Sterling hacker receives 4-year prison sentence for major ransom scheme
A federal judge has sentenced Matthew D. Lane to four years in prison for his involvement in a significant ransom scheme. The 20-year-old from Sterling, Massachusetts, was also ordered to pay over $14 million in restitution. This ruling took place on October 14 at a federal courthouse in Worcester.
Details of the Cybercrime
Lane, a former student at Assumption University, hacked into computer networks of two companies, including a database containing personal details of schoolchildren and teachers. His hacking activities occurred between April and May 2024, where he successfully extorted $200,000 from a telecommunications firm. He threatened to expose stolen customer data if the ransom wasn’t paid.
In December 2024, Lane targeted PowerSchool, a California-based company, demanding a ransom of approximately 30 bitcoins, equivalent to $2.85 million. He threatened a “worldwide” leak of sensitive information belonging to over 60 million students and 10 million teachers, including names, email addresses, phone numbers, and Social Security numbers. PowerSchool provides educational software and cloud data services to school systems in the United States and Canada.
Consequences of the Crime
The estimated damages caused by Lane’s actions exceed $14 million. Lane transferred the personal information of students and teachers to a server he leased in Ukraine. After pleading guilty in June to multiple charges, he faced a potential prison term of 94 to 111 months along with restitution payments.
Sentencing Hearing Insights
During the emotional sentencing hearing, Lane expressed remorse for his actions. He stated, “I genuinely do not recognize the person I was.” Judge Margaret R. Guzman commented on the dangers of technology and compared the misuse of the internet to handling a firearm. She emphasized that Lane had to take responsibility for his actions.
- Judge Guzman sentenced Lane to three concurrent 24-month sentences for three charges.
- Lane received an additional 24-month sentence for aggravated identity theft.
- After completing his prison term, Lane will undergo 36 months of supervised release.
During this supervised release, Lane’s internet use will be closely monitored and limited to academic and employment purposes only. Defense attorney Sean Smith advocated for a lighter sentence, highlighting Lane’s initial acceptance of responsibility and absence of prior offenses.
Prosecutors’ Position
Assistant U.S. Attorney Kristen A. Kearney argued for a more severe penalty, describing Lane’s actions as calculated rather than juvenile mistakes. She underscored the impact on families and the moral implications of Lane’s greed, which included desires for luxury items and social activities.
In conclusion, Lane’s case highlights the increasing prevalence of cybercrime and the importance of accountability in the digital age. As he prepares to serve his sentence, the ruling serves as a reminder of the serious consequences of such actions in today’s technologically driven society.
