10 fraud, wire fraud, scams, money laundering, cryptocurrency, charge, sentencing, law enforcement operations, possession of stolen property, auto theft 2024.5.15-6.7 ✓Attorney ✓Gov ✓Police ✓Press ✓U.S.,美国

PRESS RELEASE
Chief Investment Officer Of Allianz Global Investors U.S. Pleads Guilty To Investment Adviser Fraud
Friday, June 7, 2024

For Immediate Release
U.S. Attorney’s Office, Southern District of New York

Gregoire Tournant and Two Other Former Allianz Global Investor Employees Have Pled Guilty

Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of GREGOIRE TOURNANT, the former chief investment officer and co-lead portfolio manager for a series of private investment funds managed by Allianz Global Investors U.S. LLC (“AGI”), to investment adviser fraud. AGI and two other AGI employees previously pled guilty, and AGI paid more than $3 billion in restitution to the innocent victims of this fraud, paid a criminal fine of approximately $2.3 billion, and forfeited approximately $463 million to the Government. TOURNANT pled guilty today before U.S. District Judge Laura Taylor Swain, and he is scheduled to be sentenced on October 16, 2024.

U.S. Attorney Damian Williams said: “Gregoire Tournant and his co-conspirators lied to investors, secretly exposed them to risk, and as Tournant has now admitted, sent victims altered risk reports. Today’s guilty plea is the culmination of a multi-year investigation and prosecution that has held wrongdoers responsible, made victims whole, and demonstrated this Office’s resolve to pursue even the most sophisticated of financial crimes.”

According to the allegations contained in the Indictments, Superseding Information, and other filings and statements made in court:

Between 2014 and 2020, TOURNANT was the chief investment officer of a set of private funds at AGI known as the Structured Alpha Funds. These funds were marketed largely to institutional investors, including pension funds for workers all across America. TOURNANT and his co-defendants misled these investors about the risk associated with their investments. To conceal the risk associated with how the Structured Alpha Funds were being managed, TOURNANT and his co-defendants provided investors with altered documents to hide the true riskiness of the funds’ investments, including that investments were not sufficiently hedged against risks associated with a market crash. In March 2020, following the onset of market declines brought on by the COVID-19 pandemic, the Structured Alpha Funds lost in excess of $7 billion in market value, including over $3.2 billion in principal, faced margin calls and redemption requests, and ultimately were shut down.

On May 17, 2022, AGI pled guilty to securities fraud in connection with this fraudulent scheme and later was sentenced to a pay a criminal fine of approximately $2.3 billion, forfeit approximately $463 million, and pay more than $3 billion in restitution to the investor victims. TOURNANT’s co-defendants, Trevor Taylor and Stephen Bond-Nelson, previously pled guilty on March 8, 2022, and March 3, 2022, respectively.

TOURNANT, 57, of Basalt, Colorado, pled guilty to two counts of investment adviser fraud, each of which carries a maximum sentence of five years in prison. In connection with his plea, TOURNANT agreed to forfeit approximately $17 million in paid and deferred compensation traceable to his commission of the fraud.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service and the Special Agents of the U.S. Attorney’s Office. He also expressed appreciation for the Securities Exchange Commission, which previously initiated a civil proceeding against TOURNANT.

This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Nicholas Folly, Allison Nichols, Thomas Burnett, Sarah Mortazavi, and Nicolas Roos are in charge of the prosecution.

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Ex-Allianz Fund Manager Tournant Pleads Guilty in Fraud Case

(Bloomberg) — A former Allianz SE hedge fund manager charged with fraud over billions of dollars in investor losses pleaded guilty to providing altered documents to hide the riskiness of the funds’ investments, two years after a unit of the company agreed to pay $5.8 billion in penalties.

At a hearing in federal court Friday in Manhattan, Gregoire Tournant changed his plea and admitted to two counts of investment adviser fraud in managing a group of hedge funds that collapsed during the pandemic. The unit, Allianz Global Investors US, pleaded guilty to fraud in 2022 for misleading investors seeking low-risk investments.

Tournant, 57, was chief investment officer and co-lead portfolio manager of the hedge fund group. He had pleaded not guilty to criminal charges including securities fraud and conspiracy to obstruct justice. If he had gone to trial and lost, he faced as many as 20 years in prison for the most serious charge in the earlier indictment. He is scheduled to be sentenced on Oct. 16.

Tournant – who said he is being treated for multiple neurological issues and coughed throughout the hearing – told Judge Laura Taylor Swain that he provided altered documents that were sent to fund investors between 2014 and 2020.

“Gregoire Tournant and his co-conspirators lied to investors, secretly exposed them to risk, and as Tournant has now admitted, sent victims altered risk reports,” Manhattan US Attorney Damian Williams said in a statement. “Today’s guilty plea is the culmination of a multi-year investigation and prosecution that has held wrongdoers responsible, made victims whole, and demonstrated this Office’s resolve to pursue even the most sophisticated of financial crimes.”

Tournant’s change-of-plea hearing came after potential discussions to resolve the case were flagged in January. His lawyers, Seth Levine and Daniel Alonso, declined to comment following the hearing.

Allianz fired Tournant and Stephen Bond-Nelson in February 2022. They were responsible for the company’s Structured Alpha hedge funds, a suite of funds that allegedly lost billions of dollars and prompted probes by US regulators. A third manager involved in running the funds, Trevor Taylor, left at the same time.

The hedge funds were set up to profit from volatility yet incurred huge losses during the early days of the pandemic. The investors included public pension fund Arkansas Teacher Retirement System and New York’s Metropolitan Transportation Authority.

Tournant, of Basalt, Colorado, was arrested and charged with fraud. Bond-Nelson and Taylor pleaded guilty and agreed to cooperate with prosecutors.

Tournant lost a bid last August to dismiss the charges. He had argued that lawyers at Sullivan & Cromwell, who initially represented both him and Allianz, gained information they used to push the government to focus on him instead of the company. Prosecutors said he was trying to avoid trial by making inflammatory and baseless claims.

Tournant also agreed to forfeit $17 million in pay traceable to the fraud, prosecutors said, including claims to more than $14 million in deferred compensation.

The case is US v. Tournant, 22-cr-00276, US District Court, Southern District of New York (Manhattan).

(Updates with comment from prosecutors and forfeiture agreement.)

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Former Allianz employee pleads guilty to fraud over $7-billion funds collapse

Former Allianz fund manager Gregoire Tournant and his attorney Daniel Alonso arrive at United States Court in Manhattan where he was expected to plead guilty over his role in the 2020 collapse of the Structured Alpha funds, which led to $7 billion of investor losses and a $6 billion criminal settlement for Allianz, in New York

NEW YORK, June 7 (Reuters) – A former Allianz (ALVG.DE), opens new tab fund manager pleaded guilty on Friday over his role in a meltdown of private investment funds sparked by the pandemic that caused an estimated $7 billion of investor losses.

Gregoire Tournant, 57, of Basalt, Colorado, admitted to two counts of investment adviser fraud at a hearing before Chief Judge Laura Taylor Swain of the federal court in Manhattan.

He faces up to 10 years in prison at his Oct. 16 sentencing. Tournant also agreed to give up $17.5 million in ill-gotten gains, including bonuses that were inflated by his fraud.

The case stemmed from the March 2020 collapse of the German insurer’s now-defunct Structured Alpha funds, which Tournant had created and oversaw as chief investment officer.

In May 2022, Allianz agreed to pay more than $6 billion and its U.S. asset management unit pleaded guilty to securities fraud to resolve government probes into the collapse. Two other former Allianz fund managers pleaded guilty at the time.

The Structured Alpha funds had bet heavily on stock options, in a manner designed to limit losses in a market selloff, which Tournant likened to a form of insurance.

Prosecutors said Tournant misled investors about the funds’ risks by altering performance data and diverging from his promised hedging strategy, and obstructed a U.S. Securities and Exchange Commission probe by directing a colleague to lie.

