didn't i have luck. because probably if i wouldn't be on this flight, my life would look very, very different. >> if you could take it all back, would you? >> absolutely. if i could, if i could not go through this, i would. we are living in a cyber age and it's the new theater of operations for the military and really for all of us. the future is now. i mean, what's happened is over the course of time, hardware has given over to software. military functions are being performed by software that used to be performed by people. if an adversary wanted to harm the u.s., the use of stolen u.s. software could be helpful in doing that. many of us don't fully understand how digital our age

really has become. for example, digital methods are used to control all kinds of things, everything from bridges. it can mean ports. it can mean dams. it can mean the power grid. there are a lot of americans that don't fully understand how serious a threat we're fighting. >> as a former fbi agent and chairman of the house intelligence committee, i had oversight of all 16 of our nation's intelligence agencies. my name is mike rogers. i had access to classified information gathered by our operatives. people who risked everything for the united states and our families. you don't know their faces or their names. you don't know the real stories from the people who lived the fear and the pressure until now.

so in december of 2009 i had joined the investigations unit for hsi in philadelphia. it sounds very technical, but all it is is just try to prevent u.s. technology from getting into the wrong hands. >> illegal acquisitions of u.s. goods and technology can assist our adversaries in harming u.s. soldiers. citizens and allies. >> basically what we do is we go out to companies all around the country so that they know who we are and can call us if they see any wrongdoing. so my first outreach was to a company called agi. they're a u.s. defense contractor. and they produce complex three-dimensional simulation software called stk, satellite toolkit. that wasn't my world. i mean, i was coming from investigating narcotics trafficking. what really opened my eyes to

the importance of this technology was a simulation that they ran for me of a ballistic missile launch from north korea to hawaii. and in this simulation it looked at u.s. satellites, literally where they were in outer space to figure out how can they do this launch at just the right time when our satellites aren't watching to get that missile up and over so it could strike wide before we're ready to defend ourselves. and that kind of opened my eyes to the importance of this software and why it shouldn't be in the wrong hands. so i came to the end of my presentation and almost as an afterthought, the control officer pulled me aside and he showed me crack 99. he showed me agi's stk software advertised for a thousand dollars on a chinese website where it didn't belong. he said i'm not sure this they actually have it because in order to sell our product they

would need the electronic license files, almost like an electric key that accompanied this product or the program wouldn't work. so he wasn't sure whether they actually had it or not. i had to find out. i spoke with my supervisor mike about my visit to agi and the discovery of crack 99. the two things we decided on was that, one, we were going to initiate an undercover operation and, two, we're going to need to call dave hall. dave had a proven track record. i knew that dave understood the complexities of these types of investigations. and based on the fact that it was sensitive technology, we knew that he would be perfect. one of the concerns we had at the beginning of the investigation was whether this person was working for the chinese government. generally speaking they are considered to be an adversary of the united states and this software had direct military application and it gives us an advantage strategically in dealing with adversaries. >> figuring out who was behind crack 99 was a little bit like

finding a needle in a haystack, operating in anonymity on the internette makes it a lot easier to commit these crimes. >> agi had done a little bit of their own research. where is it hosted? and sure enough it was hosted in chengdu, china, under the name xiang li. i want to know what are we looking at? how big is this i wanted to make an undercover purchase. >> crack 99 offered a very unique insertion point for an undercover operation because it was a website that was open to the public. i called a colleague of mine from the defense criminal investigative service, dcis, who works as an undercover agent and could take on the undercover person that for this case. i knew that's where this was going to go. >> they work together to stop the trafficking of critical dod weapons systems and technology. we don't want bad guys getting our stuff. that would provide our enemies with an advantage having the

same weapons we have. we don't want to have a level playing field. we want to have the upper hand. our mission is to protect the war fighter and in the end they protect us. when i first saw the website, it was like a bad 80s television commercial. it really was sloppy. it was like an amazon or ebay of pirating software, but this is technology that isn't off the shelf. it's not available to even u.s. citizens. it was pretty clear this was a threat to national security. >> our first investigative step was to send an email. we asked to purchase satellite toolkit for 1 thousand dollars. the retail value of that software was more like $150,000. >> he wrote us back and in the e-mail he laid out payment instructions. send payment via western union. myself and the agent, we drove to the first western union we could find in the state of delaware and we sent $1,000 to china. >> not knowing the background of whose running the website, i wasn't confident that we were

