Posts Tagged With Cybercrime

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Software Engineer Charged with Attempting to Steal Proprietary Trading Code from His Employer

On April 13, 2017, Dmitry Sazonov was charged with attempted theft of trade secrets for his alleged attempted theft of proprietary computer code for a trading platform from his employer, a financial services firm with an office in New York.  According to the complaint, Sazonov allegedly took various steps to attempt to steal proprietary code in advance of a February 3, 2017 meeting with a supervisor about the future of his role at the firm.  ... Continue Reading

Computer Engineer Arrested for Theft of Proprietary Trading Code from His Employer

On April 7, 2017, Zhengquan Zhang was charged with theft of trade secrets for his alleged theft of trading code associated with proprietary algorithmic trading models from his employer, a global financial services company in New York, and was arrested in Santa Clara, California.  According to the complaint, Zhang took steps to steal the code between December 2016 and March 2017, including installing code to identify encryption keys to gain access to the proprietary code, ... Continue Reading

Man Indicted for Theft of Over $100 Million in Fraudulent Email Scheme Against Multinational Internet Companies

On March 21, 2017, criminal charges were announced against Evaldas Rimasauskas of Lithuania in connection with a fraudulent business email compromise scheme that induced two U.S.-based internet companies—a multinational technology company and a multinational online social media company (the “Victim Companies”)—to wire over $100 million to bank accounts that he controlled.  Rimasauskas was arrested by authorities in Lithuania.  According to the indictment, from at least 2013 through 2015, Rimasauskas orchestrated a scheme in which he ... Continue Reading

Former Chief Executive Officer and Chief Financial Officer of China Medical Technologies Indicted in Connection with Securities Fraud Scheme

On March 20, 2017, an indictment charging Xiaodong Wu, the founder, CEO and Board Chairman of China Medical Technologies, Inc. (China Medical), and Tak Yung Samson Tsang, the CFO and a member of the Board of Directors of China Medical, with securities fraud and conspiracy to commit securities fraud and wire fraud was unsealed in the Eastern District of New York.  According to the indictment, Wu and Tsang allegedly defrauded China Medical’s noteholders and investors ... Continue Reading

Former Chairman and CEO of Credit Union and Operator of Unlawful Bitcoin Exchange Convicted at Trial in Connection with Bribery and Fraud Scheme

On March 17, 2017, Trevon Gross, the former Chairman and CEO of HOPE FCU, a federal credit union in New Jersey with primarily low-income members, and Yuri Lebedev, a former employee of, an unlawful internet-based Bitcoin exchange, were found guilty after a four-week jury trial, in connection with a bribery scheme to gain control of HOPE FCU and a fraud scheme to evade detection of  Between 2013 and July 2015, Lebedev and his ... Continue Reading

U.S. Charges Russian FSB Officers and Their Criminal Conspirators for Hacking Yahoo and Millions of Email Accounts

On March 15, 2017, four defendants, including two officers of the Russian Federal Security Service (FSB), were indicted in the Northern District of California for computer fraud, economic espionage, and other criminal offenses in connection with a conspiracy to access Yahoo’s network and the contents of Yahoo webmail accounts.  The defendants are Russian nationals Dmitry Aleksandrovich Dokuchaev, Igor Anatolyevich Sushchin and Alexsey Alexseyevich Belan, and Canadian national Karim Baratov.  According to the indictment, Dokuchaev and ... Continue Reading

Leader of Three Worldwide Cyberattacks Sentenced to 8 Years for Computer Intrusion and Access Device Fraud Conspiracies

On February 10, 2017, Ercan Findikoglu, a Turkish citizen, was sentenced to eight years in prison after pleading guilty to computer intrusion conspiracy, access device fraud conspiracy, and effecting transactions with unauthorized access devices in connection with his role in three cyberattacks on the global financial system between 2011 and 2013 that caused more than $55 million in losses.  According to the plea agreement, Findikoglu and his co-conspirators hacked into the systems of credit and ... Continue Reading

Man Pleads Guilty in connection with Operating Unlawful Bitcoin Exchange

On January 9, 2017, Anthony Murgio pled guilty to charges related to operating, an unlawful Internet-based Bitcoin exchange that Murgio used to process more than $10 million in illegal Bitcoin transactions.  According to the Superseding Indictment and statements made during court proceedings, Murgio operated between 2013 and July 2015.  Murgio and his co-conspirators used a phony front company, “Collectables Club,” in order to avoid detection of the Bitcoin exchange.  Murgio used Collectables Club ... Continue Reading