But manufacturers like Teva have been struggling.

The funds once had more than $11 billion of assets under management, but lost about $7 billion in February and March 2020 as the start of the pandemic set off a worldwide market panic.

Before pleading guilty, Tournant admitted to providing deceptive information to investors.

“I knew this conduct was wrongful,” Tournant told the judge.

Prosecutors said the fraud ran from 2014 through March 2020, with Tournant being paid more than $60 million over that time.

Tournant previously pleaded not guilty to five criminal counts including investment adviser fraud, securities fraud, conspiracy and obstruction.

He had also accused the law firm Sullivan & Cromwell, which had represented him and Allianz, of making him a scapegoat after Allianz decided to cooperate with federal prosecutors.

Swain rejected Tournant’s request to dismiss the criminal case last August.

The case is U.S. v. Tournant, U.S. District Court, Southern District of New York, No. 22-cr-00276.

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安联全球投资者美国首席投资官承认投资顾问欺诈罪
Gregoire Tournant 和另外两名前安联全球投资者员工已认罪

美国纽约南区检察官 Damian Williams 今天宣布，前任首席投资官兼联席首席投资组合经理 GREGOIRE TOURNANT 因投资顾问欺诈罪认罪，他曾担任 Allianz Global Investors US LLC（“AGI”）管理的一系列私人投资基金的首席投资官和联席首席投资组合经理。AGI 和 AGI 的另外两名员工此前已认罪，AGI 向该欺诈案的无辜受害者支付了超过 30 亿美元的赔偿金，支付了约 23 亿美元的刑事罚款，政府没收了约 4.63 亿美元。TOURNANT 今天在美国地区法官 Laura Taylor Swain 面前认罪，定于 2024 年 10 月 16 日宣判。

美国检察官 Damian Williams 表示：“Gregoire Tournant 及其同谋欺骗投资者，秘密让他们面临风险，而且 Tournant 现已承认，他们向受害者发送了篡改的风险报告。今天的认罪是多年调查和起诉的高潮，该调查追究了犯罪者的责任，赔偿了受害者，并表明了本办公室追查最复杂的金融犯罪的决心。”

PRESS RELEASE
Former Rochester couple arrested, charged with defrauding VA out of hundreds of thousands of dollars
Tuesday, June 4, 2024

For Immediate Release
U.S. Attorney’s Office, Western District of New York

ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Michael Joyce, 52, and his wife Sarah Shultis, 32, both formerly of Rochester, NY, now living in New Jersey, were arrested and charged by criminal complaint with theft of government funds, making false statements, wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the United States. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.

Assistant U.S. Attorney Nicholas M. Testani, who is handling the case, stated that according to the complaint, in April 2016, defendant Joyce submitted claims for disability compensation to the Department of Veterans Affairs for Post-Traumatic Stress Disorder (PTSD), an issue with his left hand, asthma, anxiety disorder, major depressive disorder, panic disorder, sleep apnea, GER, hypertension, tinnitus, gout, an unidentified left knee issue, an unidentified left ankle issue, an unidentified right ankle issue, Traumatic Brain Injury (TBI), and unidentified cardiac issues. Following multiple consultations and examinations for various issues, Joyce was awarded a 100% disability rating for reported PTSD in December 2016. In February 2018, Joyce applied for a status of permanent and total disability (PTD), which removes an individual’s obligation to continue getting re-evaluated for various disabilities, and makes them eligible for other veteran benefits. In his Statement in Support of Claim, Joyce asserted, “Every disability that I have either is the same but will not get better or has gotten worse.” He stated that his PTSD has not improved, that he is more housebound, and feels that he will die if he goes outside. Joyce was subsequently granted a PTD status in April 2018.

In July 2019, Joyce submitted a Declaration of Status of Dependents, listing himself as married and living with his wife and seven additional dependent children, raising his payment for a 100% disabled veteran from $3,171.12 per month, to $3,860.55 per month. Joyce continues to receive VA disability compensation and special monthly compensation in the amount of $4,737.42 per month. He has received over $393,158.14 in payments from VA as of March 2024. In November 2017, Joyce and Shultis applied for Shultis, as Joyce’s purposed caregiver, to receive payments through the VA Caregiver Support Program (CSP), claiming that Joyce is wholly reliant on Shultis for multiple life tasks, including feeding, bathing, and dressing. Shultis was approved and received a retroactive payment of $8,345.82, and began to receive $2,890.14 per month for the care of Joyce. As of March 2024, Shultis has received over $213,000.

A review of Joyce’s Army personnel file and during interviews with former members of Joyce’s unit, investigators found multiple inconsistencies in Joyce’s claims. Unit members described Joyce as competent, intelligent, and physically fit, someone who remodeled multiple bathrooms and repaired a roof, and was never deployed to a combat zone. Subsequent investigation and surveillance documented, on multiple occasions, Joyce walking with no apparent difficulty or assistance, driving a motor vehicle, and performing household maintenance tasks, including climbing a ladder and snow shoveling.

The complaint is the result of an investigation by the Social Security Administration Office of Inspector General, under the direction of Acting Special Agent-in-Charge Bradley Parker, and the Department of Veterans Affairs Office of Inspector, under the direction of Special Agent-in-Charge Christopher F. Algieri, Northeast Field Office.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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纽约州罗切斯特 – 美国检察官 Trini E. Ross 今天宣布，现年 52 岁的 Michael Joyce 和他现年 32 岁的妻子 Sarah Shultis 被逮捕，他们两人均原先居住在纽约州罗切斯特，现居住在新泽西州，他们被刑事起诉，罪名包括盗窃政府资金、作出虚假陈述、电信欺诈、密谋实施电信欺诈以及密谋欺骗美国。这些指控最高可判处 20 年监禁和 25 万美元罚款。

负责此案的美国助理检察官尼古拉斯·M·特斯塔尼表示，根据诉状，2016年4月，被告乔伊斯向退伍军人事务部提交了残疾补偿申请，理由是其患有创伤后应激障碍（PTSD）、左手问题、哮喘、焦虑症、重度抑郁症、恐慌症、睡眠呼吸暂停、胃食管反流、高血压、耳鸣、痛风、不明原因的左膝盖问题、不明原因的左脚踝问题、不明原因的右脚踝问题、创伤性脑损伤（TBI）和不明原因的心脏问题。在针对各种问题进行多次会诊和检查后，乔伊斯于2016年12月获得了PTSD 100%残疾评级。2018年2月，乔伊斯申请了永久性和完全残疾（PTD）身份，该身份免除了个人继续重新评估各种残疾的义务，并使其有资格享受其他退伍军人福利。乔伊斯在支持索赔的声明中声称：“我所患的每一种残疾要么与以前一样，但不会好转，要么变得更糟。”他表示，他的创伤后应激障碍没有好转，他更倾向于足不出户，并且觉得只要出门就会死。乔伊斯随后于 2018 年 4 月被认定为创伤后应激障碍。

2019 年 7 月，乔伊斯提交了一份受抚养人身份声明，其中列出自己已婚并与妻子和另外七个受抚养子女同住，将他作为 100% 残疾退伍军人的补助从每月 3,171.12 美元提高到每月 3,860.55 美元。乔伊斯继续每月领取 VA 残疾补偿和特别月度补偿 4,737.42 美元。截至 2024 年 3 月，他已从 VA 收到超过 393,158.14 美元的补助。2017 年 11 月，乔伊斯和舒尔蒂斯申请舒尔蒂斯作为乔伊斯的指定照顾者通过 VA 照顾者支持计划 (CSP) 领取补助，声称乔伊斯完全依赖舒尔蒂斯完成多项生活任务，包括喂食、洗澡和穿衣。舒尔蒂斯获得批准，并获得了 8,345.82 美元的补发款，并开始每月获得 2,890.14 美元用于照顾乔伊斯。截至 2024 年 3 月，舒尔蒂斯已收到超过 213,000 美元。

在审查乔伊斯的陆军人事档案和采访乔伊斯所在部队的前成员时，调查人员发现乔伊斯的说法存在多处矛盾。部队成员称乔伊斯能力强、聪明、身体健康，曾改造过多个浴室并修理过屋顶，从未被派往战区。随后的调查和监视多次记录到，乔伊斯行走时没有明显的困难或需要帮助，驾驶机动车，并执行家庭维护任务，包括爬梯子和铲雪。

NYPD 123rd Precinct
@NYPD123Pct
May 31
The S. I.Grand Larceny Sqd is trying to ID this photographed male perp. The individual picked up a large amount of cash in regard to an Elderly Scam on 4/23/24. Incident took place on Topside Ln in the confines of the 123 Pct. Any info please call DET. Reinhold at 718-876-7662.