going to get what we paid for. >> maybe it's a scam. maybe we're about to get ripped off. we don't know at this point. essentially we're collecting evidence. that's why we have to make the purchase and then see what happens from there. we open up our undercover laptop computer, and we just waited. and later on that day he sent us the download links. and he gave us instructions in broken english on how to unpack the files and download the software. we brought the evidence over to agi. and the head of i.t. unpacked these files. he was floored by what he saw. we had every single one of their programs. all operational. >> this technology gives us an advantage on the battlefield and the threat posed by an operation like this is that he could sell

it to anyone who was willing to pay for it. it can go to adversaries of the united states, it can go to terrorist organizations, it can go to criminal organizations. this software, finding its way into the wrong hands is equally as dangerous as any weapon. >> the reaction once we realized that the software was legitimate was what else do they have? gordon ramsay? handing out samples? seems like just an ok use of your culinary talents, dude. yeah it is smart guy. almost like having a brand new iphone but not pairing it with at&t. that's true... gordon ramsay. oi, fingers, it's not a buffet! use the cocktail stick. use a cocktail stick. get the most from your amazing new iphone 11 pro on at&t, america's fastest network for iphones. more for your thing. that's our thing. son, i need to tewhat is it, dad?. if you ever have any questions, you call 1-877-522-5001.

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[ song: johnny cash, "th♪sthese are my people ♪ ♪ these are the ones ♪ ♪ who will reach for the stars ♪ ♪ these are my people ♪ by the light of the earth, ♪ ♪ you can tell they are ours ♪ ♪ a new step to take ♪ and a new day will break ♪ yes, these are my people ♪ they give us excellent customer otservice, every time.e. our 18 year old was in an accident. usaa took care of her car rental,

and getting her car towed. all i had to take care of was making sure that my daughter was ok. if i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. we're the gomez family... we're the rivera family... we're the kirby family, and we are usaa members for life. get your auto insurance quote today. u.s. defense software was being sold on a chinese website where it didn't belong called 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 li, but in addition to not knowing if that was a real person, we didn't know if that was the only person involved. we had a large number of questions about the operation. >> we needed to figure out a way of getting a viable target. so in january in 2010 i requested authorization to go trap and trace on xiang li's e-mail account. if gives it gives me the email addresses. so i can get an understanding of how big his customer base is and

how big his operation is. >> e-mail is an extremely rich source of evidence for law enforcement, but that doesn't mean you can just read somebody's e-mail in a law enforcement investigation because you're interested. you still have to develop probable cause and obtain a warrant from a federal judge in order to gain access to their e-mail. >> so dave said let's do a few more purchases and let's verify that this wasn't a fluke. me and my counterpart went through another website. we sent a western payment to xiang li for these two programs. same thing. sent us download links later that day. xiang li was highly responsive. he was extremely attentive to customer relations. he would do whatever we needed him to do as long as we first paid him the money. >> that's the thing we noticed about him is that he was all about the money. >> so we downloaded the programs onto our laptop. we flew out to san jose, met with the company. they looked at it and they figured out that 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 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, meaning people who crack the licensing file to enable access to the software. >> i had no idea who i was communicating with, the originator or if it was one of hundreds of sales reps. >> it's an overseas target who is particularly difficult to identify because he's operating on the internet and is anonymous. >> so on the crack 99 website

there's an email address to contact him at gmail.com. >> you might ask why he was using g mail and therefore accessible by u.s. law enforcement. and the answer is he wanted to use a readily available e-mail that everybody was familiar with as opposed to a chinese e-mail server. >> once we had completed our third purchase, we applied for a search warrant. the judge signed off on the search warrant, and we submitted our search warrant to google. >> it boggles my mind that he has a gmail address. >> we're lucky he did. >> what it gave me was all the incoming and outgoing e-mails from that account and when we got the results, we realized that we had about 12,000 e-mails. >> and that's when we understood the full scale of his operation. we could see he was selling to customers all over the world. >> i saw government customer s from places like uganda, uae, saudi arabia.

i also saw some customers in there from places like syria. one particular case it was for a government contract in syria. iran. he had plenty of people reach out to him from iran. >> we knew that we did, in fact, have a problem, and we really needed to pick up the pace in this investigation. >> if we don't stop crack 99, the potential consequences are troops being hurt, terrorist attacks. there's a reason this technology is restricted, and that's to avoid exactly this situation where the technology is being trafficked without any limitations all over the world. >> we know we need to have a plan to meet him face to face, to ultimately make an arrest. the problem is that he's in china, we're in the united states.

