Southern District of New York Former Cybersecurity Consultant Arrested For 15 Million Extortion Scheme Against IT Company United States Department of Justice
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ppDamian Williams the United States Attorney for the Southern District of New York announced today that VINCENT CANNADY was arrested in connection with his scheme to extort a publicly traded information technology infrastructure services provider of up to 15 million by threatening to publicly disclose the companys confidential and proprietary information CANNADY was arrested in El Dorado Springs Missouri this morning and is expected to appear in Missouri federal court tomorrowppUS Attorney Damian Williams said As alleged Vincent Cannady used illegal and extortionate threats for the purpose of obtaining over a million dollars in payments from a public company after his engagement was terminated When those entrusted with sensitive information steal that information on their way out the door only to extort money with a threat of releasing that information my Office will hold them responsible for their conductppAs alleged in the Complaint1ppCANNADY was assigned by a staffing company to work on an engagement with the victim company Under the engagement CANNADYs responsibilities included assessing and remediating potential vulnerabilities that an unauthorized party could use to access the victims information systems As a result CANNADY had access to the victim companys sensitive and proprietary information After about a year CANNADYs engagement was terminated Days after and while he still had access to the companys information CANNADY downloaded the companys sensitive and proprietary information without its authorization and uploaded the information to a personal cloud storage accountppCANNADY then demanded that the company settle unspecified discrimination and emotional distress claims He threatened to upload all of the documents in his possession immediately once the case is filed if the company did not settle his claims for 15 million He added as we all know those documents will imperil the companys reputation and shake investor confidence He specifically demanded a 10 year Certificate of Deposit for 15 million dollars which would buy an attestation that all files destroyed by me and a gag order preventing me from ever talking about what I saw or the documents I had in my possession or the documents I had created at the company or downloadedppAt several points during his attempt to get the company to agree to a settlement CANNADY sought specifically to add in provisions to a draft settlement agreement that would prohibit the company from pursuing criminal charges against him in connection with the settlementpp ppVINCENT CANNADY 57 of El Dorado Springs Missouri is charged with Hobbs Act extortion which carries a maximum sentence of 20 years in prisonppThe maximum potential sentence is prescribed by Congress and is provided here for informational purposes only as any sentencing of the defendant will be determined by a judgeppMr Williams thanked the Federal Bureau of Investigations FBI New York Field Office Westchester Resident Agency and the FBIs Kansas City Field Office Joplin and Springfield Resident AgenciesppThis case is being handled by the Offices White Plains Division Assistant US Attorneys Reyhan Watson and James McMahon are in charge of the prosecutionppThe charge contained in the Complaint is merely an accusation and the defendant is presumed innocent unless and until proven guiltypp1 As the introductory phrase signifies the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegationppNicholas Biase Lauren Scarff Shelby Wratchford
212 6372600ppDamian Williams the United States Attorney for the Southern District of New York and James Smith the Assistant Director in Charge of the New York Field Office of the FederalppDamian Williams the United States Attorney for the Southern District of New York and Naomi Gruchacz the Special Agent in Charge of the New York Regional Office of the USppDamian Williams the United States Attorney for the Southern District of New York and James Smith the Assistant Director in Charge of the New York Field Office of the FederalppSouthern District of New York
26 Federal Plaza 37th Floor
New York NY 10278pp ppMain Office Criminal Division 212 6372200ppppHave a question about Government Servicesp
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ppDamian Williams the United States Attorney for the Southern District of New York announced today that VINCENT CANNADY was arrested in connection with his scheme to extort a publicly traded information technology infrastructure services provider of up to 15 million by threatening to publicly disclose the companys confidential and proprietary information CANNADY was arrested in El Dorado Springs Missouri this morning and is expected to appear in Missouri federal court tomorrowppUS Attorney Damian Williams said As alleged Vincent Cannady used illegal and extortionate threats for the purpose of obtaining over a million dollars in payments from a public company after his engagement was terminated When those entrusted with sensitive information steal that information on their way out the door only to extort money with a threat of releasing that information my Office will hold them responsible for their conductppAs alleged in the Complaint1ppCANNADY was assigned by a staffing company to work on an engagement with the victim company Under the engagement CANNADYs responsibilities included assessing and remediating potential vulnerabilities that an unauthorized party could use to access the victims information systems As a result CANNADY had access to the victim companys sensitive and proprietary information After about a year CANNADYs engagement was terminated Days after and while he still had access to the companys information CANNADY downloaded the companys sensitive and proprietary information without its authorization and uploaded the information to a personal cloud storage accountppCANNADY then demanded that the company settle unspecified discrimination and emotional distress claims He threatened to upload all of the documents in his possession immediately once the case is filed if the company did not settle his claims for 15 million He added as we all know those documents will imperil the companys reputation and shake investor confidence He specifically demanded a 10 year Certificate of Deposit for 15 million dollars which would buy an attestation that all files destroyed by me and a gag order preventing me from ever talking about what I saw or the documents I had in my possession or the documents I had created at the company or downloadedppAt several points during his attempt to get the company to agree to a settlement CANNADY sought specifically to add in provisions to a draft settlement agreement that would prohibit the company from pursuing criminal charges against him in connection with the settlementpp ppVINCENT CANNADY 57 of El Dorado Springs Missouri is charged with Hobbs Act extortion which carries a maximum sentence of 20 years in prisonppThe maximum potential sentence is prescribed by Congress and is provided here for informational purposes only as any sentencing of the defendant will be determined by a judgeppMr Williams thanked the Federal Bureau of Investigations FBI New York Field Office Westchester Resident Agency and the FBIs Kansas City Field Office Joplin and Springfield Resident AgenciesppThis case is being handled by the Offices White Plains Division Assistant US Attorneys Reyhan Watson and James McMahon are in charge of the prosecutionppThe charge contained in the Complaint is merely an accusation and the defendant is presumed innocent unless and until proven guiltypp1 As the introductory phrase signifies the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegationppNicholas Biase Lauren Scarff Shelby Wratchford
212 6372600ppDamian Williams the United States Attorney for the Southern District of New York and James Smith the Assistant Director in Charge of the New York Field Office of the FederalppDamian Williams the United States Attorney for the Southern District of New York and Naomi Gruchacz the Special Agent in Charge of the New York Regional Office of the USppDamian Williams the United States Attorney for the Southern District of New York and James Smith the Assistant Director in Charge of the New York Field Office of the FederalppSouthern District of New York
26 Federal Plaza 37th Floor
New York NY 10278pp ppMain Office Criminal Division 212 6372200ppppHave a question about Government Servicesp
