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FBI arrests Indy man on cyber extortion charge

Date: October 02, 2008

INDIANAPOLIS - The FBI said an Indianapolis man tried to extort more than $200,000 from insurance giant AIG after stealing a computer server that contained personal and health care information for more than 900,000 people.

Kevin Michael Stewart, 27, was in federal custody Wednesday night at the Marion County Jail, said Special Agent Wendy A. Osborne, an FBI spokeswoman. He was being held without bond pending a detention hearing.

Stewart was charged under a new federal law against extorting money by threatening to disclose stolen confidential information, said Assistant U.S. Attorney Steven DeBrota. He also was charged with threatening communications, DeBrota said. If convicted, Stewart could face up to seven years in prison, said DeBrota.

Stewart was arrested by FBI agents and Indianapolis police at his apartment about 12:30 a.m. Wednesday.

The Associated Press left a phone message seeking comment after hours Wednesday for Stewart's attorney, Bill Daisy of Indiana Federal Community Defender Inc.

The FBI statement said Stewart's arrest stemmed from a March 31, 2006 burglary at the Indianapolis office of Medical Excess LLC, an AIG company. The server contained personally identifying and health care sensitive information for more than 900,000 policy holders, the FBI said.

Stewart also is accused of extorting $208,000 from AIG by threatening to release the data onto the Internet in July.
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