'Anonymous' threatens Justice Department

A screenshot at 3:35 a.m. ET on January 26, 2013, of the homepage of the United States federal sentencing website after it had been hacked by a group that identified itself as "Anonymous."

STORY HIGHLIGHTS

• NEW: The FBI is handling the incident as a "criminal investigation"


• Hackers say they have a file of incriminating information ready to launch


• Anonymous is believed to be the loosely defined collective of so-called "hacktivists."


• The threat note cited anger over the death of Internet activist Aaron Swartz

(CNN) -- In anger over the recent death of an Internet activist who faced federal charges, hackers claiming to be from the group Anonymous threatened early Saturday to release sensitive information about the U.S. Department of Justice.

They claimed to have one such file on multiple servers ready for immediate release.

The hackers apparently hijacked the website of the U.S. government agency responsible for federal sentencing guidelines, where they posted a message demanding the United States reform its justice system or face incriminating leaks to select news outlets.

The lengthy, eloquently written letter was signed "Anonymous."

Richard McFeely, executive assistant director of the FBI's Criminal, Cyber, Response, and Services Branch, said the bureau was immediately aware of the threat and is "handling it as a criminal investigation."

"We are always concerned when someone illegally accesses another person('s) or government agency's network," he said.

The suicide of Internet activist Aaron Swartz on January 11 triggered the posting of the hackers' message to the web address of the United States Sentencing Commission, they said.

His death, which they blamed on the justice system, "crossed a line," the letter said.

How Aaron Swartz helped build the Internet

A YouTube video accompanied the message, and made use of images from Cold War nuclear scenarios and games of strategy. The letter contained nuclear metaphors to refer to chunks of embarrassing information.

The hackers said they have obtained "enough fissile material for multiple warheads," which it would launch against the justice department and "its associated executive branches."

It gave the "warheads" the names of U.S. Supreme Court justices, such as Thomas.Warhead1 after Justice Clarence Thomas or Ginsburg.Warhead1 after Justice Ruth Bader Ginsberg.

'Anonymous' threatens Westboro Baptist

Anonymous accused the FBI of infiltrating its ranks and claimed the federal government is applying "highly disproportionate sentencing" to ruin the lives of some of its members.

Swartz, 26, was facing federal computer fraud charges and could have served 35 years in prison. Anonymous said he "was killed," because he "faced an impossible choice."

His family has issued a statement saying that federal charges filed over allegations that he stole millions of online documents contributed to Swartz's decision to take his own life. The files were mostly scholarly papers from the Massachusetts Institute of Technology.

Opinion: Why the Net grieves Aaron Swartz

Swartz's suicide has inspired a flurry of online tributes and mobilized Anonymous, the loosely defined collective of so-called "hacktivists" who oppose attempts to limit Internet freedoms. Both Swartz and Anonymous have been stark proponents of open access to information and open-source programming.

A review of a cached version of the USSC.gov website showed the Anonymous message on its homepage since at least 1:40 a.m. ET. Efforts to get to the website were unsuccessful by some by 6 a.m. E.T.

Anonymous also posted an editable version of the website, inviting users to deface it as they pleased. Multiple pages -- not only the home page -- appeared to allow users to alter them.

The "warhead" names appeared as links, most leading to 404 error messages of pages not found, but some leading to pages of raw programming code.

CNN has left multiple messages with the U.S. Sentencing Commission requesting a response to the hack.

The hackers said they chose the commission's website because of its influence on the doling out of sentences they consider to be unfair.

CNN's Carol Cratty, Jason Moon, AnneClaire Stapleton contributed to this report

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Hackers take over gov't website to avenge Aaron Swartz

This screenshot shows the website of the U.S. Sentencing Commission after it was hijacked by the hacker-activist group Anonymous, early Saturday, Jan. 26, 2013, to avenge the death of Aaron Swartz, an Internet activist who committed suicide. The website of the commission, an independent agency of the judicial branch, was replaced with a message warning that when Swartz killed himself two weeks ago "a line was crossed." / AP Photo

WASHINGTON The hacker-activist group Anonymous says it hijacked the website of the U.S. Sentencing Commission to avenge the death of Aaron Swartz, an Internet activist who committed suicide.

