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

Wednesday, February 7, 2018

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:

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
CriminalitĆ© liĆ©e 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.

