CALIFORNIA COMPUTER STOLEN FROM SOUTH SAN JOAQUIN IMIGRATION DISTRICT (SSJID) OFFICE Manteca Bulletin Online Daily Newspaper

SSJID laptop computer stolen


Agency fears PG&E operative pilfered employee info

SSJID calls DA to investigate

Bank account info at risk

Forensic expert checks computers

PG&E won't say what they have

SSJID manager's office ransacked

A man asking to use the South San Joaquin Irrigation District office's restrooms ransacked SSJID General Manger Steve Stroud's office and stole a laptop computer with information pertaining to district efforts to takeover the PG&E distribution system in Manteca, Ripon and Escalon.

The Friday, May 13, incident prompted SSJID management to upgrade internal security -- including installing a coded entry keypad to gain access through a swinging door separating the public areas from the staff areas.

No one gave the incident much thought until last week when PG&E dropped the bombshell that they possessed confidential files that had been stolen from the SSJID system by an employee of a company PG&E hired to undermine SSJID in the arena of public opinion in regards to its efforts to enter the retail power business.

The laptop contained software allowing access to SSJID's computer system using wireless technology.

PG&E has confirmed a Meridian Pacific employee used wireless technology to access sensitive computer files from SSJID computers last Tuesday while using a laptop computer in the back of the SSJID board room while a public meeting was underway.

What is at stake are power rates that SSJID say they can cut initially 15 percent universally in Manteca, Ripon and Escalon and at least $80 million in annual revenue for PG&E.

The San Joaquin County Sheriff's Department took a report of the May 13 incident but nothing further came of it.

The crime report also indicated an audio visual projector that was used along with the laptop computer at a Farm Bureau presentation on May 11 at the Ripon Fire Department station on Murphy Road was also stolen. The meeting regarding SSJID's plan that was attended by PG&E and the firm they hired -- Meridian Pacific.

PG&E Friday blamed Meridian Pacific for hacking into the SSJID system and stealing sensitive files. PG&E subsequently terminated the Sacramento-based political consulting firm that they had retained for $250,000 to create a public backlash to SSJID's retail power venture. PG&E brass tried to distance themselves from Meridian Pacific saying that they hadn't authorized the firm to steal anything.

SSJID restroom

"It isn't uncommon for us to let the public use our restrooms," said SSJID General Manager Steve Stroud.

The restrooms are out of view of the reception area as are offices belonging to Stroud, assistant general manager John Stein, and district engineer Mike Gilton.

SSJID employees discovered that Stroud's desk had been rifled and that the laptop had been stolen from a closet. Stroud now locks the closet on a 24/7 basis.

Stroud said employees indicated the man exited and thanked them for using the restroom.

Apparently, the laptop and audio visual equipment had been placed beside a back door that was then put ajar so the thief could drive around to the back of the SSJID office and retrieve them undetected.

Forensic expert at SSJID

A forensic computer expert costing the district "hundreds of dollars an hour" was at the SSJID headquarters on East Highway 120 adjacent to PG&E's Manteca yard on Monday starting the task of trying to determine what files were compromised.

The district has 25 computers.

"We may never know," said SSJID attorney Steve Emrick.

Emrick questioned PG&E's stance that they were cooperating fully with SSJID yet have refused so far to tell the public agency what files they have illegally in their possession.

The PG&E issued a statement Friday saying they have sequestered the computers where the e-mail from Meridian Pacific containing the SSJID files were sent. But Emrick noted it was logical that copies of the e-mails exist on PG&E's servers making them "accessible to any PG&E employee" who knew what they were doing. PG&E did not mention whether it is securing its servers.

Stroud said since PG&E won't cooperate by saying what they have, the district must assume that "anything in their system" could have been compromised.

"PG&E's response to Meridian's unethical and unacceptable behavior was to sequester the data and secure the computers on which the files in question reside," PG&E spokesman Jon Tremayne reconfirmed Monday. "PG&E has not since opened the documents and therefore cannot confirm the content of the documents. PG&E immediately reported the incident to the Federal Bureau of Investigations."

IBEW files at risk

The SSJID said its computers include data pertaining to the district's 75 employees -- most of whom are represented by the International Brotherhood of Electrical Workers (IBEW) -- as well as the five board members who receive monthly stipends. Also, all of the district's banking and financial records are at risk.

Stroud noted all but five of the district employees have direct deposit. That means in addition to Social Security numbers, addresses and medical information, Meridian Pacific could have lifted files that contain information on personal bank account numbers and access codes to transfer money.

The IBEW has taken a neutral position on the attempted SSJID takeover of the PG&E distribution system after initially opposing it.

Several SSJID management team members said such information could freely allow anyone to transfer money in and out of accounts at will whether they are employees of the district or the SSJID accounts as well.

Stroud said the top priority is making sure employees are protected and that the district's finances are secure. After that, they will concentrate on trying to determine what was stolen and to upgrade computer security systems.

Stroud said he didn't know whether the board would ban laptop computers at board meetings. The board meets next Tuesday at 9 a.m. at the district offices.

Stroud emphasized that district customers would only have information such as their service addressees, billing addresses, money paid and whether they were ever delinquent on any computer files that could have been breached.

Stroud also noted that after the laptop's theft, the district experienced several computer crashes where "the hard drives were completely fried" and experts brought in couldn't retrieve any information at all.

"That's highly unusual," said Stroud.

Criminal investigation

Emrick confirmed Monday that he has called the San Joaquin County's District Attorney's office. The SSJID has also contacted the U.S. Marshall's office in San Francisco's. PG&E on Friday indicated they had contacted the U.S. Attorney's office and the FBI. They promised to cooperate with any investigation adding they were taking steps to preserve evidence.

SSJID power system manager Jeff Shields noted that there is no way of telling whether last week's incident was isolated or not.

Shields said theft of SSJID files in PG&E's position has the possibility of compromising or rendering "useless" eight years of work an more than $3 million the public agency has spent on exploring the best way to enter retail power sales.

PG&E pattern

The computer hacking is the latest in a hardball pattern PG&E has been pursuing against SSJID.

Emrick said the district is constantly getting hit with public records act requests from PG&E asking for information that is on file at other agencies such as the upcoming Local Area Formation Commission hearing on the takeover as well as protected correspondence between the district and their energy consultants. The latter is information that Emrick said the law clearly indicates the district does not have to share. However, the district under state law is required to respond within 10 working days.

Emrick said SSJID finally reacted by seeking similar information for PG&E which has never responded because they are not required to do so under state law as they are a for-profit and not a public entity.

The next step in SSJID's bid to takeover the PG&E system is Sept. 27 at the San Joaquin County Board of Supervisors meeting in Stockton. That's when the board will award a contract to conduct an environmental impact report on the district's proposal.

Stroud said the district has already written a $170,000 check to pay for the study.

Both Shields and Stroud said the district is going forward since entering the retail power business "is the right thing to do" for SSJID constituents.

To reach Dennis Wyatt, e-mail dwyatt@mantecabulletin.com

By DENNIS WYATT