Salem Man Sentenced to Prison for Role in International Cybercrime Ring

A Salem man was sentenced Friday to 2-½ years in federal prison for his role as a “casher” in an international cybercrime scheme that attempted to steal more than $15 million.

U.S. Attorney Paul J. Fishman in Trenton, N.J. said Lamar Taylor, 38, of Salem had previously pled guilty to one count of conspiracy to commit wire fraud, access device fraud and identity theft. On Friday, U.S. District Judge Peter G. Sheridan imposed the sentence in federal court in Trenton, N.J.

In addition to the prison term, Sheridan sentenced Taylor to three years of supervised release and ordered him to pay restitution of $338,649.

The two alleged ringleaders have been indicted and remain at large.

Prosecutors said Taylor was a member of an alleged international cybercrime, identity theft and credit card fraud conspiracy and took part in a scheme to use information hacked from customer accounts at more than a dozen banks, brokerage firms, payroll processing companies and government agencies. In turn, he attempt to steal $15 million from customers.

Taylor was asked by other members of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others.

Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Oleg Pidtergerya, 50, who previously pleaded guilty to his role in the conspiracy, managed a cash-out crew in New York for Sharapka and Yanovitsky, and Robert Dubuc, 41, who has also pleaded guilty to his role in the conspiracy, controlled a cash-out crew in Massachusetts. Taylor worked as a “casher” under Dubuc.

Hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.

After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated cash-out operation, employing crews of individuals, including Taylor, to withdraw the stolen funds by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.

Taylor admitted he was aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. He admitted that they opened bank accounts in the names of identity theft victims and that those accounts were funded with money stolen by other conspirators. He also admitted conducting ATM and bank withdrawals of the stolen funds and providing the proceeds of the fraud, less their own fees, to immediate higher-ups in the organization – Pidtergerya and Dubuc, who, in turn, sent a portion of the proceeds to Sharapka and Yanovitsky in Ukraine.

The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.

Fishman credited the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to the guilty plea.