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Police Seek Suspect Wanted in “Elderly Scam”

NYPD officials have put out an alert about a suspect they say committed two acts of grand larceny ‘by means of a false promise’ when targeting women during April.

According to New York State’s Section 155.05 Larceny laws, “A person obtains property by false promise when, pursuant to a scheme to defraud, he obtains property of another by means of a representation, express or implied, that he or a third person will in the future engage in particular conduct, and when he does not intend to engage in such conduct or, as the case may be, does not believe that the third person intends to engage in such conduct.”

The first reported incident took place at about 4 p.m. on Monday, April 22 in Staten Island, when police say the suspect “remove[d] a large amount of currency from a 73-year-old female victim by means of a false promise.”
At about 10 a.m. on Wednesday, April 24, the same suspect committed the same described act at 111th and Broadway, this time targeting a 63-year-old woman.

Following each incident, the suspect fled the locations in unknown directions.

When we asked the NYPD to elaborate on what exactly happened, they simply said the “Suspect advised the victim that her identity was stolen.” We followed up to ask for more details, like how the interactions began in the first place, but we have not gotten a response.

Pix 11 got a bit more info, stating that “the suspect contacted the victims and told them their identity had been stolen and that the money would be used to help apprehend the suspect, according to the NYPD.”

According to the outlet, police report that the victim in Staten Island lost $25,000 and that the victim on 111th and Broadway lost $36,000.

The 123rd Precinct, which oversees the section of Staten Island in which the first incident took place, also shared a post about the “elderly scam” on X / Twitter.

Police describe the individual as a “male with a medium complexion and slim build,” adding that “He was last seen wearing a black jacket, black pants, and black and white sneakers.”

Anyone with relevant information is asked to call the NYPD’s Crime Stoppers Hotline at 1-800-577-TIPS (8477) or for Spanish, 1-888-57-PISTA (74782). The public can also submit their tips by logging onto the Crime Stoppers website or by sending a direct message to @NYPDTips on Twitter.

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身分被盜詐騙案 兩婦女被騙6.1萬元

紐約市警局提醒民眾防範一種佯稱民眾身分被盜竊，再騙走民眾錢財的模式詐騙案。嫌犯先聯繫受害者，告知其身分被盜，騙取受害者的信任，再要求提供錢財以幫助逮捕實施身分詐騙的歹徒，從而騙走了受害者的錢財。這種詐騙手法通常會讓受害者相信，他們的錢財將用於協助警方抓捕犯罪嫌疑人，但實際上這些錢最終落入了詐騙者的手中。

警方週一（3日）公布嫌犯照片，根據紐約市警局公共信息辦公室（DCPI）公布的信息，曼哈頓上西城的市警局26分局和史坦頓島的123分局各發生一起案例。

警方表示，4月22日（週一）下午4點左右，史坦頓島60 Topside Lane附近，一名男子透過虛假承諾，從一名73歲婦女那裡騙走大量現金後，便逃離現場；此外，4月24日（週三）早上10點左右，曼哈頓上西城第111街交百老匯附近，該男子一樣透過虛假承諾，從一名63歲婦女那裡騙走大量現金。PIX11報導，這兩名婦女總計損失6.1萬美元現金。

警方描述嫌犯為男性，中等膚色，身材瘦，作案時身穿黑色夾克、黑色褲子和黑白運動鞋。

PRESS RELEASE
Chinese Nationals Arrested for Alleged $12.3 Million Fraud Involving Fraudulent Return of Counterfeit Apple iPhones and Other Devices
Friday, May 31, 2024

For Immediate Release
U.S. Attorney’s Office, Central District of California

LOS ANGELES – Five Chinese nationals are scheduled to be arraigned today after their arrest on federal charges alleging they operated a large-scale, trans-Pacific counterfeit Apple Inc. device scheme that included the fraudulent returns of thousands of iPhones, iPads, and other Apple goods and caused the Cupertino-based technology company at least $12.3 million in losses.

A federal grand jury charged the following defendants in a 22-count indictment that was returned on May 23 and was unsealed today:
Yang Song, 40, of Corona, the alleged ringleader;
Junwei Jiang, 37, of East Los Angeles;
Zhengxuan Hu, 26, of Alhambra;
Yushan Lin, 30, of Corona; and
Shuyi Xing, 34, of Corona.

All of the defendants are charged with one count of conspiracy to commit wire fraud and mail fraud, one count of aggravated identity theft, seven counts of wire fraud, 12 counts of mail fraud, and one count of conspiracy to traffic in counterfeit goods.

They were arrested on Thursday and are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.

“The defendants are accused of taking advantage of Apple’s customer-service policies to steal more than $12 million in merchandise,” said United States Attorney Martin Estrada. “Companies should not be victimized and defrauded for being responsive to customer needs, and these federal charges send a message that our office will take decisive action to uncover and prosecute those who perpetrate fraud.”

“Protecting American ingenuity, ensuring economic security, and shielding the consumers across the nation is a top priority for Homeland Security Investigations,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “Due to the outstanding work of HSI Los Angeles with our law enforcement and private sector partners targeting this large-scale fraud operation, we have prevented millions of dollars from lining the pockets of this transnational criminal organization.”

“The defendants allegedly sought to introduce more than 16,000 fraudulent devices into Apple’s product line with the purpose of exchanging them for genuine devices to be sold for profit,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “CI follows the money, and our expertise helps us safeguard U.S. businesses when faced with fraud. We are committed to our partnerships with fellow law enforcement agencies like Homeland Security Investigations to protect our country’s commerce ecosystem by investigating those who seek to take advantage of businesses’ consumer protection programs.”

According to the indictment, from at least December 2015 to March 2024, Song and Jiang coordinated with co-conspirators in China to ship counterfeit Apple iPhones, iPads, and other devices to them and other U.S.-based co-conspirators. The counterfeit Apple devices shipped to Song, Jiang, and others in the U.S. were designed to look like genuine Apple devices and included identification numbers matching the numbers on real Apple products that had been sold in North America, were owned by real people, and were under warranty through Apple’s manufacturer warranty and AppleCare+, Apple’s extended warranty program.

The defendants allegedly then fraudulently returned the counterfeit iPhones, iPads, and other devices to Apple as if they were genuine and had been legitimately purchased, were eligible for Apple’s warranty programs, and as if they were the lawful possessor of the Apple devices. The real identification numbers and serial numbers on the counterfeit devices that defendants allegedly retuned were designed to essentially impersonate the real Apple devices owned by real people throughout the United States, which defrauded Apple’s warranty programs and potentially deprived the Apple devices’ lawful owners of the warranty benefits to which they were entitled.

The defendants allegedly knowingly and fraudulently represented that the counterfeit Apple devices they returned were genuine but were broken or non-operational and were covered by the company’s warranty programs. Some of the false reasons given to Apple store employees were because the devices purportedly would not power on, were physically damaged, or had other defects. But the defendants allegedly knew that the Apple devices they were returning were counterfeit and fraudulently used the identification numbers and serial numbers of real people’s Apple devices to victimize both Apple and the device owners.

