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Manhattan District Attorney Robert M. Morgenthau announced today the indictment of seventeen individuals and one corporation on charges related to global trafficking in stolen credit card numbers, cybercrime, and identity theft. Three defendants will be arraigned today.
The three defendants to be arraigned today are VADIM VASSILENKO, YELENA BARYSHEVA and JOHN WASHINGTON.
Six other defendants – TETYANA GOLOBORODKO, DOUGLAS LATTA, ANGELA PEREZ, KOSTAS KAPSIS, LYNDON ROACH and KEITH CUMMINGS -- were arraigned earlier. Another defendant, EDUARD KHOLSTININ, is in custody in another state on unrelated charges and seven other defendants are still being sought.
Also indicted is WESTERN EXPRESS INTERNATIONAL, INC., a corporation formerly headquartered in mid-town Manhattan at 555 Eighth Avenue. Western Express’s corporate officers are VADIM VASSILENKO and YELENA BARYSHEVA. TETYANA GOLOBORODKO was the manager of WESTERN EXPRESS.
This indictment marks the second major phase in a joint two-year investigation by the Manhattan District Attorney’s Identity Theft Unit and the United States Secret Service. The 173-count indictment charges that from 2001 through 2007, the defendants participated in a multi-national, internet-based criminal enterprise -- the "Western Express Cybercrime Group” – dedicated to trafficking in stolen credit card numbers and other personal identifiers. The group realized millions in illicit profits from the sale and fraudulent use of this personal data, with some members of the enterprise laundering these profits in a variety of high-tech ways.
As the indictment alleges, the defendants engaged in a variety of crimes intended to make money for the participants while avoiding detection by law enforcement, including Enterprise Corruption, Grand Larceny, Money Laundering, Criminal Possession of Stolen Property, Falsifying Business Records, Criminal Possession of a Forged Instrument, Scheme to Defraud, and Conspiracy to commit the crimes of Grand Larceny and Criminal Possession of Stolen Property. The defendants created and participated in a computerized marketplace for the global trafficking of stolen credit card numbers and other stolen personal identifying information. That marketplace enabled the defendants to conduct anonymous transactions, via the internet and by other means, using sophisticated payment schemes. The payment schemes were intended to ensure that the participants in the transactions would be impossible to identify, and that the proceeds of their criminal activity could not be traced.
The Western Express Cybercrime Group carried out its criminal operations through a structure consisting of “vendors,” “buyers,” “cybercrime services providers,” and “money movers.” The “vendors” were individuals who sold large volumes of stolen credit card numbers and other personal identifying information through the internet. The “buyers” used the internet to purchase that information from the “vendors,” for the purpose of committing additional crimes such as larceny and identity theft. The “cybercrime services providers” promoted, facilitated, and aided in the purchase, sale and fraudulent use of stolen credit card numbers and other personal identifying information through various computer services that they provided to the “vendors” and the “buyers.” Finally, other defendants operated as “money movers.” Those defendants provided financial services and conducted financial transactions for other participants in the criminal enterprise in order to move funds and launder the proceeds of criminal activity. The “money movers” relied on anonymous digital currencies, such as Egold and Webmoney, to buy, sell, and launder the proceeds of criminal transactions, and conducted their business online, using websites, instant messaging, and email. Some of the defendants charged in the indictment played more than one role.
Those involved in the Western Express Cybercrime Group interacted and communicated through “carding” websites – that is, websites devoted to trafficking in stolen credit card and personal identifying information. They relied on the use of nicknames, false identities, anonymous instant messenger accounts, anonymous email accounts, and anonymous digital currency accounts to conceal the existence and purpose of the criminal enterprise, to avoid detection by law enforcement and regulatory agencies, and to maintain their anonymity.
Defendants DOUGLAS LATTA, ANGELA PEREZ, KOSTAS KAPSIS, LYNDON ROACH, KEITH CUMMINGS, JOHN WASHINGTON and EDUARD KHOLSTININ and others were buyers who purchased stolen credit card numbers and other personal identifying information from “vendors,” often using digital currencies, for the purpose of committing larcenies and identity theft. These defendants used the services of “money movers” to purchase digital currencies and to move, conceal and layer their criminal proceeds.
The corporate defendant WESTERN EXPRESS INTERNATIONAL, INC., through its managerial agents VADIM VASSILENKO, YELENA BARYSHEVA, and TETYANA GOLOBORODKO, provided financial services designed to conceal the source and destination of funds earned through the trafficking of stolen credit card numbers and other personal identifying information, as well as the identity of individuals engaged in such transactions. They used conventional banks and money transmitters to move large sums of money for their clients, thus permitting their clients to remain anonymous and insulated from reporting requirements. They also provided information and assistance to other members of the group through the WESTERN EXPRESS websites Dengiforum.com and Paycard2000.com.
