Peter Williams: Former Australian cyber spy pleads guilty in US to selling secrets to Russia

A former employee of Australia’s cyber spy agency is facing likely jail time in the United States after pleading guilty to selling powerful online hacking tools to Russia while working for an American defence company.

The Department of Justice said 39-year-old Peter Williams entered the plea before the District of Columbia in Washington on Wednesday, local time, in relation to two counts of theft of trade secrets.

During Wednesday’s hearing, prosecutors said that Williams reached out to a Russia-based broker using an encrypted email account under the name John Taylor to negotiate deals for the software secrets he sold them.

Court records show that over three years Williams exploited his access at Trenchant, a subsidiary of L3 Harris, to steal at least eight cyber exploits, with officials saying the sensitive material was designed for “exclusive use by the US government and trusted allies”.

Prosecutors claim that Williams made at least $US1.3 million ($1.97m) from the sale of the trade secrets and have moved to seize his assets, including a home in Washington DC and funds held in several banking and crypto accounts.

Other items being seized include nearly two dozen high-end and replica watches, a light blue Louis Vuitton handbag, two Moncler jackets, several items of jewellery — along with all currency from seven bank accounts, including three in Australia.

US Attorney Jeanine Ferris Pirro said “the conduct here caused over $US35 million ($53m) of loss to a company in the District of Columbia and allowed non-allied foreign cyber actors to obtain sophisticated cyber exploits that were likely used against numerous unsuspecting victims”.

“Williams sold the trade secrets to a Russian cyber-tools broker that publicly advertises itself as a reseller of cyber exploits to various customers, including the Russian government,” the DOJ said in a statement after the guilty plea.

“Each of the charges carries a statutory maximum of 10 years in prison and a fine of up to $US250,000 ($380,000) or twice the pecuniary gain or loss of the offense.”

The Nightly has confirmed Williams previously worked for the Canberra-based Australian Signals Directorate (ASD) before moving to the United States, but the agency has declined to comment on its former employee or to say whether he still held a security clearance.

Sources claim Australia and other members of the so-called Five Eyes intelligence-sharing alliance regularly use Trenchant hacking products which are a key part of the ASD’s offensive cyber operations under the Red Spice program.

“America’s national security is NOT FOR SALE, especially in an evolving threat landscape where cybercrime poses a serious danger to our citizens. Thank you to all the attorneys who worked so hard to secure this guilty plea.” US Attorney General Pamela Bondi said in a statement on Wednesday.

“Williams betrayed the United States and his employer by first stealing and then selling intelligence-related software to a foreign broker that touted its ties to Russia and other foreign governments,” said Assistant Attorney General for National Security John A. Eisenberg.

“His conduct was deliberate and deceitful, imperilling our national security for the sake of personal gain. Today’s guilty plea reflects our commitment to ensuring that insiders who abuse their positions of trust face serious consequences.”

L3Harris’ website describes Trenchant as a “trusted, discreet partner furnishing security products, consultancy, training and integration services to allied governments, defence, security and law enforcement agencies.”

Last week the TechCrunch website reported Trenchant was investigating an alleged leak of its hacking tools by employees earlier this year— an investigation that Williams, then general manager of the firm, oversaw, prosecutors said during Wednesday’s hearing.

A spokesperson for the Department of Foreign Affairs and Trade said it was it was aware of a Department of Justice investigation in relation to an Australian in Washington DC in these circumstances.

“We stand ready to offer consular assistance should it be requested,” the DFAT spokesperson told The Nightly.