Thread: Liberty Reserve owner arrested, charged with money laundering, website offline

DOC120 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/it...17.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.

Originally Posted by NikSam

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
  
  • U.S. Attorneys' Offices
  
  
• Department of the Treasury
• Department of Commerce
• Department of Labor
• Department of Housing and Urban Development
• Department of Education
• Department of Homeland Security
• Securities and Exchange Commission
• Commodity Futures Trading Commission
• Federal Trade Commission
• Federal Deposit Insurance Corporation
• Board of Governors of the Federal Reserve System
• Federal Housing Finance Agency
• Office of Thrift Supervision
• Office of the Comptroller of the Currency
• Small Business Administration
• Federal Bureau of Investigation
• Social Security Administration
• Internal Revenue Service, Criminal Investigations
• Financial Crimes Enforcement Network
• United States Marshals Service
• United States Postal Inspection Service
• United States Secret Service
• United States Immigration and Customs Enforcement
• Recovery Accountability and Transparency Board
• National Credit Union Administration
• North American Securities Administrators Association
• National Association of Attorneys General
• National District Attorneys Association
• Offices of Inspectors General and related Federal entities, including:
  
  • Department of Justice
  • Department of the Treasury
  • Department of Housing and Urban Development
  • Department of Homeland Security
  • U.S. Postal Service
  • General Services Administration
  • Small Business Administration
  • National Science Foundation
  • Federal Housing Finance Agency
  • Troubled Asset Relief Program
  
  
• 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.

Not exactly a lightweight investigation and prosecution is it ??

lr_maxim.jpg
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)


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 to protest his extradition to U.S.

Chukharev's sentencing submission [DOC135] (PDF)

Updated Chukharev's docket: Case docket: USA v. Kats et al

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

Reuters.com is reporting



You can read the original report here on Reuters.com

US Department of Justice press release

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.

US Department of Justice