Russian Cyber-Criminal Sentenced To 14 Years In Prison For Role In Organized Cybercrime Ring Responsible For $50 Million In Online Identity Theft And $9 Million Bank Fraud Conspiracy

A Russian cyber-criminal was sentenced today to 14 years in prison for his role in a $50 million cyberfraud ring and for defrauding banks of $9 million through a hacking scheme.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney Byung J. Pak of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas, and FBI Special Agent in Charge David J. LeValley in Atlanta made the announcement.

Roman Valeryevich Seleznev aka Track2, Bulba and Ncux, 33, was sentenced by U.S. District Judge Steve C. Jones of the Northern District of Georgia to serve 168 months in prison for one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and to 168 months in prison for one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia, with the sentences to run concurrent to one another. In both cases, Seleznev was ordered three years of supervised release to run concurrently.  He was also ordered restitution in the amount of $50,893,166.35 in the Nevada case and $2,178,349 in the Georgia case. Seleznev pleaded guilty to the charges on Sept. 7.

In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization, an identify theft and credit card fraud ring, in January 2009.  According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud, and computer crimes.  Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement.  For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.

Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members.  The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites.  His automated website allowed members to log into and purchase stolen credit card account data.  The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information.  Payment of funds was automatically deducted from an established account funded through L.R., an online digital currency payment system.

Seleznev further admitted that he sold each account number for approximately $20.  The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,893,166.35.

In connection with his guilty plea in the Northern District of Georgia case, Seleznev admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions.  Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and accessed 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.

Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33 individuals have been convicted and the rest are either fugitives or are pending trial.

The cases were investigated by HSI, the U.S. Secret Service, and FBI.  The Nevada case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada.  The Northern District of Georgia case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.

Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington.  On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld.  On April 21, Seleznev was sentenced to 27 years in prison for those crimes, which will run concurrent to his sentences today.    

Russian Cyber-Criminal Pleads Guilty To Role In Organized Cybercrime Ring Responsible For $50 Million In Online Identity Theft

The U.S. Justice Department released the below information:

A Russian cyber-criminal who sold stolen credit card data and other personal information through the identity theft and credit card fraud ring known as “Carder.su” pleaded guilty yesterday in two separate criminal cases to one count of participation in a racketeering enterprise and one count of conspiracy to commit bank fraud.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney John A. Horn of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) and Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas made the announcement.

Roman Valeryevich Seleznev, aka Track2, aka Bulba, aka Ncux, 33, entered guilty pleas in both criminal cases at a hearing before U.S. District Judge Steve C. Jones of the Northern District of Georgia.  Seleznev pleaded guilty to one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia.  He will be sentenced on December 11.

In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization in January 2009. According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud and computer crimes. Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.

Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an on-line digital currency payment system. Seleznev admitted that he sold each account number for approximately $20.  The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,983,166.35.

In connection with his guilty plea in the Northern District of Georgia case, Seleznev admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions.  Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and stole 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.

Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33individuals have been convicted and the rest are either fugitives or are pending trial.

The cases were investigated by HSI and the U.S. Secret Service.  The Nevada case is being prosecuted by Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada.  The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.

Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington.  On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld.  On April 21, Seleznev was sentenced to 27 years in prison for those crimes.    

California Woman Sentenced To 50 Months In Prison For Conspiring To Illegally Export Fighter Jet Engines And Unmanned Aerial Vehicle To China

The U.S. Justice Department released the below information:

Wenxia Man, aka Wency Man, 45, of San Diego, was sentenced today to 50 months in prison for conspiring to export and cause the export of fighter jet engines, an unmanned aerial vehicle – commonly known as a drone – and related technical data to the People’s Republic of China in violation of the Arms Export Control Act.

The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Miami and Special Agent in Charge John F. Khin of the Department of Defense’s Defense Criminal Investigative Service (DCIS).

On June 9, 2016, Man was convicted by a federal jury in the Southern District of Florida of one count of conspiring to export and cause the export of defense articles without the required license.

