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.
