A Woman, Ramona Fricosu, is accused of bank fraud, wire fraud and money laundering.

According to the indictment, after convincing homeowners to transfer their properties [...Fricosu] took over the mortgage payments, while also fraudulently obtaining the title to these homes.  “Once the title was obtained, they would sell the property, receiving the sales proceeds without paying the outstanding mortgage,” alleged prosecutors.[1]

And the government thinks there’s information to this effect on her computer.  The computer was lawfully seized with a Search Warrant, BUT it’s encrypted.

So they got a court order to COMPEL her to reveal the password.

Concise summary of the case development and details can be found here: https://www.eff.org/cases/us-v-fricosu

THE QUESTIONS:

With the sheer volume of paperwork involved in mortgage and buying homes, how do they not have enough information to convict?   What’s not being disclosed?

How would they have obtained the title with outstanding mortgages ?  More importantly, wouldn’t a title background search have revealed that these mortgages were still outstanding?

It sounds like the realtors and banks didn’t do their homework and taken advantage of, but in truth, it shouldn’t have happened.

THE DILEMNA:

From all that I can see, This case is going to demonize computer encryption, but I believe, in truth, will not erode any civil rights (any more that they already have).  Courts already compel individuals to give blood, hair, DNA, and even handwriting samples.

What it will do is make encrypting our machines more difficult — and give the government an excuse to have “back-doors” available to them to read any information.

THAT, my friends, is the real danger here.

Definitely worth the watch.

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