VALLEY HACKER CHARGED IN INTERNET THEFT

A San Fernando Valley computer hacker who used his digitalprowess to outrun FBI agents for three years was indicted Thursdayoncharges that he stole millions of dollars in software through theInternet.

The 25-count federal indictment against Kevin Mitnick is thebiggest development in the sensational case since the self-taughtcomputer whiz was arrested in February 1995 in North Carolina.

The 33-year-old son of a Panorama City waitress has been heldincustody in Los Angeles ever since.With Thursday's indictment, federal prosecutors made good ontheir vow to hold Mitnick accountable for what they say was a stringof hacking crimes that pushed him to the top of the FBI's most-wantedlist."These are incredibly substantial charges. They involveconducts spanning two and a half years. They involve a systematicscheme to steal proprietary software from a range of victims,"Assistant U.S. Attorney David Schindler said in an interview.Mitnick's longtime friend, Lewis De Payne, 36, also was indictedThursday on charges that he helped steal the software between June1992 and February 1995 - while Mitnick was on the run from the FBI."I would say it is an absurd fiction," said De Payne's attorney,Richard Sherman. "I don't think the government is going to be ableto prove its case."De Payne will surrender today to authorities in Los Angeles,Sherman said.Friends and relatives of Mitnick have defended his hacking,saying he did it for the intellectual challenge and to pull pranks -but never for profit.Los Angeles' top federal prosecutor sees it differently."Computer and Internet crime represents a major threat, withsophisticated criminals able to wreak havoc around the world," U.S.Attorney Nora M. Manella said in an written statement.The indictment charges Mitnick and De Payne with havingimpersonated officials from companies and using "hacking" programstoenter company computers. Schindler said the software involved theoperation of cellular telephones and computer operating systems.Their alleged victims include the University of SouthernCalifornia, Novell, Sun Microsystems, Motorola and other companies,Schindler said.The duo also are accused of trying to throw investigators offthe trail by disabling computer audit programs and using doctoredcellular telephones so that their connections would be untraceable.By indicting De Payne, prosecutors succeeded in doing what theyfailed to do earlier in court: prevent attorney Sherman fromrepresenting Mitnick.Schindler tried to convince a judge that Sherman should notrepresent Mitnick because he had handled an earlier case for DePayne. The judge disagreed.But now Sherman said he will resume his representation of DePayne, leaving Mitnick's legal representation uncertain.Mitnick and De Payne each are charged with 14 counts of wirefraud, involving the copying and theft of software.In addition, Mitnick is charged with computer fraud,intercepting wire communications, causing damage to computers at USCand compiling electronic files that contained computer passwords.De Payne is charged with 14 counts of wire fraud, which includeallegations that he aided and abetted Mitnick.