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Crack 99. >> this software had direct military application and the implications are scary because there is no way of restraining the sales. it can go to terrorist organizations, it can go to criminal organizations. >> the reaction once we realized that the software was legitimate was what else do they have? >> ultimately our goal in the undercover investigation was to successfully prosecute in a u.s. court of law. we knew we were dealing with a person who was holding himself out as xiang lee, but in addition to not knowing if that was a real person, we didn't know if that was the only person i...

Communicating with, the originator, or if it was one of hundreds of sales recommends. >> it's an overseas target who is particularly difficult to identify because he's operating on the internet and is anonymous. >> joining us now, former federal prosecutor david lock hall. he helped lead the investigation into this cyber pirate. i can't even believe that one of the client's of this hacker's black market was a defense contractor who was working on the software used on the presidential marine one helicopter. >> that's true. he was an engineer and a chief scientist for a defense contractor, and h...

It's scary to think that stuff is in the wrong hands. >> by mid 200010 we had looked through the e-mails, and at that point we determined what the scope of the crack 99 operation was. crack 99 was xiang li. it was one person operating this website and really if you think about what the crack 99 website was, it was an inventory of high level advanced software that had been stolen from the united states. xiang li never asked us why we wanted the software, who we were, how we were going to use it. he had no concern for the potential harm and the consequences. his technology trafficking operation ...

Figured out that this was a worki working copy of their program. again, he had cracked the license file to make it work. this software tested the structural integrity of airplanes, of spacecraft, crack 99 was selling it as if it was a microsoft office suite. >> i was becoming increasingly concerned about the implications of the crack 99 operation. the biggest question for all of us was where did this come from? how did he get it? >> we didn't know if crack 99 was a large number of people hacking into u.s. servers. we didn't know if he had in-house crackers, meepg people who crack the licensing...

That's the thing we noticed about him is he was all about the money. >> so he downloaded the programs on to our lop top. we knew out to san jose, looked at a company and figured out this was a working copy of their program. again, he had cracked the license file to make it work. this software tested the structural integrity of airplanes of spacecraft, crack 99 was selling it as if it was, you know, a microsoft office suite. >> i was becoming increasingly concerned about the implications of the are crack 99 operation. the biggest question for all of us where did this come from? how did he get i...