White Collar Criminal Defense Group

Facebook For Financial Felons: Utah Introduces White-Collar Felon Registry

On Wednesday, March 11, 2015, the Utah legislature approved a measure to create the country’s first white-collar criminal offender registry.  Similar to convicted sex offender registries, the measure, White Collar Registry H.B. 378, calls for the publication of the offenders’ names and alias, a recent photograph, a physical description, and a list of their crimes.  The registry, which will be available through a website maintained by the Utah Attorney General’s Office, will list certain white-collar felons convicted since late 2005.  The offenses include securities fraud, mortgage fraud, and money laundering crimes. 

First-time offenders will appear on the registry for 10 years or until they complete their sentences, while repeat offenders run the risk of being permanently featured.  To vanish from the registry completely, offenders must pay full restitution to their victims.  Unlike sex-offender registries, convicted white-collar criminals will not be required to report their listing to employers or neighbors. 

Sean Reyes, the state’s attorney general, came up with the idea for the registry while practicing as a defense attorney.  According to Reyes, white-collar crime has become an epidemic in Utah, which is known for  its vulnerability to financial fraud due to the trusting nature of its citizens.  Representative Mike McKell, who proposed the legislation, echoed this sentiment, describing Utah as “a hot bed for financial fraud committed by repeat offenders” in a press release announcing the introduction of the registry.  By providing this information to consumers in a readily accessible manner, lawmakers hope that Utahns are more equipped to make educated financial decisions.        

The proposal, which was overwhelmingly approved by Utah lawmakers, is expected to be signed by Governor Gary Herbert.  While it remains to be seen whether white-collar felon registries will gain traction elsewhere across the country, financial schemers in Utah will soon be electronically marked with a proverbial scarlet letter.

Feds Offer $3 Million Reward For International Cyber Criminal

Last month, the federal government announced a $3 million reward for information leading to the arrest and/or conviction of Evgeniy Mikhailovich Bogachev, a Russian national listed as one the FBI’s Cyber’s Most Wanted.  Announced in a joint press release by DOJ, FBI, and the State Department, the reward follows the indictment and related civil lawsuit filed in mid-2014 in Pittsburgh, Pennsylvania for Bogachev’s alleged role in financially-motivated cyber crime. 

He is charged with operating the hacker ring responsible for the GameOver Zeus botnet, a malicious piece of software which allowed a computer to be controlled without the computer’s owner knowing.  The botnet was used to capture bank account numbers, PIN’s, and other personal data which were used to access online banking accounts.  Once the hackers had access to the bank accounts, the credentials were used to initiate wire transfers to overseas accounts controlled by the hackers.  The FBI believes that the botnet infected over 1 million computers, resulting in a loss of more than $100 million to individual and corporate victims.

The Russian is also alleged to be the mastermind behind Cryptolocker, a type of “ransomware,” a malicious software which prevents users from accessing their computer unless a ransom is paid.  It is estimated that 25% of the computers infected with Cryptolocker were located inside the United States.  Many of the computers infected with Cryptolocker was also infected with the GameOver Zeus botnet.  Through the civil suit filed in Pittsburgh, federal law enforcement gained the ability to seize the command and control servers operating Cryptolocker.

Bogachev was added to the FBI’s Cyber’s Most Wanted list in June 2014 but the $3 million reward was only recently announced.  Additional information on Bogachev, the GameOver Zeus botnet, and Cryptolocker can be found here.