According to evidence presented at trial, between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles.  During the course of the investigation, when talking to an undercover HSI agent, Man referred to Zhang as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries and stated that he was particularly interested in stealth technology.

HSI and DCIS investigated the case.  Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case. 

Alleged Leader Of A Mexican Drug Cartel Extradited To The United States

The U.S. Justice Department released the below information:

One of the alleged leaders of the Beltran Leyva Organization, a Mexican drug-trafficking cartel responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States, was extradited to the United States from Mexico on Nov. 15, 2014, and will be making an initial appearance this afternoon before U.S. Magistrate Judge Alan Kay of the District of Columbia.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division, New York Division Special Agent in Charge James J. Hunt of the Drug Enforcement Administration (DEA) and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) made the announcement.

“Over the past two decades, the Beltran Leyva Cartel has distributed tens of thousands of kilograms of dangerous narcotics and engaged in a campaign of violence that sparked drug wars and jeopardized public safety across North America,” said Assistant Attorney General Caldwell.
“Today’s extradition of alleged kingpin Alfredo Beltran Leyva is an important step toward stamping out an organization that has ruined the lives of so many.  The Justice Department is committed to working with our international partners to bring the rest of the organization to justice.”  

“The arrest and extradition of Alfredo Beltran Leyva represents a significant milestone in combating transnational criminal organizations,” said FBI Assistant Director Campbell.  “It is through collaborative efforts with our law enforcement partners that the United States will stem the tide of this continuing threat.”

“For years Alfredo Beltran Leyva, along with his brothers, was responsible for not only smuggling tons of cocaine to the United States, but also for the violence that has plagued the lives of Mexican citizens,” said DEA Special Agent in Charge Hunt.  “His extradition to the United States is an example of a commitment to international cooperation and the rule of law.”

“The illegal drugs distributed throughout the United States by the Beltran Levya Cartel ruined countless lives in this country and sowed violence and chaos throughout Mexico,” said HSI Executive Associate Director Edge.  “The arrest and extradition of Alfredo Beltran Levya to face justice here for his crimes is a great victory for ICE HSI and our partner agencies.”

Alfredo Beltran Levya, 43, was indicted on Aug. 24, 2012, for international narcotics trafficking conspiracy in connection with his leadership role in theinternational drug-trafficking cartel bearing his family name.

According to a motion for pretrial detention filed by prosecutors, between the early 1990s until his January 2008 arrest by Mexican law enforcement, Beltran Levya allegedly led the Beltran Levya Organization with his brothers Hector Beltran Levya and Arturo Beltran Levya, the latter of whom was killed in a December 2009 shootout with the Mexican army. 

Since the 1990s, the Beltran Levya Organization, together with the Sinaloa Cartel, allegedly directed a large-scale drug transportation network, shipping multi-ton quantities of cocaine from South America, through Central America and Mexico, and finally into the United States via land, air and sea.  The organization also employed “sicarios,” or hitmen, who allegedly carried out hundreds of acts of violence, including murders, kidnappings, tortures and violent collections of drug debts, at the direction of the organization.

Following the January 2008 arrest of  Alfredo Beltran Leyva by Mexican law enforcement authorities, the Beltran Leyva Organization severed its relationship with the Sinaloa Cartel, which was blamed for the arrest.  This resultedin a violent war between the two drug cartels, and the murder of thousands of citizens in Mexico, including numerous law enforcement officers and officials.
On May 30, 2008, the President added the Beltran Leyva Organization to the Department of Treasury’s Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons list pursuant to the Foreign Narcotics Kingpin Designation Act.  On Aug. 20, 2009, the President specifically designated Beltran Leyva as a specially designated drug trafficker under the same Kingpin Act.

The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The investigation is led by the FBI’s El Paso Office, in partnership with the DEA’s New York Field Division and HSI’s New York Office, as part of the Organized Crime Drug Enforcement Task Force.  This case is being prosecuted by the Criminal Division’s Narcotic and Dangerous Drugs Section, with the assistance of the Criminal Division’s Office of International Affairs.  The Justice Department thanks the government of Mexico for their assistance in this extradition.