Andy (A) and Barry (B) have been friends since early high school age and are now roommates while attending the public, state operated State University (SU). Several times each week they go on an extended bike ride together, starting with pre-ride coffee, and a refueling of lunch at the dorm cafeteria after the ride. Other students and SU personnel often join them A&B are both avid readers, and both collect books from their favorite authors. They attend book signings, lectures, and post ride discussions often turn to chatting about their latest book findings.
A&B maintain a small “little library” shelf at their dorm where they trade and share books with others for free. A&B have often discussed business futures in book editing, production, distribution, and sales.
A&B know that future business activities involve business and personal risks, and know they must seek the advice of an attorney before acting on their plans.
ADDITIONAL FACTS FOR THIS ASSESSMENT ONLY:
Andy and Barry (A&B) accept donations at their library shelf by placing a small jar labeled “donations for more books” and a website with a similar notation, “donations for more books”. A is majoring in finance and accounting and B in computer science. It is a perfect match as A keeps the books and B maintains the website. One day they are both surprised because along with the usual small donations of a $1 or $2 there is a donation for $1,000! A&B have caught the attention of a philanthropist Rex Reader (RR). They contact RR and thank him. RR advises he is impressed with their social conscience and they can expect $1,000 the first of every month as long as they continue to fulfill the mission of maintaining a free library.
On Wednesday A’s final tuition payment for the term is due. A is expecting to get paid on Friday and transfers $1000 from the library account to his account and pays his tuition. On Friday after he is paid, he returns the $1000.
The following week, A & B go out to lunch. They pay for lunch from the “library account” and go for a bike ride.
Next month the anticipated $1,000 does not arrive. B uses the credit card information that the website has captured for RR and processes a donation for another $1,000. They are concerned and contact RR. RR says he has changed his mind and will not be donating. A&B tell RR that if he does not continue to make the monthly donations they will post on social media his address, phone number, and the name of his yacht along with RR’s banking information. They will also post untrue information about his private life and will allege an affair with a movie star, Sally Starlight (SS).
A&B discuss how to secure an income stream rather than singular donations. They decide they will add in the “terms of service” that any donation by credit card will be a “repeating” donation. B then sets the website to reject attempts to read the terms of service by only allowing access after 10 tries.
Wanda (W) works in the registrar’s office as a student worker. W has access to all student records. A&B offer to pay W’s tuition next year if W gives them the computer file with all the student names, addresses, and banking information. Not wanting to wait for W, B uses a program that guesses log on credentials. This effort results in guessing the log on credentials of the President of SU, Ichabod Parsons (IP). A&B log on using those credentials. They make a copy of the student address, emails, and banking information for all students. A&B later use this list to send solicitations for donations to all the students urging them to contribute by credit card or ATM card. They send both emails and actual letters. For the letters, B uses IP’s credentials and creates a “computer job” which prints the letters through SU’s print shop and mails the letters through the U.S. Post Office. A&B are proud of their efforts and watch the money role in each month. As part of their celebration they indulge themselves in a new found pleasure they learned about when on a bike ride. They role some dried cabbage into cigarettes and smoke them and enjoy a calming experience and sense of euphoria.
Chapter 7. Crime and the Business Community
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