As part of the scheme, the defendants allegedly visited multiple Apple stores throughout Southern California, including Apple stores in Beverly Hills, Sherman Oaks, Pasadena, Irvine, Northridge, Manhattan Beach, Brea, Rancho Cucamonga, Cerritos and at shopping malls such as The Grove in Los Angeles, South Coast Plaza in Costa Mesa, Fashion Island in Newport Beach, and The Americana at Brand in Glendale. In many cases, they would drive all over Southern California in a single day and visit as many as 10 different Apple stores where they would allegedly return counterfeit devices.

Once at the Apple stores, Apple employees then either replaced or repaired the counterfeit Apple device with a genuine Apple device in the same visit or, on other occasions, took the defendants’ counterfeit devices and ship them to a repair center. Apple then shipped to the defendants a genuine replacement Apple device or a repaired device to either an Apple store, where the defendants returned to pick up the new device or at the dozens of mailboxes that the defendants allegedly rented across Southern California.

As part of the scheme, the defendants allegedly took multiple steps to disguise their identities and hide their fraud over the years. For example, they allegedly rented dozens of mailboxes at UPS stores across Southern California for use in the scheme, including to receive counterfeit devices from China and receive genuine replacement devices from Apple. They allegedly also misspelled the mailing addresses they provided to Apple and added or removed extra characters to the mailing addresses, to disguise the fact that they were processing numerous fraudulent returns of Apple devices. Other times, they allegedly used aliases to make appointments at Apple stores to process their fraudulent returns of devices.

After successfully returning the counterfeit Apple devices for genuine ones, the defendants allegedly shipped the genuine devices to co-conspirators both in the United States and abroad, primarily in China, where the genuine Apple devices were resold at a substantial profit.

In total, the defendants fraudulently returned and attempted to return more than 16,000 counterfeit Apple devices, causing Apple at least $12.3 million in losses.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted, the defendants would face a statutory maximum sentence of 20 years’ imprisonment on each of the conspiracy to commit mail and wire fraud, wire fraud, and mail fraud charges, a statutory mandatory minimum sentence of two years’ imprisonment for the aggravated identity theft charge, and a statutory maximum sentence of 10 years’ imprisonment on the conspiracy to traffic counterfeit goods charge.

Homeland Security Investigations and IRS Criminal Investigation are investigating this matter. The United States Postal Inspection Service and the Los Angeles Police Department provided substantial assistance.

Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case.

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5 charged in alleged scheme involving thousands of counterfeit iPhones and other Apple devices

Five people have been charged in connection with an operation that led to more than 16,000 counterfeit Apple devices being returned over more than nine years in exchange for authentic products that were then resold, the U.S. Department of Justice announced in a news release Friday, May 31.

From December 2015 to March 2024, Yang Song, 40, of Corona, and Junwei Jiang, 37, of Los Angeles, allegedly received counterfeit Apple iPhones, iPads, and other devices from China. Along with co-conspirators Zhengxuan Hu, 26, of Alhambra, Yushan Lin, 30, of Corona, and Shuyi Xing, 34, of Corona, the defendants allegedly returned devices to Apple as if they were genuine, legitimately purchased, and eligible for Apple’s warranty programs.

Friday’s statement said the suspects returned and attempted to return more than 16,000 counterfeit Apple devices, causing Apple at least $12.3 million in losses.

The devices shipped from China were designed to look like genuine Apple devices. The real identification numbers and serial numbers on the counterfeit devices impersonated authentic products purchased under Apple’s manufacturer warranty and extended warranty program and owned by real people throughout the United States, according to the DOJ.

The suspects claimed that the products were broken or non-operational and were covered by the company’s warranty programs. Some of the false reasons given to Apple store employees were that the device would not power on, that it was physically damaged, or that it had other defects, the affidavit alleges, prosecutors said

The defendants visited multiple Apple stores daily throughout Southern California, including as many as ten Apple stores in Pasadena, Irvine, Brea, and Rancho Cucamonga, where they would allegedly return the devices.

Apple allegedly would ship the defendants a genuine replacement or repaired Apple device to either an Apple store, where they returned to pick up the new device, or to the dozens of mailboxes that they allegedly rented across Southern California.

To avoid detection, the defendants rented dozens of mailboxes at UPS stores across Southern California to receive counterfeit devices from China and genuine replacement devices from Apple.

Additionally, when conducting the return, they would misspell mailing addresses to disguise the numerous fraudulent returns and used aliases to make appointments at Apple stores.

After receiving the authentic ones, the defendants allegedly shipped the genuine devices to co-conspirators in the United States and abroad, primarily in China, where they were resold at profit.

“All of the defendants are charged with one count of conspiracy to commit wire fraud and mail fraud, one count of aggravated identity theft, seven counts of wire fraud, 12 counts of mail fraud, and one count of conspiracy to traffic in counterfeit goods,” the DOJ’s statement said.

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洛杉磯5中國人涉嫌盜版蘋果手機退貨詐騙1230萬元

五名中國公民被聯邦被捕並將於13日下午提審，他們被指控參與大規模跨太平洋盜版蘋果公司產品計劃（Counterfeit Apple Inc. device scheme），其中包括欺詐性退貨數千支蘋果手機和平板電腦（iPhone、iPad）和其他蘋果產品，並給這家總部位於庫比蒂諾的科技公司造成了至少1230 萬美元的損失。

聯邦大陪審團在 5 月 23 日發回並於今天解封的 22 項起訴書中對以下被告提出指控：

楊松（Yang Song，音譯，下同），40歲，Corona市居民，被指控為頭目；江軍偉（Junwei Jiang），37 歲，東洛杉磯人；胡正軒（Zhengxuan Hu），26 歲，阿罕布拉居民；林玉山（Yushan Lin），30 歲，Corona市居民；邢淑儀（Shuyi Xing），34 歲，Corona市居民。

所有被告均被控一項串謀電信罪、詐欺和郵件詐欺罪、一項嚴重身分盜竊罪、七項電匯詐欺罪、12 項郵件詐欺罪以及一項共謀販運假冒商品罪。

他們於5月30日（本週四）被捕，預計今日31日下午在洛杉磯市中心的聯邦法院過堂。

根據起訴書，至少從 2015 年 12 月到 2024 年 3 月，楊松和江軍偉與中國的同謀合作，向他們和其他美國同謀運送盜版蘋果手機和平板電腦及其他設備。這些假冒的 Apple產品看起來像是正品，其識別碼與在北美銷售的正版的蘋果產品的編號相匹配，並且是由真人擁有的，可以透過蘋果製造商保修和蘋果延長保修計畫進行保修。

據稱，被告隨後以欺詐手段將盜版蘋果手機和平板電腦（iPhone、iPad）和其他設備向蘋果公司退貨，好像是正品並且是合法購買的，有資格享受 Apple 的保修計劃，並且好像他們是蘋果設備的合法擁有者。被告據稱返還的假冒設備上的真實識別號碼和序列號，旨在本質上模仿美國各地真人擁有的真正的蘋果產品，欺騙了蘋果產品的保修計劃，並可能剝奪蘋果設備的合法所有者的保修服務以及他們合法享有的福利。

FBI Buffalo
Buffalo Press Office
(716) 856-7800
May 23, 2024
Seeking Victim Information in Max Yang Chen Investigation

The FBI’s Buffalo Field Office is seeking to identify potential victims of Max Yang Chen, who was recently indicted on charges of unauthorized device intrusion and cyberstalking.

The FBI’s investigation revealed, and the charges allege, that Chen gained access to females’ social media accounts and obtained sexually explicit photos and videos. After obtaining these photos and videos, Chen allegedly harassed and threatened some of these women to release their explicit images, if additional photos and videos were not produced. In other cases, Chen allegedly pretended to have the ability to remove explicit images from pornographic leak websites, offering his services in exchange for their nude photos and videos. An indictment is merely an allegation, the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The FBI is seeking the public’s help in identifying potential victims, both minors and adult women, who may have been threatened, harassed, or extorted, by Chen. The FBI believes Chen targeted females from 2017 until his arrest on March 7, 2024.

