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View Full Version : Liberty Reserve owner arrested, charged with money laundering, website offline



littleroundman
05-25-2013, 12:22 AM
Reported on TicoTimes.net (http://www.ticotimes.net/More-news/News-Briefs/Costa-Rican-arrested-in-Spain-for-alleged-financial-crimes_Friday-May-24-2013)

http://i218.photobucket.com/albums/cc153/thelittleroundman/scams%202/costs1_zpsbe3f054f.jpg

http://i218.photobucket.com/albums/cc153/thelittleroundman/scams%202/liberty_zps9c21e758.jpg

http://i218.photobucket.com/albums/cc153/thelittleroundman/scams%202/libertyits_zpse9ff0f30.jpg

NikSam
05-25-2013, 01:27 AM
The story was known about Budovsky and Katz (2 ukrainans) started LR in Brooklyn NY,
after being arrested they orchestrated the sale of LR to a new formed Costa Rican company,
but were actually still behind it all the time.

Looks like authorities finally figured it out.

littleroundman
05-25-2013, 01:35 AM
Costa Rican prosecutor José Pablo González said Budovsky, a Costa Rican citizen of Ukrainian origin, has been under investigation since 2011 for money laundering using a company he created in the country called Liberty Reserve.

Sounds like they had it "figured out" several years ago, but needed to be able to prove it.

littleroundman
05-25-2013, 01:54 AM
What's going to be interesting over the coming days and weeks is watching how many HYIPs disappear due to their accounts being frozen and how many HYIP owners use the seizures to simply take the money and run.

NikSam
05-25-2013, 02:23 AM
It is more interesting to see how and when if possible distribution of frozen assets will happen.
LR was used mostly for illegal stuff.
And I believe LR never had enough assets in banks to back up their system's "credits".

path2prosperity
05-25-2013, 02:44 AM
Wow. This is really good news.

I wonder if it it will be a warning to STP and the others.

NikSam
05-25-2013, 02:48 AM
Perfect Money been declared illegal by Panamanian authorities earlier this year.
http://www.supervalores.gob.pa/informacion-del-mercado/alerta-al-inversionista/4616-warning--non-authorized-entity--perfect-money-finance-corp.html
And thats from a country which PM claims they based in.

Panamanian authorities also said that the address in Panama is not theirs, and PM is not located there.


there is also some Russian connection with PM in the past.

ICCBernd
05-25-2013, 04:14 AM
Now it is interesting to read HYIP bloggers sites. One has just published a poll. Let's see how much people lost with Liberty Reserve.
http://blog.hyip-pulse.com/breaking-news-libertyreserve-has-been-shut-down/

NikSam
05-25-2013, 06:20 AM
Lookie here

Perfect Money now rushed in to announce that they will not take US residents as clients anymore:



Recent changes in Perfect Money Policy
25.05.13

Dear Perfect Money Customers,

We bring to your attention that due to changes in our policy we forbid new registrations from individuals or companies based in the United States of America. This includes US citizens residing overseas. If you fall under the above mentioned category, please do not register an account with us.


We apologize for inconvenience caused.


URL: https://perfectmoney.com/news_view.html?id=342

NikSam
05-25-2013, 03:25 PM
whois on LR in 2005, before the first arrest

4054

Gregg
05-25-2013, 08:25 PM
I have my nomination for this year's Darwin Awards!


imdone imdone is offline
Newbie Amateur

Join Date: May 2013
Posts: 8
Default I'm going to do suicide
Libertyreserve have left me with this one and only option. If their site does not comes online within a week i will do suicide on a live cam. Libertyreserve officials and US govt will be responsible for my death.

I am broken and they took my money. I don't have a penny now and my whole family runs on my income.

I am serious about it, please don't make fun.

If anyone knows him, let him know I have a handgun he can borrow.

Whip
05-25-2013, 10:10 PM
What's-her-face must be crying in her wheaties today.

kschang
05-25-2013, 10:34 PM
I have my nomination for this year's Darwin Awards!
If anyone knows him, let him know I have a handgun he can borrow.

It's because you're merciful, right?

littleroundman
05-25-2013, 10:48 PM
More from TicoTimes.net (http://www.ticotimes.net/More-news/News-Briefs/Digital-currency-site-Liberty-Reserve-shut-down-after-arrest-of-Costa-Rican-owner-in-Spain-_Saturday-May-25-2013)

Digital currency site Liberty Reserve shut down after arrest of Costa Rican owner in Spain


Posted: Saturday, May 25, 2013 - By David Boddiger and L. Arias
Costa Rican agents raided Liberty Reserve founder Arthur Budovsky’s offices and home in San José and Heredia on Friday.
http://static2.cdn.ticotimes.net/var/tico/storage/images/media/images/news-photos/liberty-reserve/1768799-1-eng-US/Liberty-Reserve_newsfull_h.jpg


Panic spread on the Internet Friday as word about Arthur Budovsky Belanchuk’s arrest reached users of his digital currency business Liberty Reserve, which was shut down on Friday.

Budovsky, 39, was arrested on Friday in Spain as part of a money laundering investigation performed jointly by police agencies in the United States and Costa Rica. U.S. officials likely will seek his extradition.

Costa Rican prosecutor José Pablo González said Budovsky, a former U.S. citizen and naturalized Costa Rican of Ukrainian origin, has been under investigation since 2011 in Costa Rica for suspected money laundering using apparent shell companies he created to run Liberty Reserve.

Budovsky relocated to Costa Rica after he and partner Vladimir Kats were indicted on July 27, 2006, in New York on charges of operating an illegal financial business, GoldAge Inc. – a precursor to Liberty Reserve – from their Brooklyn apartments, according to the U.S. Justice Department. U.S. officials said the two had transmitted at least $30 million to digital currency accounts worldwide since beginning operations in 2002.

Budovsky and Kats were sentenced to five years in prison in 2007 for engaging in the business of transmitting money without a license, a felony violation of state banking law. They received five years probation.

Officials have not commented on how much money Liberty Reserve accounts handled, nor how many clients are affected by its closing. But those numbers could be higher than in the GoldAge case.

The daily La Nación reported that Budovsky, a naturalized Costa Rican, renounced his U.S. citizenship last year, after the joint investigation began. The Tico Times could not independently verify that information, as Costa Rican government agencies are closed for the weekend.

In 2011, Costa Rica’s financial regulatory authority, the Financial Institution Superintendency (SUGEF), closed Liberty Reserve, citing a lack of transparency and accounting of funding sources, La Nación reported.

However, Budovsky continued operating the company in conjunction with other Costa Rican corporations, including Silverhand Solutions and Technology S. A, Worldwide E-Commerce Business S .A., Grupo Lulu Limitada, Triton Group A and A, S. A. and Cyberfuel.com.

The same year SUGEF ordered Liberty Reserve closed, U.S. prosecutors based in New York asked Costa Rican officials to begin investigating Budovsky and his companies. On Friday, San José prosecutors raided Budovsky’s home and offices in Escazú and Santa Ana, southwest of San José, and in the province of Heredia, north of the capital.

Investigators allege that Budovsky’s businesses in Costa Rica were used to launder funds from child pornography websites and drug trafficking.

Both GoldAge and Liberty Reserve operated under a similar system, allowing users to nearly anonymously open accounts with limited documentation of identity. Deposits are backed by gold and other precious metals, and customers could withdraw money by requesting wire transfers to accounts anywhere in the world or by having checks sent to individuals.

U.S. officials have targeted companies like GoldAge and Liberty Reserve for years (http://www.justice.gov/archive/ndic/pubs28/28675/28675p.pdf), saying they are hotbeds for criminal activity including money laundering, drug trafficking and tax evasion.

“The ability to conduct transactions in digital currencies is constantly available, making digital currencies more convenient than other methods of funds transfer, which may be limited by normal business hours and international time zones. Additionally, digital currency transactions can be conducted from any location or device with Internet access,” a 2008 report by the U.S. National Drug Intelligence Center stated.

“Because most digital currencies are denominated into internationally recognized weights of precious metals, inconveniences traditionally associated with international financial transactions, such as calculating international exchange rates for another nation’s currency, are eliminated,” the report added.

Liberty Reserve, which operated without oversight from any global agency, was a convenient tool for foreign currency brokers, as it allowed them to bypass local legislation and avoid exchange rate fluctuations, particularly in developing countries. But its lack of oversight also attracted organized criminal elements, prosecutors said.

“Payment in digital currencies makes it easier for traffickers to launder funds that no longer need to be placed into the traditional financial system. Payment can be immediately forwarded to an international digital currency account, perhaps in payment to the original source of supply, or further layered through multiple digital currency accounts and exchangers until reintegrated into the legitimate economy,” the National Drug Intelligence Center stated.

To open a Liberty Reserve account, users needed only to submit a name, address, email address, date of birth and occupation.

Budovsky’s arrest and the closing of the Liberty Reserve website prompted a wave of online chatter from affected clients. Forex Magnates, which describes itself as a “specialized forex news and research source,” called Liberty Reserve “the leading payment channel for traders in emerging and frontier markets.”

Citing a broker and analyst in Pakistan, Forex Magnates said, “Forex brokers have been benefiting from Liberty Reserve’s vast access as a payment provider, especially in countries where traders face difficulties in transferring funds. Liberty Reserve was a ‘gift’ for several traders, especially after the State Banks’ (State Bank of Pakistan) changes to international money transfers.”

Online reaction has also come from Nigeria, Malaysia and other countries.

An earlier story on (http://www.ticotimes.net/More-news/News-Briefs/Costa-Rican-arrested-in-Spain-for-alleged-financial-crimes_Friday-May-24-2013)www.ticotimes.net (http://www.ticotimes.net) about Budovsky’s arrest prompted worried clients to ponder the fate of funds deposited with the company.

“[M]illions of client of Liberty reserve now worried for money around the world , plz give few more info..LR site is down now,” one reader posted on The Tico Times Facebook page.

littleroundman
05-25-2013, 11:06 PM
http://i218.photobucket.com/albums/cc153/thelittleroundman/scams%202/lost_zpsca54f809.jpg


If they don't come back, I stand a chance to lose about $9,3xx.xx

Don't really remember the exact dollar amount but it's somewhere around those numbers.


i lost 1024$ exactly !


$32xx


1899 i think it will back but wait


I lost 7k , I am scared what will be the future of HYIP INDUSTRY ?


Somewhere in the $1k-2k range.


~ $3300


ca 3k


only 200$.


1xx,xxx


A little over 10k. It hurts. Quite a lot.


around 1k . Very sad


1500$ and in my country it's like 6 month of normal food supply and house rent.


i am not worried of my 10K.. its just i am unable to decide which e-currency i should use next..


~ $2000, but could of been worse... so can't complain to much


a few hundreds $


$800 - but I still think it will come back... blind hope


I lost 424 exactly and my friend lost between 12 to 10k.


90$


around $140


Zilch!!! I stopped dealing with them a long time ago.

littleroundman
05-26-2013, 06:41 AM
http://i218.photobucket.com/albums/cc153/thelittleroundman/scams%202/exchangers_zps51295217.jpg

Other collapsed exchangers thread, Talkgold HYIP ponzi forum (http://www.talkgold.com/forum/showpost.php?p=5237820&postcount=1)

littleroundman
05-26-2013, 06:50 AM
about 16k http://www.talkgold.com/forum/images/smilies/frown.gif
that was all my money and now i am empty!


more than 12,000 $ and so sad


$3300 to be precise


around 2,500 lsh i don't like keeping large amounts online

i lost 4k $$


i lost 30k http://www.talkgold.com/forum/images/smilies/frown.gif


i lost $5xx dollars


i lost below 1k but one of the biggest exchanger xxxx in my country indonesia lost 175ksusd another lost above 100kusd, sound crazy yeahh and mostlly mid exchanger lost above 20kusd, retail exchanger above 1k

it because lr is very popular here

indonesian forex trader, big and retailer exchanger doomed, online bussiness doomed


about 5k ,
like if you have a normal car in my country

.................................................. ..........................

Fgold
05-26-2013, 08:48 AM
What's going to be interesting over the coming days and weeks is watching how many HYIPs disappear due to their accounts being frozen and how many HYIP owners use the seizures to simply take the money and run.

Many hyip sites will fail and disappear but scammers will find a New DGC to replace LR with similar conditions (anonymous and non-refundable) to run their scam schemes.

kschang
05-26-2013, 09:43 AM
Wow, Krebs on Security just reported that Liberty Reserve IS NOT THE ONLY ONE. FIVE OTHER cyberexchanges ALSO WENT OFFLINE at about the same time.

Reports: Liberty Reserve Founder Arrested, Site Shuttered — Krebs on Security (http://krebsonsecurity.com/2013/05/reports-liberty-reserve-founder-arrested-site-shuttered/)

Someone posted this video allegedly from Puerto Rico news Channel 7

https://www.youtube.com/watch?v=UH1ryOM-iyk

NikSam
05-26-2013, 05:43 PM
In past couple of days i saw a lot of people on internet in denial of every small detail about these news articles.
The most ridiculous of them was claim that Arthur Budovsky has nothing to do with Liberty Reserve.
Well they can deny as much as they want, if they were paying attention to HYIP world for long time and understood a thing or two about offshores,
they would know that formation agent (Allan Garcia) of the Costa Rica companies in fact has noting or little to do with Liberty Reserve.

Ok, here is more proof for those that Arthur is in fact behind LR

Whois on LR site on Nov 2005:

4066



Archived 2006 LR snapshot of contact page with Arthur's NY cell phone number:

4067
URL: Contact Us (http://web.archive.org/web/20060615162841/http://www.libertyreserve.com/Default.aspx?tabid=35)



Excerpt from LR Interview in 2002:

4068
URL: p l a n e t g o l d (http://web.archive.org/web/20030416025128/planetgold.com/interview.asp?SPID=08248138)

NikSam
05-26-2013, 05:48 PM
Archived GoldAge 2005 Contact Page:

4069
URL:e-gold (http://web.archive.org/web/20051210131521/http://www.goldage.net/indexn.aspx?page=contact)


NY DA 2006 Press release:
4070
URL: DANY | What's New | July 27, 2006 (http://web.archive.org/web/20070312035759/http://www.manhattanda.org/whatsnew/press/2006-07-27.html)

kschang
05-26-2013, 07:48 PM
Many hyip sites will fail and disappear but scammers will find a New DGC to replace LR with similar conditions (anonymous and non-refundable) to run their scam schemes.

Yes, but it'll be based on parts unknown with unknown laws and that uncertainty may be enough to hold back some of the potential victims.

kschang
05-26-2013, 08:13 PM
There's sure a lot of hate when VentureBeat published an article on this. :) Read some of the comments. :D

Digital currency biz Liberty Reserve shut down, founder arrested | VentureBeat (http://venturebeat.com/2013/05/26/liberty-reserve-shut-down/)

Hypanor
05-26-2013, 11:17 PM
The denial (and anger) on MMG is pretty hilarious.
"Its a DDoS attack"
"A Facebook friend says they'll be back on Tuesday / next week / soon"

Dream on.... your money is gone. When is it Payza's turn, and STP?

Hypanor
05-26-2013, 11:48 PM
There's sure a lot of hate when VentureBeat published an article on this. :) Read some of the comments. :D

Digital currency biz Liberty Reserve shut down, founder arrested | VentureBeat (http://venturebeat.com/2013/05/26/liberty-reserve-shut-down/)

It would appear that a number of the 'angry' people are from countries/states known for their scams. Makes you wonder how many claiming innocence, are.

