Organization Leader Sergey Medvedev Guilty of $568M Cybercrime Spree
July 1, 2020
One of the
leaders of the Infraud Organization pleaded guilty today to RICO
conspiracy. Infraud was an Internet-based cybercriminal enterprise
engaged in the large-scale acquisition, sale, and dissemination of
stolen identities, compromised debit and credit cards, personally
identifiable information, financial and banking information, computer
malware, and other contraband. Assistant Attorney General Brian A.
Benczkowski of the Justice Department’s Criminal Division made the
Sergey Medvedev, aka “Stells,” “segmed,” “serjbear,” 33, of the Russian
Federation, pleaded guilty before U.S. District Court Judge James C.
Mahan in the District of Nevada. According to the indictment, the
Infraud Organization was created in October 2010 by Svyatoslav
Bondarenko aka “Obnon,” “Rector,” and “Helkern,” 34, of Ukraine, to
promote and grow interest in the Infraud Organization as the premier
destination for “carding”—purchasing retail items with counterfeit or
stolen credit card information—on the Internet. Under the slogan, “In
Fraud We Trust,” the organization directed traffic and potential
purchasers to the automated vending sites of its members, which served
as online conduits to traffic in stolen means of identification, stolen
financial and banking information, malware, and other illicit goods. It
also provided an escrow service to facilitate illicit digital currency
transactions among its members and employed screening protocols that
purported to ensure only high quality vendors of stolen cards,
personally identifiable information, and other contraband were permitted
to advertise to members. In March 2017, there were 10,901 registered
members of the Infraud Organization.
the course of its seven-year history, the Infraud Organization inflicted
approximately $2.2 billion in intended losses, and more than $568
million in actual losses, on a wide swath of financial institutions,
merchants, and private individuals, and would have continued to do so
for the foreseeable future if left unchecked.
The investigation was conducted by the Las Vegas Office of U.S.
Immigration and Customs Enforcement’s Homeland Security Investigations
and the Henderson, Nevada Police Department. The Criminal Division’s
Office of International Affairs provided significant assistance in
securing the defendant’s extradition from Thailand. Deputy Chief Kelly
Pearson and Trial Attorneys Chad W. McHenry and Alexander Gottfried of
the Criminal Division’s Organized Crime and Gang Section are prosecuting