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Wired: FBI Defends Disruptive Raids on Texas Data Centers

Posted: January 13, 2010

The FBI on Tuesday defended its raids on at least two data centers in Texas, in which agents carted out equipment and disrupted service to hundreds of businesses.

The raids were part of an investigation prompted by complaints from AT&T and Verizon about unpaid bills allegedly owed by some data center customers, according to court records. One data center owner charges that the telecoms are using the FBI to collect debts that should be resolved in civil court. But on Tuesday, an FBI spokesman disputed that charge.

“We wouldn’t be looking at it if it was a civil matter,” says Mark White, spokesman for the FBI’s Dallas office. “And a judge wouldn’t sign a federal search warrant if there wasn’t probable cause to believe that a fraud took place and that the equipment we asked to seize had evidence pertaining to the criminal violation.”

In interviews with Threat Level, companies affected by the raids say they’ve lost millions of dollars in equipment and business after the FBI hauled off gear belonging to phone and VoIP providers, a credit card processing company and other businesses that housed equipment at the centers. Nobody has been charged in the FBI’s investigation.

According to the owner of one co-location facility, Crydon Technology, which was raided on March 12, FBI agents seized about 220 servers belonging to him and his customers, as well as routers, switches, cabinets for storing servers and even power strips. Authorities also raided his home, where they seized eight iPods, some belonging to his three children, five XBoxes, a PlayStation3 system and a Wii gaming console, among other equipment. Agents also seized about $200,000 from the owner’s business accounts, $1,000 from his teenage daughter’s account and more than $10,000 in a personal bank account belonging to the elderly mother of his former comptroller.

more of the Wired article

Categories: CIO Strategy,Cloud Computing Data Center,Colocation Compliance,Data Center,Data Center Compliance,Data Center Outsource Costs,Data Center Strategy,Outsource Data Center

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Since 2001, Lifeline Data Centers has helped companies improve uptime and control data center facilities costs. Lifeline is an innovator in strategic data center outsourcing designed to reduce risks and improve IT return on investment. Our approach has been simple: delight customers with flexible, cost-effective data center space and services.

Lifeline provides facilities where companies can host their primary computer systems, disaster recovery sites and network cores. At a minimum, we provide hardened buildings, power, cooling, security and fire suppression. Some clients choose to use Lifeline as a “high tech landlord.” Other clients use the data center along with Lifeline’s managed services to augment or completely outsource their information technology infrastructure.

Lifeline Data Centers serves over 130 companies in industries ranging from health care and retail, to government and biotechnology. Regardless of the size or complexity of your data center needs, Lifeline Data Centers offers outsource data center facilities solutions.

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