The FBI believes Chen likely contacted victims from the following Instagram accounts:
alexparsley123
tblair234
kristorino
kristeenthrack
temptempterm (multiple variations)
haydenjaus

If you have or know anyone who has been victimized by Chen, or by any of the above-listed usernames, please fill out this short form. You may also contact FBI Buffalo at SextortionTipsBCTF@FBI.GOV.

The FBI is legally mandated to identify victims of federal crimes it investigates. Victims may be eligible for certain services, restitution, and rights under federal and/or state law. Your responses are voluntary but may be useful in the federal investigation and to identify you as a potential victim. Based on the responses provided, you may be contacted by the FBI and asked to provide additional information. All identities of victims will be kept confidential.

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竊取女性社媒帳號、隱私照威脅勒索 華男被控9罪

聯邦調查局(FBI)紐約水牛城分局近日宣布，一名華人男子涉嫌竊取女性社交網路帳號及隱私照片與視頻，並以此要脅與騷擾受害者們，他已被控包括網路跟蹤等在內的九項罪名，FBI呼籲更多受害者與他們聯繫。

根據FBI調查以及紐約西區聯邦地區法院此前發布的控罪書，29歲的陳揚(Max Yang Chen，音譯)涉嫌在2021年3月及2023年6月之間，未經授權連入三名受害人的電腦，獲取她們訊息，隨後使用這些訊息威脅並恐嚇她們。

此外，陳揚還涉嫌非法進入受害人的社交媒體帳號，並從這些帳號中竊取相關資料。在獲得了她們的露骨隱私照片或視頻後，他便以此要脅與騷擾受害者們，如果她們不交出更多照片，他就會公開這些照片或視頻。

在其他個案中，陳揚還假裝自己有能力，可以從色情洩露網站移除隱私照片，以此來換取更多受害人的裸照說視頻。

陳揚在今年3月，被聯邦大陪審團控以三項從受保護的電腦中汲取個資(obtaining information from a protected computer)罪名、三項網路跟蹤(cyberstalking)、以及三項嚴重身分盜竊(aggravated identity theft)共九項罪名，若罪成將面臨最高36年監禁。

FBI認為，陳揚自2017年起至今年3月7日被捕，一直以女性作為犯案目標，他們近日發布通告，尋求公眾的幫助，以識別更多可能曾經受到他威脅、騷擾或勒索的未成年或成年受害女性。

FBI表示，陳揚很可能從以下Instagram社媒帳號，來聯絡受害人，這些帳號分別為：alexparsley123、tblair234、kristorino、kristeenthrack、temptempterm、以及haydenjaus。

PRESS RELEASE
Two Alleged Members of a Transnational Money Laundering Organization Arrested for Laundering Millions of Dollars in Drug Proceeds
Wednesday, May 22, 2024

For Immediate Release
Office of Public Affairs

Two alleged members of a transnational money laundering organization were arrested on criminal charges related to their alleged involvement in a scheme to launder millions of dollars in illegal drug proceeds for Mexican drug trafficking organizations, including the Sinaloa and Jalisco cartels (also known as CJNG).

Li Pei Tan, 46, of Buford, Georgia, was arrested today. Chaojie Chen, 41, a foreign national residing in Chicago, was arrested on April 18.

According to court documents, Tan and Chen allegedly worked for a money laundering organization that laundered millions of dollars in proceeds related to the importation of illegal drugs into the United States, primarily through Mexico, and the unlawful distribution of these drugs. Tan, Chen, and their co-conspirators allegedly traveled throughout the United States to collect proceeds derived from trafficking in fentanyl and other drugs (or to cause them to be collected). They allegedly communicated and coordinated with co-conspirators in China and other foreign countries to arrange for the laundering of these proceeds through financial transactions that were designed to conceal the illicit source of the drug proceeds.

According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment, the Sinaloa and Jalisco cartels are at the heart of the fentanyl crisis in the United States.

Tan and Chen are charged in separate criminal complaints with conspiring to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; and DEA Administrator Anne Milgram made the announcement.

The DEA’s Special Operations Division, Bilateral Investigations Unit is investigating the case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in Chicago, Atlanta, and Charlotte, North Carolina.

Trial Attorney Mary K. Daly of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Edgardo J. Rodriguez for the Eastern District of Virginia are prosecuting the case, with assistance from the U.S. Attorneys’ Offices for the Northern District of Georgia and Northern District of Illinois.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

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两名涉嫌为跨国洗钱组织成员的人员因涉嫌参与为墨西哥贩毒组织（包括锡那罗亚和哈利斯科贩毒集团（也称为 CJNG））洗钱数百万美元的非法毒品收益的计划而被捕。

乔治亚州布福德市 46 岁的 Li Pei Tan 于今日被捕。居住在芝加哥的 41 岁的外国人 Chaojie Chen 于 4 月 18 日被捕。

根据法庭文件，Tan 和 Chen 涉嫌为一家洗钱组织工作，该组织洗钱数百万美元，这些钱与主要通过墨西哥进口非法毒品到美国以及非法分销这些毒品有关。Tan、Chen 和他们的同谋据称在美国各地旅行，以收集贩卖芬太尼和其他毒品所得的收益（或促使他人收集这些收益）。他们涉嫌与中国和其他外国的同谋进行沟通和协调，安排通过旨在掩盖毒品收益非法来源的金融交易来洗钱。

California Highway Patrol sting operations recover 726 stolen vehicles in East Bay
GOVERNOR’S OFFICE POSTED ON WEDNESDAY, 22 MAY 2024

As targeted law enforcement efforts in Oakland and the East Bay continue, Governor Gavin Newsom on Wednesday announced the California Highway Patrol, in partnership with local law enforcement, has recovered 726 stolen vehicles, seized 46 crime-linked firearms, and arrested 355 suspects linked to organized crime, carjackings, and other crimes.

“I commend the work of the CHP to support local law enforcement efforts statewide, including in the East Bay, to ensure the safety of our communities. The state will continue to hold perpetrators accountable for criminal activity,” said Newsom.

“The ongoing crime suppression operation in Oakland and the East Bay is a testament to our unwavering commitment to enhancing public safety,” said CHP Commissioner Sean Duryee. “By targeting high-crime areas and deploying additional resources, we are working with our law enforcement partners to reduce criminal activity and create safer communities throughout the region.”

Throughout continuous law enforcement operations, suspects have been arrested by the CHP for charges including possession of stolen property, auto theft, transportation of narcotics, DUI, and felony gun possession, as well as arrests for outstanding warrants.

The CHP continues undercover operations and uniformed patrol, while coordinating with allied local law enforcement agencies.

CHP’s initial surge was announced by the governor on Feb. 14, 2024 and later that month reported 145 stolen vehicles recovered, 71 arrests made, and four crime-linked firearms seized.

Tuesday’s announcement is part of Gov. Newsom’s ongoing effort to improve public safety in the East Bay, including through a temporary CHP surge operation and increased enforcement focused on combating auto theft, cargo theft, retail crime, violent crime, and high-visibility traffic enforcement.

Late last month, the governor announced the state is installing a network of 480 high-tech cameras in Oakland and the East Bay to aid state and local law enforcement in identifying vehicles linked to crimes using real-time information and alerts.

In March, the governor released Caltrans’ 10-Point Action Plan in support of the city’s efforts to improve street safety and beautification. The comprehensive plan outlines actionable steps the state is taking to further support the city through blight abatement efforts, homeless encampment resolutions, community outreach initiatives, employment opportunities, and other beautification and safety efforts.

California has invested resources and personnel to fight crime, help locals hire more police, and improve public safety. Earlier this year, Gov. Newsom called for new legislation to expand criminal penalties and bolster police and prosecutorial tools to combat theft and take down professional criminals who profit from smash and grabs, retail theft, and car burglaries.

