Nevada: Infraud Organisation indicted

Discussion in 'North American scam news' started by Central Scrutinizer, Feb 7, 2018.

  1. Central Scrutinizer

    Central Scrutinizer Administrator Staff Member

    Wednesday, February 7, 2018

    Thirty-six Defendants Indicted for Alleged Roles in Transnational Criminal Organization Responsible for More than $530 Million in Losses from Cybercrimes

    Law Enforcement Dismantles Forum Used to Victimize Millions in all 50 States and Worldwide in One of the Largest Cyberfraud Enterprises Ever Prosecuted by the Department of Justice

    A federal indictment was unsealed today charging 36 individuals for their alleged roles in the Infraud Organization, an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.

    Following the return of a nine-count superseding indictment by a Las Vegas, Nevada, grand jury alleging racketeering conspiracy and other crimes, federal, state, local, and international law enforcement authorities arrested 13 defendants from the United States and six countries: Australia, the United Kingdom, France, Italy, Kosovo and Serbia.

    Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada, and Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.

    “Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,” said Acting Assistant Attorney General Cronan. “As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale. Its members allegedly caused more than $530 million in actual losses to consumers, businesses, and financial institutions alike—and it is alleged that the losses they intended to cause amounted to more than $2.2 billion. The Department of Justice refuses to allow these cybercriminals to use the perceived anonymity of the Internet as a shield for their crimes. We are committed to working closely with our international counterparts to identify, investigate, and bring to justice the perpetrators of these crimes, wherever in the world they operate.”

    “The U.S. Attorney’s Office is steadfastly committed to protecting America’s national and economic security,” said U.S. Attorney Elieson. “Criminals cannot hide behind their computer screens. We are working vigilantly with American and international law enforcement partners to identify and disrupt transnational cybercrime organizations, such as the Infraud Organization.”

    “Criminal cyber organizations like Infraud threaten not just U.S. citizens but people in every corner of the globe,” said HSI Acting Executive Associate Director Benner. “The actions of computer hackers and identity thieves not only harm countless innocent Americans, but the threat they pose to our financial system and global commerce cannot be overstated. The criminals involved in such schemes may think they can escape detection by hiding behind their computer screens here and overseas, but as this case shows, cyberspace is not a refuge from justice. HSI will continue working with our law enforcement partners in this country and around the world to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”

    According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” aka “Rector,” aka “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for carding—purchasing retail items with counterfeit or stolen credit card information—on the Internet. Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods. It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members.

    According to the indictment, Infraud members held defined roles within the organization’s hierarchy. “Administrators” managed day-to-day operation of and strategic planning for the organization, approved and monitored membership, and meted out punishments and rewards to members. “Super Moderators” oversaw and administered specific subject-matter areas within their expertise. “Moderators” moderated one or two specific sub-forums within their areas of subject-matter expertise. “Vendors” sold illicit products and services to Infraud members. Finally, “VIP Members” and “Members” used the Infraud forum to gather information and to facilitate their criminal activities. As of March 2017, there were 10,901 registered members of the Infraud Organization.

    During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $530 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked.

