Alleged Yahoo hacker awaits appeal judge's decision on bid for freedom

Alleged Yahoo hacker Karim Baratov will find out by the end of the week if his latest attempt to get out on bail is successful.

Baratov has been in custody since his arrest in early March and was formally denied bail in April.

On Monday, lawyers for the 22-year-old accused in a massive hack of Yahoo emails were in an Ontario appeals court in Toronto to try to reverse the original bail decision that would keep him in custody, while he awaits a decision on his extradition to the United States.

After a 90-minute hearing, Court of Appeal Justice Bradley Miller said he hoped to issue a decision by the end of the week.

A release order in this context would shake the public confidence in the administration of justice.- Heather Graham, assistant Crown attorney

"We were anxious on having him out today. His parents were close by to sign the materials for his release," said Baratov's lawyer Amedeo DiCarlo after the hearing.

 "Unfortunately that's not going to be the case, but, you know, that's the Canadian legal system for you. We've got to be patient and wait — and Karim is doing that."

After the April hearing, Ontario Superior Court Justice Alan Whitten found Baratov was too much of a flight risk to be released on bail.

Baratov's lawyers challenged that assertion in court Monday, saying that their client had no idea who he was dealing with, or exactly what he was doing.

"There is no evidence that Mr. Baratov knew who he was dealing with, nor is there any evidence of a criminal organization," said Ravin Pillay, another one of Baratov's lawyers.

"There is no evidence before you that [Baratov] will flee … there is nothing to say that he is inclined to flee," Pillay said. "He is a Canadian. There are no ties to Russia or anywhere in the world."

When Baratov was originally denied bail, the judge also said in his decision that Baratov's parents would not make suitable supervisors because they had not questioned his growing wealth or his business activities while he was living with them.

Assistant Crown attorney Heather Graham echoed that sentiment Monday, pointing out the initial decision said that Baratov's parents "turned a blind eye," when there were "obvious questions" about their teenager, who was "rapidly accumulating wealth."

"A release order in this context would shake the public confidence in the administration of justice," Graham said.

Baratov accused of hacking and espionage

Baratov was arrested in March under the Extradition Act after U.S. authorities indicted him and three others — two of them allegedly officers of Russia's Federal Security Service — for computer hacking, economic espionage and other crimes.

The breach at Yahoo affected at least a half billion user accounts, but Baratov is only accused of hacking 80 of them.

In an application for a review of the bail decision, Baratov's lawyers argued Whitten "made a number of errors in principle."

They say the judge "made findings related to the applicant's conduct that are not supported by evidence and are in fact contrary to the evidence."

Prior to the hearing, Baratov's lawyer Amedeo Dicarlo told CBC News that his client is "continuing to be patient," even behind bars.

The defence had proposed that Baratov be released on house arrest in the care of his parents, who offered close to $1 million in money and assets as collateral.

Motivated to flee

Baratov, who lived in an affluent neighbourhood in Ancaster, would also have been required to turn in his travel documents and abstain from owning or using any computer or electronic communication device.

But Whitten said Baratov would be particularly motivated to flee given that he could face as much as 20 years in prison if convicted in the U.S., and would be able to ply his alleged trade from anywhere in the world.

"Baratov would appear to be a valuable operative for the (Russian) FSB," Whitten wrote in his nine-page decision. "These are interests which would value his services."

"Why would he stick around?" Whitten continued. "He can continue his wealth-generating activities anywhere in the world."​

A hearing later this month is expected to set the date for Baratov's extradition hearing.