NikSam
05-27-2013, 12:45 AM
A tip left by "GUEST" on pastebin (http://pastebin.com/kUNS3fvg):




Main LibertyReserve Founder:

Name: Arthur Budovsky
Corperations: B-To-B Marketplace, Liberty Reserve, Gold Age, ECSN, MonsterEscrow
Addresses: 3053 Ave U #143, 50 Brighton Beach, 1961 28th Street, 2106 Bath Ave #115
City: Brooklyn
State: New York (NY)
ZIP: 11229
Phones: 718-288-3300, 718-265-9354, 718-382-5319, 917-690-8126
Emails: xss5@mindspring.com, seelen@neurophonic.net

Main LibertyReserve Co-Founder:

Name: Vladimir Kats
Corperations: B-To-B Marketplace, Gold Age , Liberty Reserve
Address: 3053 Ave U #143
City: Brooklyn
State: New York (NY)
ZIP: 11229
Email: vkats@ultinet.net

Arthurs Roommate was a founder of LibertyReserve:

Name: James Bell
Corperations: Liberty Reserve, MonsterEscrow
Addresses: 773 East 73 Street, PO BOX 940538
City: Brooklyn
State: New York (NY)
ZIP: 11220
Phone: 718-468-9391
Email: xss7@yahoo.com

Another roomate of Arthurs had a relationship in Liberty Reserve:

Name: Anthony Hawkins
Address: PO BOX 940538
City: Rockaway Park
State: New York (NY)
ZIP: 11694
Email: seelen@f-m.fm

LibertyReserves Costa Rica Failover Puppet:

Name: Ahmed Yassine
Alajuela, Costa Rica
Phone: 506 8462868
Email: business@libertyreserve.cr

Another Costa Rician Puppet:

Name: Allan Garcia
Santa Ana, Costa Rica
Emails: business@libertyreserve.cr, xrayboy777@yahoo.com




Budovsky was also behind gdcaonline.org, EXCHANGEZONE.INFO, EXCHANGEZONE.com

NikSam
05-27-2013, 02:17 AM
I disagree on Bell and Hawkins, I believe both names been used by Budowsky himself in various registrations.
most places contact information of those points to Budovsky himself.

kschang
05-27-2013, 02:30 AM
Bell was apparently a separate person, but he ran Gold-Age for a while. Apparently he's Budovsky's figurehead



James Bell, who is he? The search has returned us to the far 2002 when Ragnar Danneskjold has interviewed James Bell who appeared to be new CEO of Gold-Age.com who had bought that business from its former owner Parker Bradley. (http://www.planetgold.com/interview.asp?SPID=91334475). However it is impossible to view this page at the moment as the link is dead.

Here is just a part of the interview:

The sale and re-birth of Gold-Age

Monday, April 22, 2002 Interview with Gold-Age.com new CEO, James Bell, and former CEO, Parker Bradley, conducted by Ragnar Danneskjold, editor - Planetgold.com.
planetgold: Today, Planetgold is pleased to interview James Bell, of Gold-Age (www.Gold-Age.net)
planetgold: The three of us are sitting here, in Albany. This is a closing for the sale of Gold-Age. Welcome, James and Parker. Thank you for agreeing to be interviewed.
James: It's my pleasure!
Parker: Same here.
planetgold: So what's the deal here with Gold-Age?
James: I am acquiring Gold-Age from Parker Bradley. Thank you for bringing us together and brokering the arrange

One more interesting finding: the AboutUs.com wiki also contains the same Liberty Reserve/Gold-Age.net contact number for Asianagold ( http://www.asianagold.com/ ) with Anthony Hawkins as a contact person. Asianagold is an exchanger exchanging e-gold, Pecunix, Liberty Reserve, e-Bullion, 1mdc, and WebMoney. Don’t you find this list a little bit familiar?


Libertyreserve. Scam Or What? Whom Do You Trust You Money? (http://www.dreamteammoney.com/index.php?showtopic=71168)

NikSam
05-27-2013, 02:46 AM
I still insist it's still Budovsky,

about Interview, would not it look strange if CEOs of 2 different companies giving interview to the same guy just 1 month apart used the same name ? :)

look here: p l a n e t g o l d (http://web.archive.org/web/20030416025128/planetgold.com/interview.asp?SPID=08248138)


http://www.realscam.com/attachments/f43/4068d1369607961t-liberty-reserve-owner-arrested-charged-money-laundering-website-offline-lr_interview_2003.jpg


There was never any Bell or Hawkins in court documents in connection to GoldAge, their address are PO boxes, but phones and emails always of Budovsky

kschang
05-27-2013, 02:50 AM
Oh, this gets better. Apparently Vladimir Kats goes by alias of Ragnar Danneskjöld (a character from Ayn Rand's Atlas Shrugged), who is also the owner of PlanetGold! (the same source suggests this, offered little if any proof)

WOW, the same source also alleges that GDCA, the exchange association, was merely a front setup by Kats and Budovsky to lend credibility to themselves.

donotlink.com/lrscam.blogspot.com

Which seem to be copied news and posts from dreamoneyteam forum and various news items.

kschang
05-27-2013, 03:10 AM
I still insist it's still Budovsky,
about Interview, would not it look strange if CEOs of 2 different companies giving interview to the same guy just 1 month apart used the same name ? :)


If the allegations (see above) is true, the interview is fiction and there are indeed no Hawkins and Bell. Which means Budovsky will be charged with identity theft plus various other crimes.

NikSam
05-27-2013, 03:13 AM
Oh, this gets better. Apparently Vladimir Kats goes by alias of Ragnar Danneskjöld (a character from Ayn Rand's Atlas Shrugged), who is also the owner of PlanetGold! (the same source suggests this, offered little if any proof)

WOW, the same source also alleges that GDCA, the exchange association, was merely a front setup by Kats and Budovsky to lend credibility to themselves.

donotlink.com/lrscam.blogspot.com

Which seem to be copied news and posts from dreamoneyteam forum and various news items.

Indeed its is funny.

2 scammers using different names and interviewing each other multiple times as different persons :)


About gdcaonline.org i already said it is Budovsky's as well as EXCHANGEZONE.info

4077


4078

NikSam
05-27-2013, 03:30 AM
And this is just freaking interesting,

guess who was the first original owner of EXCHANGEZONE.com ?

4079

and guess who was first owner of perfectmoney.com ?

4080


exchangezone.com was confirmed to be run by Budovsky and was also shutdown together with LR


Around the same time Liberty Reserve’s website went offline, so did the sites for several other digital currency exchanges, Krebs added. They include asianagold.com, exchangezone.com, milenia-finance.com, moneycentralmarket.com and swiftexchanger.com.



Would not it be funny that Liberty Reserve is Budovsky's and Perfect Money is Kats's ? ;)

kschang
05-27-2013, 03:44 AM
That doesn't necessarily mean anything. Eurobox apparently is well known in the Internet world as a "domain kiter" (i.e. they register expired domains then ransoms them back to the original owners for a fee)

Is this some kind of a joke or what ? - NamePros.com (http://www.namepros.com/domain-newbies/525483-is-this-some-kind-joke-what.html)

They also act as domain proxy registrar.

NikSam
05-27-2013, 04:05 AM
This is claimed CEO/Founder of Perfect Money - "Andrew Draper"

4081

URL: Andrew Draper, Perfect Money: " (http://moneynews.ru/Interview/9735/)

path2prosperity
05-27-2013, 04:30 AM
Absolutely hilarious comment found on TG forum. (http://www.talkgold.com/forum/showthread.php?p=5237653#post5237653)

Quote.

"It would be great time for Club Asteria to launch an e-currency. Everybody needs reassurance, and presence of a former World Bank executive at the board would just do that."

kschang
05-27-2013, 04:33 AM
Neither Google Image Search nor TinEye brought up any relevant details. That's the ONLY picture any one has on him. And it appears to be in a bar, not an office.

I enlarged the picture and played with gamma a bit. The picture is way too dark, and brighten it up revealed they are indeed in a bar or cafe of some sort. I don't recognize the object to the left of him.

4082

NikSam
05-27-2013, 05:02 AM
I think it's looks like a restaurant car of a train.

NikSam
05-27-2013, 07:41 AM
some of Budovsky's exchangers sites which were also blocked together with LR
can still be reached by IP (means actual servers are not seized)

AsianaGold - e-Gold (http://63.135.115.200/)
MoneyCentralMarket - Money Central Market (http://97.74.27.239/)

Hypanor
05-27-2013, 08:30 AM
I think it's looks like a restaurant car of a train.

That's what I thought. That's someones shoulder in a black shirt, and appears to be a coat hanger and jackets hanging behind that person.

4086

NikSam
05-27-2013, 08:53 AM
Some of now dissolved NY companies
Budovsky and Kats registered to open the bank accounts on them:


EXECUTIVE COMMERCIAL SERVICES, INC (http://appext20.dos.ny.gov/corp_public/CORPSEARCH.ENTITY_INFORMATION?p_nameid=2280213&p_corpid=2231531&p_entity_name=EXECUTIVE%20COMMERCIAL%20SERVICES&p_name_type=%25&p_search_type=BEGINS&p_srch_results_page=0)
INTERNETWORK MANAGEMENT INC. (http://appext20.dos.ny.gov/corp_public/CORPSEARCH.ENTITY_INFORMATION?p_nameid=3320023&p_corpid=3305138&p_entity_name=INTERNETWORK%20MANAGEMENT&p_name_type=%25&p_search_type=BEGINS&p_srch_results_page=0)
MGA INTERNATIONAL INC. (http://appext20.dos.ny.gov/corp_public/CORPSEARCH.ENTITY_INFORMATION?p_nameid=2656495&p_corpid=2627056&p_entity_name=MGA%20INTERNATIONAL&p_name_type=%25&p_search_type=BEGINS&p_srch_results_page=0)
B 2 B MARKETPLACE INC. (http://appext20.dos.ny.gov/corp_public/CORPSEARCH.ENTITY_INFORMATION?p_nameid=3366664&p_corpid=3352480&p_entity_name=MARKETPLACE&p_name_type=%25&p_search_type=CONTAINS&p_srch_results_page=2)

scratchycat
05-27-2013, 09:57 AM
Always great to see the crooks get caught!!

NikSam
05-27-2013, 10:02 AM
More their sites:
unitedlc.com
goldstores.com
autocambist.com
libertyimpact.com
xss5.org
tritongroupcr.com
xsgts.com


Looks like those guys cornered the market before LR became big, and that let them make money out of thin air, by selling first non-backed LR "credits" on all their exchanges.

NikSam
05-27-2013, 12:00 PM
BBC news: BBC News - Liberty Reserve digital money service forced offline (http://www.bbc.co.uk/news/technology-22680297)
SPIEGEL: Digitale Währung: Liberty Reserve ist offline - SPIEGEL ONLINE (http://www.spiegel.de/netzwelt/web/digitale-waehrung-liberty-reserve-ist-offline-a-902070.html)

kschang
05-27-2013, 12:44 PM
I think it's looks like a restaurant car of a train.

Good point. But it's not a luxury train, as those usually have curtains on the windows, and it's not a super-modern train, as those usually have white or beige interiors.

kschang
05-28-2013, 02:48 AM
TicoTimes has an updated article:

Budovsky is in Europe negotiating with European banks and server farms to move the stuff out of PR. He can't open accounts in PR or Panama because he can't get certified by SUGEF, the PR financial regulatory agency.

And everybody at the top of LR used aliases.

Liberty Reserve: A cyberweb of intrigue / News Briefs / More news / Costa Rica Newspaper, The Tico Times (http://www.ticotimes.net/More-news/News-Briefs/Liberty-Reserve-A-cyberweb-of-intrigue_Tuesday-May-28-2013)

NikSam
05-28-2013, 02:50 AM
TicoTimes has an updated article: ...

I have a feeling that they read our thread over here :)

NikSam
05-28-2013, 03:43 AM
More their sites:
unitedlc.com
goldstores.com
autocambist.com
libertyimpact.com
xss5.org
tritongroupcr.com
xsgts.com


Looks like those guys cornered the market before LR became big, and that let them make money out of thin air, by selling first non-backed LR "credits" on all their exchanges.

Cyberfuel.com
grupolulu.com
websa.cr
SMARTWEBCREATIONS.COM

kschang
05-28-2013, 04:20 AM
If they are all pimped by PlanetGold, and if PlanetGold was really run by Kats, then yes, definitely.

Hypanor
05-28-2013, 05:45 AM
Good point. But it's not a luxury train, as those usually have curtains on the windows, and it's not a super-modern train, as those usually have white or beige interiors.

River boat? Not that it matters (does it?).

littleroundman
05-28-2013, 06:22 AM
Updated article from TicoTimes.net (http://www.ticotimes.net/More-news/News-Briefs/Liberty-Reserve-A-cyberweb-of-intrigue_Tuesday-May-28-2013)


Flashy cars, lavish gifts, multiple identities and armed Russian henchmen for years appeared to be the modus operandi of two naturalized Costa Ricans who ran the now shuttered Liberty Reserve digital currency exchange site (www.libertyreserve.com (http://www.libertyreserve.com)), operated from Costa Rica since 2006, sources say.

On Friday, Spanish police working in conjunction with law enforcement in the United States and Costa Rica arrested Budovsky, a Ukrainian-born former U.S. citizen, on suspicion of money laundering and other charges. Police in Costa Rica also raided offices and homes linked to Budovsky in the southwestern San José suburbs of Santa Ana and Escazú and Heredia, north of the capital, on Friday.

Agents from the money laundering division at Costa Rica’s Judicial Investigation Police and the Prosecutor’s Office’s organized crime unit seized computers, files, three Rolls Royce and Jaguar autos worth half a million dollars, along with other items, according to a news report by Channel 7 TV.

A Russian national with the last name Chukharev also was arrested, according to a statement issued late Monday afternoon by the Costa Rican Prosecutor’s Office, in response to a Tico Times request. The U.S. is seeking Chukharev’s extradition, the statement said. Neither Chukharev nor his lawyer were available for comment.

http://static1.cdn.ticotimes.net/var/tico/storage/images/media/images/news-photos/liberty/1772528-1-eng-US/Liberty_medium.jpg
Agents raid a home linked to Liberty Reserve in the southwestern San José suburb of Santa Ana. Screenshots from Telenoticias Channel 7
Tico Times

Costa Rican police searched eight sites on Friday, including the offices of companies managed by Budovsky. Those companies are Silverhand Solutions & Technology S.A. (Santa Ana), Worldwide E-Commerce Business S.A., or WEBSA (Escazú), Grupo Lulu Limitada (Escazú), Triton Group A & A, S.A. (Escazú) and Cyberfuel.com (Santa Ana). Police also raided two private homes in Santa Ana and one in Heredia, reportedly belonging to Budovsky and associates.

“The raided companies are, in some manner, related to Liberty Reserve. Costa Rican authorities seized documental proof and digital information that will be turned over to the U.S., via international penal assistance,” the Prosecutor’s Office statement said.

“Arthur Budovsky was arrested in Spain on Friday, following a coordinated effort between U.S. and Spanish authorities,” the statement added. “ is the founder of the company Liberty Reserve, who last year renounced his U.S. citizenship and is currently a citizen and resident of Costa Rica.”

Budovsky, 39, obtained that citizenship by marrying a now 39-year-old Costa Rican woman with the last names Valerio Vargas in June 2008, according to public records. However, Costa Rica’s Immigration Administration has no record of Budovsky entering or leaving the country before May 2011, four years after he received probation in a separate case in New York on charges of operating an illegal financial business, GoldAge Inc.

The Immigration Administration’s first record of Budovsky has him leaving the country on May 25, 2011, but there is no record of him entering Costa Rica before that date. The latest records show he left Costa Rica on Jan. 27.

