] If the charges are not settled and are pursued = through trial and appeals, this could be the case to write US law on a number of fundamental on-line issues, including jurisdiction and national sovereignty, as well as on-line gambling. It is doubtful that anyone expects law enforcement to eliminate on-line gambling; the intent may simply be to discourage its rapid growth, particularly in sports = betting. The government clearly is testing the reach of existing law; even = decisions adverse to it would be useful by identifying shortcomings in existing = law. [INFORMATION SOURCES] For the news story: www.nytimes.com and www.cnn.com. The six companies can be found at: www.galaxysports.com (Galaxy Sports) www.islandcasino.com (Island Casino) www.realcasino.com (Real Casino) www.sdbg.com (SDB Global) www.winnersway.com (Winner's Way) www.wsex.com (World Sports Exchange) [CONTRIBUTING EDITOR] Chadbourne & Parke - Contact Barry Nemmers: barry.nemmers(a)chadbourne.com ------=_NextPart_001_0073_01BD5AA5.83C87CA0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN"> <HTML> <HEAD> <META content=3Dtext/html;charset=3Diso-8859-1 = http-equiv=3DContent-Type><BASE=20 href=3D"file://C:\Program Files\Common Files\Microsoft = Shared\Stationery\"> <STYLE>  </STYLE> <META content=3D'"MSHTML 4.72.2106.6"' name=3DGENERATOR> </HEAD> <BODY background=3Dcid:006a01bd5ae8$90b47520$2763a58e@uymfdlvk = bgColor=3Dbeige=20 topMargin=3D150> <DIV> </DIV> <CENTER> <H1>Announcing</H1></CENTER> Those who still labor under the illusion that the = Royal WE need=20 the existence of real, constitutionally enforceable laws to arrest, = charge and=20 financially ruin (conviction or not) those who oppose US and our = financial=20 supporters may, if they wish, go ahead and submit to the inevitable by = reporting=20 immediately to the Reptilian Nazi labor camps recently finished at Lost = Alamo,=20 and in Mule Shoe, Texas.    <FONT=20 size=3D4>          &nbs= p;    =20 ******************************       &nb= sp;     =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D   &nb= sp;           &nbs= p; =20 INTERNATIONAL COMPUTER LAW=20 OBSERVER           &= nbsp;          =20 March, 1998 --=20 No.4           &nbsp= ; =20 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D   &nb= sp;           &nbs= p;   =20 ****************************** ---UNITED STATES--- [BOTTOM LINE]   UNITED STATES CHARGES 6 = OFFSHORE=20 COMPANIES WITH ILLEGAL OFFSHORE SPORTS BETTING [WHAT HAPPENED]  On March 4, authorities led by = the FBI=20 charged 14 owners and managers of 6 companies with illegal use of = interstate=20 telephone lines for on-line betting on amateur and professional = sports. =20 All 14 defendants are American citizens.  The 6 companies are = located in=20 Central America and the Caribbean; some have offices in the United=20 States.  No bettors were charged.  Three of the 14 were = arrested in=20 the United States and the FBI was said to be contacting the 10 who = were known=20 to be outside the United States to "arrange for their=20 surrender."  Web sites of at least several of the 6 claim = that they=20 are operating within their local national gaming laws.  The FBI = and U.S.=20 Attorney in New York City targeted sports books and not casino gaming = sites.   The U.S. Attorney's office said it had = called various=20 telephone companies telling them to stop service to each of=20 the companies.  The defendants could be sentenced to a maximum = of 5=20 years in prison and $250,000 in fines. In the only other federal action against on-line = betting, FBI=20 agents raided the Pennsylvania offices of International Gaming and=20 Communications Corp. in February 1997 but no federal charges were=20 filed.  That company had operated a sportsbook and on-line = casino in=20 Grenada. [WHY IT HAPPENED]  It is speculated by some that = pressure=20 from Congressional sponsors of legislation restricting and/or banning = on-line gambling was behind the charges.  The Department of = Justice has=20 said in the past that the federal Wire Communications Act is not = written well=20 enough to support its use against on-line betting.  While bills = to=20 rewrite the Act are pending, some in Congress and among the public = are=20 impatient that no federal enforcement actions have been taken.  = Others=20 speculate that state governments are concerned that their lucrative = take from=20 lotteries and other state-sponsored non-sports betting could be = reduced if=20 on-line betting is not discouraged. [THE SIGNIFICANCE]  If the charges are not = settled and are=20 pursued through trial and appeals, this could be the case to write US = law on=20 a number of fundamental on-line issues, including jurisdiction and=20 national sovereignty, as well as on-line gambling.  It is = doubtful that=20 anyone expects law enforcement to eliminate on-line gambling; the = intent=20 may simply be to discourage its rapid growth, particularly in sports=20 betting. The government clearly is testing the reach of existing law; = even=20 decisions adverse to it would be useful by identifying shortcomings = in=20 existing law. [INFORMATION SOURCES]  For the news story:  = <A=20 href=3D"http://www.nytimes.com">www.nytimes.com</A> and <A=20 href=3D"http://www.cnn.com">www.cnn.com</A>. The six companies can be = found=20 at: <A href=3D"http://www.galaxysports.com">www.galaxysports.com</A> = (Galaxy=20 Sports) <A = href=3D"http://www.islandcasino.com">www.islandcasino.com</A>=20 (Island Casino) <A = href=3D"http://www.realcasino.com">www.realcasino.com</A>=20 (Real Casino) <A href=3D"http://www.sdbg.com">www.sdbg.com</A> (SDB=20 Global) <A href=3D"http://www.winnersway.com">www.winnersway.com</A> = (Winner's=20 Way) <A href=3D"http://www.wsex.com">www.wsex.com</A> (World Sports=20 Exchange) [CONTRIBUTING EDITOR]  Chadbourne & Parke - = Contact=20 Barry Nemmers: <A=20 href=3D"mailto:barry.nemmers@chadbourne.com">barry.nemmers(a)chadbourne.com= </A>  </BODY></HTML> ------=_NextPart_001_0073_01BD5AA5.83C87CA0-- ------=_NextPart_000_0072_01BD5AA5.83C87CA0 Content-Type: image/gif Content-Transfer-Encoding: base64 Content-ID: <006a01bd5ae8$90b47520$2763a58e@uymfdlvk> R0lGODlh1wAgA7P/AP///2NjY8DAwJxjY5xjMf/OnM6cY///zpycY2NjMZycMWOcMWOcY2OcnGNj 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