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Reason
Reason
Politics
Stewart Baker

Will CISOs have to choose between getting rich or going to jail?

This episode of the Cyberlaw Podcast delves into a False Claims Act lawsuit against Penn State University by a former CIO to one of its research units. The lawsuit alleges that Penn State faked security documents in filings with the Defense Department. Because it's a so-called qui tam case, Tyler Evans explains, the plaintiff could recover a portion of any funds repaid by Penn State. Which is preferable to the alternative: If the employee was complicit in a scheme to mislead DoD, the False Claims Act isn't limited to civil cases like this one; the Justice Department can pursue criminal sanctions too – although Tyler notes that, so far, Justice has been slow to take that step.

In other news, Jeffery Atik and I try to make sense of a New York Times story about Chinese bitcoin miners setting up shop near a Microsoft data center and a DoD base. The reporter seems sure that the Chinese miners are doing something suspicious, but it's never clear exactly what the problem is.

California Governor Gavin Newsom (D) is widely believed to be positioning himself for a Presidential run, maybe as early as next year. In that effort, he's been able to milk the Sacramento Effect, in which California adopts legislation that more or less requires the country to follow its lead. One such law is the DELETE (Data Elimination and Limiting Extensive Tracking and Exchange) Act, which, Jim Dempsey reports, would require all data brokers to delete the personal data of anyone who makes a request to a centralized California agency. This will be bad news for most data brokers, and good news for the biggest digital ad companies like Google and Amazon, since those companies acquire data directly from their customers and not through purchase.

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