The Tico Times attempted to contact Budovsky and his attorneys through authorities in Spain, but did not receive a response from Spanish officials on Monday.
[B]
A not-so-golden age

Budovsky’s first run-in with U.S. authorities occurred in July 2006, when he and business partner Vladimir Kats, then 33, were indicted in New York on charges of operating an illegal financial business, GoldAge Inc., a parallel company to Liberty Reserve, from their Brooklyn apartments, according to the U.S. Justice Department. U.S. officials said the two had transmitted at least $30 million to digital currency accounts worldwide since beginning operations in 2002.

They were sentenced to five years in prison in 2007 for engaging in the business of transmitting money without a license, a felony violation of state banking law. They received five years probation.

Companies like GoldAge and Liberty Reserve offer users nearly anonymous digital currency accounts, pegged to the U.S. dollar or Euro, with limited documentation of identity required. Deposits are allegedly backed by gold and other precious metals, and customers can withdraw money by requesting wire transfers to accounts anywhere in the world or by having checks sent to individuals.

U.S. officials have targeted companies like GoldAge and Liberty Reserve for years, saying they are hotbeds for criminal activity including money laundering, drug trafficking and tax evasion. They are also used to shuffle around funds from “high-yield” investment operations, which sometimes are Ponzi schemes disguised as legitimate businesses.

Liberty Reserve was founded in the U.S. in 2002 and relocated to Costa Rica in May 2006 – two months before the U.S. indictment landed against Budovsky and Kats – according to a document obtained by The Tico Times from Costa Rica’s National Registry.

The company operated without oversight from any global agency, and was a convenient tool for foreign currency brokers, as it allowed them to bypass local legislation and avoid exchange rate fluctuations, particularly in developing countries. It was also a popular payment-processing site for the multilevel marketing industry. But its lack of oversight also attracted organized criminal elements, prosecutors said.

“Payment in digital currencies makes it easier for traffickers to launder funds that no longer need to be placed into the traditional financial system. Payment can be immediately forwarded to an international digital currency account, perhaps in payment to the original source of supply, or further layered through multiple digital currency accounts and exchangers until reintegrated into the legitimate economy,” the U.S. National Drug Intelligence Center stated in a 2008 report.

In Costa Rica, Liberty Reserve S.A. was founded with 10 shares each of ₡10,000 ($20) for a total shareholder value of ₡100,000 ($200). To open a Liberty Reserve account, users needed only to submit a name, address, email address, date of birth and occupation.

On Tuesday, the Associated Press reported that Liberty Reserve may have been used to launder proceeds from a recent theft of some $45 million from two Middle Eastern banks. “The complaint against one of the Dominican Republic gang members allegedly involved in the theft states that thousands of dollars' worth of stolen cash was deposited into two Liberty Reserve accounts via currency centers based in Siberia and Singapore,” the AP reported.

Prosecutors also allege that Liberty Reserve was used to launder money from drug trafficking and child pornography sites, according to Costa Rican prosecutor José Pablo González. In addition to Budovsky, González said 10 other Liberty Reserve associates are under criminal investigation.

The closing of Liberty Reserve’s site on Thursday has left in limbo the fate of perhaps millions of dollars pumped into company accounts from around the world. U.S. officials are expected to issue a statement on the case on Tuesday, but so far it’s unclear how much of the account-holders’ funds still exist, where they are, and how many total users are affected.

The Costa Rican Prosecutor’s Office would not comment on the closing of the site, nor the fate of funds tied up in Liberty Reserve, citing the ongoing money laundering investigation.

Red flags and multiple identities

Another similarity between GoldAge and Liberty Reserve is the alleged use of numerous identities by Budovsky and business associates, according to sources familiar with both operations. In 2002, Budovsky granted an “interview” to Ragnar Danneskjold, described as “editor of Planetgold.com,” in which Budovsky, who says he is married to a “wonderful wife with two beautiful daughters,” announces the May 28, 2002 launch of Liberty Reserve. Asked about the risk of attracting organized criminal elements, he said he “would be only too happy to cooperate with authorities in situations” involving “a murderer, kidnapper, or drug kingpin.”

A source who has investigated GoldAge said he believes the editor, Danneskjold, is actually Kats, Budovsky’s partner at the time.

Months before the 2006 indictment, and his probation the following year, Budovsky relocated the company to Costa Rica, where in 2008 he married Valerio Vargas, according to Supreme Elections Tribunal records.

Kats does not appear to have followed his partner to Costa Rica. Instead, Budovsky, who a source familiar with Liberty Reserve operations said “was the boss,” teamed up with Ahmed Yassine, a Moroccan man who was naturalized as a Costa Rican through a November 2006 marriage to a Costa Rican woman. The two were divorced in March 2010, according to public records.

Yassine, who reportedly has an explosive temper, lives in Costa Rica, and there is no record that he has left the country in recent years. On a Liberty Reserve company profile from November 2008 (and still online in June 2010), Yassine is listed under the apparent pseudonym Amed Mekovar as Liberty Reserve’s “corporate director,” say sources close to the company.

“Liberty Reserve was acquired by Amed Mekovar in May of 2006,” the profile states, although there is no mention of Yassine (or Mekovar) in the official company registration document on file at the National Registry.

Budovsky, despite being a founder and boss at the company, also is not listed on the profile or the National Registry document. However, a source familiar with how the business was managed who asked to remain anonymous said Budovsky used the alias Eric Paltz, whom the profile describes as head of “business development.”

“Arthur was the boss,” the source told The Tico Times. But Budovsky, Yassine and other employees rarely used their real names in business dealings or in front of outsiders, the source said.

Sandro Castro, listed on the profile as Liberty Reserve’s head of “Abuse and Business Department inquiries,” is also likely an alias, the source said.

Public records of the company’s inscription in Costa Rica list a Costa Rican man with the last name Hidalgo as Liberty Reserve’s president.

Other names on the 2008 company profile appear to be legitimate employees.

The Tico Times could not reach any of the company officers for comment on Monday.

Snags

While Budovsky, Yassmine and other employees of Liberty Reserve in Costa Rica protected themselves with Russian gunmen, according to a source familiar with the company, they reportedly also tried to present a positive image of Liberty Reserve by allegedly lavishing gifts on influential people and donating computers to local schools. But they faced several snags along the way, including the refusal in 2011 by the Financial Institution Superintendency (SUGEF), Costa Rica’s financial regulatory authority, to license the company, citing a lack of transparency and accounting of funding management.

Nevertheless, Liberty Reserve continued operating, accepting account deposits and transferring funds without SUGEF certification. However, without that approval Budovsky and Yassmine found it increasingly difficult to conduct business through banks in Costa Rica and Panama, which refused to open accounts for the company.

In the past two years, they decided to move company accounts to Europe, where Budovsky often travelled. The company also relocated its network servers – as many as seven – from Costa Rica to the Netherlands, Switzerland and other countries, a source said.

But by 2011, the year Liberty Reserve applied for SUGEF authorization, U.S. officials had already started collaborating with Costa Rican officials on an investigation of the company. That probe culminated with last Friday’s arrests, searches and seizures.

The company has been shut down, and its remaining employees laid off. And customers who placed funds in Liberty Reserve have no idea where their money is, no matter how many times they click “refresh.”

littleroundman
05-28-2013, 06:40 AM
VULTURE ALERT !! VULTURE ALERT !!

http://i218.photobucket.com/albums/cc153/thelittleroundman/scams%202/vulture_zps36111e30.jpg

No room for honour or sentimentality in the HYIP ponzi fraud business

NikSam
05-28-2013, 08:24 AM
http://www.libertyreserve.com/

4104

Hypanor
05-28-2013, 08:56 AM
So many pretty badges!

NikSam
05-28-2013, 09:05 AM
Feds in NY charge 7 in $6B digital currency money-laundering case; Costa Rica, Spain arrests (http://www.therepublic.com/view/story/2d85093df69045018c7eb1dcf07ff98a/Costa-Rica-Digital-Currency)



NEW YORK — Authorities say the founder of a Latin America-based currency system and six other people have been indicted in the United States in a $6 billion money-laundering scheme.

Federal prosecutors in Manhattan are expected to announce the charges on Tuesday afternoon.

Budovsky is the founder of Liberty Reserve, a currency system long favored by cybercrime scammers. He was arrested in Spain on Friday.

There also were arrests in Costa Rica and New York.

Authorities say the network processed at least 55 million illegal transactions worldwide. They call the international money-laundering case the largest ever.

Cordoba reported from San Jose, Costa Rica; Satter reported from London.

ribshaw
05-28-2013, 09:06 AM
So many pretty badges!

This was the one that really concerned me as I had never heard of it before.

4109

Apparently it has something to do with drinking beer, dueling pianos and that bird that shows up when you eat a bowl of Fruit Loops.

4110

Or this, had to do a search with quotes and it only yielded one result.

http://www.oecd.org/corruption/acn/48916988.pdf

4112

NikSam
05-28-2013, 09:50 AM
Indictment: 4114

littleroundman
05-28-2013, 10:16 AM
Reprinted here from an article on Las Vegas Sun.com (http://www.lasvegassun.com/news/2013/may/28/costa-rica-digital-currency/)



NY indictment filed in $6B money-laundering case
The Associated Press

Tuesday, May 28, 2013 | 7:06 a.m.

Authorities say the founder of a Latin America-based currency system and six other people have been indicted in the United States in a $6 billion money-laundering scheme.

Federal prosecutors in Manhattan are expected to announce the charges on Tuesday afternoon.

Budovsky is the founder of Liberty Reserve, a currency system long favored by cybercrime scammers. He was arrested in Spain on Friday.

There also were arrests in Costa Rica and New York.

Authorities say the network processed at least 55 million illegal transactions worldwide. They call the international money-laundering case the largest ever.
___
Cordoba reported from San Jose, Costa Rica; Satter reported from London.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

A shadowy electronic currency that underpins a large chunk of the cybercrime economy has been knocked out by law enforcement action on two continents, police in Costa Rica said late Monday.

Concern had been building on underground Internet forums since Liberty Reserve, a Latin America-based currency system long favored by scammers, went offline last week. In a statement, Costa Rica police confirmed that the company founder Arthur Budovsky had been arrested in Spain on money laundering charges Friday and that several premises linked to his company had been raided.

A notice pasted across Liberty Reserve's website said the domain "has been seized by the United States Global Illicit Financial Team."

Liberty Reserve's demise is likely to send a sharp shock across the Internet.

"It was one the most popular currencies for cybercriminals," said Aditya Sood, a computer science doctoral candidate at Michigan State University who has studied the underground economy.

Sood said Liberty Reserve operates as a no-questions-asked alternative to the global banking system, with little more than a valid email needed to open an account and start moving money across borders.

"You don't need to provide your full details, or personal information, or things like that," he said in a telephone interview. "There's no way to trace an account. That's the beauty of the system."

People using Liberty Reserve rely in part on offshore currency centers, generally set up in places beyond the reach of U.S. or European law enforcement, which broker transactions moving cash in and out of the mainstream financial system. Like other cybercurrencies, Liberty Reserve has many legitimate users, but the promise of untraceable transactions has long made it attractive to scammers.

Sood said that despite prominent disclaimers warning against money laundering, the way Liberty Reserve was set up meant that currency centers typically had little in the way of serious oversight.

"Cybercriminals don't provide their real credentials," Sood said, leaving brokers in the dark about who was sending what where.

"They have no idea where the money is coming from or where the money is going," he said. "That's how they designed the model."

Liberty Reserve appears to have played an important role in laundering the proceeds from the recent theft of some $45 million from two Middle Eastern banks, according to legal documents made public by U.S. authorities earlier this month.

The complaint against one of the Dominican Republic gang members allegedly involved in the theft states that thousands of dollars' worth of stolen cash was deposited into two Liberty Reserve accounts via currency centers based in Siberia and Singapore.

The Costa Rica police statement said that they raided three homes and five businesses linked to Liberty Reserve and seized papers and digital documents that will be turned over to U.S. authorities.

Budovsky, who became a Costa Rican national after giving up his U.S. citizenship, has been in trouble before, the statement added, explaining that he was sentenced in 2007 to five years' probation after pleading guilty in a New York court to charges he operated an illegal financial services business similar to Liberty Reserve.

U.S. authorities didn't return phone messages from The Associated Press seeking comment Monday, which was a public holiday in the United States.

Sood said there might be a short term drop in cybercrime activity as scammers who used to rely on Liberty Reserve readjusted their finances, but he cautioned that new forms of cybercurrency would soon take its place.

"Even if one system is taken down, we can't expect that there will be no more systems," he said.

___

NikSam
05-28-2013, 10:18 AM
US vs Liberty Reserve Docs: INDICTMENT & SUPPORTING DOCUMENTS: U.S. v. Liberty Reserve, et al. (http://www.justice.gov/usao/nys/pressreleases/May13/LibertyReserveetalDocuments.php)

littleroundman
05-28-2013, 10:30 AM
http://img836.imageshack.us/img836/6812/18751748.jpg

NikSam
05-28-2013, 10:54 AM
they did not get them all.

littleroundman
05-28-2013, 11:04 AM
they did not get them all.

yet

......................

littleroundman
05-28-2013, 11:53 AM
http://img707.imageshack.us/img707/2382/81903485.jpg

kschang
05-28-2013, 12:35 PM
Servers are not seized yet. They appear to be in some European country. It'll take more paperwork to grab them.

This server hopping is nothing new. TVI Express moved their hosting around from US to somewhere in Ukraine (Kiev if I remember right) and called it an "upgrade".

kschang
05-28-2013, 04:55 PM
Confirmed by Reuters, almost everybody was arrested:



In addition to Budovsky, who was arrested in Spain along with his deputy, Azzedine El Amine, co-founder Vladimir Kats was arrested in Brooklyn, New York. Two technology designers, Maxim Chukarev and Mark Marmilev, were also arrested, Chukarev in Costa Rica and Marmilev in New York.

Two more company employees were still at large in Costa Rica according to officials: Ahmed Yassine Abdelghani and Allan Esteban Hidalgo Jimenez. According to the indictment, almost all of the men used the alias, Eric Paltz.

U.S. accuses cyber exchange of laundering $6 billion | Reuters (http://www.reuters.com/article/2013/05/28/net-us-cybercrime-libertyreserve-charges-idUSBRE94R0KQ20130528)

Hypanor
05-28-2013, 07:26 PM
Apparently it has something to do with drinking beer, dueling pianos and that bird that shows up when you eat a bowl of Fruit Loops.

Hmm, duelling pianos - that would have changed the whole tone of the movie Deliverance.

Secret Service busts $6 billion money laundering scheme | Fox News (http://www.foxnews.com/world/2013/05/28/secret-service-busts-open-6-billion-money-laundering-scheme/)

Hypanor
05-28-2013, 07:49 PM
Its made the news in Australia today also - local bank Westpac has been caught up in it


According to the indictment, three Westpac accounts held in the name of Technocash Ltd contained $US36.9 million ($A38.4 million).

littleroundman
05-28-2013, 07:55 PM
US prosecutors have announced what they say is the biggest international money laundering prosecution in history – a $US6 billion ($A6.2 billion) trail that allegedly includes $US36.9 million ($A38.4 million) deposited in Westpac Bank accounts.

The trail was allegedly left by Costa Rica-based Liberty Reserve, a currency-transfer and payment-processing company that allowed customers to move money anonymously from one account to another via the internet with almost no questions asked, and has travelled through 17 countries, including the Westpac accounts in Australia.

One person was registered under the name of "Joe Bogus" and the address "123 Fake Main Street" in "Completely Made Up City, New York."


Prosecutors described Liberty Reserve as a "financial hub of the cyber crime world ... one of the principal means by which cyber criminals around the world distribute, store and launder proceeds of their illegal activity ... including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking."

