Feds: Hacker Stole from Digital River Subsidiary

Jeremey Parker allegedly hacked into the computer system of SWReg, Inc., and directed the company to disburse funds into his Texas bank account.

The federal government has accused Jeremey Parker of Houston, Texas, of hacking intothe computer system of SWReg, Inc.-a subsidiary of Eden Prairie-based Digital River, Inc., that provides e-commerce solutions to businesses.

The government originally filed the indictment in October. A spokesman for Minneapolis' District Court's Clerk's office said Wednesday that, according to his records, the case is still under seal, and he could not provide additional information.

A copy of the indictment, however, was publicly available via the U.S. District Court in Houston's electronic filing system. It charges Parker with one count of fraud related to computers and one count of wire fraud.

The government accuses Parker of accessing SWReg's computer system “knowingly and with the intent to defraud” the company.

From about December 23, 2008, through October 15, 2009, Parker, who did not have authorization to access the data, allegedly hacked into the company's system and “obtained something of a value greater than $5,000.”

According to a report by the Star Tribune, Parker is accused of stealing roughly $274,000.

To execute the scheme, the indictment states that Parker hacked into the company's system and directed money to himself. Around October 15, 2009, he allegedly gained access to SWReg's computer server in Minnesota and then directed the company to disburse funds into his Texas bank account.

The indictment alleges that Parker should hand over any property or money traceable to the proceeds from his fraud.

This is the second time this year that allegations have surfaced regarding computer hackers accessing Digital River's information. In a lawsuit filed in May, the company said that data about 198,000 individuals was stolen by hackers in India. The company alleged that a New York company and its owner then tried to sell the data.