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From Phrack volume 3 issue #33;

"At 8:00 AM on August 7, 1991 in Walnut Creek, California the house of Steven Merenko, alias Captain Ramius, was raided by Novell attorneys occompanied by five federal marshals. All of his computer equipment was confiscated by the Novell attorneys; including disks, tape backups, and all hardware. Novell officials had filed an affidavit in the United States District Court for the Northern District of California. They charge Merenko had illegally distributing Novell NetWare files. A Novell investigator logged on to Merenko's BBS as a regular user 11 times over a period of a several months. He uploaded a piece of commercial software from another company, with the company's permission, in order to gain credibility and eventually download a file part of Novell NetWare 386 v3.11, which with a full-blown installation costs more than $10,000. Novell issued a Civil suit against The Red October BBS, and because of that Merenko will not go to jail if he is found guilty of letting other people download any copyrighted or commercial software. The maximum penalty in a civil case as this one is $100,000 per work infringed. The Red October BBS was THG/TSAN/NapE Site with four nodes, 4 gigabytes of hard drive space online and had been running for four years."

In the interview with BAD News #9, Ramius goes into details about the bust of his Red October BBS by the SPA.