"The scope of the defendants' unlawful conduct is staggering," officials said. Over roughly seven years, Liberty Reserve processed 55 million illicit transactions worldwide for 1 million users.

Prosecutors said 45 bank accounts have been restrained or seized.
According to the indictment, three Westpac accounts held in the name of Technocash Ltd contained $US36.9 million ($A38.4 million).

'Bank of choice'

The Liberty Reserve network "became the bank of choice for the criminal underworld," US Attorney Preet Bharara said in announcing the unsealing of an indictment against the defendants, including founder Arthur Budovsky, an American who renounced his US citizenship after deciding to set up in Costa Rica.

Unlike traditional banks or legitimate online processors, Liberty Reserve did not require users to validate their identities, it is alleged.

It allowed users to open accounts using fictitious names, including "Russian Hacker" and "Hacker Account." One person was registered under the name of "Joe Bogus" and the address "123 Fake Main Street" in "Completely Made Up City, New York."

"The only liberty that Liberty Reserve gave many of its users was the freedom to commit crimes – the coin of its realm was anonymity, and it became a popular hub for fraudsters, hackers and traffickers," said Bharara. "It was the opposite of a know-your-customer policy."

Cyber-age laundering

"We're now entering the cyber age of money-laundering," said Richard Weber, chief of the Internal Revenue Service's Criminal Investigation division, who also alluded to Chicago Crime boss Al Capone. "If Al Capone were alive today, this is how he would be hiding his money."

The company operated one of the world's most widely used digital currencies, allowing users to send and receive "instant, real-time currency," according to the indictment in US federal court in Manhattan.

Digital currency, such as Bitcoin, was developed as a way to make anonymous transfers over the internet without paying fees to a bank. The

US Justice Department warned as early as 2008 that criminals would increasingly rely on the digital currency industry to launder and move funds because it facilitates financial transactions outside the rules of the traditional banking system.

The alleged crimes involved only Liberty Reserve and its operators, and not any other digital currency, Bharara said.

"The actions brought today relate only to Liberty Reserve and no other system," Bharara said. "We're not taking any position on virtual currency generally and we're not taking any position with respect to any particular other company that engages in something that may look on the surface that something that Liberty Reserve was doing."

Arrests

Five of the seven defendants were arrested last week in a global swoop.

Budovsky, 39, was arrested in Spain, co-founder Vladimir Kats, 41, was arrested in Brooklyn, New York, while two other defendants, Ahmed Abdelghani, 42, and Allan Jimenez, 28, remain at large in Costa Rica, prosecutors said.

The names of the defendants' attorneys were not immediately available.

"The global enforcement action we announce today is an important step towards reining in the Wild West of illicit internet banking," said Bharara. "As crime goes increasingly global, the long arm of the law has to get even longer, and in this case, it encircled the earth."

A notice pasted across Liberty Reserve's website on Tuesday morning said the domain "has been seized by the United States Global Illicit Financial Team." As of Wednesday morning, the website is no longer accessible. Attempts to reach Liberty Reserve by phone and email were not immediately successful.

Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the internet's largest payment processor and money transfer system serving millions of people around the world.

Prosecutors alleged Liberty Reserve was used extensively for illegal purposes, providing an infrastructure that enabled cyber criminals around the globe to conduct untraceable financial transactions.

The network charged a 1 per cent fee on transactions through "exchangers" – middlemen who converted actual currency into virtual funds and then back into cash.

It is alleged when US authorities began to investigate the company, the defendants pretended to shut it down.

But it is alleged that they continued operating "and moved tens of millions of dollars through shell company accounts maintained in Cyprus, Russia, China, Hong Kong, Morocco, Spain, Australia and elsewhere".

Budovsky and Kats have previous convictions on charges related to an unlicensed money-transmitting business, according to court papers. After that case, the pair decided to move their operation to Costa Rica, the papers said.

In an online chat captured by law enforcement, Kats admitted Liberty Reserve was illegal and noted that authorities in the US knew it was "a money-laundering operation that hackers use".

Legitimate users

While authorities described Liberty Reserve as being rife with criminals, the site's ease of use, low fees and irreversible transactions that deterred fraud also attracted legitimate users.

Mitchell Rossetti, whose Houston-based ePayCards.com was one of several mainstream merchants that accepted Liberty Reserve's online-only currency, said his business still had about $US28,000 tied up in Liberty Reserve accounts.

"The irony of this is I went to them because of the security," Rossetti said. "All sales were final."

He acknowledged that the currency was being used by scammers but said Liberty Reserve funds were just like any other currency: "The US dollar can be donated to a church or it can pay a prostitute."

Liberty Reserve appears to have played an important role in laundering proceeds from the recent theft of some $US45 million from two Middle Eastern banks, according to documents made public by authorities earlier this month. In that scheme, thieves stole debit card information and then used it to drain cash from thousands of ATMs around the world in a matter of hours.

As part of the Liberty Reserve investigation, authorities raided 14 places in Panama, Switzerland, the US, Sweden and Costa Rica. In Costa Rica, investigators recovered five luxury cars, including three Rolls-Royces. Bharara said authorities also seized Liberty's computer servers in Costa Rica and Switzerland.

The seven defendants are each charged with one count of conspiracy to commit money laundering, which carries a maximum term of 20 years jail.

They're also charged with one count of conspiracy to operate an unlicensed money transmitting business and of operation of an unlicensed money transmitting business. Both of those charges carry a maximum jail term of five years.

The Age.com.au (http://www.theage.com.au/it-pro/security-it/westpac-caught-up-in-worlds-biggest-money-laundering-sting-20130529-2naa8.html)

NikSam
05-28-2013, 08:24 PM
I guess 5 years is not a big term for scale of operations such as this.

Let's wait till authorities realize there is no $6B and most of the "currency" was just virtually created with injections by exchangers owned by LR guys themselves.
- Money from a thin air.

I think charges of fraud will also be added later on.

kschang
05-28-2013, 08:40 PM
Actually I *do* believe that they are "trying" to run an honest business, but the anonymous nature attracted all the unsavory players.

There are plenty of informal money exchangers. Didn't they shut down the "Bharani Network" out of middle east as funnel for illicit funds for Al Qaeda?

NikSam
05-28-2013, 09:21 PM
Actually I *do* believe that they are "trying" to run an honest business, but the anonymous nature attracted all the unsavory players.

There are plenty of informal money exchangers. Didn't they shut down the "Bharani Network" out of middle east as funnel for illicit funds for Al Qaeda?

No way, multiple Identities, fake names, Interviewing each other, owning exchanges All of it beginning since 2000 - none of that seem like they were ever tried to run anything honest.

Not many people in CR even knew his real name, even employees did not.

Add on it recent events when they were denied in a license from CR SUGEF, they set up a fake review portal for SUGEF, which only showed them data they wanted them to see, at the end in 2011 they even faked that LR is no longer in CR by closing offices and continuing operations from the Villa.

How any of it is honest ? Maybe Budovsky marriage is for CR citizenship only, he just needed to run away from US.

okosh
05-28-2013, 09:39 PM
I guess 5 years is not a big term for scale of operations such as this.

Let's wait till authorities realize there is no $6B and most of the "currency" was just virtually created with injections by exchangers owned by LR guys themselves.
- Money from a thin air.

I think charges of fraud will also be added later on.

Would not be the first time that a pay processor was basically a ponzi....
Anyone remember Altergold??...

kschang
05-28-2013, 09:39 PM
Haqqani Network, not Bharani. My mistake.

There's "honesty" in general, then there's "honor among thieves". ;) I guess my point is IMHO they didn't build LR to be a Ponzi scheme. They are "honest" in the sense that they don't tell you lies about your money grows and then steal your money. They simply nickel and dime you to death with fees... in the open. All that alias and such can be seen as trying to get away from the "oppressive" US regime. Their mistake, basically is taking over too much of a bank's functions (i.e. behave like a bank) but without doing any of a bank's paperwork, like tracking people for money laundering and regulatory stuff.

path2prosperity
05-29-2013, 12:27 AM
Would not be the first time that a pay processor was basically a ponzi....
Anyone remember Altergold??...

I remember that one which only lasted for a very short time. Do you remember who was behind it? It was pimped on ASA for a week or two.

kschang
05-29-2013, 02:44 AM
Just penned this missive, some feedback please.

Why Was Liberty Reserve Shut Down: How Anonymous Money Transfer Systems Are Exploited By Terrorists and Criminals (http://kschang.hubpages.com/hub/Why-Was-Liberty-Reserve-Shut-Down-How-Anonymous-Money-Transfer-Systems-Are-Exploited-By-Terrorists-and-Criminals)

NikSam
05-29-2013, 02:56 AM
Just penned this missive, some feedback please.

Why Was Liberty Reserve Shut Down: How Anonymous Money Transfer Systems Are Exploited By Terrorists and Criminals (http://kschang.hubpages.com/hub/Why-Was-Liberty-Reserve-Shut-Down-How-Anonymous-Money-Transfer-Systems-Are-Exploited-By-Terrorists-and-Criminals)

Heh, they not only confused 2 countries, but kept kept insisting multiple times on Puerto Rico :)

NikSam
05-29-2013, 03:19 AM
http://www.youtube.com/watch?v=JojaEtW0D1I

NikSam
05-29-2013, 03:36 AM
CNN in spanish


http://www.youtube.com/watch?v=nxkC0NIQRJo

Gregg
05-29-2013, 05:01 AM
Just penned this missive, some feedback please.

Why Was Liberty Reserve Shut Down: How Anonymous Money Transfer Systems Are Exploited By Terrorists and Criminals (http://kschang.hubpages.com/hub/Why-Was-Liberty-Reserve-Shut-Down-How-Anonymous-Money-Transfer-Systems-Are-Exploited-By-Terrorists-and-Criminals)


Liberty Reserve had processed 55 million transactions during its lifetime, to the tune of 6 BILLION dollars, according to the May 2013 indictment. At the standard rate of 1 percent transaction fee that's at least six million in the pocket of Budovsky and leaders, not counting any other sort of fees.

Check the math, 1% of $6Billion is $60 Million, not $6 Million......

NikSam
05-29-2013, 05:18 AM
kschang, please do search - replace for Puerto Rico(can), It should be Costa Rica everywhere.

littleroundman
05-29-2013, 06:46 AM
http://img13.imageshack.us/img13/8674/exc1.jpg

US Department of Justice (http://www.justice.gov/usao/nys/pressreleases/May13/LibertyReserveetalDocuments/Liberty%20Reserve,%20et%20al.%20Related%20Exchange r%20Website%20Domain%20Names%20Redacted%20Filed%20 Complaint%2013CV3565%20final%20with%20exhibits.pdf )

NikSam
05-29-2013, 07:10 AM
Full Video Press Release


http://bloom.bg/11nq19s

NikSam
05-29-2013, 08:43 AM
....
Legitimate users
....

Mitchell Rossetti, whose Houston-based ePayCards.com was one of several mainstream merchants that accepted Liberty Reserve's online-only currency, said his business still had about $US28,000 tied up in Liberty Reserve accounts.
....


Haha, who are they kidding ?, They knew perfectly who used their VIRTUAL debit cards and what for :)

NikSam
05-29-2013, 09:24 AM
2 FinCen documents published today:


Notice of findings: http://www.fincen.gov/statutes_regs/files/311--LR-NoticeofFinding-Final.pdf


And Notice of Proposed Rule-making, which is most interesting, looks like FinCen trying to enforce their licensees to refuse and terminate accounts
of any individual/company who processed transactions meant for Liberty Reserve:
http://www.fincen.gov/statutes_regs/files/311--LR-NPRM-Final.pdf

kschang
05-29-2013, 05:31 PM
Check the math, 1% of $6Billion is $60 Million, not $6 Million......

OOPS! Fixed.

Lil Ol' Radical Me
05-29-2013, 06:24 PM
And another article from El Pais, Spain.(In English) The arrests were made in Madrid, with the Spanish authorities collaborating with the US. Who said "offshore" is safe?

And don't you just love the Title? They don't seem to have any confusion about the nature of "the industry"

Spain and US authorities dismantle “PayPal of organized crime”

Spain and US authorities dismantle (http://elpais.com/elpais/2013/05/29/inenglish/1369853619_003057.html)

NikSam
05-30-2013, 02:57 AM
...
How any of it is honest ? Maybe Budovsky marriage is for CR citizenship only, he just needed to run away from US.

Am I psychic or what ? ;)

Liberty Reserve founder accused of marriage fraud | World news | guardian.co.uk (http://www.guardian.co.uk/world/2013/may/30/liberty-reserve-budovsky-marriage)

path2prosperity
05-30-2013, 03:04 AM
Am I psychic or what ? ;)

Liberty Reserve founder accused of marriage fraud | World news | guardian.co.uk (http://www.guardian.co.uk/world/2013/may/30/liberty-reserve-budovsky-marriage)

The Guardian is a broadsheet British newspaper and reporting is considered to be extremely reliable.

kschang
05-30-2013, 03:18 AM
kschang, please do search - replace for Puerto Rico(can), It should be Costa Rica everywhere.

Oops, my brain had a Freudian slip... more like a plate shift. :P

NikSam
05-30-2013, 04:08 AM
yeah, one little thing sometimes spreads so it is hard to stop.

One russian blog 2 days ago published a photo of Budovsky which in fact was a photo of an unrelated person (Arthur Levine)
- that's the image which comes up on Arthur in google image search.

couple hours later, that picture was on Russian NTV channel in news report.

A bit later german TV picked on it.

And some newspapers printed it next day.


Man, poor guy, or maybe he has a lawsuit chance ;)

Fgold
05-30-2013, 10:34 AM
Am I psychic or what ? ;)

Liberty Reserve founder accused of marriage fraud | World news | guardian.co.uk (http://www.guardian.co.uk/world/2013/may/30/liberty-reserve-budovsky-marriage)

It seems that there was a marriage deal and she was not forced and accepted the money so I don't think that marriage can be considered as a fraud. Maybe she wants more money now so thats why she opened his mouth to get more bribes... LOL

Fgold
05-30-2013, 10:35 AM
Would not be the first time that a pay processor was basically a ponzi....
Anyone remember Altergold??...

LR was not really a ponzi and it could stay online longer if feds didn't close it. LR was illegal but sustainable and many trusted exchangers accepted it till the time of his closure! Altergold was an unsustainable pay processor and has an affiliate programm offerig $25 per referral and more from their transfers.

kschang
05-30-2013, 10:54 AM
It seems that there was a marriage deal and she was not forced and accepted the money so I don't think that marriage can be considered as a fraud. Maybe she wants more money now so thats why she opened his mouth to get more bribes... LOL

Sham marriage is SERIOUS fraud and CAN result in revocation of citizenship.

Sham marriage - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Sham_marriage)

A well-known FBI/CIA agent, who risked her life for the US while pregnant, going undercover and busted several terrorist cells after 9/11, lost her own citizenship when it was discovered she got her citizenship through a sham marriage.

Nada Nadim Prouty - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Nada_Nadim_Prouty)

Fgold
05-30-2013, 12:02 PM
Sham marriage is SERIOUS fraud and CAN result in revocation of citizenship.

Sham marriage - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Sham_marriage)

A well-known FBI/CIA agent, who risked her life for the US while pregnant, going undercover and busted several terrorist cells after 9/11, lost her own citizenship when it was discovered she got her citizenship through a sham marriage.

Nada Nadim Prouty - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Nada_Nadim_Prouty)

According to US laws its serious fraud but not sure about what Costa Rica laws says about Sham marriage.

