Chicago-Area Resident Indicted In Stolen Identity Refund Fraud Scheme Involving Victims From The U.S. Air Force

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

A federal grand jury sitting in Chicago, Illinois returned an indictment on Feb. 11 against a resident of a Chicago suburb, charging him with 10 counts of wire fraud, 10 counts of aggravated identity theft and one count of access device fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois. The defendant had his initial court appearance earlier today.

Jonathan Herring aka Byron Taylor, Marco Brown and Quang Dang of Harvey, Illinois, participated in a stolen identity refund fraud scheme, according to allegations in the indictment.  Herring obtained the means of identification of actual individuals, including their names and social security numbers and used this information to prepare false tax returns.  Herring is alleged to have obtained stolen identities of members of the U.S. Air Force, among others.  Herring used the stolen identities to electronically file false income tax returns seeking tax refunds with the Internal Revenue Service (IRS).  Herring is alleged to have received the fraudulently obtained tax refunds in the form of direct deposits into various bank accounts that he controlled. 

If convicted, Herring faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, 10 years in prison for one count of access device fraud and a mandatory sentence of two years in prison for aggravated identity theft, which will run consecutive to any other prison term he receives.  Herring also faces substantial monetary penalties, supervised release, and restitution.

An indictment merely alleges that crimes have been committed.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Acting Assistant Attorney General Ciraolo commended special agents of IRS Criminal Investigation, who investigated the case and Trial Attorneys Michael C. Boteler and Timothy M. Russo of the Tax Division, who are prosecuting this case. 

Leader of Identity Theft Ring Sentenced for Stealing More Than 600 Identities and Causing More Than $1 Million in Losses

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

The leader of an identity theft ring that stole more than 600 identities from U.S. government employees and others was sentenced today to serve 12 years in prison, followed by three years of supervised release.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting United States Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Kathy A. Michalko of the United States Secret Service’s Washington Field Office and Chief Edwin C. Roessler Jr. of the Fairfax County Police Department made the announcement.

Jenaro Blalock, 31, of Clinton, Md., pleaded guilty on Oct. 29, 2013, to access device fraud and aggravated identity theft and was sentenced by United States District Judge Claude M. Hilton.   Blalock was also ordered to pay full restitution to victims.

According to court documents, between June 2011 and July 2013, Blalock and co-leader Christopher Bush recruited women with access to identity information through their employers to steal more than 600 identities, primarily belonging to employees of the U.S. Department of State, the U.S. Department of Defense and the U.S. Agency for International Development.   

Blalock provided blank driver’s licenses so that Bush could make fraudulent driver’s licenses bearing the victims’ real names, addresses and dates of birth.   Blalock also made fraudulent credit cards bearing victims’ names.   Members of the identity theft ring, including Blalock, used those fraudulent driver’s licenses and victims’ social security numbers to open instant credit lines at retailers and obtain rental cars, which were frequently sold on the black market with altered vehicle identification numbers.   

According to information provided at sentencing, the identity theft ring caused victim losses of between $1 million and $2.5 million.

On Jan. 17, 2014, Bush was sentenced to serve 10 years in prison for his role in the scheme.

This case was investigated by the United States Secret Service and the Fairfax County Police Department, with assistance from the City of Fairfax Police Department, Prince George’s County Washington Area Vehicle Enforcement, Prince George’s County Financial Crimes Section, the Metropolitan Washington Airport Authority, the Delaware State Police, the Maryland State Police, the D.C. Metropolitan Police Department, the U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Agriculture and the Office of the Inspector General of the U.S. Department of State .
The case was prosecuted by Trial Attorney Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia.

Ukrainian National Who Co-Founded Cybercrime Marketplace Sentenced To 18 Years In Prison

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

One of the world’s most prolific cybercriminals was sentenced today to serve 18 years in prison for his role in co-founding the notorious website CarderPlanet. At the time of his arrest, Vega possessed more than half a million stolen credit card numbers.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, and Special Agent in Charge Steven G. Hughes of the U.S. Secret Service’s New York Field Office made the announcement after sentencing by Senior U.S. District Judge Allyne R. Ross of the Eastern District of New York.

