CHEYENNE - A local teenager has been charged in connection with an elaborate computer virus scheme that officials say turned thousands of personal computers into "zombies" and used them to rip off banking and credit card information.

Jason Michael Milmont, 19, has agreed to plead guilty to a federal charge of unauthorized access to a computer to further a fraud, according to the U.S. attorney for the Central District of California.

Federal prosecutors allege that Milmont spread the virus, called the "Nugache Worm," through junk e-mail and by tricking people to download a phony copy of a peer-to-peer software program called Limewire.

Once the virus was inside a computer, Milmont could order the machine to turn over valuable banking and credit card information, court records allege.

"All the data stored on the compromised machines would be available to (the) defendant, including, but not limited to, credit card information," according to court documents filed by prosecutors.

Milmont, who took computer classes at Laramie County Community College in Cheyenne, then used stolen banking information to make purchases totaling almost $20,000, according to prosecutors. He had merchandise delivered to unoccupied Cheyenne-area homes, court records say.

A call left for Milmont's lawyer, Robert Rose of Cheyenne, was not returned on Friday.

One of Milmont's former computer instructors at LCCC, Roger Findley, said he was "extremely sad" to hear about the charges.

Findley, who specializes in computer security, said Milmont studied under him about two years ago and took a computer networking class.

He said Milmont was a "good kid" who was "extremely intelligent" but socially awkward. Milmont probably had the computer skills to pull off such a virus scheme if he chose to, Findley said.

"I imagine that Jason does have the skills to do that if he desired. I'm not saying he did or did not, of course," said Findley, adding that Milmont "kind of disappeared off my radar" after he completed the computer classes.

Federal prosecutors say this is the first time anyone in the United States has been prosecutor for using peer-to-peer software to deliver a malicious computer code.

According to prosecutors, here's how Milmont did it:

He initially spread the virus by created a bogus Web site that offered free installation of Limewire, which is similar to Napster music-sharing software.

When people tried to download the software, they also downloaded the Nugache Worm, which embedded itself within the Windows operation system.

Later, as he developed his system, Milmont was able to spread the worm using instant messaging spam, which directed the recipients to a Web site infected with the virus.

Eventually, Milmont gained control of a massive system of zombie computers known as a"botnet," or computer robot network.

"On average, (the) defendant controlled 5,000 to 15,000 computers at any given time," according to the court record.

Milmont used the system to attack a Southern California online business, and to steal credit card information to make purchases in April and June 2007, according to court documents.

He was also involved in "the theft of personal information from infected computers all across the United States," prosecutors allege.

A spokesman for the U.S. attorney's office for the Central District of California declined to say how officials from the FBI caught Milmont.

Bruce Schneier, a computer security expert who has written books on the subject and contributes to major technology publications including Wired magazine, said in cases like this the bust usually is not the result of "Internet-based police work."

Rather, Milmont probably bragged about his alleged exploits, or told someone about it who reported him to authorities, Schneier said.

Schneier said that while prosecuting Milmont may discourage some hackers in the United States, it will do little to stop the major crime syndicates in other countries that are responsible for many of today's most malicious computer-virus schemes.

"Prosecuting some kid in Wyoming isn't going to make a difference" to international hacking groups, Schneier said.

Milmont's case has been transferred to federal court in Cheyenne. He is expected to appear for an arraignment in the coming weeks.

Milmont faces up to five years in federal prison and a fine of $250,000. He has agreed to pay restitution in the amount of $73,866, according to federal prosecutors.

Reach capital bureau reporter Jared Miller at (307) 632-1244 or at {M3jared.miller@trib.com.