NikSam
05-30-2013, 12:03 PM
It seems that there was a marriage deal and she was not forced and accepted the money so I don't think that marriage can be considered as a fraud. Maybe she wants more money now so thats why she opened his mouth to get more bribes... LOL

Do not know the laws of Costa Rica if marriage for the money is considered a crime by itself, but it is an immigration fraud to arrange a marriage in attempt to gain citizenship. Revocation of citizenship, deportation, ban on entering the country again are usual forms of punishment, some countries even have jail sentences for that, some countries punish both parties.

Fgold
05-30-2013, 12:11 PM
Do not know the laws of Costa Rica if marriage for the money is considered a crime by itself, but it is an immigration fraud to arrange marriage in attempt to gain citizenship. Revocation of citizenship, deportation, ban on entering the country again are usual forms of punishment, some countries even have jail sentences for that.

I know and its never easy to prove that was a "fake" marriage just for money. Not many countries excepting US and UK have explicit laws regarding that type of crime.

kschang
05-30-2013, 12:28 PM
Quite serious, according to another article on TicoTimes:

Lawyer gets 186 years for fake marriage scam / News / Top Story / More news / Costa Rica Newspaper, The Tico Times (http://webcache.googleusercontent.com/search?q=cache:sHbY6_KstFQJ:www.ticotimes.net/More-news/Top-Story/News/Lawyer-gets-186-years-for-fake-marriage-scam_Friday-February-03-2012&hl=en&gl=us&strip=1)

Yes, a Costa Rican lawyer for 186 YEARS for arranging 30+ fake marriages, at least one "victim" had his ID stolen and suddenly found himself "married" a few months later.

So yes, it's serious.

Lil Ol' Radical Me
05-30-2013, 04:13 PM
Am I psychic or what ? ;)

Liberty Reserve founder accused of marriage fraud | World news | guardian.co.uk (http://www.guardian.co.uk/world/2013/may/30/liberty-reserve-budovsky-marriage)

It appears that this was a ruse to avoid extradition to the US. Didn't do him much good did it?

littleroundman
05-30-2013, 09:50 PM
It seems that there was a marriage deal and she was not forced and accepted the money so I don't think that marriage can be considered as a fraud. Maybe she wants more money now so thats why she opened his mouth to get more bribes... LOL

You're entirely missing the point.

Budovsky was based in Costa Rica because it DOESN'T have an extradition treaty with the USA.

His being married to a Costa Rican citizen gave him automatic entitlement to remain in the country.

If the marriage is shown to be a sham, Costa Rica will deport him from the country, meaning he has no protection from being extradited

Budovsky also renounced his American citizenship and, by virtue of the marriage,apparently then became a Costa Rican citizen.

If that is the case and his Costa Rican citizenship is renounced, he then becomes stateless, which is a separate problem in itself.

littleroundman
05-30-2013, 09:55 PM
The Guardian.co.uk (http://www.guardian.co.uk/world/2013/may/30/liberty-reserve-budovsky-marriage) is reporting



Liberty Reserve founder accused of marriage fraud

Alleged money-launderer Arthur Budovsky may have paid $800 to marry Costa Rican food vendor in bid to avoid extradition

http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2013/5/30/1369890991626/Arthur-Budovsky-under-pol-006.jpg

Arthur Budovsky under police guard after his arrest in Spain. Photograph: EPA

The man who allegedly founded currency transfer firm Liberty Reserve may have paid a Costa Rican woman to marry him so he could get citizenship in that country, authorities say. Costa Rica has no extradition treaty with the United States,

The deputy director of judicial investigations, Gustavo Vega, said officials were still investigating the 2010 marriage between millionaire Arthur Budovsky and a woman who local media identified only by her last names, Valerio Vargas.

The Costa Rican newspaper La Nacion said the woman had a food stand outside the government's immigration offices in the capital, San Jose.

The woman was quoted by the paper as saying Budovsky paid her $800 to marry him and promised they would get a divorce after two years. She said they were still married.

Budovsky renounced his US citizenship after deciding to set up in Costa Rica. He and another man, identified as Azzeddine el Amine, were arrested on Friday at a Madrid airport while trying to return to Costa Rica. They are in jail awaiting a hearing on extradition to the US.

US federal prosecutors charged seven people on Tuesday, including Budvosky and el Amine, with running what amounted to an online, underworld bank that handled $6 billion for drug dealers, child pornographers, identity thieves and other criminals. Prosecutors said it might have been the biggest money laundering scheme in US history.

US authorities say Liberty Reserve, a currency transfer and payment processing company based in Costa Rica, allowed customers to move money anonymously from one account to another via the internet with almost no questions asked.

They said the enterprise was staggering in scope. Over about seven years, Liberty Reserve processed 55 million illicit transactions worldwide for 1 million users, including 200,000 in the United States. The network charged a 1% fee on transactions through "exchangers" - middlemen who converted actual currency into virtual funds and then back into cash.

Costa Rica's director of judicial investigations, Francisco Segura, acknowledged that Costa Rica was an attractive country for US criminals because they could obtain Costa Rican citizenship easily and cheaply, and were protected from being extradited to the US.

Public security minister Mario Zamora said after a meeting with the US ambassador, Anne Andrew, on Wednesday that the two countries would start work on an extradition treaty for suspects in organised crime cases.

But the Supreme Court president, Zarella Villanueva, said such a treaty would take a long time to materialise because it would require constitutional changes that have to be approved by the US Congress.

NikSam
05-30-2013, 11:20 PM
One extra note, Current law of Ukraine does not allow dual or multi citizenships.
So, becoming an US citizen Budovsky automatically lost his Ukrainian citizenship.

NikSam
05-31-2013, 12:54 PM
More than that, Budovsky's wife never even met him :RpS_lol:



“In a telephone interview on Tuesday, Budovsky’s Costa Rican wife told crhoy.com reporter Álvaro Sánchez (((hey, that was some good investigative work there Sr Sanchez, long live the Fourth Estate))) that she married Budovsky out of financial need. “An intermediary offered me ₡300,000 [$600], and I badly needed it in that moment,” Valerio told crhoy.com. “The guy who married us was a Gringo attorney, and the person I married I never saw.”



URL: The Liberty Reserve digital money-laundering case: reportage from Costa Rica | Beyond The Beyond | Wired.com (http://www.wired.com/beyond_the_beyond/2013/05/the-liberty-reserve-digital-money-laundering-case-reportage-from-costa-rica/)

Fgold
06-01-2013, 10:02 AM
You're entirely missing the point.

Budovsky was based in Costa Rica because it DOESN'T have an extradition treaty with the USA.

His being married to a Costa Rican citizen gave him automatic entitlement to remain in the country.

If the marriage is shown to be a sham, Costa Rica will deport him from the country, meaning he has no protection from being extradited

Budovsky also renounced his American citizenship and, by virtue of the marriage,apparently then became a Costa Rican citizen.

If that is the case and his Costa Rican citizenship is renounced, he then becomes stateless, which is a separate problem in itself.

According to the latest news reported there's at least 3 people involved in that "sham" marriage: the intermediary, Valerio and Budovsky.

The budovsky's intention with such marriage was very clear. What its not so clear is the intentions from the intermediary and from Valerio. Its obvious that both wanted the money but why would a 5 years old marriage be found only now?? I think such unkown intermediary got a lot of money with such crime and Costa Rican vultures also got their part. What will happen to them??

littleroundman
06-01-2013, 10:41 AM
What will happen to them??

In the context of this discussion about Liberty Reserve, it doesn't matter what happens to them.

It is highly unlikely, IM(very)HO, what took place was anything more than another routine citizenship-by-sham-marriage situation and wasn't created specifically for Budovsky.

Such sham marriages are common in many countries, ESPECIALLY those without extradition treaties with the USA.

ribshaw
06-01-2013, 11:33 AM
I must say this story is huge, even my girlfriend brought this up when she came home from work last night. It has obviously gathered mainstream press coverage, but I wonder how many folks will give a second thought to sending their money and id to some unknown payment processor who knows where?

Fgold
06-01-2013, 12:15 PM
In the context of this discussion about Liberty Reserve, it doesn't matter what happens to them.

It is highly unlikely, IM(very)HO, what took place was anything more than another routine citizenship-by-sham-marriage situation and wasn't created specifically for Budovsky.

Such sham marriages are common in many countries, ESPECIALLY those without extradition treaties with the USA.

What happens to them most probably have a strong relationship with what happens to budovsky too. They were probably the ones who helped such vulture team to catch important info the LR closure process. Without their cooperation with authorities they wouldn't find some important info and might did that to get some privilegies. Its funny that vultures just want to suck those who have more $$$$ :RpS_lol:

kschang
06-01-2013, 02:49 PM
I must say this story is huge, even my girlfriend brought this up when she came home from work last night. It has obviously gathered mainstream press coverage, but I wonder how many folks will give a second thought to sending their money and id to some unknown payment processor who knows where?

It got picked up because DOJ made a bit f***ing deal about it, so it got picked by by AP, Reuters, all the major news networks, then NPR and OnPoint with Tom Ashbrook.

littleroundman
06-01-2013, 10:57 PM
And still the fallout continues:

http://i1301.photobucket.com/albums/ag116/Little_Roundman/scams/lib1_zpsfbf28fe3.jpg

Read the full article here on TicoTimes.net (http://www.ticotimes.net/More-news/News-Briefs/Costa-Rican-President-Chinchilla-denies-link-to-Liberty-Reserve-attorney-_Friday-May-31-2013)

http://i1301.photobucket.com/albums/ag116/Little_Roundman/scams/lib2_zps603a7c2a.jpg

Read the complete article on tuoitrnews.vn (http://tuoitrenews.vn/society/10230/vietnam-to-probe-possible-laundering-in-virtual-currency-case)

Lil Ol' Radical Me
06-02-2013, 06:33 PM
Maybe when they have finished with Liberty Reserve, The DoJ will turn it's attention to Solid Trust Pay and Alert Pay.

And, if it hasn't been asked already ....where is Finix and her analysis of this major event in "the industry"?

okosh
06-04-2013, 12:20 AM
Its funny that vultures just want to suck those who have more $$$$ :RpS_lol:

Also funny that your favorite forum where you are head mod at is shut down(Gold-Age)....Pity your boss got indicted for running illegal exchange service....

okosh
06-04-2013, 12:22 AM
Wonder what all those paid to post at TG will do now that ecardone is also gone??....Will have to find new rubbish to get paid few coins to talk up...

Fgold
06-04-2013, 06:46 AM
Also funny that your favorite forum where you are head mod at is shut down(Gold-Age)....Pity your boss got indicted for running illegal exchange service....

LOL Gold-Age exchanger its old news and that happened about 7 years ago... The only relation between GA and LR is just the people involved but not the type of such businesses that were only considered as illegal/unlicensed just because US govs were furious and jealous of not getting any taxes from such activities... they don't care about bring wealth to their people or save them from frauds. They just stole milllions from innocent people(Yes not all LR users were hyip scammers!!) who were running fully licensed businesses like forex brokers who wanted to offer an alternative payment method to people from countries where payment solutions are very restricted and bureaucratic...

Fgold
06-04-2013, 06:52 AM
Wonder what all those paid to post at TG will do now that ecardone is also gone??....Will have to find new rubbish to get paid few coins to talk up...

Despite of their seized domain they are not gone:



Dear clients,



Our domain was last night without justification disconnected. During today or tomorrow we will place our service to a new domain Dagensia.eu, corresponding to the name of our company. You can already log in to your account under this link: https://banking.dagensia.eu



We want to assure you that Dagensia Finance s.r.o. is a licensed and fully compliant company, and all client funds are deposited in insured and monitored bank accounts.



If you have any comments reply to this email.



Thank you



David Novak

Support Dagensia.eu

They will change to new domain and I think all other LR exchangers who were indicted will do the same....

path2prosperity
06-04-2013, 07:41 AM
Despite of their seized domain they are not gone:



They will change to new domain and I think all other LR exchangers who were indicted will do the same....

And stay beneath the radar? Their hopes of staying beneath the radar again are about as high as the proverbial "sky." Idiots who sign up for their services after this publicity may as well paint a target on their chests and invite Olympic level marksmen to have a shot.

NikSam
06-04-2013, 07:56 AM
...
David Novak

Support Dagensia.eu


Another Novak, heh.
Should we even bring the topic that MSB registration is required in every jurisdiction they serve clients in ? Just saying we are company and have a bank account is not enough.


About those so innocent forex brokers who used liberty reserve, did you look them up? almost every single one of them operated without a single license.
The point of that they used LR to reach more clients in other countries is stupid , those countries they tried to reach never licensed them for brokerage service, and some even declared illegal.

On another note, Perfect Money anonced they switching domain to ICELAND - PerfectMoney.IS
https://perfectmoney.com/news_view.html?id=344

Trying to hide from ICANN? heh.

NikSam
06-04-2013, 08:03 AM
9:00 AM on east coast.
FED Webmaster came to work and the eagles showing up on exchangers sites :)

Ecard one: http://ecardone.com/index.html
AlertExchanger: http://alertexchanger.com/index.html
WM Center: http://wm-center.com/index.html
EBuyGold: http://ebuygold.com/index.html

and more...

Fgold
06-05-2013, 08:15 AM
And stay beneath the radar? Their hopes of staying beneath the radar again are about as high as the proverbial "sky." Idiots who sign up for their services after this publicity may as well paint a target on their chests and invite Olympic level marksmen to have a shot.

Well not all of them used the same way to operate. The ones like the one I've mention above have nothing to worry about staying beneath the radar. Only those who made s*** care about it...

Fgold
06-05-2013, 08:22 AM
Another Novak, heh.
Should we even bring the topic that MSB registration is required in every jurisdiction they serve clients in ? Just saying we are company and have a bank account is not enough.


About those so innocent forex brokers who used liberty reserve, did you look them up? almost every single one of them operated without a single license.
The point of that they used LR to reach more clients in other countries is stupid , those countries they tried to reach never licensed them for brokerage service, and some even declared illegal.



They have all the requirements to operate in Czech Republic and I'm not sure if they accept US residents as most of their customers were from EU...

Mayzus broker is just one who offered LR payments and I don't think its unlicensed... :RpS_ohmy:

Fgold
06-05-2013, 08:26 AM
9:00 AM on east coast.
FED Webmaster came to work and the eagles showing up on exchangers sites :)



I think its better to call them as "vultures" because vulture's behaviour is the one who suits more what they are doing now...

kschang
06-05-2013, 11:11 AM
I think its better to call them as "vultures" because vulture's behaviour is the one who suits more what they are doing now...

As if we humans are not good predators in our own right... At least predators and vultures are honest in what they are, and we're often... not so.

ribshaw
06-05-2013, 12:00 PM
I heard a similar version, but found the quote.

4236

littleroundman
06-05-2013, 12:13 PM
I think FGold was referring to the actions of the US government as being those of "vultures"

It's a commonly pushed theory on the usual suspect HYIP ponzi forums that the whole Liberty Reserve thing was an illegal action by the US government.

This totally ignores the fact all of the countries involved have an interest in the prevention of money laundering, tax evasion, drug sales and child pornography and all of them are signatories to multiple treaties for doing so.

It is simply no longer possible for countries to be part of the international financial community WITHOUT taking steps to eliminate financial crime.

Fgold
06-05-2013, 12:36 PM
As if we humans are not good predators in our own right... At least predators and vultures are honest in what they are, and we're often... not so.

Well in Wild life there's nothing like honesty or justice and the eco-system is ruled by natural laws. The "us gov vultures" manipulate the rules in "world markets" with a similar behaviour: They feed from dying or dead businesses (legal or not) leaving only some vital parts to grow later to get more profits in future... They're just waiting for PM and other illegal PPs to grow more and more and when it starts to stagnate or decline they feed again...

kschang
06-05-2013, 12:45 PM
Well in Wild life there's nothing like honesty or justice and the eco-system is ruled by natural laws. The "us gov vultures" manipulate the rules in "world markets" with a similar behaviour: They feed from dying or dead businesses (legal or not) leaving only some vital parts to grow later to get more profits in future... They're just waiting for PM and other illegal PPs to grow more and more and when it starts to stagnate or decline they feed again...