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as i was reviewing the e-mails, i saw that his customers were from over 60 different countries. he had emails from places like syria and iran. he doesn't care who his customers were. he just knew that they wanted a product and he had it for them, and he had to figure out how to get it to them. ultimately we found well over 500 transactions. it's scary to think that stuff is in the wrong hands.

>> copy by mid-2010 we had looked through the emails, 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 could cause. >> so now we could get a federal arrest warrant for this guy, but it's not going to amount to much to somebody in china who is going to want to leave. it helped to go through all of his e-mails because i could figure out a little bit more

about xiang li and i'm seeing how he communicates with his customers. how he follows up. i mean, he really was dedicated to all of his customers to making sure that they got the product that they paid for. and so i knew that he was eager to please his customers. i wanted to use that to get him to travel to where we could arrest this guy. >> we understood what his motivation was, and his motivation was money. in my experience, greed is almost always what gets people caught. we're not talking about crimes of passion here, you know. this is business. and then violating the law to make money. so the plan was that we would put a carrot on the stick in the form of more money. >> so i was going to explain to him that i was a business broker for an aerospace software products in the united states and that i had a customer base already that would be willing to pay considerably more than what he was selling his products for on crack 99 and that together we could make a lot of money.

>> we told xiang li that we thought his prices in many cases were too low. we told him we could help him increase his revenue. so at this stage we thought the communications needed to go beyond e-mail to skype calls. and i know that he said in his e-mails he doesn't speak english. >> and that's when we elicited the assistance of a translator to have telephone conversations. >> the point of these skype calls, in addition to proposing this business idea, was just to develop a rapport and a relationship and trust. >> good morning, how are you? we're very excited about the software we got so far. it's been truly worth our while. >> the undercover was very disarming, very friendly. he was very natural person. that's what we needed for this part of the operation.

>> i want to explain an idea that we have here. we've found a market for software. small businesses are willing to pay a lot of money for u.s. software. we can give him 50% for his support. that will be the partnership. >> at first he was a little guarded because he wasn't sure why i didn't just purchase the software from him and sell it to my customers without his knowledge. my story was i needed to have somebody that could troubleshoot. i'm not a computer guy. we're interested in acquiring his support for the software that we purchase. that's what we would need from him. if we had questions, i wouldn't be able to answer them. that's why i needed him. i put a value to his

participation. >> he said he need to protect his identity. >> okay. i understand that. >> he's not going to talk directly to our customer about price. >> no, no, never. >> so you be the one that talk price. >> our customers will never know his identity. they will only be dealing with us. >> he says okay. >> he was very interested in that because what all that meant was that he could make a lot more money in the u.s. market. >> during our first call we introduced the idea of us meeting in person. >> tell him very excited about that. has he ever -- has he traveled in the u.s.? i would love to meet and invite him to our business. >> he said he can come to u.s. >> it didn't go very far. we have a little laugh about it and we kind of just moved on. i knew it would be difficult to get him to travel, so i wanted to tread lightly. and then he introduced something

new to us. he came back and said that he has another big surprise for us. >> he has something that's very difficult to get. >> what? what exactly? >> it's a database. it's about 20 gigabytes. >> now it wasn't just a hacked software program. now it sounded like he had 20 gigabytes of internal data from a company. >> it was software technology that had been stolen from a defense contractor and other information that was not public information. >> what does that mean? >> i can't tell you exactly what that was, but it was a threat to u.s. national security. >> did it escalate the urgency? >> it did. now they're hacking into u.s. companies and extracting the data. he gave us the price of $3,000. we sent payment to him and it didn't come. >> and this caused us to wonder whether he was suspicious.

in the past he was highly responsive and he was highly attentive to customer relations. >> we sent xiang li an e-mail and finally he wrote back. he said that the data is too large to transfer at this time via download. he said that he could mail the disk to us. he didn't do that either. >> the purchase of the proprietary data also gave us another reason to meet with him face-to-face and that was to transfer it on disk as opposed to by download. so what we had to do was figure out another place other than the u.s. or china to meet. the issue really was where xiang li was willing to go. >> and so we talked to him about us having this business trip coming up in the spring. >> i'm going to be doing a trip in march to asia, but that's not confirmed yet. >> i pitched to him the idea of a business trip so we could discuss his business in the u.s. would he meet me to shake hands on our business partnership?