In 2023, as part of California’s Real Public Safety Plan, the governor announced the largest-ever investment to combat organized retail crime in state history, an annual 310% increase in proactive operations targeting organized retail crime, and special operations across the state to fight crime and improve public safety.

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东湾打击行动：找回726辆被盗汽车 逮捕355人

州长加文·纽森（Gavin Newsom）办公室周三（5月22日）宣布，自二月份以来的东湾和奥克兰打击犯罪行动中，加州公路巡警（CHP）和其他执法部门已追回 726 辆被盗车辆，逮捕 355 人，并缴获 46 支与犯罪有关的枪支。纽森办公室表示，在正在进行的打击行动中被捕的嫌疑人，罪名包括持有被盗财产、汽车盗窃、运输毒品、酒后驾驶和持有枪支重罪。纽森在一份书面声明中，赞扬了「加州高速公路巡警为支持包括东湾在内的整个加州地方执法工作所做的工作」，以确保社区安全。

在一个多月前4月10日报道说，当时逮捕了181人，找到了414辆被盗车辆，缴获了31件与犯罪有关的枪支。

州长办公室表示，加州公路巡警将继续开展便衣行动和制服巡逻，同时与当地执法机构合作。

Kittitas County Sheriff(基蒂塔斯县治安部门治安官)
2024.5.18

FOUND CHILD SCAM ARRIVES IN KITTITAS COUNTY
Nationwide, social media has seen the recent growth of yet another criminal SCAM, and this one is a real wolf in sheep’s clothing. The scammer posts something like the attached post on an upper county public Facebook group this morning. The post asks readers to SHARE THE MESSAGE and help a good cause.
BUT–in reality there is no lost person or found child. The goal is to get lots of people to share; then, once the post has wide circulation, the criminal scammer changes the post to something completely different that includes a malicious link (with malware, etc.). So your good impulse is turned into the tool of a manipulative thief.
If you ever have information about a lost or found person, child or adult, that needs help, you know what to do: call 911. Thank you to the caller who put us onto the presence of this scam in our county today!

Charlie Graney
Do you guys catch the people who do this?

Kittitas County Sheriff
Charlie Graney the simplicity of creating and hiding behind a false identity in social media makes it very challenging to identify or locate suspects in many of these cases

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Missing child internet scam catches attention of Kittitas County Sheriff’s Department

KITTITAS COUNTY, Wash. — Kittitas County Sheriff’s Department (KCSD) is warning the public of yet another internet scam they describe as “a real wolf in sheep’s clothing.”

According to officials, the scammer posts on social media that a child is missing and they are trying to find the parents. The post would also ask people to share the post to help a good cause.

“In reality, there is no lost person or found child. The goal is to get lots of people to share; then, once the post has wide circulation, the criminal scammer changes the post to something completely different that includes a malicious link,” KCSD said in a Facebook post.

A caller informed the KCSD about the scam being posted in an upper county public Facebook group early Friday morning.

“Your good impulse is turned into the tool of a selfish and manipulative thief,” KCSD said in a Facebook post.

KCSD said that if you ever have information about a lost or found person, child, or adult that needs help call 911.

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基蒂塔斯县警察局（KCSD）警告公众注意又一起网络诈骗，他们称这是披着羊皮的狼。

据官员称，骗子在社交媒体上发帖称一个孩子失踪了，他们正在努力寻找孩子的父母。帖子还会要求人们分享帖子，以帮助做好事。

KCSD表示：“实际上，并没有走失的人或找到的孩子。目的是让很多人分享，一旦帖子广为流传，骗子就会将帖子改成完全不同的内容，其中包括一个恶意链接。”

周五清晨，一位来电者向KCSD通报了Facebook公共群组中发布的骗局。

KCSD在Facebook上发帖称：“你的善良冲动变成了一个自私自利、善于操纵的小偷的工具。”

KCSD表示，如果您有关于走失或被找到的人、儿童或成人的信息需要帮助，请拨打911。

PRESS RELEASE
Two Foreign Nationals Arrested for Laundering At Least $73M Through Shell Companies Tied to Cryptocurrency Investment Scams
Friday, May 17, 2024

For Immediate Release
Office of Public Affairs

An indictment was unsealed in the Central District of California yesterday charging two Chinese nationals alleging they played leading roles in a scheme to launder proceeds from cryptocurrency investment scams.

Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to the Central District of California. Yicheng Zhang, 38, a Chinese national and resident of Temple City, California, was arrested yesterday in Los Angeles.

“Cryptocurrency investment scams exploit the borderless nature of virtual currency and online communications to defraud victims,” said Deputy Attorney General Lisa Monaco. “While fraud in the crypto markets takes on many forms and hides in many far-off places, its perpetrators aren’t beyond the law’s reach. Today, we announce the arrests of two foreign nationals charged for leading a scheme to launder funds to the tune of at least $73 million tied to an international crypto investment scam. These arrests — made possible through the assistance of our international and U.S. partners — reflect the Justice Department’s ongoing commitment to disrupting the entire cybercrime ecosystem and stopping fraud across all financial markets.”

According to court documents, Li, Zhang, and other conspirators allegedly managed an international syndicate that laundered proceeds of cryptocurrency investment scams, which are also known as “pig butchering.” Victims of the schemes under investigation were fraudulently induced into transferring millions of dollars to U.S. bank accounts opened in the names of dozens of shell companies whose sole apparent purpose was to facilitate the laundering of fraud proceeds. A network of money launderers then facilitated the transfer of those funds to other domestic and international bank accounts and cryptocurrency platforms in a manner designed to conceal the source, nature, ownership, and control of the funds. The fraud scheme involved more than $73 million laundered through U.S. financial institutions to bank accounts in The Bahamas, and converted to the virtual asset USDT, or Tether. A cryptocurrency wallet involved in the scheme received more than $341 million in virtual assets.

“As alleged in the indictment, Li and Zhang helped launder millions of dollars obtained from victims of cryptocurrency investment scams,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Money laundering is critical to the success of these scams, allowing fraudsters to quickly move illicit proceeds and try to make them appear legitimate. The arrests announced today demonstrate the Criminal Division’s commitment to disrupting the sophisticated financial networks on which these scams depend and holding those involved accountable, no matter where they may be found.”

“Sophisticated financial scams such as these are a dangerous threat to the financial wellbeing of all Americans,” said U.S. Attorney Martin Estrada for the Central District of California. “While my office will continue to root out and punish these deceitful schemes, I encourage everyone to educate themselves on pig butchering and other kinds of financial fraud to protect their families against such predatory activity. Vigilance is key.”

Li and Zhang allegedly instructed co-conspirators in the laundering network to open bank accounts in the names of various shell companies. Once the victims sent funds to the shell companies, Li and Zhang monitored the lower-level co-conspirators who transferred the proceeds overseas to bank accounts at Deltec Bank in The Bahamas. One of the Deltec Bank accounts was operated with the financial assistance of Li. The funds were then allegedly converted into cryptocurrency and sent to virtual-asset wallets, including at least one controlled by Li. Zhang allegedly also directly received victim funds. Communications revealed extensive coordination to facilitate the international money laundering, including chats discussing the commission structure for the network, various shell companies used, victim information, and at least one video from a conspirator calling a U.S. financial institution.

“Complex financial fraud schemes such as pig butchering present a clear and present threat to the financial infrastructure of the United States as countless numbers of Americans continue to be victimized by this predatory activity,” said Assistant Director of Investigations Brian Lambert of the U.S. Secret Service. “In 2023, the Secret Service with our partners recovered more than $1.1 billion in financial fraud and we are on pace to exceed that number this year. A special thank you to the special agents, support teams, and our prosecutorial partners for their exceptional work in bringing this case to justice.”

Li and Zhang are both charged with conspiracy to commit money laundering and six substantive counts of international money laundering. If convicted, the defendants face a maximum penalty of 20 years in prison on each count.