    The defendants indicted for their alleged roles in the Infraud Organization’s transnational racketeering conspiracy include:
    Svyatoslav Bondarkeno of Ukraine;
    Amjad Ali aka “Amjad Ali Chaudary,” aka “RedruMZ,” aka “Amjad Chaudary,” 35, of Pakistan;
    Roland Patrick N’Djimbi Tchikaya aka “Darker,” aka “dark3r.cvv,” 37, of France;
    Miroslav Kovacevic aka “Goldjunge,” 32, of Serbia;
    Frederick Thomas aka “Mosto,” aka “1stunna,” aka “Bestssn,” 37, of Alabama;
    Osama Abdelhamed aka “MrShrnofr,” aka “DrOsama,” aka “DrOsama1,” 27, of Egypt;
    Besart Hoxha aka “Pizza,” 25, of Kosovo;
    Raihan Ahmed aka “Chan,” aka “Cyber Hacker,” aka “Mae Tony,” aka “Tony,” 26, of Bangladesh;
    Andrey Sergeevich Novak aka “Unicc,” aka “Faaxxx,” aka “Faxtrod” of the Russian Federation;
    Valerian Chiochiu aka “Onassis,” aka “Flagler,” aka “Socrate,” aka “Eclessiastes,” 28, of Moldova;
    John Doe #8 aka “Aimless88;”
    Gennaro Fioretti aka “DannyLogort,” aka “Genny Fioretti,” 56, of Italy;
    Edgar Rojas aka “Edgar Andres Viloria Rojas,” aka “Guapo,” aka “Guapo1988,” aka “Onlyshop,” 27, of Australia;
    John Telusma aka “John Westley Telusma,” aka “Peterelliot,” aka “Pete,” aka “Pette,” 33, of Brooklyn, New York;
    Rami Fawaz aka “Rami Imad Fawaz,” aka “Validshop,” aka “Th3d,” aka “Zatcher,” aka “Darkeyes,” 26, of Ivory Coast;
    Muhammad Shiraz aka “Moviestar,” aka “Leslie” of Pakistan;
    Jose Gamboa aka “Jose Gamboa-Soto,” aka “Rafael Garcia,” aka “Rafael101,” aka “Memberplex2006” aka “Knowledge,” 29, of Los Angeles, California;
    Alexey Klimenko aka “Grandhost,” 34, of Ukraine;
    Edward Lavoile aka “Eddie Lavoie,” aka “Skizo,” aka “Eddy Lavoile,” 29, of Canada;
    Anthony Nnamdi Okeakpu aka “Aslike1,” aka “Aslike,” aka “Moneymafia,” aka “Shilonng,” 29, of the United Kingdom;
    Pius Sushil Wilson aka “FDIC,” aka “TheRealGuru,” aka “TheRealGuruNYC,” aka “RealGuru,” aka “Po1son,” aka “1nfection,” aka “1nfected,” 31, of Flushing, New York;
    Muhammad Khan aka “CoolJ2,” aka “CoolJ,” aka “Secureroot,” aka “Secureroot1,” aka “Secureroot2,” aka “Mohammed Khan,” 41, of Pakistan;
    John Doe #7 aka “Muad’Dib;”
    John Doe #1 aka “Carlitos,” aka “TonyMontana;”
    David Jonathan Vargas aka “Cashmoneyinc,” aka “Avb,” aka “Poony,” aka “Renegade11,” aka “DvdSVrgs,” 33, of San Diego, California;
    John Doe #2;
    Marko Leopard aka “Leopardmk,” 28, of Macedonia;
    John Doe #4 aka “Best4Best,” aka “Wazo,” aka “Modmod,” aka “Alone1,” aka“Shadow,” aka “Banderas,” aka “Banadoura;”
    Liridon Musliu aka “Ccstore,” aka “Bowl,” aka “Hulk,” 26, of Kosovo;
    John Doe #5 aka “Deputat,” aka “Zo0mer;”
    Mena Mouries Abd El-Malak aka “Mina Morris,” aka “Source,” aka “Mena2341,” aka “MenaSex,” 34, of Egypt; and
    John Doe #6 aka “Goldenshop,”aka “Malov.”

    In addition, Novak and “Goldenshop” are charged with three counts each and “Deputat” and Musliu one count each of possession of 15 or more counterfeit and unauthorized access devices.

    The superseding indictment is the result of an investigation conducted by the Las Vegas Office of Homeland Security Investigations; the Henderson, Nevada, Police Department; the Criminal Division’s Organized Crime and Gang Section; and the U.S. Attorney’s Office for the District of Nevada.