Manhattan U.S. Attorney Announces Arrest of Macau Resident and Unsealing of Charges against Three Individuals for Insider Trading Based on Information Hacked from Prominent U.S. Law Firms

On December 25, 2016, Iat Hong, a resident of Macau, was arrested in Hong Kong and is now pending extradition proceedings in connection with an alleged scheme to trade on material, nonpublic information obtained through hacks of multiple prominent U.S.-based international law firms.  On December 27, 2016, a thirteen count indictment against Hong and two alleged co-conspirators, Bo Zheng and Chin Hung, was unsealed in the SDNY.  According to the indictment, the defendants successfully obtained ... Continue Reading

Man Charged with Massive Computer Hacking Crimes against U.S. Financial Institutions Arrested

On December 14, 2016, Joshua Samuel Aaron, a United States citizen who had been residing in Russia, was arrested at John F. Kennedy International Airport in connection with a massive computer hacking scheme.  Aaron and Gery Shalon were charged in November 2015 with orchestrating hacking crimes against U.S. financial institutions, brokerage firms, and financial news publishers.  According to the superseding indictment, Aaron and Shalon stole personal information from more than 100 million customers of the ... Continue Reading

Man Arrested for Scheme to Steal Over $1.5 Million from Financial Institution

On October 26, 2016, Dwayne C. Hans was arrested on wire fraud, computer fraud and money laundering charges.  According to the complaint, Hans misappropriated $134,000 from the corporate bank accounts of a U.S. financial institution by posing as an authorized representative of the institution.   Hans also accessed a website operated by the U.S. General Services Administration, where information about companies that provide services to the federal government is stored.  Hans replaced the bank account information ... Continue Reading

Assistant Attorney General Leslie R. Caldwell Delivers Remarks at New York University Center for Cybersecurity

On September 20, 2016, Assistant Attorney General Leslie R. Caldwell spoke at the New York University Center for Cybersecurity on how technology has enabled cyber criminals and the current limitations on the Justice Department’s response to cybercrime.  Caldwell began discussing the similarities and differences between cybercrime criminal enterprises and the more traditional organized crime groups such as La Cosa Nostra in New York City.  Caldwell noted that two recent successful enforcement efforts against cyber criminals— ... Continue Reading

Two Men Arrested for Allegedly Hacking Senior U.S. Government Officials

On September 8, 2016, Andrew Otto Boggs, aka “INCURSIO,” and Justin Gray Liverman, aka “D3F4ULT,” were arrested on charges related to their alleged roles in hacking the computer files of several senior U.S. government officials and U.S. government computer systems.  The complaint filed in the Eastern District of Virginia alleges that Boggs and Liverman conspired with members of a hacking group that called itself “Crackas With Attitude,” and used “social engineering” hacking techniques to gain ... Continue Reading

Romanian Hacker “Guccifer” Sentenced to Prison

On September 1, 2016, Romanian hacker Marcel Lehel Lazar, aka “Guccifer,” was sentenced to 52 months in prison for unauthorized access to a protected computer and aggravated identity theft.  Lazar unlawfully accessed email and social media accounts of approximately 100 Americans, including a former U.S. Cabinet member and a former member of the U.S. Joint Chiefs of Staff.  In many instances, Lazar publicly released private email correspondence, medical and financial information, and personal photographs obtained ... Continue Reading

Georgia Trader Pleads Guilty to Largest Known Computer Hacking and Trading Scheme

On August 2, Georgia resident Leonid Momotok pled guilty to conspiracy to commit wire fraud for his role in a scheme to hack into business newswire services to steal unpublished press releases containing non-public financial information.  Between February 2010 and August 2015, hackers based in Ukraine used a series of sophisticated cyber-attacks to gain unauthorized access to Marketwired L.P., PR Newswire Association LLC, and Business Wire.  The hackers then shared press releases with traders, including ... Continue Reading

Owner of Most-Visited Illegal File-Sharing Website Charged with Criminal Copyright Infringement

On July 30, Zachary T. Fardon, U.S. Attorney for the Northern District of Illinois, announced criminal copyright infringement charges brought against Ukrainian citizen Artem Vaulin, who allegedly owned and operated Kickass Torrents, or KAT, the world’s most-visited illegal file-sharing website.  Vaulin’s website allegedly enabled users to illegally reproduce and distribute hundreds of millions of copies of films, video games, television shows and music valued at more than $1 billion.  Fardon announced that Vaulin had been ... Continue Reading

