In a stunning case of corporate sabotage, a former software developer for Eaton Corp., Davis Lu, 55, of Houston, has been found guilty by a jury of intentionally damaging the company’s internal computer systems.
This malicious act occurred after his work responsibilities were reduced in 2018. The verdict was delivered after a six-day trial in front of U.S. District Court Judge Pamela Barker.
Background of the Case
Lu, who was hired by Eaton in 2007, saw his responsibilities diminished as part of a broader company realignment.
.png
)
Following this change, Lu installed malicious code on the company’s systems, which caused widespread disruptions, including crashes, and prevented thousands of users from logging in.
He also deleted coworker profile files and added additional malicious software, ominously named “hakai,” a Japanese word meaning “destruction.”
As per a report by Cleveland, Prosecutors highlighted that Lu implemented a “kill switch,” code-named “IsDLEnabledinAD,” which was an abbreviation of “Is Davis Lu enabled in Active Directory.”
This switch was designed to lock out users if they were to be fired, which ultimately happened on September 9, 2019.
The incident resulted in “hundreds of thousands of dollars in losses” to the company, according to federal prosecutors. However, defense attorneys argued that the actual cost was less than $5,000.
Aftermath and Appeal
Lu was convicted on one count of causing intentional damage to protected computers, a charge that carries a maximum penalty of 10 years in prison.
Although no sentencing date has been set by Judge Barker, Lu’s attorney, Ian Friedman, has announced plans to appeal the verdict.
“Although disappointed, we respect the jury’s verdict,” Friedman stated. “Davis and his supporters believe in his innocence, and this matter will be reviewed at the appellate level.”
FBI Special Agent in Charge Greg Nelsen expressed concern over Lu’s actions, stating, “Sadly, Davis Lu used his education, experience, and skill to purposely harm and hinder not only his employer and their ability to safely conduct business, but also stifle thousands of users worldwide.”
Eaton Corp., now headquartered globally in Dublin, Ireland, but still maintaining its U.S. headquarters in Beachwood, Ohio, moved swiftly to contain the damage.
However, the incident highlights the risks companies face from insider threats, particularly from disgruntled employees with deep access to critical systems.
As the case proceeds to the appellate level, it serves as a stark reminder of the importance of robust cybersecurity measures and the need to monitor employee access and actions closely, especially during periods of organizational change.
Lu’s conviction sends a clear message about the severity of such actions and the consequences those who engage in them may face.
Whether the appeal changes the outcome remains to be seen, but for now, it marks a significant step in holding accountable those who seek to cause harm through digital means.
Are you from SOC/DFIR Teams? – Analyse Malware Incidents & get live Access with ANY.RUN -> Start Now for Free.
