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Press Release For Immediate Release May 7, 2001	U.S. Department of Justice United States Attorney District of Connecticut Connecticut Financial Center 157 Church Street P.O. Box 1824 New Haven, Connecticut 06510 (203) 821-3700 Fax (203) 773-5376

 

 RUSSIAN NATIONAL ARRESTED AND INDICTED FOR PENETRATING U.S. CORPORATE COMPUTER NETWORKS, STEALING CREDIT CARD NUMBERS, AND EXTORTING THE COMPANIES BY THREATENING TO DAMAGE THEIR COMPUTERS

John A. Danaher, III, United States Attorney for the District of Connecticut, announced that on May 3, 2001, a federal grand jury sitting in Bridgeport returned a superseding indictment charging ALEKSEY IVANOV, a/k/a "subbsta," age 20, of Chelyabinsk, Russia, with conspiring with other individuals to commit various computer-related "hacking" offenses. Specifically, IVANOV is charged with conspiring to make unauthorized intrusions into computer systems owned by companies in the United States, including one in Connecticut, transmitting threats to damage those computer systems, extortion, and stealing credit card numbers and merchant account numbers.

IVANOV was arrested on November 10, 2000, when he and an associate traveled to Seattle, Washington to meet with representatives of Invita Security, Inc., an undercover company established by the FBI offices in New Haven, Connecticut, and Seattle, Washington.

The superseding indictment alleges that, from at least December 1999 through March 2000, IVANOV and others conspired to commit various federal crimes, including: accessing without authorization the computer systems owned by Online Information Bureau ("OIB"), Inc., of Vernon, Connecticut, and Good News Internet Service, of Cincinnati, Ohio; transmitting threats to damage these computer systems; attempting to extort money and employment from these companies; and fraudulently possessing fifteen or more unauthorized access devices. The indictment indicates that the conspirators had contacted these companies in early 2000 in an effort to further their extortionate schemes.

The indictment also alleges that IVANOV committed several substantive offenses. Specifically, it alleges that IVANOV accessed a computer owned by OIB without authorization to further an intended fraud and obtain something of value, and that he accessed a computer without authorization for the purpose of commercial advantage and private financial gain, as well as to further a criminal act. Further, the indictment charges that IVANOV transmitted a threat to cause damage to computers owned by OIB in an attempt to extort money, employment, and property from the company. The indictment also alleges that IVANOV attempted to obtain property from OIB by threatening to access its computer systems, download and steal financial and other data, conduct unauthorized transfers of funds, destroy data, and otherwise damage OIB and its business, unless OIB paid IVANOV money and hired IVANOV as a security consultant. IVANOV is also charged with possession with intent to defraud over 10,000 access devices (i.e., credit card numbers and merchant account numbers).

Since the time of the intrusions and contacts by the conspirators in early 2000, both OIB and Good News have taken and continue to take measures to address the security of their computer systems and customers.

The conspiracy, computer fraud, computer hacking and computer extortion counts in the the indictment carry maximum penalties of up to five years’ imprisonment and fines of up to $250,000. The maximum sentence for the interference with commerce by extortion count is 20 years’ imprisonment and a fine of $250,000; and the credit card fraud charge provides for a maximum penalty of up to10 years’ imprisonment and a fine of $250,000.

United States Attorney Danaher stressed that an indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial at which it is the Government’s burden to prove the defendant’s guilt beyond a reasonable doubt.

This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Mark G. Califano and Shawn J. Chen.

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• More information on:  Ivanov's Sentence
• More information on:  Gorshkov's Sentence
• More information on:  Gorshkov's Conviction
• More information on:  Computer Crime
• More information on:  Computer Crime Cases
• More information on:  Ivanov's charges in Santa Ana, California
• More information on:  Ivanov's charges in Sacramento, California

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