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Florida #man gets 16 months over #bitcoin bank #hacker scheme

Source: National Cyber Security – Produced By Gregory Evans

Florida #man gets 16 months over #bitcoin bank #hacker scheme

NEW YORK – A Florida software engineer was sentenced to 16 months in prison for helping run an illegal Bitcoin exchange suspected of laundering money for a group of hackers who targeted financial and publishing firms including JPMorgan Chase & Co. and Dow Jones & Co.

Yuri Lebedev, 39, helped operate Coin.mx, which tricked banks into processing bitcoin transactions by disguising them as restaurant-delivery charges and online purchases of collectible items. He was convicted in March of conspiracy and fraud following a month-long trial in Manhattan.

Lebedev, wearing a black suit, stood before sentencing to tell the judge he regretted his actions. He said he joined Coin.mx to create “cutting edge technology” and build something “that would make me exceptional.”

“I got carried away,” he said, adding he realizes now “there are no shortcuts.”

U.S. District Judge Alison J. Nathan in New York said Lebedev used his “impressive technology skills” to trick banks, making them “unwilling participants in the scheme.”

Prosecutors said the unregistered exchange sold bitcoins that were used in illegal online transactions and as payment in ransomware attacks. To help dodge regulators, Lebedev also conspired with his boss to bribe a New Jersey pastor to let them take over a credit union that was run out of a church and use it to help legitimize the exchange’s corrupt operations.

The operator of Coin.mx, Anthony Murgio, was sentenced to 5½ years in June. He admitted in January that he ran Coin.mx for the hacking scheme’s main Israeli architect, Gery Shalon, the self-described founder of a sprawling criminal enterprise that hacked at least nine companies.

Lebedev was born in Russia and raised in Ukraine before moving in with a host family in the U.S. state of Georgia. His attorney, Eric Creizman, cited the wide-ranging nature of the scheme to portray his client as a husband and doting father of three who was been caught up in something too big for him to recognize. In court papers, he described Lebedev as an “unlikely criminal defendant.”

“This case in which Lebedev was tried and convicted as a defendant involved a far broader scope of criminality than the conduct that Lebedev purposefully involved himself in or even knew about,” Creizman said in a court filing.

Lebedev wasn’t accused of money laundering and wasn’t involved in the hacking scheme. Creizman emphasized his technology role and said he wasn’t involved in the three-way calls with banks in which customers lied about the nature of their transactions.

Family and friends sent letters to the court supporting Lebedev, all of which described him as a man devoted to hard work and to giving his children the kind of opportunities he didn’t have in Ukraine. His host family described how Lebedev tutored their child in math, while a college friend relayed how Lebedev washed dishes to avoid using a credit card for living expenses like others did.

Shalon’s global network allegedly stole information on more than 100 million customers of banks and publishing firms and generated hundreds of millions of dollars in illicit proceeds from pump-and-dump stock scams and online gambling.

Murgio operated the exchange with Lebedev from about 2013 to 2015 through a front company, the Collectables Club Private Member Association, which lists Murgio’s West Palm Beach address, court papers show. At Murgio’s sentencing hearing, he wept and said he’d “screwed up badly.”

The men “knowingly exchanged cash for people whom they believed may be engaging in criminal activity,” the government said in court filings.

As part of the scheme, Lebedev was installed on the board of New Jersey-based HOPE Federal Credit Union to bribe Trevon Gross, a pastor who was convicted in the same case, to gain control of the credit union and use it to process corrupt bank transactions that would appear legitimate, court filings show. Gross hasn’t been sentenced.

“Lebedev was one of the handful of co-conspirators involved in the credit union’s processing of over $60 million in risky” transactions, prosecutors said in court papers.

Lebedev’s role was to set up an array of servers that Coin.mx used to process its transactions, a critical element of the scheme that required constant attention to avoid detection by the banks, the U.S. said.