    The international operation to dismantle the Infraud Organization would have been impossible without the significant efforts and timely cooperation of the Justice Department’s Office of International Affairs and International Organized Crime Intelligence and Operations Center; Interpol Rome; Interpol Tirana; the Italian National Police (Postal and Communications Police); the Australian Federal Police and the International Crime Cooperation Central Authority, Australian Government Attorney-General’s Department; the U.S. Diplomatic Security Service, Regional Security Office at U.S. Embassy Tirana, Albania; the City of London Police, DCPCU; the French Ministry of Justice, the Paris Prosecutor, L’Office Central de Lutte contre la Criminalité liée aux Technologies de l’Information et de la Communication; the judicial and police authorities of the Grand Duchy of Luxembourg; the Directorate for Organized Crime Investigation, Sector for Cyber Crime Investigation; the Basic Prosecution Office Pristina, Kosovo; and the Ministry of Justice of the Republic of Kosova, Department for International Legal Cooperation and the Special Prosecution Office for High-Tech Crime of the Republic of Serbia.

    The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    Trial Attorneys Kelly Pearson and Chimaobim Nwachukwu of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Chad W. McHenry of the District of Nevada are prosecuting the case.
  2. Cold War Kid

    Cold War Kid Ninja

    Video with the BBC story:

    The US Department of Justice said 13 of the suspects were now in custody.

    They include UK-based Anthony Nnamdi Okeakpu, who is alleged to have joined in December 2010 and have used the nickname "moneymafia".
  3. De Master Yoda

    De Master Yoda Administrator Staff Member

    Thirty-six people have been charged for their alleged involvement in running a cyber-crime service responsible for more than $530m (£381m) of losses.

    The Infraud Organisation is said to have dealt in stolen credit cards and passwords and engaged in bank fraud and ID theft.

    As of March 2017, its dark-web-based service's discussion forum is said to have had 10,901 registered members.

    The US Department of Justice said 13 of the suspects were now in custody.

    They include UK-based Anthony Nnamdi Okeakpu, who is alleged to have joined in December 2010 and have used the nickname "moneymafia".

    Other defendants include Svyatoslav Bondarenko, a Ukranian accused of having created Infraud in October 2010.

    Five apprehended defendants were based in the US while others came from France, Canada, Pakistan, Russia Egypt, Italy and Macedonia among other countries.

    "As alleged in the indictment, Infraud operated like a business to facilitate cyber-fraud on a global scale," said acting assistant attorney general John Cronan of the Justice Department's Criminal Division.

    "Its members allegedly caused more than $530m in actual losses to consumers, businesses, and financial institutions alike - and it is alleged that the losses they intended to cause amounted to more than $2.2bn."

    Affected businesses were said to have included HSBC bank and PayPal.

    The US authorities said they were now attempting to extradite eight of the suspects being held overseas.

    Automated sales
    The indictment says that Infraud's administrators had aimed to run the "premier online destination for the purchase and sale of stolen property" and had used the slogan "In Fraud We Trust" to promote it.

    Its activities are alleged to have included:

    the sale and purchase of stolen dates of birth, addresses, passwords, social security numbers, payment card details and other personally identifying information
    the ability to advertise other sites that featured automated stores for stolen property
    the sharing and sale of malware
    the provision of forums and chat rooms to discuss illegal activities

    At one point in 2011, one of the accused is said to have indicated he had 795,000 UK logins to HSBC bank available for sale.

    Two years later, another is alleged to have advertised 1,300 compromised PayPal account IDs.

    Other specific accusations include adverts for Visa, Mastercard and American Express credit card numbers.

    And one member is said to have offered to fraudulently book flights, rental cars and seats at US concerts and sporting events at a fraction of their actual price.

    Members are said to have given feedback ratings to each other to help maintain the quality of contraband sold via the service.

    Proceeds were said to have been laundered via digital currencies including Bitcoin and the defunct service Liberty Reserve.

    In an effort to evade arrest, members are alleged to have avoided sharing their real identities with each other, and instead used nicknames including "Mae Tony", "Poony" and "Hulk".

    "The criminals involved in such schemes may think they can escape detection by hiding behind their computer screens here and overseas," said Derek Benner, of Homeland Security Investigations.

    "But as this case shows, cyber-space is not a refuge from justice."

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