>> he wasn't very interested. he was in a win win situation. he could just communicate with his client base through e-mail. so he didn't need to meet. >> we became impatient at that point. we had done a couple other purchases during this time, but we were losing a little bit of hope. and we didn't hear anything for a couple of days. and i remember on a -- it was on a sunday i logged in and checked the account to see if he had responded, and i saw that he wrote me in this broken english that he agrees to the traveler is how he wrote it. he was going to meet us. tell him we're flexible. don't worry. my dutch is ok. just ok? (in dutch)

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xiang li reached out to us and said he would be willing to meet us on the island of saipan. >> he came up with saipan. we were all very excited. that was on a sunday. i remember calling mike. he couldn't believe it and i couldn't believe it. from xiang li's perspective, it was a great destination because it did not require a visa for him to travel there.

>> i was extremely happy. saipan is a territory of the united states and we would not have to get any special permission to conduct an undercover investigation and furthermore we would not have to worry about extradition to remove the defendant back to the mainland of the united states. >> i'm looking forward to meet and discuss some future business. >> our team from philadelphia moved to saipan and we worked to put together our undercover operation. that included wiring a hotel room where we intended to have the meeting. we conducted an investigation that lasted a year and a half, and our ultimate goal was to present all this evidence to a jury in the united states. and put him in jail. putting this kind of undercover meeting together is complicated because there are a lot of moving pieces. if something goes wrong, anything could happen, right up to somebody being killed. there's a lot at stake. >> the flight from china arrived early in the morning on june 6th, 2011, and i was there in

the airport. i was nervous that he wasn't going to show. i'm thinking how disappointing will this be if we do all this and to have come more than halfway around the world to this little island and he never shows. >> so the case agent was inside the airport. made a positive identification of xiang li, but he also had his mother-in-law and his 5-year-old son with him. he never let us know that his child and his mother-in-law would be coming. we were definitely surprised. i don't think it's smart to bring your family members to a criminal ro endez v ous. and i don't recommend it. >> you're dealing with human nature, so it's unlimited the amount of surprises. >> they went aboard the bus to the hotel, and at that point we thought it likely that he would

go to sleep. it was early in the morning. he had been on an airplane all night. that's not what happened. we had xiang li's hotel under surveillance, and he came out and he jumped into a suzuki samurai and took off. >> we didn't know where he was going. we followed him all around the island. and this was very concerning because we didn't know if he was meeting with somebody. >> you go into this, you don't know if he brought other people with him if he was going to be doing surveillance on us. there was always concern that xiang li could have been part of a larger operation and could have been backed by the chinese government. >> from what we knew of him, we thought he was a chinese businessman, but we didn't know. you can never assume that somebody is not dangerous. >> i had a concern as to whether he might obtain a firearm. there's one thing i've learned in a long career is you never know who is capable of violence and who is not. we did have a plan in place for dealing with a contingency like that and the agents were able to follow that car into the hills up until a point until our path was cut off and we decided to stop the surveillance. >> and then we just waited.

they broke off that surveillance, and one of the questions we had was whether he was suspicious. in particular we wondered if maybe he had made our surveillance of him being watched at the airport. we just didn't know. >> we went back to the hotel and later on that night he let us know that he had arrived. he was there and he wanted to meet the next morning at 9:00 a.m. >> so we made arrangements with him that he would come and meet us at our hotel the next day. >> so we really didn't know anything about xiang li as a person, and so it was time to find out. >> i do enjoy being an undercover agent. i really enjoy meeting the subject face to face, engaging with the subject, and having him explain the criminal activity in his own words. i'm not worried about arresting him. that's what the cover team is for. i'm not worried about prosecuting him. that's what dave hall is for. i'm just there to get what i

paid for and talk business. >> so the next day he comes and we're getting prepared, ensuring that we have our audio and video in place. and just a few minutes before we're supposed to meet, xiang li called our dcs undercover agent and asked him if he could pick him up. >> i want to accommodate xiang li's request. so now i actually have to get wired myself instead of just the room. my worst case scenario would be for him to say something and explain something that was critical to our investigation and not have it recorded. >> and it's actually a big operation. then all of a sudden we have to conduct on the fly. we need to have surveillance agents following them for the safety of the agent. >> i was wired up. i brought the translator with me. we drive maybe about a mile down the road to the hotel that he was staying at. as i pull up, i see xiang li, but what i didn't expect was his mother-in-law and his