The U.S. Secret Service’s Global Investigative Operations Center is investigating the case. The Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, Dominican Republic National Drug Directorate Sensitive Investigative Unit and Fugitive Task Force, U.S. Marshals Service, Drug Enforcement Administration, and the Justice Department’s Office of International Affairs provided assistance.

The National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and U.S. Attorney’s Office for the Central District of California are jointly prosecuting the case. CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Maxwell Coll for the Central District of California, CCIPS/NCET Trial Attorney Stefanie Schwartz, and Assistant U.S. Attorney Nisha Chandran for the Central District of California are prosecuting the case.

NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the CCIPS, NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.

If you or someone you know is a victim of a cryptocurrency investment fraud, report it to IC3.gov. In your complaint, please reference “Pig Butchering PSA.” Include as much information as possible in your report, including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.

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2 arrested for allegedly laundering over $73 million in cryptocurrency scams

Two people, including a Los Angeles County resident, were arrested for allegedly laundering over $73 million through cryptocurrency scams.

The suspects were identified as Yicheng Zhang, 38, from Temple City and Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, according to the U.S. Attorney’s Office.

The pair is accused of playing leading roles in managing an international syndicate that laundered money from cryptocurrency investment scams, also known as “pig butchering.”

“Pig-butchering involves scammers establishing trust with a victim before convincing them to invest in a fraudulent cryptocurrency scheme,” federal officials explained. “Often the victim is enticed to make additional payments before realizing they are a victim of fraud. The ‘butchering’ or ‘slaughtering’ occurs once the victim’s assets, or funds, are stolen by the criminal. Perpetrators behind these schemes are often located overseas.”

Victims of Li and Zhang were convinced to transfer millions of dollars into U.S. bank accounts that were opened using the names of shell companies, authorities said. Those companies’ sole purpose was to help launder fraud proceeds.

Once the victims sent money to the shell companies, the pair monitored the lower-level co-conspirators who transferred the funds overseas into bank accounts at Deltec Bank in The Bahamas, court documents said. Funds were also transferred to other domestic and foreign accounts along with cryptocurrency platforms to conceal the money’s original source.

Through this scheme, the duo allegedly laundered over $73 million.

The money was then converted into the cryptocurrency USDT, or Tether and sent to virtual asset wallets. One cryptocurrency wallet involved in the scheme received more than $341 million in virtual assets, investigators said.

“Communications revealed extensive coordination to facilitate the international money laundering, including chats discussing the commission structure for the network, the various
shell companies used, victim information, and at least one video from a conspirator calling a U.S. financial institution,” court documents added.

Both Li and Zhang were charged with conspiracy to commit money laundering and six counts of international money laundering. If convicted, they face up to 20 years in prison on each count.

On May 17, Zhang pleaded not guilty to the charges and remains in federal custody. A detention hearing is scheduled for May 21 and a trial is scheduled for July 9.

Li, who a federal magistrate judge has ordered jailed without bond, is scheduled for arraignment on May 20.

“Sophisticated financial scams such as these are a dangerous threat to the financial wellbeing of all Americans,” said U.S. Attorney Martin Estrada. “While my office will continue to root out and punish these deceitful schemes, I encourage everyone to educate themselves on pig butchering and other kinds of financial fraud to protect their families against such predatory activity. Vigilance is key.”

The case remains under investigation by the U.S. Secret Service’s Global Investigative Operations Center.

Anyone who may be a victim of cryptocurrency investment fraud should report it online at IC3.gov.

Those filing a report should reference “Pig Butchering PSA” and include as much information as possible including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers.

Victims should also keep copies of all communication with scammers along with records of financial transactions.

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两名中国公民在美国被捕，被控利用加密货币“杀猪盘”洗钱至少7300万美元

美国司法部周五（5月17日）表示，两名中国公民因涉嫌洗钱加密货币投资诈骗的收益而被起诉，涉案金额至少7300万美元。

司法部说，41岁的李大仁（Daren Li，音译）拥有中国以及圣基茨和尼维斯双重国籍，是中国、柬埔寨和阿拉伯联合酋长国的居民，于4月12日在亚特兰大哈茨菲尔德-杰克逊国际机场被捕。38岁的张一成（Yicheng Zhang，音译）是加利福尼亚州天普市居民，周四在洛杉矶被捕。

法庭文件显示，二人和其他同谋者据称管理一家对加密货币投资诈骗——也称为“杀猪盘”——的收益进行洗钱的国际集团。李大仁和张一成被控指示同谋以多个空壳公司的名义开设银行账户。受害者被哄骗将资金汇入空壳公司后，两人监督下级同谋将资金转移到海外，存入巴哈马德尔特克银行（Deltec）的账户——其中一个是在李大仁的经济资助下运营的。

司法部说，这场骗局通过美国金融机构将超过7300万美元洗钱至巴哈马的银行账户，并转换为虚拟资产泰达币（Tether）。参与此骗局的一个加密货币钱包收到了超过3.41亿美元的虚拟资产。

“加密货币投资诈骗利用虚拟货币和网络通信的无国界性质来欺骗受害者，”美国司法部副部长丽莎·莫纳科（Lisa Monaco）在声明中指出。“虽然加密货币市场中的欺诈行为有多种形式，并且隐藏在许多遥远的地方，但其肇事者并不能逃脱法网。”

司法部表示，二人均被指控串谋洗钱和六项国际洗钱实体罪名。如果被判有罪，被告每项罪名最高可判处20年监禁。

研究金融犯罪的专家说，“杀猪盘”起源于中国。在此类骗局中，诈骗者通过与毫无戒心的受害者建立信任和联系，承诺巨额回报，哄骗他们交出钱财。

包括“杀猪盘”在内的加密货币诈骗涉案金额高达数十亿美元，让世界各地的受害者陷入困境。

PRESS RELEASE
Two Brothers Arrested for Attacking Ethereum Blockchain and Stealing $25M in Cryptocurrency
Wednesday, May 15, 2024

For Immediate Release
Office of Public Affairs

An indictment was unsealed today charging Anton Peraire-Bueno, 24, of Boston, and James Pepaire-Bueno, 28, of New York, with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The charges in the indictment arise from an alleged novel scheme by the defendants to exploit the very integrity of the Ethereum blockchain to fraudulently obtain approximately $25 million worth of cryptocurrency within approximately 12 seconds. Anton Peraire-Bueno and James Peraire-Bueno were arrested yesterday in Boston and New York, respectively, and will be presented this afternoon before U.S. Magistrate Judge Paul G. Levenson for the District of Massachusetts and U.S. Magistrate Judge Valerie Figueredo for the Southern District of New York.

“As alleged in today’s indictment, the Peraire-Bueno brothers stole $25 million in Ethereum cryptocurrency through a technologically sophisticated, cutting-edge scheme they plotted for months and executed in seconds,” said Deputy Attorney General Lisa Monaco. “Unfortunately for the defendants, their alleged crimes were no match for Department of Justice prosecutors and IRS agents, who unraveled this first-of-its kind wire fraud and money laundering scheme. As cryptocurrency markets continue to evolve, the Department will continue to root out fraud, support victims, and restore confidence to these markets.”

“Today, my office indicted two brothers — Anton Peraire-Bueno and James Peraire-Bueno — for conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, all stemming from their alleged scheme to exploit the Ethereum blockchain and to obtain about $25 million worth of cryptocurrency from it,” said U.S. Attorney Damian Williams for the Southern District of New York. “As we allege, the defendants’ scheme calls the very integrity of the blockchain into question. The brothers, who studied computer science and math at one of the most prestigious universities in the world, allegedly used their specialized skills and education to tamper with and manipulate the protocols relied upon by millions of Ethereum users across the globe. And once they put their plan into action, their heist only took 12 seconds to complete. This alleged scheme was novel and has never before been charged. But as the indictment makes clear, no matter how sophisticated the fraud or how new the techniques used to accomplish it, the career prosecutors of this office will be relentless in pursuing people who attack the integrity of all financial systems.”

