United States v. Seidlitz
589 F.2d 152
In the United States Court of Appeals for the Fourth Circuit
Case Number 76-2027
Before Senior Circuit Judge Field, Circuit Judge Winter, and Circuit Judge Hall
Decided on December 05, 1978

Relevancy of the Case: Appeal against a wire fraud conviction in a case involving manipulation of telephone lines to access software source code

Statutes and Provisions Involved

• The Omnibus Crime Control and State Streets Act, 18 U.S.C §§ 2510, 2511
• The Wire Fraud Statute, 18 U.S.C. § 1343
• The Communications Act, 47 U.S.C. § 605

Relevant Facts of the Case

• The trial court convicted the appellant on two counts of wire fraud. He worked as the Deputy Project Director for Optimum Systems Inc. (“OSI”). His company, a computer service provider, was under contract with the Federal Energy Administration.
• He developed a software application and had full access to this software system called WYBLUR until he resigned.
• Months later, OSI developed the Milten Spy Function, which found an intruder accessing the system for the software’s source code via telephone.
• FBI traced the telephone line to the appellant’s home and office, finding substantial evidence against him.
• The trial court also rejected his motion to suppress evidence.

Prominent Arguments by the Counsels

• The appellant’s counsel contended that the prosecution failed to establish its case. The communication interception was illegal as OSI was not a party to it. Lastly, the evidence collected using the Milten Spy was illegal, and the WYBLUR software was not “property”.

Opinion of the Bench

• Evidence collected through the Spy Function was lawful. Wire communication’s interception is legal as OSI constitutes a party whose consent was taken.
• Moreover, the appellant intentionally used the telephone to manipulate and tamper with OSI’s property.

Final Decision

• The court rejected the appeal.

Nikita D’Lima, an undergraduate student at NMIMS School of Law, Navi Mumbai, prepared this case summary during her internship with The Cyber Blog India in May/June 2023.