5-year-old son, who was wearing a bathing suit and water wings. this is something i didn't expect. i was absolutely floored. >> we certainly don't want to have any sort of meeting where anyone else is present except for him. we have to ensure that we are only going to talk to him and that's it. >> after i introduced myself and we exchanged hellos, i asked why is your son here? he said he wanted to bring his son to my hotel because we had a better pool. he had looked at my hotel online when doing his research. he said while we discuss business in your hotel room, my son will swim and then we can all have lunch after our business meeting. so i told him that although our hotel was quite nice, it had a lot of security and that i had already witnessed them deny nonguests the right to swim on

property. he agreed and we drove back together in my car. you know, it hit me that his son was not going to be seeing his father after this, but at the end of the day, xiang li put himself in that situation. we were driving back to the hotel and when i left our tech agent was finishing up the placement of the various recording devices. >> at the time that the undercover left to go pick up xiang li, the tech agent stopped all the recording devices in the hotel room. and the reason he did this is that they're all battery powered. and we didn't want the batteries to run out before the end of the und undercover meeting. so he shut everything down and he was in the hotel room waiting for xiang li and the undercover to return. >> so what i like to do is when i'm on my way back is just point out different points of interest to give them an idea how far away i am, because they can hear me. i have an open transmitter.

so on the way back i am pointing out that this is my hotel here on the left. as we pull in, i make note of the different shops in the lobby as we approach our elevator so that i can, you know, give time for the tech agent to finish up and that everybody can be in place. so myself, the translator and xiang li, we enter my hotel room. as the meeting was progressing, i got to a point where i actually took out my telephone and i looked at my e-mail, and i saw an e-mail from the tech agent. his e-mail stated don't shit yourself, i'm in the bathroom. (paul) wireless network claims are so confusing.

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and the translator, the tech agent was still in our hotel room. he was turning on the batteries for the recording devices. the individuals that had the radio went back across the hall to get in place and he didn't realize until we came to actually put the key in the door that he then jumped into the bathroom. after i got -- >> he was hiding in the bathroom. >> he was hiding in the bathroom. so i then chuckle. i turn to the translator and i show her the phone so she can read the tech agent's e-mail. i said can you believe my wife still hasn't got down the time zone? she still doesn't know what time it is here? because at any given time xiang li could ask to use the bathroom. >> the uc has the most difficult job at this point because it's now his responsibility to ensure that we elicit all of the facts

that we need and identify that xiang li was in fact the person that's committed these crimes. we had audio and video rolling. >> we were in another room that was right across the hall, and we were the takedown team. >> there was a second undercover who was an hsi agent who spoke fluent mandarin. from my point of view as the prosecutor, i wanted to make sure that there was no question about what was said during that meeting. >> ask him if he can just explain it -- >> i wanted to make sure that if this matter went to trial, that xiang li would never be able to say, well, english is not my native language. i didn't understand what the undercover was saying and therefore, i really didn't have any criminal intent. >> at first he was still a

little guarded and then i think he realized that everything that had been put in place is actually coming true. >> and that's when he started presenting all the stuff that we had purchased that we never received. >> we paid for this a month ago. >> just like i do on any of my undercover meets i actually have a list of objectives i need to meet. first i need to establish identity. i need to know that who i'm meeting with is the person that i was communicating with. i have to put him behind the key strokes. >> when i e-mailed you through e-mail, that was you and no other --

>> yes. >> he came very comfortable with me. he enjoyed showing me how to smuggle the software out of the country. >> everything is separate -- >> so i put the disks in something like this. >> and he explained different methods on hiding and concealing the software, at which point i raised my hands up as if i had handcuffs on and he chuckled and said, no, no, you know, you won't have to worry about that. you won't be arrested. >> because we know that in our country that's illegal, have any companies reached out and contacted him and, you know -- >> he's saying that there have

only been a handful of companies that have contacted him that he has their stuff and then -- >> and once he said that, this told me that he understood that what he was doing was illegal and specifically was illegal under u.s. law. we established that xiang li was the person that we were talking to through e-mail. we established that xiang li knew that what he was doing was in fact illegal in the united states. we established the fact that he had smuggled now this software into saipan. the meet was going well. xiang li was talking a lot. we were getting some good information. and it was time to bring it down in the undercover meet. gordon ramsay? handing out samples? seems like just an ok use of your culinary talents, dude. yeah it is smart guy. almost like having a brand new iphone but not pairing it with at&t. that's true... gordon ramsay.

