February 07, 2008

TWO INDICTED IN SCHEME TO COMMIT WIRE FRAUD WITH ACCOUNT INFORMATION STOLEN FROM FINANCIAL INSTITUTIONS

SAN FRANCISCO– United States Attorney Joseph P. Russoniello announced today that a federal grand jury in San Francisco indicted Dmitir Glaznikov (33) and Maxim Leontev (25) on January 29th for their role in a scheme to defraud by obtaining account information stolen from financial institutions, creating unauthorized access devices encoded with the stolen account information, and then making unauthorized withdrawals from ATMs in San Francisco with the access devices. Both defendants were charged with conspiracy to commit wire fraud, wire fraud, and possession of device making equipment. Glaznikov was also charged with possession of unauthorized access devices with intent to defraud.

The indictment alleges a scheme to defraud whereby the defendants and a third co-conspirator lived in San Francisco and received stolen financial institution account information from a fourth co-conspirator in Russia. The defendants then created unauthorized access devices encoded with the stolen account information by using equipment possessed in their apartment. The defendants used the unauthorized access devices to make unauthorized withdrawals from the accounts via ATMs in San Francisco. After taking their portions of the proceeds, the defendants then wired the remainder to various individuals in Russia in amounts structured below the reporting requirements for such transactions. The scheme resulted in discovered losses of more than $400,000. These charges are the result of an investigation by the United States Department of Homeland Security, Immigration and Customs Enforcement.

The maximum statutory penalty for 18 U.S.C. § 371 (conspiracy) is 5 years in prison, $250,000 fine, 3 years supervised release, and $100 mandatory special assessment. The maximum statutory penalty for 18 U.S.C. § 1343 (wire fraud) is 20 years in prison, $250,000 fine, 3 years supervised release, and $100 mandatory special assessment. The maximum statutory penalty for 18 U.S.C. § 1029(a)(4) (Possession of Device-Making Equipment) is 15 years in prison, $250,000 fine, 3 years supervised release, and $100 mandatory special assessment. The maximum statutory penalty for 18 U.S.C. § 1029(a)(3) (Possession of Unauthorized Access Devices With Intent to Defraud) is 10 years in prison, $250,000 fine, 3 years supervised release, and $100 mandatory special assessment. However, any sentence following conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Jeff Finigan is the Assistant U.S. Attorney prosecuting this case with the assistance of Wilson Wong.

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