“These brothers allegedly committed a first-of-its-kind manipulation of the Ethereum blockchain by fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims,” said Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office. “In this case, IRS-CI New York’s Cyber Unit simply followed the money. Regardless of the complexity of the case, we continue to lead the effort in financial criminal investigations with cutting-edge technology and good-ole-fashioned investigative work, on and off the blockchain.”

As alleged in the indictment, Anton Peraire-Bueno and James Pepaire-Bueno are brothers who studied mathematics and computer science at one of the most prestigious universities in the country. Using the specialized skills developed during their education, as well as their expertise in cryptocurrency trading, Anton Peraire-Bueno and James Pepaire-Bueno exploited the very integrity of the Ethereum blockchain in order to fraudulently obtain approximately $25 million worth of cryptocurrency from victim cryptocurrency traders (the “Exploit”). Through the Exploit, which is believed to be the very first of its kind, Anton Peraire-Bueno and James Pepaire-Bueno manipulated and tampered with the process and protocols by which transactions are validated and added to the Ethereum blockchain. In doing so, they fraudulently gained access to pending private transactions and used that access to alter certain transactions and obtain their victims’ cryptocurrency. Once the defendants stole their victims’ cryptocurrency, they rejected requests to return the stolen cryptocurrency and took numerous steps to hide their ill-gotten gains.

Anton Peraire-Bueno and James Pepaire-Bueno meticulously planned the Exploit over the course of several months. Among other things, they learned the trading behaviors of the victim traders whose cryptocurrency they ultimately stole. As they planned the Exploit, they also took numerous steps to conceal their identities and lay the groundwork to conceal the stolen proceeds, including by setting up shell companies and using multiple private cryptocurrency addresses and foreign cryptocurrency exchanges. After the Exploit, the defendants transferred the stolen cryptocurrency through a series of transactions designed to conceal the source and ownership of the stolen funds.

Throughout the planning, execution, and aftermath of the Exploit, Anton Peraire-Bueno and James Pepaire-Bueno also searched online for information about, among other things, how to carry out the Exploit, ways to conceal their involvement in the Exploit, cryptocurrency exchanges with limited “know your customer” procedures that they could use to launder their criminal proceeds, attorneys with expertise in cryptocurrency cases, extradition procedures, and the very crimes charged in the indictment.

If convicted, Anton Peraire-Bueno and James Pepaire-Bueno each face a maximum penalty of 20 years in prison for each count.

IRS-CI New York’s Cyber Investigations Unit investigated the case, with the assistance of the U.S. Customs and Border Protection and New York City Police Department.

Assistant U.S. Attorneys Rushmi Bhaskaran and Danielle Kudla for the Southern District of New York are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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MIT-educated brothers allegedly stole $25M in crypto in just 12 seconds

Two brothers who studied at the Massachusetts Institute of Technology were arrested on Wednesday on US charges that they carried out a cutting-edge scheme to exploit the Ethereum blockchain’s integrity and steal $25 million worth of cryptocurrency.

Federal prosecutors in Manhattan called the scheme perpetrated by Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, “novel” and said the case marked the first time that such a fraud had ever been the subject of US criminal charges.

Authorities said they executed their elaborate heist in April 2023, stealing $25 million from traders in just 12 seconds by fraudulently gaining access to pending transactions and altering the movement of cryptocurrency.

“As we allege, the defendants’ scheme calls the very integrity of the blockchain into question,” US Attorney Damian Williams said.

An indictment charged them with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Anton Peraire-Bueno was arrested in Boston, while James Peraire-Bueno was arrested in New York.

Their lawyers did not immediately respond to requests for comment.

Both brothers had attended Cambridge, Massachusetts-based MIT, where according to prosecutors they studied computer science and math and developed the skills and education they relied upon to carry out their fraud.

The indictment alleged that for months, the Peraire-Bueno brothers plotted to manipulate and tamper with the protocols used to validate transactions for inclusion on the Ethereum blockchain, a public ledger that records each cryptocurrency transaction.

Prosecutors said they did so by exploiting a vulnerability in the code of software called MEV-boost that is used by most Ethereum network “validators,” who are responsible for checking that new transactions are valid before they are added to the blockchain.

Prosecutors said that after carrying out the heist, the brothers rejected requests to return the funds and instead took steps to launder and hide the stolen cryptocurrency.

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MIT-educated brothers accused of stealing $25 million in cryptocurrency in 12 seconds in Ethereum blockchain scheme

Washington — A pair of brothers from New York and Boston were taken into federal custody Tuesday, accused by prosecutors of devising a novel criminal scheme to steal about $25 million in cryptocurrency from a commonly used blockchain, according to a newly unsealed indictment.

Anton and James Peraire-Bueno were charged with wire fraud and conspiracy to commit money laundering. Investigators accused them of spending months plotting their theft within the Ethereum blockchain, baiting their victims and establishing shell companies to hide their illicit profits.

According to charging documents, the pair studied math and computer science “at one of the most prestigious universities in the country,” which prosecutors said afforded them a unique set of skills that allowed them to carry out the first-of-its-kind endeavor in a matter of seconds. James Peraire-Bueno is listed as a 2021 graduate of the Massachusetts Institute of Technology, and the MIT Registrar’s Office confirmed that Anton Peraire-Bueno earned a B.S. in computer science and engineering in February 2024, and James Peraire-Bueno earned a B.S. in mathematics, computer science and aerospace engineering in June 2019, as well as a M.S. in aeronautics and astronautics in June 2021.

The brothers allegedly started laying the groundwork in December 2022, engaging in what investigators called a “baiting” operation that targeted three specific victim traders on the digital Ethereum platform. They are specifically accused of exploiting the “validators” on the blockchain, vital components of the integrity and security of transactions.

“In doing so, they fraudulently gained access to pending private transactions and used that access to alter certain transactions and obtain their victims’ cryptocurrency,” prosecutors alleged in court documents.

Investigators said the defendants’ plot took months to plan but just 12 seconds to execute, allegedly raking in approximately $25 million from their unwitting victims.

From April and June of last year, Peraire-Buenos are accused of laundering their money through shell companies. Prosecutors said the duo even rejected repeated requests from a victim, the victim’s attorney and an Ethereum representative to return the cryptocurrency.

They were arrested on Tuesday and are expected to make their initial appearances in New York and Boston federal courts on Wednesday.

“As cryptocurrency markets continue to evolve, the Justice Department will continue to root out fraud, support victims, and restore confidence to these markets,” Deputy Attorney General Lisa Monaco said in a statement.

Attorneys for the brothers could not be immediately identified.

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美国司法院15日宣布，曾就读麻省理工的兄弟安东（Anton Peraire-Bueno）和詹姆士（James Peraire-Bueno），以新奇的手法，在短短12秒内窃走价值2500万美元的加密货币。两人被控以电信诈骗和洗钱等罪名，若罪名成立，将面临至少20年徒刑。

据外媒报道，兄弟俩曾就读麻省理工大学，且前后就读数学系及电脑科学系。司法部部长莫纳科（Lisa Monaca）形容，这对兄弟是透过“精良的技术、前所未见的计划，经过数个月的策划，利用短短几秒钟的时间内成功执行”，在以太坊窃取价值2500万美元的加密货币。

美国检察官威廉姆斯（Damian Williams）指出，“被告的窃盗计划等于是让区块链的完整性受到质疑”。起诉书指出两兄弟的手法，利用MEV-boost软体中存在的代码漏洞，其为多数以太坊网络中“验证者”所使用的软体，用来负责认证每笔加入区块链中的新交易是有效的。

检察官强调，这是如此“新型态”的犯罪手法，首次面临刑事指控；此外，窃取这笔钜额款项后，这对兄弟拒绝归还的要求，而是将这笔加密货币透过洗钱以及手法藏匿。若每项罪名皆成立，兄弟俩将面临超过20年的有期徒刑。