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the be plan with al qaeda is they were going to be suicide bombers.

the meet was going well. he was talking a lot. we were getting some good information. we staekd that he was the person we were talking about through e-mail, we established the fact that he had smuggled now this software and now all that was left was to make the arrest.

>> we were still discussing things but i wasn't going to go forward with anything else. i got everything that i wanted to get out of him. we set up a phrase with the cover team. it was time to come in and arrest him. >> we arrested everybody in the room and separated everybody. this is the moment i had been preparing for as the case agent.

read him his rights in chinese and he understood them and signed off and agreed to talk to us. we sat there and we really talked about everything. and he was very cooperative with us, at first. >> xiang lee denied being the hacker. he said he obtained the software from hackers that he would meet online. he also denied being the cracker. >> and that's when he explained to me about these fan groups and about hacking groups in these message boards throughout china and russia. all of these programs had been hacked and cracked by other people, and put on numerous online groups, but it would be a site that was disjointed and difficult to navigate. so he would find as many crack software programs as he could find. and he would compile them and post them on his website. and then people could do searches. they could find what they need. and they could get fully functioning copies that they wouldn't be able to find in these chinese language message boards. and at the time, nobody else was doing that. people would say, do you have whatever software program? and he would just keep looking and keep looking.

it was almost like it was his crusade to get operational cracked software to as many people as he possibly could. >> xiang lee had a real capitalist point of view. he was trying to make money. so, ultimately, we concluded he probably was not working for the chinese government or otherwise an agent of the chinese government. and that he was really a privateer. meaning that he was an internet pirate, who was selling stolen software for his own profit. >> i don't think he knew the retail values of these programs. i think if he did, i think he would have upped his prices a little bit. i don't think he quite understood how much he was giving to people. >> why was he driving around the island? >> in the end, we actually did determine what was going on. it was not the case that he had become suspicious of us. he wanted to do some sightseeing. he was trying to squeeze a vacation into a business meeting. in other words, he really was mixing business and pleasure.

after we arrested xiang lee, we went to the hotel to conduct a search of his hotel room and his mother-in-law and his son were there. and that was inevitably a sad thing. >> it's awful. yeah, no, it's awful. it's an innocent victim. >> but my ultimate conclusion on that was that that was a sad event that was of xiang li's creation and that it was his fault. and i took xiang li's son downstairs to the lobby and i bought him an ice cream cone. >> why did you buy him an ice cream cone? >> well, i bought him an ice cream cone because this was a bad day. and ice cream cones don't make bad days good days, but maybe makes it a little better. >> cyber crime is all of our cases now.

it expanse the realm of all of our investigations that we do. >> the public is not fully aware of how successful some of these attacks have been. this is a staggering, staggering number. $1 trillion in losses, because of cyber attacks. >> during the time period of the xiang li investigation, the federal government was becoming much more aware of and attuned to the cyber threat. >> within an hour, hackers had seized controlled of the unclassified e-mail system used by the pentagon's joint staff. >> iranian hackers infiltrated computer software that controls the floodgates of this ry, new york, dam. >> computer spies have reportedly stolen information about the f-35. >> among the data reportedly stolen, designs for the f-35 and details about the jet's radar systems, as well as flight diagnostics. >> in 2010, cyber com was established, which is a combat and command at the department of defense, specifically directed to deal with the cyber threat. >> whether you're working an export case or child exploitation case or fraud case,

everything is done over the web. so whether i want to or not, i have to be able to look into how these people are conducting their activity online. i've got to figure out what servers they're working off, who they're talking to, how they're talking to these people. i've got to figure out how i'm going to identify them and pull them out of the shadows. >> xiang li was charged with a number of conspiracy counts. he was charged with criminal copyright violations. he was charged with wire fraud. he pled guilty to the most serious charges and was sentenced on that basis to 12 years in prison, which was the heaviest sentence ever imposed in a criminal copyright case.

i've never been in a rolls-royce before. i'm ridingshotgun down ocean avenue. what other cars do you have in. >> right now have a ferrari 458, the range rover. >> this 23-year-old