Former Employee Arrested for Attempted Data Extortion Against New Jersey Company

Posted by
1 min read
September 1, 2024

NEWARK, N.J. — A Missouri man has been arrested and charged with attempting to extort his former employer, a national industrial company based in Somerset County, New Jersey, U.S. Attorney Philip R. Sellinger announced.

Daniel Rhyne, 57, of Kansas City, Missouri, faces charges of extortion in relation to a threat to cause damage to a protected computer, intentional damage to a protected computer, and wire fraud. Rhyne was arrested on August 27, 2024, and was released after an initial court appearance in Kansas City, Missouri.

According to court documents, Rhyne was employed as a core infrastructure engineer by the New Jersey-based company. On November 25, 2023, several employees received an extortion email from Rhyne, who threatened that all of the company’s IT administrators had been locked out of the network, backups had been deleted, and that additional servers would be shut down each day for 10 days unless a ransom of 20 Bitcoin, equivalent to $750,000 at the time, was paid.

The investigation revealed that Rhyne gained unauthorized access to the company’s systems by remotely accessing an administrator account. He then scheduled various unauthorized tasks on the network, including changing passwords and shutting down servers. Rhyne controlled the email address used to send the extortion demand.

Rhyne faces up to five years in prison and a $250,000 fine for the extortion charge, up to 10 years in prison and a $250,000 fine for the intentional damage to a protected computer charge, and up to 20 years in prison and a $250,000 fine for the wire fraud charge.

Phil Stilton

Phil Stilton is the Editor and Publisher of Shore News Network, an independent digital newsroom providing original reporting on New Jersey, national news, government, public policy, public safety, courts, and community affairs.

As founder of the publication, Stilton leads editorial strategy, investigative reporting, and daily newsroom operations while overseeing coverage that reaches millions of readers annually.

With extensive experience covering municipal government, county government, state legislatures, elections, law enforcement, emergency management, and public records, Stilton specializes in translating complex government actions into clear, factual reporting. His work frequently relies on primary source documents, including court filings, legislation, public meeting records, election finance disclosures, government databases, police reports, and Freedom of Information and Open Public Records Act (OPRA) requests. He has reported extensively on local government accountability, taxpayer spending, campaign finance, public corruption investigations, infrastructure, public safety, and the policies affecting New Jersey residents.

Under Stilton's editorial leadership, Shore News Network has grown into one of New Jersey's largest independent digital news organizations, publishing thousands of original news articles each year while providing breaking news coverage, investigative reporting, and analysis across state and local government. The publication's reporting is routinely sourced from official government agencies, public officials, court records, and firsthand documentation, with a commitment to transparency, attribution, corrections when warranted, and clearly distinguishing factual reporting from opinion.

Stilton's journalism follows established newsroom standards emphasizing accuracy, verification, fairness, and accountability. Every effort is made to verify information through official records and multiple reliable sources before publication. His reporting is intended to provide readers with timely, well-documented information that helps them understand the issues affecting their communities, while maintaining editorial independence from political parties, government agencies, advocacy organizations, and commercial interests.

Readers can submit story tips, corrections, public records, or media inquiries through the official Shore News Network website or its verified social media channels. Shore News Network welcomes corrections and updates when new information becomes available as part of its ongoing commitment to accurate and transparent journalism.

Facebook

Don't Miss