Romanian National “Guccifer” Extradited on Hacking Charges And Pleads Guilty

On April 1, “Guccifer,” a hacker alleged to be Marcel Lehel Lazăr, appeared in the U.S. District Court for the Eastern District of Virginia to face charges relating to the unauthorized access of personal computers and he pleaded guilty nearly two months later, on May 25.   From December 2012 to January 2014, Lazăr hacked into the email and social media accounts of high-profile victims.  These victims included a family member of two former U.S. presidents, ... Continue Reading

Seven Iranians Working for Islamic Revolutionary Guard Corps-Affiliated Entities Charged with Conducting Coordinated Campaign of Cyber Attacks Against U.S. Financial Sector

On March 24, a grand jury indicted seven Iranians for their participation in an extensive campaign of attacks against the servers of U.S. financial institutions.  The individuals, who were employed by computer companies that performed work on behalf of the Iranian government’s Islamic Revolutionary Guard Corps, performed attacks over a period of about two years that disabled banks’ websites and prevented customers from accessing their accounts online.  One of the individuals indicted was also charged ... Continue Reading

Georgia Trader Pleads Guilty to Largest Known Computer Hacking and Securities Fraud Scheme

On February 18, Arkadiy Dubovoy of Georgia pled guilty to his role in a scheme that involved stealing press releases ahead of publication and trading on the non-public financial information contained in those releases. Dubovoy, along with four others, used a series of targeted cyber attacks to hack into the computer networks of Marketwired L.P., PR Newswire Association LLC, and Business Wire.  Upon gaining access to the computer networks, they stole press releases about upcoming ... Continue Reading

Pakistani Citizen Admits Laundering Millions from Massive Computer Hacking and Telecommunications Fraud Scheme

On February 11, Muhammad Sohail Qasmani, a Pakistani citizen formerly of Bangkok, Thailand, admitted laundering over $19.6 million on behalf of the perpetrators of a massive international computer hacking and telecommunications fraud scheme. This scheme, allegedly led by Noor Aziz of Karachi, Pakistan, involved unauthorized access to the computer systems—commonly known as PBX systems—that ran the internal telephone networks of numerous businesses and organizations in the United States. Foreign-based hackers targeted the telephone systems of ... Continue Reading

Former Morgan Stanley Financial Adviser Sentenced In Manhattan Federal Court For Illegally Accessing Confidential Client Information

On December 22, Galen Marsh, a former Morgan Stanley financial advisor, was sentenced to three years’ probation and ordered to pay $600,000 in restitution for obtaining confidential client information from his employer by gaining unauthorized access to certain of Morgan Stanley’s computer systems.  Marsh, who worked in the private wealth management division of Morgan Stanley, conducted a total of approximately 6,000 unauthorized searches in that division’s computer systems to obtain confidential client information, including names, ... Continue Reading

First U.S.-China High-Level Joint Dialogue on Cybercrime

On December 1, Attorney General Lynch, along with Department of Homeland Security Secretary Jeh Johnson and Chinese State Councilor Guo Shengkun, co-chaired the first U.S.-China High-Level Joint Dialogue on Cybercrime and Related Issues.  The dialogue sought to enhance cooperation between the two countries on cybercrime and related issues.  The participants established guidelines for requesting assistance relating to cybercrime and responses to such requests; agreed to conduct a tabletop exercise—which simulates emergency scenarios—in spring 2016; agreed ... Continue Reading

Attorney General and Manhattan U.S. Attorney Announce Charges Stemming from Massive Network Intrusions at U.S. Financial Institutions, U.S. Brokerage Firms, Major News Publications, and Other Companies

On November 10, an indictment was unsealed charging three individuals with participating in a cybercriminal enterprise responsible for hacking into the databases of companies and stealing the data of over 100 million individuals.  In one of these intrusions, defendants stole personal information of over 80 million customers of a bank, constituting the largest ever theft of customer data from a U.S. financial institution.  The indictment alleges that defendants also engaged in various schemes to operate ... Continue Reading

Russian National Admits Role in Largest Data Breach Conspiracy Ever Prosecuted

On September 15, Vladimir Drinkman, 34, a Russian national, pled guilty in the District of New Jersey to one count of conspiracy to commit unauthorized access of protected computers and one count of conspiracy to commit wire fraud.  Drinkman and four codefendants allegedly hacked into the networks of corporate victims engaged in financial transactions, retailers that received and transmitted financial data and other institutions with information that the conspirators could exploit for profit, including the ... Continue Reading