Roman Vega, 49, a Ukrainian national, pleaded guilty in 2009 to conspiracies to commit money laundering and access device fraud.   According to court documents, Vega – who at various times was also known as “Boa,” “Roman Stepanenko” and “Randy Riolta” – conspired with others to steal large volumes of credit card information through hacking and other sophisticated means, and then sold that stolen information to others, who ultimately used the information to purchase merchandise and services.   Vega founded two different online marketplaces for this stolen credit card information.

“Today’s sentence is a significant milestone in our ongoing effort to aggressively target and dismantle global cybercrime organizations that operate from every corner of the world,” said Acting Assistant Attorney General Raman.  “Vega helped create one of the largest and most sophisticated credit card fraud sites in the cybercrime underworld – a distinction that has earned him the substantial sentence he received today.”

“The defendant and his group of cybercriminals emulated the mafia in organizing their criminal operations,” said U.S. Attorney Lynch.   “Now, the defendant shares the same fate as so many mafia bosses – a long term of imprisonment.   This investigation has spanned the globe and should send the unmistakable message that when it comes to dismantling global cybercrime organizations, we will not be held back by distance or complexity.”

“The Secret Service is pleased to have participated in this multi-agency criminal investigation that lead to the arrest of Roman Vega also known as ‘Boa’,” said Secret Service Special Agent in Charge Hughes.  “This case demonstrates by constricting this criminal enterprise, there is no such thing as anonymity in the cyber world.  The Secret Service continues to seek new and innovative ways to combat emerging cyber threats.  Our success in this case and other similar investigations is a result of our close work with our network law enforcement partners.”

In the late 1990s, Vega founded the Boa Factory, one of the earliest websites to provide a forum for sellers of stolen credit card information to meet potential buyers.   In the early 2000s, he co-founded and became a high-ranking administrator of a second criminal website, CarderPlanet, which became one of the first and busiest online marketplaces for the sale of stolen financial information, computer hacking services and money laundering.

At its height, CarderPlanet had more than 6,000 members and had a hierarchical leadership structure that borrowed its leadership titles from La Cosa Nostra.   For example, CarderPlanet was headed by a “Godfather.”   Immediately below the Godfather were a number of “Dons,” including the defendant, who used the name “Boa” when serving in this role.  Three levels below the Dons was the “Consigliere,” who was an advisor.   Vega, using the name “RioRita,” also served as the Consigliere.

CarderPlanet became a premier online criminal bazaar in significant part as a result of Vega’s leadership.   Most notably, the defendant helped institute a quality control system for sales.   If a cyberthief wanted to sell stolen credit card information on CarderPlanet, the information was subjected to a vetting process overseen by a manager to ensure that buyers obtained usable stolen data.   In addition, the website used e-currencies, such as WebMoney, to provide the participants with security and a layer of anonymity.   Vega and his co-conspirators thus created an efficient and trustworthy online marketplace for the buyers and sellers of stolen financial information not unlike legitimate e-commerce sites.

Vega also sold stolen data on the marketplaces he founded and managed.   He directed cells of cybercriminals located throughout the globe who hacked into financial institutions to steal credit card and other financial information that would in turn be sold on carding forums, including CarderPlanet.   Vega’s criminal career was cut short when he was arrested in Cyprus in February 2003 and extradited to the Northern District of California for prosecution.   In November 2007, Vega was transferred to the Eastern District of New York following his indictment on the instant charges, and he pleaded guilty in January 2009.   Vega has been incarcerated continuously since 2003.

The case was investigated by the U.S. Secret Service, with assistance from the U.S. Postal Inspection Service.   The case was prosecuted by Senior Counsel Thomas Dukes of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William P. Campos of the Eastern District of New York.