Sounds like natural selection to me. :) Kill off the scams (the weak and corrupt), tax the healthy ones.

NikSam
06-05-2013, 12:49 PM
They have all the requirements to operate in Czech Republic ...

Maybe, than legally they can only serve Czech residents, UK for example never licensed them.. therefore serving UK residents is unauthorized.

Laws are there, in every country, accessible to public, the fact that some authority did not notice a violation or do not care about it - is still a violation.

Same applies to any broker who perhaps was able to squeeze a license from loose countries such as Cyprus or some banana island in Caribbean , they can not legally serve residents of other countries without being a licensed broker there,
use of LR in their case was to circumvent and hide their violations.

NikSam
06-05-2013, 01:17 PM
Now specifically on Mayzus case, cause you brought it up,
a perfect example

Till December 2012 they called themselves UWC - United World Capital, and got themselves in trouble in Brazil, where they are not licensed as a broker or authorized in any way.
http://www.cvm.gov.br/port/infos/ATO%20DECLARATÓRIO%20CVM%20No%2012.482.doc

Neverless they been registered with CySEC and FSA , any country would require them to be registered / licensed to target their residents (unless their laws do not require to).
If Mayzus had the legal base to operate in any of those countries they would never had used LR for money transactions in those countries cause the local normal payment methods would be better than some anonymous processor in Costa Rica.

kschang
06-05-2013, 08:49 PM
I think FGold was referring to the actions of the US government as being those of "vultures"
It's a commonly pushed theory on the usual suspect HYIP ponzi forums that the whole Liberty Reserve thing was an illegal action by the US government.

I know. I was referring to the fact that it takes something created by men, such as law, justice, and law enforcement, to catch men, who prey upon other men.

As least "vultures" are honest in what they are: carrion eaters. Fraudsters are, by definition, pretending to be something NOT what they are.

littleroundman
06-09-2013, 11:43 PM
Whoever it was who first said "There's no honour among thieves" ? wasn't far wrong.

http://img29.imageshack.us/img29/6397/nohonour.jpg

okosh
06-10-2013, 12:54 AM
Whoever it was who first said "There's no honour among thieves" ? wasn't far wrong.


I seem to remember much the same thing being offered by now TG mod Shane Smith of nanaimogold(dot)com when e-gold was shut down.....

NikSam
07-17-2013, 04:38 PM
CR Wife of Liberty Reserve Culprit Wants Half


Yesenia Valerio Vargas (now 39 years old) agreed to marry the Ukrainian-born American, Arthur Budovsky, imprisoned on 24 May in Spain at the request of the United States. Budovsky was one of the main people behind the Liberty Reserve money laundering. liberty reserve is being called the largest money laundering scheme in history.
About $6 Billion in assets were taken from the house of Budovsky in Costa Rica and is going to be auctioned off. Yesenia Valerio Vargas and her lawyer are saying she is entitled to the spouses half. Nice……
Yesenia Valerio Vargas was paid $400 to marry Budovsky, which by all signs was an arranged marriage to grant Budovsky residency in order to help run the business out of Costa Rica.
“After two weeks in the country (the lawyer) introduced me to him, I married him (with Budovsky) and we both went on with our normal lives. I dated him about four times, leaving that to drink coffee, chatting, never came by car and never saw him wealthy.” But now that I know he has money I want some. :::laughing out loud:::
Great attitude, you did not have a real marriage and now do not want to work so you are taking a chance with the terrible Costa Rican legal system to potentially keep you from having to actually get a job to support your plethora of babies that you already popped out. Well Hmmmmm, thanks Yesenia for showing your true colors. You had an arranged marriage which if a gringo did it to get residency would be punished and is ILLEGAL...
....


URL: Costa Rica Wife of Liberty Reserve Culprit Wants Her Half | The Costa Rican Times (http://www.costaricantimes.com/costa-rica-wife-of-liberty-reserve-culprit-wants-her-half/17918)

Also: Wife of Liberty Reserve founder to seek husband's Costa Rica assets / News Briefs / More news / Costa Rica Newspaper, The Tico Times (http://www.ticotimes.net/More-news/News-Briefs/Wife-of-Liberty-Reserve-founder-to-seek-husband-s-Costa-Rica-assets-_Tuesday-July-09-2013)

NikSam
08-05-2013, 04:10 PM
Tomorrow (Aug 6th) a court hearing will be held against Vladimir Kats, 41, and Mark Marmilev, 27 - New York residents and co-operators of Liberty Reserve who pleaded not guilty.

Judge: Denise Cote
United States District Court
Southern District of New York
United States Courthouse
500 Pearl Street
New York, NY 10007-1312


Anyone going ?

Please watch Pacer for updates and post here while this is going on.

NikSam
08-05-2013, 06:34 PM
Correction: Pretrial hearing moved to August 9, 2013 at 10:30 a.m.

Marmilev and Kats still in detention since arrest.

Court case #: 1:13-cr-00368



Tomorrow (Aug 6th) a court hearing will be held against Vladimir Kats, 41, and Mark Marmilev, 27 - New York residents and co-operators of Liberty Reserve who pleaded not guilty.

Judge: Denise Cote
United States District Court
Southern District of New York
United States Courthouse
500 Pearl Street
New York, NY 10007-1312


Anyone going ?

Please watch Pacer for updates and post here while this is going on.

NikSam
08-13-2013, 12:02 PM
Accusations of dirty contributions from Liberty Reserve to 2 political parties in Costa Rica are pilling up:


A legislator in Costa Rica brought up explosive accusations against two political parties during a debate on campaign reform. Jeanette Ruiz from the Citizen Action Party (PAC in Spanish) has insinuated that Liberty Reserve, a controversial money transmitter based in Costa Rica, donated money to fund the electoral campaigns of the Libertarian Movement and the powerhouse National Liberation Party (PLN in Spanish).

Read more at: Dirty Political Campaign Donations Alleged in Costa Rica (http://news.co.cr/dirty-political-campaign-donations-alleged-in-costa-rica/24574/)

NikSam
09-01-2013, 12:45 AM
Next court conference set for November 8th

NikSam
10-16-2013, 09:25 PM
Civil Registry of Costa Rica will annul 304 marriages which were bona fide for naturalization,

Including one of Arthur Budovsky

Liberty Reserve scandal caused most of these investigations.

So, Budovsky cannot count on Costa Rica's protection.

URLs: Registro Civil solicitó anulación de 304 matrimonios de extranjeros - Noticias | Teletica (http://www.teletica.com/Noticias/28877-Registro-Civil-solicito-anulacion-de-304-matrimonios-de-extranjeros.note.aspx)
Matrimonio entre sospechoso de caso Liberty Reserve y una costarricense sería anulado - Nacional - Noticias | Teletica (http://www.teletica.com/Noticias/28717-Matrimonio-entre-sospechoso-de-caso-Liberty-Reserve-y-una-costarricense-seria-anulado.note.aspx)

PS: Budovsky's wife wanted half of what "her husband" has, how about half of his jail term ?

NikSam
10-16-2013, 09:47 PM
Re-Post from "In the news" thread


AML pressure on Costa Rica banks
One popular offshore destination becomes less offshore, in fall out of Liberty Reserve scandal:




The Asociación Bancaria Costarricense (ABC) – Costa Rican banking association – is asking customers of public and private banks to update as soon possible.
The measure is in prevention of bank fraud, money laundering and “terrorist financing”.




The information banks are required to have current is personal data like phone numbers, home address, occupation of the account holder, economic activity and source of income or funds, among other items.



Foreigners in Costa Rica who do not have a job, for instance, will be required to provide a financial statement by a Certified Public Accountant (CPA).

- more: Costa Rica Bank Customers Required To Update Their Information | Q Costa Rica (http://qcostarica.com/edition/2013/09/15/costa-rica-bank-customers-required-to-update-their-information/)

NikSam
10-18-2013, 12:00 AM
Russia requested Costa-rica to stop extraditaron of Maxim Chuckarev (russian citizen involved in LR operations in CR) to US.

On Oct 03, Judge Douglas Duran Pavas (Criminal Court of Costa Rica) ruled in favor of extradition of Chuckarev to US.
Russia embassy requested to stop extradition, judge order can be opposed till Oct 24.


URL: Rusia pide a Costa Rica no extraditar a Estados Unidos a imputado por lavado Maxim Chukharev (http://www.nacion.com/sucesos/seguridad/Rusia-Costa-Rica-extraditar-EUA_0_1372662738.html)

Wizzard7
10-31-2013, 05:08 PM
10-31-13

USDOJ: Co-founder of Liberty Reserve Pleads Guilty to Money Laundering in Manhattan Federal Court (http://www.justice.gov/opa/pr/2013/October/13-crm-1163.html)

NikSam
10-31-2013, 05:33 PM
Thanks Don, how did i miss it? i was keeping an eye on the case.

Interesting that Katz also had 1 count of receiving child pornography - thats is min 15 years jail time,
and marriage fraud, so he also got US citizenship in bona fide marriage?


Time for him to rat on the rest, to reduce what is coming for him.

littleroundman
11-01-2013, 03:27 AM
http://imageshack.us/a/img600/59/lzop.jpg

The United States Dept of Justice (http://www.justice.gov/opa/pr/2013/October/13-crm-1163.html)

Fgold
11-01-2013, 11:24 AM
US authorities are working hard in this case just for getting expensive fines from courts.... Their main goal is that and they don't care anything about victims who lost their funds. Punnishing them won't give any cent for those who lost money. Making a real justice is giving back the money stolen to their victims and not making profits from third party crimes...

okosh
11-01-2013, 03:53 PM
US authorities are working hard in this case just for getting expensive fines from courts.... Their main goal is that and they don't care anything about victims who lost their funds. Punnishing them won't give any cent for those who lost money. Making a real justice is giving back the money stolen to their victims and not making profits from third party crimes...

Since such a large % of the funds in LR accounts is stolen from others or got there through illegal means like hyip who cares if account holders ever see a cent??....

path2prosperity
11-01-2013, 06:50 PM
Since such a large % of the funds in LR accounts is stolen from others or got there through illegal means like hyip who cares if account holders ever see a cent??....

Very good point. I certainly endorse that opinion.

NikSam
11-01-2013, 06:54 PM
Those "victims" free to file their claims, so authorities can list set of laws they broke, maybe even charge or fine some of those "honest/legit"
(but unlicensed in jurisdictions where they offered services) forex brokers and anonymous debit card suppliers :)


Another thing - what money ? it was virtual currency, what money you talking about ?
whatever was in banks on Budovsky's and the gang names, it was a loot, it was never enough and it was not meant by LR to backup its virtual currency with real assets.

okosh
11-01-2013, 07:13 PM
Very good point. I certainly endorse that opinion.

Here is the key part which is proof....


“Vladimir Kats, by his own admission, helped to create and operate an anonymous digital currency system that provided cybercriminals and others with the means to launder criminal proceeds on an unprecedented scale,” said Acting Assistant Attorney General

NikSam
11-01-2013, 08:34 PM
Ok, clarified some from court docs,

Kats bona fide wife was the one who became naturalized and not him , still up to 5 years in jail but he keeps the citizenship:


6261



And here is on child porn:


6262

Fgold
11-02-2013, 10:01 AM
Since such a large % of the funds in LR accounts is stolen from others or got there through illegal means like hyip who cares if account holders ever see a cent??....

I care about victims who are the largest % of LR account holders. The largest ammount of funds were in the minority of account holders who were the biggest exchangers, hyip owners and other criminals. LR was the number one processor used by ponzis in the last 5 years since e-gold was gone and you know welll that ponzis always ripp off a large ammount of victims. Only few % made huge profits from such illegal activities.

Fgold
11-02-2013, 10:15 AM
Those "victims" free to file their claims, so authorities can list set of laws they broke, maybe even charge or fine some of those "honest/legit"
(but unlicensed in jurisdictions where they offered services) forex brokers and anonymous debit card suppliers :)


Another thing - what money ? it was virtual currency, what money you talking about ?
whatever was in banks on Budovsky's and the gang names, it was a loot, it was never enough and it was not meant by LR to backup its virtual currency with real assets.

I don't think victims will feel free to send their claims to someone who shutted down a service which were widely used by many people to make online trasactions. Most of them didn't know that service was operating ilegally and also didn't care to know if it was or was not legal. They just wanted to use a service to move their "free money" without any kind of limitations...

The money exist in banks "from" and "to" their official exchangers who got their domains seized and also from many other exhangers. I don't know exactly about the ammounts but its possible about several milllions who were lost by people who used exchangers to buy LR...

okosh
11-02-2013, 05:27 PM
I care about victims who are the largest % of LR account holders. The largest ammount of funds were in the minority of account holders who were the biggest exchangers, hyip owners and other criminals. LR was the number one processor used by ponzis in the last 5 years since e-gold was gone and you know welll that ponzis always ripp off a large ammount of victims. Only few % made huge profits from such illegal activities.

So then you agree that there is no need at all to care about account holders here since they all deserve to lose their scam money??...

Fgold
11-04-2013, 06:29 AM
So then you agree that there is no need at all to care about account holders here since they all deserve to lose their scam money??...

Why would you like to classify all LR funds as scam money?? It's a virtual fund but was purchased with real money through exchangers just like you buy chips in casino with real money. If such "casino" was ilegall or not it does not matter, specially for gambler's addicters who represent the largest percentage of LR account holders and were victims of such "scam game"...

okosh
11-05-2013, 09:31 PM
Why would you like to classify all LR funds as scam money?? It's a virtual fund but was purchased with real money through exchangers just like you buy chips in casino with real money. If such "casino" was ilegall or not it does not matter, specially for gambler's addicters who represent the largest percentage of LR account holders and were victims of such "scam game"...

You actually want me to answer such a silly question??????....

Fgold
11-06-2013, 07:07 AM
You actually want me to answer such a silly question??????....

That is up to you... I've just asked why you thought that every cent in all LR accounts came from scams??? What about those who got it from exchangers, forex brokers that were fully licensed in their regions??? In such cases was not scam money but clean money who were moved between such companies and their customers. Yes money fully cleaned!! :RpS_cool:

okosh
11-06-2013, 04:08 PM
That is up to you... I've just asked why you thought that every cent in all LR accounts came from scams??? What about those who got it from exchangers, forex brokers that were fully licensed in their regions??? In such cases was not scam money but clean money who were moved between such companies and their customers. Yes money fully cleaned!! :RpS_cool:

I never said every cent...I said a large %....
As for the exchangers.....You claim they were fully licensed....So how do you explain so many being shut down or suddenly closing up shop and vanishing??...
In any case for the most part exchangers were all part of the scam....They just cleaned and helped people to cash out their stolen money....For a fee of course...

NikSam
11-06-2013, 04:19 PM
Do not forget that about 10 exchangers were owned or under direct control of Kats and Budovsky, it is in court documents.

So they did not even have to pay those exchangers selling their virtual currency, money from the thin air, if you get what i've been saying for long time.


it is not new, Perfect money is setup the same way

okosh
11-06-2013, 08:53 PM
Do not forget that about 10 exchangers were owned or under direct control of Kats and Budovsky, it is in court documents.

So they did not even have to pay those exchangers selling their virtual currency, money from the thin air, if you get what i've been saying for long time.


it is not new, Perfect money is setup the same way

As was e-gold with omnipay I believe it was called from memory...

