what is encryption anyway?
OK, so the cops smash down your door, ransack the house, kick the dog and take away your PC.
On the disk they find several files with names like "plan1.enc" and since they can't read the format, they assume the files are encrypted. While you're in the cell, suspended by your toes from the rafters the head interrogator comes in and demands to know your password. Assuming he means the login password, you tell him there isn't one (as is most frequently the case). He assumes you're lying and beats you up a bit more. After you regain conciousness, he asks again - this time actually saying what he meant: the passwords for the encrypted files. Again you deny any knowledge and tell him there aren't any encrypted files. Sometime later, you some back around.
After your period of detention without trial, when you actually get before the beak, the accusation is made that you refused to disclose your passwords and can the court impose an extra 5 year sentence for this heinous crime, too, please? Since the cops - with all their fine equipment have been unable to break the encryption using a brute-force method, they assume you're a terrorist and that the data contained within is therefore a threat to national security and you're to be shipped off to somewhere dark and secluded for the rest of your natural - to safeguard the law-abiding population - of course.
Enter a newbie recruit into the police's all-encompassing security division. She is going through your PC as a training exercise and notices the odd files, with the .enc extensions. She gets out an old copy of Lotus 1-2-3 and starts reading your household accounts. Over coffee, later that morning she mentions this to her boss, who then reports to his boss and so it goes up the ladder: your .enc files weren;t encrypted, just as you had always claimed.
IT'S JUST THAT THE POLICE WERE UNABLE TO READ THEM
and therefore assumed the worst. This is a case of having to prove yourself innocent. You're very lucky, because the person in the next cell tells a similar story - except in their case, the files didn't contain any content at all. They were just blocks of truly random numbers that he was using to test a random number generator - hence no decryption algorithm in the world could extract plaintext from the "ciphertext"
Moral: just because you can't read a file, doesn't mean it's encrypted. Just because the "criminal" doesn't give you the password, doens't mean a file is encrypted, just because a block of data looks like encrypted data doesn't mean it is.
This is a very dangerous area as the only way to prove that data is harmless is to decrypt it - which is not always possible.