3 months ago
25
Washington: An Australian man living in the United States faces a likely jail sentence after pleading guilty to stealing defence trade secrets from his American employer for a Russian broker.
Peter Williams, 39, entered the plea before the District of Columbia in Washington on Wednesday, local time, in relation to two counts of theft of trade secrets.
The FBI acting special agent in charge of the investigation said Williams had betrayed the US and its allies.Credit: nna\advidler
Court documents seen by this masthead, alleged Williams intended those secrets to be sold outside the US “specifically to a buyer based in the Russian Federation”, and were worth about $US1.3 million ($2 million).
Prosecutors said the material was stolen over a three-year period – between 2022 and 2025 – from the American defence contractor where Williams worked. It comprised national security-focused software, including “at least eight sensitive and protected cyber-exploit documents”.
“Those components were meant to be sold exclusively to the US government and select allies,” the US Justice Department said following the guilty plea.
“Williams sold the trade secrets to a Russian cyber-tools broker that publicly advertises itself as a reseller of cyber exploits to various customers, including the Russian government.”
Williams used his access to the company’s secure network to steal the cyber assets and resell them “in exchange for the promise of millions of dollars in cryptocurrency”, the Justice Department said.
He entered into “multiple written contracts with the Russian broker”, including payment for the initial sale and further periodic payments for follow-up support. Williams used the proceeds “to buy himself high-value items”.
The FBI acting special agent in charge of the investigation, Alexander Arnett, said Williams had betrayed the US and its allies. “The harm caused by his crimes cannot be undone,” he said.
Each of the charges carries a statutory maximum of 10 years in prison and a fine of up to $US250,000, or twice the pecuniary gain or loss of the offence, the Justice Department said.
The US attorney for the District of Columbia, former Fox News host Jeanine Pirro, said Williams’ conduct had cost his Washington-based company more than $US35 million and allowed non-aligned foreign cyber actors to obtain sophisticated tools “that were likely used against numerous unsuspecting victims”.
US Attorney for the District of Columbia Jeanine Pirro said the secrets Williams stole “were likely used against numerous unsuspecting victims”.Credit: AP
“These international cyber brokers are the next wave of international arms dealers and we continue to be vigilant about their activities,” Pirro said.
US Attorney-General Pam Bondi also commented on the case, saying cybercrime posed a serious danger to Americans. “America’s national security is NOT FOR SALE,” she said.
Neither the government nor the court documents identified the company where Williams worked. But Reuters and US technology publications have reported he was the general manager of L3Harris Trenchant until August this year.
The company develops spyware and hacking tools that support national security operations, and says it has US government contracts. It is a subsidiary of defence contractor L3Harris, which declined to comment to Reuters.
According to US site TechCrunch, Trenchant sells its products to the government customers in the Five Eyes intelligence alliance, which comprises Australia, Canada, New Zealand, the United Kingdom and the US.
Williams’ lawyer John Rowley declined to comment on Wednesday (Thursday AEDT). According to technology magazine Wired, the plea agreement requires Williams to remain under house arrest except for one hour a day. He is due for sentencing next year.
Court documents show the US government intends to seize a long list of property from Williams including a house in Washington, more than 20 watches, a light blue Louis Vuitton handbag, two Moncler jackets, several items of jewellery and all currency from seven bank accounts, including three in Australia.
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