The website of the commission, an independent agency of the judicial branch, was taken over early Saturday and replaced with a message warning that when Swartz killed himself two weeks ago "a line was crossed."

The message read in part:

Citizens of the world,
Anonymous has observed for some time now the trajectory of justice in the United States with growing concern. We have marked the departure of this system from the noble ideals in which it was born and enshrined. We have seen the erosion of due process, the dilution of constitutional rights, the usurpation of the rightful authority of courts by the "discretion" or prosecutors. We have seen how the law is wielded less and less to uphold justice, and more and more to exercise control, authority and power in the interests of oppression or personal gain."

The hackers say they've infiltrated several government computer systems and copied secret information that they now threaten to make public.

Family and friends of Swartz, who helped create Reddit and RSS, say he killed himself after he was hounded by federal prosecutors.

Officials say he helped post millions of court documents for free online and that he illegally downloaded millions of academic articles from an online clearinghouse.

By mid-morning Saturday the website was offline.

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Cops Using More Private Cameras to Nab Suspects

Philadelphia detectives were able to quickly make an arrest in the murder and burning of a female pediatrician by viewing surveillance video of nearby stores and a hospital that captured the suspect entering the doctor's home and later getting into his truck.

In the hours after Dr. Melissa Ketunuti's body was found strangled and burning in her basement, city's Homicide Task Force collected surveillance footage from a coffee shop, drug store and hospital overlooking Ketunuti's block. It was footage taken from Ori Feibush's coffee shop that allowed cops to identify Smith.

The suspect, an exterminator named Jason Smith, soon confessed to detectives, police said.

Lately a range of crimes have been solved by the seemingly ubiquitous security videos maintained by private companies or citizens, and investigators have been able to quickly apprehend suspects by obtaining the video, deftly turning private cameras into effective police resources.

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Private surveillance cameras have become so pervasive that the face of a suspect who allegedly shot a Bronx, N.Y., cab driver in a botched robbery on Jan. 14 was splashed throughout the media within days because the cabbie had rigged his vehicle with a camera.

The New York Police Department arrested Salvatore Perrone after he was caught on surveillance video recorded near two of three shopkeeper slayings in Brooklyn, N.Y., in November. He has since been charged with murder.

And in Mesa, Ariz., surveillance footage taken in November by resident Mitch Drum showed a man rolling on the ground trying to extinguish flames that had engulfed his shirt, which had caught fire while he was allegedly siphoning gas from a car by Drum's house. The man was arrested.

Though surveillance cameras have been a staple of security since a network of government operated cameras dubbed the "ring of steel" was introduced in London in the early 1990s, police have recently launched programs to partner with more businesses.

In Philadelphia, police have launched a program for businesses to register private cameras with the department. According to the SafeCam website, businesses will only be contacted when there is a criminal incident in the vicinity of the security camera. At that point, police will request a copy of the footage for their investigation.

"Businesses are saying, 'I have a camera at this location, and it may or may not be of use to you. It's a registration to say, 'feel free to call me,'" Sgt. Joseph Green told ABCNews.com

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Cantor CEO: 'Off the fiscal cliff we go'

Part of complete coverage on

By Ramy Inocencio, for CNN

January 25, 2013 -- Updated 1453 GMT (2253 HKT)

STORY HIGHLIGHTS

• "U.S. fiscal cliff still coming" in form of failure to raise debt ceiling - Cantor Fitzgerald CEO


• More than 25% of CEOs feel world economy will get worse in 2013, says PwC survey


• U.S. House of Representatives passed short-term debt ceiling increase Jan. 23


• Lutnick: "Dumb lending" caused 2008 credit crisis

Hong Kong (CNN) -- The world thought the U.S. fiscal cliff deadline was December 31, but "the fiscal cliff is (still) coming", says Howard Lutnick, CEO of global financial services firm Cantor Fitzgerald.

"You're going to watch the U.S. do crazy, crazy things this year," Lutnick told CNN's Richard Quest at the World Economic Forum in Davos, Switzerland. "The Republican Party that was elected to control Congress... (is) going to cross their arms and they are not going to raise the debt ceiling ultimately unless they get severe spending cuts, and the Obama administration is not going to give it to them."