“One of those critical issues that Lebedev handled was the use of separate servers to mislead banks and payment processors into thinking that Coin.mx bitcoin transactions were actually Collectables Club memorabilia and MyXtremeDelivery food transactions,” the U.S. said in court papers.

Lebedev also attempted to obstruct the case by deleting files from a computer, prosecutors said.

Shalon and his alleged top lieutenant, Ziv Orenstein, were arrested in Israel in July 2015 and extradited to the U.S. last year. They have pleaded not guilty. An American who allegedly conspired with them, Joshua Aaron, who attended Florida State University with Anthony Murgio, was detained by Russian authorities in 2015 and returned to the U.S. to face charges. He denies wrongdoing.

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Hacker who Infiltrated American Military Systems gets Sentenced

Source: National Cyber Security – Produced By Gregory Evans

Suttong Coldfield based Sean Caffrey pleaded guilty to a crime within the purview of Computer Misuse Act during June while facing Birmingham Crown Court following which the jury sentenced him with imprisonment for 18 months along with an 18-month suspension. Caffrey, aged 25, a British resident and PC-hacker acquired illegitimate…

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Florida officer gets 5 years for driver license theft scheme

Source: National Cyber Security – Produced By Gregory Evans

MIAMI A former Florida police officer has been sentenced to five years in federal prison for his role in an identity theft scheme that involved a confidential law enforcement driver license database. Court documents show 38-year-old Raul Castellon of the Hialeah Police Department was sentenced Tuesday. He pleaded guilty in…

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Texan Gets 16 Years for Distributing Child Porn

To Purchase This Product/Services, Go To The Store Link Above Or Go To http://www.become007.com/store/ Federal law enforcement authorities continue to crack down on internet sex predators, sentencing a second west Texas man to prison on child porn charges in less than one week. Thirty-five year …

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Filipino National Gets 5 Years for ATM Hacking Scheme

Source: National Cyber Security – Produced By Gregory Evans

Filipino National Gets 5 Years for ATM Hacking Scheme

A Filipino national has been sentenced to more than five years in prison for orchestrating a scheme that used hacked credit and debit card information to steal millions of dollars. A federal judge in Newark sentenced Angelo Virtucio to 63 months on Thursday. He had pleaded guilty to one count…

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Cybersecurity gets more sophisticated – but so does hacking

To Purchase This Product/Services, Go To The Store Link Above Or Go To http://www.become007.com/store/ Source: National Cyber Security – Produced By Gregory Evans Just when you thought you had the ultimate password to foil hackers, along come new cyberthreats that make you WannaCry. Meet the …

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Erie man gets life in prison for wife’s stabbing death

To Purchase This Product/Services, Go To The Store Link Above Or Go To http://www.become007.com/store/ Jurors found in March that Billy Ray Gordon stabbed his wife 20 times before dumping her body along East 19th Street in July. By Madeleine O’Neill An Erie man who tried …

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SF man who stole identities of fellow inmates gets 7-year sentence

Source: National Cyber Security – Produced By Gregory Evans

SF man who stole identities of fellow inmates gets 7-year sentence

A San Francisco man was sentenced to seven years in prison Tuesday, four months after a jury found him guilty of stealing the identities of men he’d met in prison and using them to commit tax fraud, prosecutors said. From June 2010 to January 2012, 52-year-old Howard Webber, who was…

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Missouri Man Gets 8 Years for Amassing Child Porn Collection

To Purchase This Product/Services, Go To The Store Link Above Or Go To http://www.become007.com/store/ A western Missouri man has been ordered to spend eight years and one month in federal prison for amassing what prosecutors say was a large collection of child pornography. Thirty-six-year-old Timothy …

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Expedia IT bod gets all-expenses-paid trip to prison after hacking execs’ emails for profit

Source: National Cyber Security – Produced By Gregory Evans

Expedia IT bod gets all-expenses-paid trip to prison after hacking execs’ emails for profit

An ex-Expedia IT admin has been fined and jailed for 15 months after he spied on the emails of the travel giant’s top brass to make insider trades. According to …

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