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AtHomeNet Ordered By Federal Court to Cease and Desist
Jan 28, 2011 (03:01 PM EST)
DENVER, Jan. 28, 2011 /PRNewswire/ -- AtHomeNet, Inc. (www.AtHomeNet.com) has been ordered by a Federal Court, enforcing the Computer Fraud and Abuse Act, to cease and desist from using unlawfully obtained confidential information. The Preliminary Injunction Order was entered against AtHomeNet and its owners Susan Sanders and Jeff Sanders. The Order bars AtHomeNet and the Sanders' from using information they obtained through their illegal access to secured administration areas of a competing homeowners association Web site provider, AssociationVoice, for any purpose, including use of that information for competitive marketing, application design and development purposes and even responding to AtHomeNet's prospect and customer inquiries.
In issuing its Order, the Colorado Federal Court found that AtHomeNet and the Sanders' had "exhibited a willingness to engage in improper conduct to obtain protected information" and had "unlawfully obtained valuable information concerning Plaintiff's software application." The Court also found that "there was nothing to indicate to the Court that Defendants will not engage in similar conduct in the future, if left to their own devices."
AtHomeNet, under the direction of Mr. and Mrs. Sanders unlawfully obtained access to AssociationVoice's application through the creation of a fictitious homeowners association. AtHomeNet then fraudulently used that fictitious homeowners association to subscribe to AssociationVoice's service and obtain, for almost a two year period of time, access to secured administration areas which were reserved for legitimate clients. These actions and others that gave rise to the federal complaint charging violations of the Computer Fraud and Abuse Act, violations of the Copyright Act, Fraud, Aiding and Abetting Fraud, and other allegations are part of ongoing Federal litigation against AtHomeNet. To view a complete copy of the Federal Complaint filing, click Civil Action No. 10-cv-0109-CMA-MEH.
The Court also ruled that additional claims advanced in the Federal Complaint, including claims seeking to have AtHomeNet remove various features from its application, would be the subject of an upcoming jury trial. To view a copy of the Colorado Federal Court's Order, click Colorado Federal Court's Order.