If Congress fails to act, the U.S. and the world economy will have a "dreadful" 2013, Lutnick said.

Following this week's PricewaterhouseCoopers survey of global CEO confidence, Lutnick appears to be one of the more than 25% who think the world economy is more likely to deteriorate in 2013.

Despite Lutnick's concerns, on January 23 the Republican-controlled House of Representatives did pass a bill that would allow the U.S. Treasury to borrow new money through mid-May. President Barack Obama has said he would not oppose the proposal if it reaches his desk, although he prefers a long-term debt ceiling increase.

Lutnick adds that to avoid a repeat of the 2008 financial crisis, regulators need to actually address issues that caused it.

"What caused the credit crisis was just dumb lending. When you lend money to people who can't pay you back, you go broke."

Looking ahead to 2013, Lutnick says the biggest risk to global growth is the U.S. hitting the debt ceiling -- whether in the short- or long-term.

"Off the fiscal cliff we go. We (the U.S.) are irrational and we are silly... we are dopey."

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US scholar urges dramatic rethink on Taiwan

WASHINGTON: With Beijing growing in strength, a US scholar is calling for a major rethink on Taiwan in which the island would cut its troop numbers in half and rebrand its army as a self-defence force.

The proposal marks a rare break from the conventional view of American and Taiwanese policymakers that the island needs to close the military gap with Beijing, but its author said an opposite course could strengthen Taipei.

Scott Bates, president of the Washington-based Center for National Policy, said the balance was "irretrievably shifting" in China's favor and it was politically and economically unrealistic that Taiwan would commit enough to close the gap.

Instead, Taipei can take the lead by halving the size of its army, rebranding it as a Self-Defence Force in the style of Japan and renouncing any military action on mainland China's soil, he argued.

"If Taiwan were to take a bold step like this, that would change perceptions on the mainland and perhaps win some popular support for the Taiwanese position," said Bates, a former congressional aide.

"If there were a showdown, it might make (Beijing) think twice."

Taiwan should turn the new force into a disaster response team ready to deploy throughout Asia and also highlight the island's democracy through a major initiative that supports civil society across the continent, Bates said.

And instead of waging a battle to preserve a dwindling number of nations' recognition of Taipei instead of Beijing, Taiwan can use its diplomatic resources to seek solutions on Asia's bitter territorial disputes, he said.

The new Taiwanese approach would give the island the moral high ground, winning over global opinion and ensuring that China would appear to be the aggressor if it attacked, he argued.

"Mainland Chinese public opinion is beginning to matter more. The Chinese Communist Party cannot ignore its own people without repercussions," Bates said.

China considers Taiwan to be a territory awaiting reunification, by force if necessary. China's defeated nationalists fled to Taiwan after defeat by the communists in 1949, with the island developing into a self-ruling democracy.

The United States switched recognition from Taipei to Beijing in 1979 but at the same time Congress passed the Taiwan Relations Act, which requires Washington to provide the island with means to defend itself.

Bates said that his proposal would complement efforts by Taiwan President Ma Ying-jeou, who has sought to ease tensions with China by expanding economic ties, though domestic critics accuse Ma of jeopardising the island's de facto independence.

Bates supported the continuation of the Taiwan Relations Act, saying the island needed a credible deterrent. While cutting its army, Bates called for Taiwan to launch a major upgrade of its air defences and navy to show that any effort to gain supremacy over the island would be costly.

The Taiwan Relations Act enjoys virtually unanimous support in the US Congress, where lawmakers have pressed President Barack Obama to sell to the island new F-16 jets - a step that China strongly opposes.

Bates' ideas, however, are unlikely to win quick support.

Joseph Bosco, a former Pentagon official, sharply criticised the proposal, saying it went against accepted concepts of deterrence and that Taiwan already had the moral high ground.

"Taiwan does not need to disarm unilaterally in order to prove its moral or political legitimacy," Bosco said on Wednesday at an event where Bates presented his proposal.

Bates, who spoke last year at Taiwan's National Defence University and wrote an opinion piece in the Taipei Times, said he wanted to start a debate.

"It doesn't have to be my plan, but there does have to be a strategic rethink," he said.