Fgold
11-20-2013, 04:52 PM
I never said every cent...I said a large %....
As for the exchangers.....You claim they were fully licensed....So how do you explain so many being shut down or suddenly closing up shop and vanishing??...
In any case for the most part exchangers were all part of the scam....They just cleaned and helped people to cash out their stolen money....For a fee of course...

I prefer to say that a large % of funds went to scams and not came from scams... The large % of LR funds came from "real money" exchanged with such "fully licensed" exchangers and other type of exchangers... I know that most of exchangers were not legal and were involved in many scam activities and helped scammers to clean their dirty money. I only know 1 or 2 who were really licensed and still on activity now but the same is happening with all other exchangers who got their domains seized. They just movved to new domains and still in activity now....

Fgold
11-20-2013, 04:56 PM
Do not forget that about 10 exchangers were owned or under direct control of Kats and Budovsky, it is in court documents.

So they did not even have to pay those exchangers selling their virtual currency, money from the thin air, if you get what i've been saying for long time.


it is not new, Perfect money is setup the same way

10 exchangers?? Where did you see such list?? I couldn't find it... :RpS_confused:

NikSam
11-20-2013, 05:10 PM
10 exchangers?? Where did you see such list?? I couldn't find it... :RpS_confused:

For now I give you four, as it was stated in initial press release and I do not have time going all over the non-sealed court documents now,
will give you more / updated number if I spot it in public docs, the rest and which - will have to wait till court disclosure.



In addition to the criminal charges brought in the Indictment, five domain names were seized, namely, the domain name of LIBERTY RESERVE and the domain names of four exchanger websites that were controlled by one or more of the defendants;


URL: http://www.justice.gov/usao/nys/pressreleases/May13/LibertyReservePR.php

NikSam
11-20-2013, 06:15 PM
actually, I can mention 5 as some were in the May 15th indictment, under Forfeiture allegation:

exchangezone.com
swiftexchanger.com
moneycentralmarket.com
asianagold.com
eurogoldcash.com

I know of more, but prefer not to mention them before courts do in this case.

I was also guilty of revealing some of those here, and later was told that those were not noticed and i should not do that publicly.

okosh
11-20-2013, 07:41 PM
I prefer to say that a large % of funds went to scams and not came from scams... The large % of LR funds came from "real money" exchanged with such "fully licensed" exchangers and other type of exchangers... I know that most of exchangers were not legal and were involved in many scam activities and helped scammers to clean their dirty money. I only know 1 or 2 who were really licensed and still on activity now but the same is happening with all other exchangers who got their domains seized. They just movved to new domains and still in activity now....

In other words it's just about all scam money.....LOL....

okosh
11-20-2013, 10:54 PM
10 exchangers?? Where did you see such list?? I couldn't find it... :RpS_confused:

You asking because you want to know if any that you talked up in a certain forum or "pimped" are part of the LR investigation??.....:RpS_sneaky:

Fgold
11-21-2013, 11:00 AM
actually, I can mention 5 as some were in the May 15th indictment, under Forfeiture allegation:

exchangezone.com
swiftexchanger.com
moneycentralmarket.com
asianagold.com
eurogoldcash.com

I know of more, but prefer not to mention them before courts do in this case.

I was also guilty of revealing some of those here, and later was told that those were not noticed and i should not do that publicly.

eurogoldcash.com was not an exchanger. It was a DGC similar to LR which was online and working till the end of last july when I could cashout my remaining EGC funds using a TG exchanger lol...

In that court doc they list only 6 domains (4 exchangers and 2 DGCs). I also suspect that there are more exchangers but I'm not sure about it...

Fgold
11-21-2013, 11:22 AM
In other words it's just about all scam money.....LOL....

yeah it's scam money but why shouldn't we care about giving that scam money back to victims???


You asking because you want to know if any that you talked up in a certain forum or "pimped" are part of the LR investigation??.....:RpS_sneaky:

LOL... I've only cashed out some LR funds using some exchangers who sponsored that forum whose owner was arrested... The LR investigation cannot investigate so much with exchangers because most of exchange orders were processed using anonymous pay processors or bank accounts with false names...

NikSam
11-21-2013, 01:27 PM
eurogoldcash.com was not an exchanger. It was a DGC similar to LR which was online and working till the end of last july when I could cashout my remaining EGC funds using a TG exchanger lol...

In that court doc they list only 6 domains (4 exchangers and 2 DGCs). I also suspect that there are more exchangers but I'm not sure about it...

Yes, there are more.

Filipe,
eurogoldcash.com - you should have known who is behind it too :)
as well as you should have known who are some of your co-mods/admins on that forum were, and of course you should have known roots of that forum.

I understand your interest in this thread, you knew the guys.

Are there more things you not telling us about your involvement ?

NikSam
12-05-2013, 01:52 PM
Do you want to buy Arhtur Budovsky's car ? yep - auction time :)

but there are bad news, from total of 7 of confiscated Budovsky's cars
each initially valued approximately $200,000, but later was established that 3 of them are parts replaced with cheap plastic or been a floor demo models.
some of the others do not have the original engines and been replaced with lesser quality.

You can register for auctions at Inicio (http://www.icd.go.cr)


Source: ICD venderá 19 vehículos decomisados al narco - Nacional - Noticias | Teletica (http://www.teletica.com/Noticias/34711-ICD-vendera-19-vehiculos-decomisados-al-narco-.note.aspx)

Fgold
12-06-2013, 01:49 PM
Yes, there are more.

Filipe,
eurogoldcash.com - you should have known who is behind it too :)
as well as you should have known who are some of your co-mods/admins on that forum were, and of course you should have known roots of that forum.

I understand your interest in this thread, you knew the guys.

Are there more things you not telling us about your involvement ?

I know some of them but not all of them. Sadly this LR case killed the forum which was my 2nd home for a long time. I'm feeling like a homeless now :RpS_sad:

Fgold
12-06-2013, 01:53 PM
Do you want to buy Arhtur Budovsky's car ? yep - auction time :)

but there are bad news, from total of 7 of confiscated Budovsky's cars
each initially valued approximately $200,000, but later was established that 3 of them are parts replaced with cheap plastic or been a floor demo models.
some of the others do not have the original engines and been replaced with lesser quality.

You can register for auctions at Inicio (http://www.icd.go.cr)


Source: ICD venderá 19 vehículos decomisados al narco - Nacional - Noticias | Teletica (http://www.teletica.com/Noticias/34711-ICD-vendera-19-vehiculos-decomisados-al-narco-.note.aspx)

And the sales will go to...???

NikSam
12-06-2013, 02:41 PM
And the sales will go to...???


According to CR Law No. 8204 - AntiDrug and Anti Money Laundering Act, article 87

ICD and UNA has to allocate 90% of recovered assets to AntiDrug and Anti money laundering programs or let me quote

... may retain for the fulfillment of its objectives, donate them to public interest entities, primarily to organizations whose purpose is the prevention or suppression of drugs


Shall distribute it according to this:


(a) Sixty per cent (60%) to the implementation of preventive programmes; from this percentage, at least half will be for the programs of prevention of consumption, treatment and rehabilitation that develops the drug dependency
(b) thirty per cent (30%) to the repressive programs.
(c) ten per cent (10%) to the monitoring and maintenance of confiscated property.


PDF (ESP): http://www.anti-moneylaundering.org/Document/Default.aspx?DocumentUid=E3DA5F8E-E41D-4D35-93C5-3B738EA232C1

NikSam
12-06-2013, 06:45 PM
Not much news from yesterdays Pretrial Conference in NY court.
Mark Marmilev will remain in detention.
(in past he entered NOT GUILTY plea)

Next status conference scheduled for February 28, 2014 at 2 p.m.

okosh
12-06-2013, 11:47 PM
I know some of them but not all of them. Sadly this LR case killed the forum which was my 2nd home for a long time. I'm feeling like a homeless now :RpS_sad:

Karma perhaps....LOL

Fgold
12-07-2013, 06:21 AM
According to CR Law No. 8204 - AntiDrug and Anti Money Laundering Act, article 87

ICD and UNA has to allocate 90% of recovered assets to AntiDrug and Anti money laundering programs or let me quote



Shall distribute it according to this:


PDF (ESP): http://www.anti-moneylaundering.org/Document/Default.aspx?DocumentUid=E3DA5F8E-E41D-4D35-93C5-3B738EA232C1

I thought that Budovsky's goods came mostly from LR system fees and his exchangers and not from drugs trafficking.
I understand that LR system was just like a very addictive "drug" especially for ponzi players and that money should be used to support "anti money laundering programs" and victims of such schemes.

littleroundman
12-07-2013, 07:02 AM
I thought that Budovsky's goods came mostly from LR system fees and his exchangers and not from drugs trafficking.

Do you have some sort of inside information that Budovsky didn't know that Liberty Reserve was, in the words of the prosecutors: "the bank of choice for the criminal underworld," serving computer hackers, identity thieves, child pornographers and drug traffickers" and that over 6 BILLION dollars was laundered through LR ???

Come on, Felipe, even you don't believe that he "didn't know" or that it was all accidental.

Fgold
12-07-2013, 07:26 AM
Do you have some sort of inside information that Budovsky didn't know that Liberty Reserve was, in the words of the prosecutors: "the bank of choice for the criminal underworld," serving computer hackers, identity thieves, child pornographers and drug traffickers" and that over 6 BILLION dollars was laundered through LR ???

Come on, Felipe, even you don't believe that he "didn't know" or that it was all accidental.

Of course I didn't know that was the first choice for such activities and I think most people thought that the main use of LR was to play hyip and other online ponzi schemes... People who buy/sell drugs usually use real money and not virtual funds like LR. It might also be used by drug traffickers and other criminals to "clean money" only but not for their illegal sales because I never saw any addicted paying crack by Libertyreserve lol

NikSam
12-07-2013, 07:02 PM
In case some readers here missed some generic news,

Costa Rica is NO longer an offshore zone

http://www.realscam.com/f37/aml-pressure-costa-rica-banks-2667/
http://www.realscam.com/f37/u-s-signs-historic-agreements-cayman-islands-costa-rica-fight-offshore-tax-evasion-2786/
Costa Rica toughens stance in US-backed drug fight (http://bigstory.ap.org/article/costa-rica-toughens-its-stance-drug-fight)

NikSam
12-09-2013, 08:48 AM
Maxim Chukarev, 27 years old russian citizen, programmer of LR who is currently awaiting for extradition from Costa Rica to US, and his parents share their story



6544
In better times, Maxim Chukharev, 27, poses with his cat. Chukharev is currently in a preventive prison in San José, awaiting a final ruling on a U.S. extradition request for his role at online currency company Liberty Reserve. Courtesy of the Chukharev family

6545
In a photo from inside Costa Rica's San Sebastián Preventive Prison, Maxim Chukharev poses with another inmate who claims to be wrongly imprisoned. "There are a bunch of us in here," Maxim said. Courtesy Maxim Chukharev


Very detailed look into one of the LR gang.

URL: A Russian patsy or high-tech criminal? / News Briefs / More news / Costa Rica Newspaper, The Tico Times (http://www.ticotimes.net/More-news/News-Briefs/A-Russian-patsy-or-high-tech-criminal-_Friday-December-06-2013)

NikSam
02-03-2014, 12:48 PM
On Jan 27, in Madrid court, Budovsky stated that he is a victim of a witch hunt by FBI, beacuse they asked him LR source code in 2011 and he refused to give it :)



Budovsky said he was the victim of witch hunt which began in 2011, when the FBI asked him for the source code for Liberty's Reserve. Source codes are full technical read-outs of a software program's operation, and although Budovsky didn't explicitly says why the FBI wanted it, he suggested U.S. authorities wanted to use it to undermine the business.


Digital Currency Founder: U.S. Indicted Me For Not Giving FBI My Source Code | Threat Level | Wired.com (http://www.wired.com/threatlevel/2014/01/liberty-reserve-source-code/)


Man, did he loose his mind in jail ? or he was always that dumb ?

Yeah, sure , It costs much less to start a multi national investigations, seizures , legal expenses than code a payment processor in PHP, about 100 (man-hours) :)

Did Costa Rica wanted same source code from him, starting in 2010 ? :)


Why FBI never asked source code from the guy who actually wrote it? :)


PS: there is some interesting story will come from sealed docs during or before the trial, his personal conversation with the undercover agent :)

NikSam
02-03-2014, 01:39 PM
6944


Arthur Budovsky stands in court in Madrid, Monday Jan. 27, 2014. Budovsky, accused of founding a currency fund transfer business that allegedly helped criminals move money around the world, has decided to fight U.S. efforts to extradite him from Spain.
(Javier Lizon/AP)

littleroundman
02-22-2014, 09:55 PM
Spain sending Liberty Reserve founder to face U.S. laundering charges

The founder of a global online cash transfer business could be sent to the U.S. to face charges that his company laundered $6 billion, a Spanish court ruled Friday.

Arthur Budovsky was arrested on a U.S. warrant when he arrived in Madrid last May after Liberty Reserve was shut down and U.S. authorities accused him of helping "fraudsters, hackers and traffickers."

Budovksy, a former U.S. citizen who became a Costa Rican national, has fought extradition. His lawyer Gonzalo Boye has said he would appeal if he lost. Boye could not be reached for comment Friday.

U.S. Attorney Preet Bharara has accused Budovsky and six other defendants of running a "financial hub of the cybercrime world," facilitating credit card fraud, identity theft, investment fraud, computer hacking, child pornography and drug trafficking.

Liberty Reserve had never registered with the U.S. Treasury Department as a money transferring business, even though it had more than 1 million customers worldwide, including 200,000 U.S. customers. It handled 12 million financial transactions a year, according to the U.S. Attorney.

Budovsky, at an extradition hearing late last month, denied the charges. He said he ran a legitimate business that had "zero tolerance" for dealing with shady clients, and had cooperated with local authorities whenever he came across any suspicious activity.

He told the court that he had suffered from sleepless nights and emotional stress during his months in prison. He said the U.S. case was motivated by a desire to monopolize global money transfers, and his company was seen as "a threat to this monopoly."

Budovsky said he sold his shares in the company in 2007, and then served as a consultant. His expertise, he said, is in internet technology. http://i.cdn.turner.com/money/images/bug.gif (http://money.cnn.com/2014/02/21/news/liberty-reserve-budovsky/#TOP)


CNN money (http://money.cnn.com/2014/02/21/news/liberty-reserve-budovsky/)

NikSam
03-01-2014, 07:23 AM
More are finally coming to NY



Law360, New York (February 28, 2014, 4:36 PM ET) -- Two men charged as part of a historic money laundering case against digital currency operator Liberty Reserve will soon be extradited to the U.S., a New York federal prosecutor said Friday.

Liberty Reserve account manager Azzeddine El Amine is expected to arrive in the U.S. from Spain within 30 days, while technology worker Maxim Chukharev is expected to arrive from Costa Rica within 30 to 60 days, Assistant U.S. Attorney Serrin Turner said at a Manhattan court hearing. ...


Feds Say 2 Liberty Reserve Employees To Be Extradited - Law360 (http://www.law360.com/banking/articles/514504/feds-say-2-liberty-reserve-employees-to-be-extradited)

NikSam
03-26-2014, 02:03 PM
Oh, boy...
Maxim Chukarev literally sewed his mouth shut.



Maxim Chukharev, a Ukranian and Russian citizen and Costa Rican resident who is currently jailed in Costa Rica in connection with his role in Liberty Reserve, took a very unusual approach to protest his potential extradition to the United States: Chukharev literally sewed his mouth shut.

Chukharev, who is jailed in the San Sebastian prison, was found sewing his mouth shut using dental floss and a sewing needle in a makeshift “operating room” he assembled in his cell.
Apparently, Chukharev later began cutting his abdomen as guards intervened.
According to the daily Diario Extra, Chukharev has also been on hunger strike.

