In a chilling account for those of us who purchase tickets for concerts, sports events and Broadway Shows, Manhattan District Attorney Cyrus Vance, Jr. announced on July 23rd the indictments of six men on charges that they were members of an international group that defrauded Stub Hub and its customers of approximately 1.6 million dollars. Stub Hub is owned by eBay.
The indictments were against residents of New York, New Jersey and a Russian national who was vacationing in Spain and was arrested there. Three others were arrested in London, and one in Toronto. Apparently, using technology which allowed “key loggers” (which record each keyboard stroke of the user to steal the user’s identity) to get the login credentials and passwords of a small number of accounts, hackers were then able to obtain credit card and debit numbers of these unwitting victims. It has been reported that Stub Hub was alerted to the purported criminal activity last year and has been cooperating with the authorities to apprehend the members of the international crime ring.
The defendants are charged in the New York County Supreme Court with several counts of money laundering, grand larceny, criminal possession of stolen property, and identity theft. Each of these charges are felonies, ranging between Class B and Class E felonies.
The group would use the stolen credit and debit cards to buy thousands of tickets to events such as Yankee games, Justin Timberlake concerts and popular Broadway shows including “The Book of Mormon”, and then resell the tickets for a substantial profit. The authorities were able to track the defendants using their I.P addresses (Internet protocol), Pay Pal accounts, and bank accounts. Proceeds of the resold tickets were apparently deposited in bank accounts in Germany and Britain, as well as in multiple Pay Pal accounts.
The defendants range in age from 21 to 37, and are charged with buying approximately 3,500 tickets to then resell for a profit. The Russian national, Sergei Kirin, 37, advertised money laundering services on the internet and is charged with laundering the profits from the resold tickets for a fee. He was apprehended in Barcelona on July 3rd. A former security officer for Stub Hub was quoted as stating that the indictments sent a message to the “cyber-criminals” that “you are no longer safe to travel and operate outside of your home country without significant risk of arrest and prosecution.”
If you or a family member are charged with a crime or traffic infraction, contact the Westchester County Criminal Defense Attorneys online or toll free at 888-761-7633 for a free consultation with an experienced criminal defense attorney to discuss your case in detail, your rights and legal options.