- AFP

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Ship that hit reef too damaged to tow

The USS Guardian sits aground on the Tubbataha Reef earlier this week.

STORY HIGHLIGHTS

• The USS Guardian has several holes in its hull, admiral says


• The 1,300-ton minesweeper will have to be lifted onto a barge


• The ship damaged more than 10,000 square feet of the Tubbataha Reef


• The reef is a UNESCO World Heritage Site

(CNN) -- The U.S Navy minesweeper that grounded on a Philippine reef last week has taken on water and sustained too much damage to be towed off, the Navy says.

"It's got hull penetrations in several places, and there is a significant amount of water inside the ship," Rear Adm. Tom Carney said at a briefing Thursday.

The Navy said it will use ship-borne cranes and heavy-lift vessels to lift the minesweeper, the USS Guardian, off the Tubbataha Reef.

"As the crane ships arrive, we will take items off the Guardian to lighten the weight of the ship so we are able to remove it from the reef," Carney said. "The option that we had hoped to tow the ship off the reef is not available. The ship is too badly damaged."

The Guardian would be removed from the area on a barge or other ship, Carney said.

"The ship cannot move on its own, and it is not operational," he said.

The 224-foot-long,1,312-ton ship was on its way from Subic Bay, Philippines, to its next port call in Indonesia when it struck the reef, about 80 miles (130 kilometers) east-southeast of Palawan Island in the Sulu Sea, on January 17.

Initial efforts to free the Avenger-class mine countermeasures ship at high tide were unsuccessful. Its crew of 79 was evacuated to other vessels, and the ship was battered by waves that pushed it farther onto the reef.

Carney said the Guardian now rests about 20 to 30 meters (22 to 33 yards) from the edge of the reef. Originally, only its bow was on the reef, but waves have now pushed the entire ship onto it.

Lt. Cmdr. James Stockman, a Navy spokesman in Manila, said Friday that the heavy-lift vessels would arrive at the grounding site in about a week. The guided missile destroyer USS Mustin, the oceanographic survey ship USNS Bowditch and the rescue and salvage ship USNS Salvor, as well as tugboats and Philippine navy and coast guard vessels, are on station, he said in an e-mail to CNN.

"Extracting the ship safely, while minimizing further damage to the reef, is a very complex process that requires careful and detailed planning and specialized equipment," Stockman said. "Although we are moving as expeditiously as possible, we want to ensure it is done safely while minimizing damage to the reef and surrounding environment."

It could take two weeks to remove the Guardian from the reef, Carney said.

"We are committed to moving the ship from the reef as soon as possible. ... That is the focus of all our efforts," he said.

The Navy said Friday that the ships on station have removed about 15,000 gallons of diesel fuel from the Guardian.

Carney said there have been no signs of oil or fuel leaking into the waters above the reef, which is a Philippine national park and UNESCO World Heritage Site.

The reef is home to a vast array of sea, air and land creatures, as well as sizable lagoons and two coral islands. About 500 species of fish and 350 species of coral can be found there, as can whales, dolphins, sharks, turtles and one of the last surviving colonies of breeding seabirds in the region, according to UNESCO.

Philippine officials said this week that the Philippines would seek compensation for damage to the reef. About 1,000 square meters (about 10,760 square feet) of the reef have been damaged.

"It's a damage to a world heritage site. It's a damage to our natural resources. It's a damage to an important site. We cannot but put emphasis on the importance of this reef as a heritage site," presidential spokesman Edwin Lacierda said.

He said the salvage operation must ensure that the reef sustains no further damage.

As to how the ship got stuck on the reef in the first place, Stockman said the Navy is looking at a number of factors.

He said the U.S. National Geospatial-Intelligence Agency, which prepares the digital navigation charts used by the Navy, has reported the location of the reef was misplaced on a chart by nine miles.

"The U.S. Navy investigation will review what charts Guardian was using. While this erroneous navigation chart data is important information, no one should jump to conclusions," Stockman said. "It is critical that the U.S. Navy conduct a comprehensive investigation that assesses all the facts and circumstances surrounding the Guardian grounding."

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Older smokers priced out of Obamacare?

Washington Millions of smokers could be priced out of health insurance because of tobacco penalties in President Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

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