The investigation revealed that, in a four year period, over $35 million flowed through numerous bank accounts set up by WESTERN EXPRESS. About four million dollars of these funds were generated by the company’s illegal check cashing business, which was the subject of an earlier indictment. Approximately $20 million flowed through the company’s Egold digital currency accounts. It is also estimated that WESTERN EXPRESS purchased approximately $15 million worth of Webmoney digital currency. WESTERN EXPRESS and its managerial agents are charged with numerous counts of money laundering, in connection with the laundering of over 1.5 million dollars in funds related to their customers’ cybercrime activity.
The Western Express Cybercrime Group is responsible for over $4 million worth of identified credit card fraud, and trafficked in well over 95,000 stolen credit card numbers. These figures reflect the levels of fraud and stolen credit numbers which have been identified thus far.
This indictment stems from an earlier investigation and indictment concerning the activities of WESTERN EXPRESS INTERNATIONAL, INC. A February 2006 indictment charged WESTERN EXPRESS INTERNATIONAL, INC., VADIM VASSILENKO, YELENA BARYSHEVA, and their son, ALEXEY BARYSHEV, with illegal check cashing and illegal money transmittal. In September 2006, VASSILENKO AND BARYSHEVA were convicted upon pleas of guilty to all charges on this earlier indictment, and were sentenced to state prison, where they are still serving their sentences. Defendant ALEXEY BARYSHEV remains a fugitive.
All defendants are charged with Enterprise Corruption, a class B felony punishable by up to twenty-five years in jail. Each defendant is also charged with at least three additional felony counts, depending upon his role within the criminal enterprise.
Assistant District Attorney John Bandler presented the case to the grand jury under the supervision of Identity Theft Unit Chief Antonia Merzon. Analysts Bridget Mahoney and Nicolette Endara of the Identity Theft Unit, and Benjamin Pred, of Investigation Division Central also participated in the investigation. Investigators from the District Attorneys Investigation Bureau, including Senior Investigator Michael Wigdor, Investigator Brendan Kenney and others working under the supervision of Senior Supervising Investigator Steve Mccallion and Deputy Chief Investigator Thomas Jackson also participated in the investigation. The District Attorney’s Investigation Bureau is headed by Chief Joseph Pennisi.
Mr. Morgenthau thanked Special Agent-in-Charge Brian Parr of the United States Secret Service’s New York Field Office, Assistant Special Agent-in-Charge Pablo Martinez (supervisor of the New York/New Jersey Electronic Crimes Task Force), Special Agent Ellen Smith, Special Agent Prasanth Kurian, Special Agent Christopher Demunbrun, Special Agent Sean Walsh, Criminal Research Specialist Joanne Sorrentino, Secret Service personnel at Secret Service Headquarters, Washington, D.C., including Assistant Special Agents-in-Charge Robert Villanueva, Edward Lowery, and Sheri Dunlop, and field offices throughout the United States, including Oregon, Louisiana, and California. Mr. Morgenthau thanked the Los Angeles, California District Attorney’s Office, including Assistant District Attorney Jonathan Fairtlough, Supervising Senior Investigator James Garcia, and Senior Investigator David Maupin and the Hudson County Prosecutor’s Office, specifically Lt. Thomas Cooney and his staff.
DEFENDANT INFORMATION
WESTERN EXPRESS INTERNATIONAL, INC.
Formerly of: 555 8th Ave 16th Floor, Suite 1602/1600, New York, NY 10018
VADIM VASSILENKO
AGE 39 (DOB: 11/19/1966)
Formerly of: 555 North Ave, Apt 26D, Fort Lee, NJ 07024
YELENA BARYSHEVA
AGE 40 (DOB: 04/23/1965 )
Formerly of: 555 North Ave, Apt 26D, Fort Lee, NJ 07024
TETYANA GOLOBORODKO
AGE 28 DOB 8/3/1979
Address 6914 Ridge Blvd Apt A2, Brooklyn, NY 11204
DOUGLAS LATTA
AGE 34 DOB 6/28/73
Address 596-3 Louisiana Ave, Brooklyn NY 11239
ANGELA PEREZ
AGE 35 DOB 1/15/1972
Address 596-3 Louisiana Ave, Brooklyn NY 11239
KOSTAS KAPSIS
AGE 42 DOB 8/5/1965
Address 71-33 58 Rd, Maspeth NY, 11378 , 2nd Floor
LYNDON ROACH
AGE 37 DOB 04/26/70
Address 317 3rd St 4C, Brooklyn, NY 11215 (a previous address)
KEITH CUMMINGS
AGE 44 DOB : 1/17/63
Address 1432 Felicita Ct, Upland, CA 90222
EDUARD KHOLSTININ
AGE 30 DOB 4/24/77
Address Formerly of Russia, Hawaii, and San Francisco
Currently in Oregon state custody on separate charges.
JOHN WASHINGTON
AGE 36 DOB 3/3/1971
Address 11111 N. Harrell's Ferry Rd. #176 Baton Rouge LA 70816
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