“It’s a form of protest to the Constitutional Court for all the irregularities that have occurred, the fact they are driven by pressure from the U.S. Government,” Chukharev told the newspaper.

....


read more: Man jailed in Liberty Reserve case literally sews mouth shut to protest possible extradition - Inside Costa Rica | Inside Costa Rica (http://insidecostarica.com/2014/03/25/man-jailed-liberty-reserve-case-literally-sews-mouth-shut-protest-extradition-us/)

NikSam
03-28-2014, 07:42 AM
Maxim Chukarev arrived to New York

Costa Rica extradites Liberty Reserve defendant Maxim Chukharev to US (http://www.ticotimes.net/2014/03/27/costa-rica-extradites-liberty-reserve-defendant-maxim-chukharev-to-u-s)

NikSam
05-17-2014, 10:28 AM
Even that Spain approved extradition of Artur Budovsky to U.S. , his legal team is fighting hard to prevent it and successful so far.

Diario Extra (http://www.diarioextra.com/Dnew/noticiaDetalle/230807)

http://estatico.vozpopuli.com/imagenes/Noticias/E9EF67C3-2AA8-9281-7AAB-C7091C44F6EA.jpg/resizeMod/1000/0/El-acusado-de-blanquear-con-bitcoins-asegura-ser-victima-de-un-nuevo-Guantanamo.jpg

NikSam
05-17-2014, 09:53 PM
HEHE, 30 terabytes of digital evidence :) - DOC 73


7628

Whip
05-18-2014, 07:50 AM
In this case, they can be referred to as 'terriblebytes'

NikSam
05-18-2014, 07:55 AM
In this case, they can be referred to as 'terriblebytes'

She should ask judge to Fax it ;)

NikSam
05-28-2014, 10:14 AM
Today is 1 year anniversary since LR bust

NikSam
08-18-2014, 01:23 PM
Azzeddine El Amine, 47, of Costa Rica, one of Liberty Reserve's principals, pleads guilty in US court.




...
The judge said El Amine is cooperating with the U.S., which she will take into consideration when she sentences him. He faces a maximum of 30 years in prison, Cote said.
...




...
“I admit that I was involved in a conspiracy to commit money laundering,” El Amine told Cote today. He said that he worked as an assistant to Arthur Budovsky, a Liberty Reserve founder, and that the firm moved money for criminals.
...




...
Asked by Cote today what kind of criminal activity Liberty Reserve facilitated, El Amine said, “credit card fraud and Ponzi schemes.”
...




Liberty Reserve Manager Pleads Guilty to Conspiracy - Bloomberg (http://www.bloomberg.com/news/2014-08-14/liberty-reserve-manager-pleads-guilty-to-conspiracy.html)

NikSam
09-15-2014, 02:01 PM
Mark Marmilev, 35, of Brooklyn, New York (CTO of LR) pleads guilty

CTO for Liberty Reserve payment network pleads guilty | PCWorld (http://www.pcworld.com/article/2682632/cto-for-liberty-reserve-payment-network-pleads-guilty.html)

NikSam
09-24-2014, 04:15 AM
Maxim Chukarev, Russian citizen, resident of Costa Rica , (IT Manager of LR) pleads guilty

Former Liberty Reserve Information Technology Manager Pleads Guilty: DOJ - WSJ (http://online.wsj.com/articles/former-liberty-reserve-information-technology-manager-pleads-guilty-doj-1411505790)

littleroundman
09-24-2014, 04:56 AM
http://imageshack.com/a/img746/1299/0yf6Oe.jpg
Department of Justice (http://www.justice.gov/opa/pr/liberty-reserve-technology-manager-pleads-guilty)

littleroundman
09-24-2014, 05:03 AM
http://imageshack.com/a/img633/2640/sPpesZ.jpg

United States Attorneys Office (http://www.justice.gov/usao/nys/pressreleases/September14/MarmilevMarkPleaPR.php)

NikSam
10-11-2014, 03:04 AM
Finally,

Arthur Budovsky was extradited from Spain to US on friday and is scheduled to appear in New York court on tuesday.

Liberty Reserve Founder Budovsky Extradited to U.S. From Spain - WSJ (http://online.wsj.com/articles/liberty-reserve-founder-budovsky-extradited-to-u-s-from-spain-1412974424)

littleroundman
10-11-2014, 05:01 AM
http://imageshack.com/a/img537/7350/a1osYg.jpg

Department of Justice press release (http://www.justice.gov/opa/pr/liberty-reserve-founder-extradited-spain)

NikSam
10-15-2014, 02:42 AM
Tuesday in NY court:


Arthur Budovsky pleaded not guilty.
His Attorney is Steven Frankel (http://www.avvo.com/attorneys/10036-ny-steven-frankel-1007645.html)
His approximate trial date is set for September 21, 2015
Will be detained pending trial.

littleroundman
10-15-2014, 02:53 AM
detained in custody until September 2015 ???

I guess money laundering is looked upon a lot differently in the modern era than it once was

littleroundman
10-17-2014, 11:27 PM
Good catch by Oz over on BEHINDMLM.com (http://behindmlm.com/payment-processors/liberty-reserve-founder-extradited-to-us/#comment-322498)

It looks like ramifications of the Liberty Reserve bust will be going on for years to come.


NSW Police arrest another alleged Liberty Reserve fraudster

32nd arrest in hacking ring.

The NSW Police has arrested its 32nd suspect in an ongoing investigation into a major hacking and identity fraud ring headquartered in Australia, which utilised the Liberty Reserve online anonymous payments system to launder funds.

Two weeks after announcing its 28th arrest in the case, the NSW Police today revealed a another 28 year old man had been arrested at his residence in Carnes Hill before being charged with three counts of dealing in the proceeds of crime yesterday.

NSW Police detectives allege the man used false documentation to access a bank account not belonging to him in April 2013, which he later transferred $98,000 out of and into his own bank account.

He also faces charges relating to being an accessory to attempted fraud, using false documents, and participating in a criminal group

You can read the complete original story on IT News.com.au (http://www.itnews.com.au/News/396904,nsw-police-arrest-another-alleged-liberty-reserve-fraudster.aspx)

NikSam
10-18-2014, 12:20 AM
Of course it will, FEDs did not even start going through the list of big LR clients ;)

NikSam
12-12-2014, 09:29 PM
Mark Marmilev, 35, of Brooklyn, NY
Today was sentenced to 5 years in prison

Ex-Liberty Reserve Exec Gets 5 Years in Prison - ABC News (http://abcnews.go.com/Technology/wireStory/liberty-reserve-exec-years-prison-27561888)

littleroundman
12-12-2014, 10:36 PM
http://imageshack.com/a/img538/1329/W9TRbz.jpg

NikSam
12-12-2014, 11:38 PM
Updated Marmilev's docket: Case docket: USA v. Kats et al (http://ia600608.us.archive.org/19/items/gov.uscourts.nysd.412417/gov.uscourts.nysd.412417.docket.html)
If someone needs any doc from it let me know.

NikSam
12-13-2014, 12:19 AM
DOC120 (http://www.archive.org/download/gov.uscourts.nysd.412417/gov.uscourts.nysd.412417.120.0.pdf) is a great read

One spoiler:


“Redd’s” posts also make clear that Marmilev suffered from no illusions about the fraudulent nature of HYIPs. For example, in one post in a discussion thread about an “Internet Fraud Complaint Center” established by the FBI (Ex. M), “Redd” commented:
People just don’t understand that HYIP is a synonym for Gambling. . . . Don’t read the bull**** stories these hyips give you.
The rules are simple:
1. give us your money
2. wait a few cycles.
3. withdraw your money before we close.

There are more advanced guidelines on how to increase your chances in hyip, but that’s a secret 
Thus, Marmilev – in his own words – has fully acknowledged the criminality of HYIPs, and went so far as to promote Liberty Reserve to HYIP operators based on its lax enforcement and purported insulation from the reach of U.S. authorities.


Dont forget to take a look at some attachments to it: http://ia600608.us.archive.org/19/items/gov.uscourts.nysd.412417/gov.uscourts.nysd.412417.docket.html (under #120)


P.S. For those who think the feds are not watching what you do on talkgold and other HYIP forums, I can assure you they do. can see it in the attachments.

littleroundman
12-13-2014, 07:17 AM
P.S. For those who think the feds are not watching what you do on talkgold and other HYIP forums, I can assure you they do. can see it in the attachments.

Sooner or later, people are going to realize exactly what they are up against when they decide to run their frauds from within the USA or involve US citizens:


The Financial Fraud Enforcement Task Force is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.

The task force is composed of senior-level officials from the following federal departments, agencies and offices:


Department of Justice (http://www.justice.gov/)

U.S. Attorneys' Offices (http://www.justice.gov/usao/districts/)


Department of the Treasury (http://www.treasury.gov/Pages/default.aspx)
Department of Commerce (http://www.commerce.gov/)
Department of Labor (http://www.dol.gov/)
Department of Housing and Urban Development (http://portal.hud.gov/portal/page/portal/HUD)
Department of Education (http://www.ed.gov/)
Department of Homeland Security (http://www.dhs.gov/)
Securities and Exchange Commission (http://www.sec.gov/)
Commodity Futures Trading Commission (http://www.cftc.gov/)
Federal Trade Commission (http://ftc.gov/)
Federal Deposit Insurance Corporation (http://fdic.gov/)
Board of Governors of the Federal Reserve System (http://www.federalreserve.gov/)
Federal Housing Finance Agency (http://www.fhfa.gov/)
Office of Thrift Supervision (http://www.ots.treas.gov/)
Office of the Comptroller of the Currency (http://www.occ.treas.gov/)
Small Business Administration (http://www.sba.gov/)
Federal Bureau of Investigation (http://www.fbi.gov/)
Social Security Administration (http://www.ssa.gov/)
Internal Revenue Service, Criminal Investigations (http://www.irs.gov/compliance/enforcement/index.html)
Financial Crimes Enforcement Network (http://www.fincen.gov/)
United States Marshals Service (http://www.usmarshals.gov/)
United States Postal Inspection Service (https://postalinspectors.uspis.gov/)
United States Secret Service (http://www.secretservice.gov/)
United States Immigration and Customs Enforcement (http://www.ice.gov/)
Recovery Accountability and Transparency Board (http://www.recovery.gov/About/board/Pages/TheBoard.aspx)
National Credit Union Administration (http://www.ncua.gov/)
North American Securities Administrators Association (http://www.nasaa.org/home/index.cfm)
National Association of Attorneys General (http://www.naag.org/)
National District Attorneys Association (http://www.ndaa.org/)
Offices of Inspectors General and related Federal entities, including:

Department of Justice (http://www.justice.gov/oig/)
Department of the Treasury (http://www.treasury.gov/about/organizational-structure/ig/Pages/default.aspx)
Department of Housing and Urban Development (http://portal.hud.gov/hudportal/HUD?src=/program_offices/oig)
Department of Homeland Security (http://www.dhs.gov/xoig/index.shtm)
U.S. Postal Service (http://www.uspsoig.gov/)
General Services Administration (http://www.gsa.gov/portal/content/104660)
Small Business Administration (http://www.sba.gov/office-of-inspector-general/)
National Science Foundation (http://www.nsf.gov/oig/index.jsp)
Federal Housing Finance Agency (http://www.fhfa.gov/Default.aspx?Page=122)
Troubled Asset Relief Program (http://www.sigtarp.gov/)


such other executive branch departments, agencies, or offices as the President may, from time to time, designate or that the Attorney General may invite.


These guys are NOT given to messing around once they become aware of something being run on their watch.

littleroundman
12-13-2014, 11:23 AM
Not exactly a lightweight investigation and prosecution is it ??

http://imageshack.com/a/img911/9950/gaWyWA.jpg

NikSam
01-30-2015, 01:45 PM
9100
photo by Issac Villalta

Maxim Chukharev (Максим Чухарев), 28, IT manager / programmer of Liberty Reserve
was sentenced today to 3 years (to be released in 10 months if good behavior, 20 months counted in pending trial).
Some were considering him not as guilty as the rest, but US sentencing submission
reveals:
1. He developed the reporting engine which filtered out suspicious transactions.
So the specially hired compliance officer and Costa-Rican SUGEF would only see what Budovsky and Chukharev wanted them to see. The email from Marmilev explains to Chukharev that statistics should be fake.
2. Chuckarev was acting as key person of another Budovsky's company WEBSA, Chukharev had access to bank accounts of it.
3. After Marmilev computer was searched at the border stop, Budovsky announced that Marmilev's computer is compromised and Chukharev will now replace Marmilev in all technical operations of LR.
4. Chukharev became the inner cycle of LR, always attending meetings in a coffee shop with Budovsky.
5. Chukharev was in charge of creating the offshore companies, 2 companies in Cyprus owned by Chukharev had $3.5m in bank accounts, debit cards of those accounts were found on Budovsky during his arrest.
6. Chukharev , on order of Budovsky, bugged all office computers with key-loggers.
7. Chukharev was preparing the future escape / moving servers and operations from Costa Rica to Panama.

U.S. Sentencing submission [DOC136] (PDF) (http://www.archive.org/download/gov.uscourts.nysd.412587/gov.uscourts.nysd.412587.136.0.pdf)


The entire defense of Chukharev was based just on attempt to force judge into tears,
his around 80 pages sentencing submission describes his suffering childhood, emigrant's suffering, etc.
During his imprisonment in Costa Rica, Chukharev did 2 acts of self mutilation (cutting his abdomen , iterally sewed his mouth shut) and hunger strike (http://www.realscam.com/f43/liberty-reserve-owner-arrested-charged-money-laundering-website-offline-2344/index8.html#post68757) to protest his extradition to U.S.

Chukharev's sentencing submission [DOC135] (PDF) (http://www.archive.org/download/gov.uscourts.nysd.412587/gov.uscourts.nysd.412587.135.0.pdf)

Updated Chukharev's docket: Case docket: USA v. Kats et al (http://www.archive.org/download/gov.uscourts.nysd.412587/gov.uscourts.nysd.412587.docket.html)

NikSam
04-20-2015, 10:55 AM
A great Article by The Atlantic, detailed look into LR ,shows what made it tick, recommend to read for everyone:

Bank of the Underworld - The Atlantic (http://www.theatlantic.com/features/archive/2015/04/bank-of-the-underworld/389555/)

littleroundman
09-25-2015, 05:57 AM
Reuters.com (http://www.reuters.com/article/2015/09/23/usa-cybersecurity-liberty-reserve-idUSL1N11T2G420150923) is reporting

http://imageshack.com/a/img540/5535/6N3ZjX.jpg

You can read the original report here on Reuters.com (http://www.reuters.com/article/2015/09/23/usa-cybersecurity-liberty-reserve-idUSL1N11T2G420150923)

littleroundman
01-30-2016, 12:20 AM
http://imageshack.com/a/img921/3783/X85wLu.png

US Department of Justice press release (http://www.justice.gov/opa/pr/founder-liberty-reserve-pleads-guilty-laundering-more-250-million-through-his-digital)

E2014T
01-31-2016, 01:03 PM
He'll probably get out in 10, if not less, for good behavior, and with an upgraded skill set.

BUDOVSKY, 42, faces a maximum sentence of 20 years in prison for conspiring to commit money laundering. This statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed on the defendant will be determined by the judge.

BUDOVSKY’s sentencing is scheduled for May 6, 2016.

littleroundman
05-06-2016, 10:00 PM
http://imageshack.com/a/img922/4033/mqGiWQ.png

US Department of Justice (https://www.justice.gov/usao-sdny/pr/liberty-reserve-founder-arthur-budovsky-sentenced-manhattan-federal-court-20-years)