FBI announces two computer programmers plead guilty on operating illegal movie and TV show streaming service in US

A resident of Las Vegas, Nevada, pleaded guilty this week to multiple criminal copyright and money laundering charges related to his running of iStreamItAll, one of the biggest illegal television show and movie streaming services in the United States, and working as a computer programmer with co-defendants to help build Jetflicks, a similarly large illegal television show streaming service, the FBI’s Washington Field Office made the announcement this week.  

Today, a second defendant, who also resides in Las Vegas, pleaded guilty in the same court to a criminal copyright charge for his work as a computer programmer for Jetflicks.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office announced.

Darryl Julius Polo, aka djppimp, 36, pleaded guilty yesterday in the U.S. District Court for the Eastern District of Virginia to one count of conspiracy to commit criminal copyright infringement, one count of criminal copyright infringement by distributing a copyrighted work being prepared for commercial distribution, one count of copyright infringement by reproduction or distribution, one count of copyright infringement by public performance and one count of money laundering.  

In a separate proceeding, co-defendant Luis Angel Villarino, 40, pleaded guilty to one count of conspiracy to commit copyright infringement.  Sentencing for both defendants will be before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia, with Polo’s on Mar. 13, 2020, and Villarino’s on Mar. 20, 2020.

According to Polo’s plea agreement, Polo ran a site called iStreamItAll (ISIA), an online, subscription-based service headquartered in Las Vegas that permitted users to stream and download copyrighted television programs and movies without the permission of the relevant copyright owners.  

Polo admitted that he reproduced tens of thousands of copyrighted television episodes and movies without authorization, and streamed and distributed the infringing programs to thousands of paid subscribers located throughout the U.S.  Specifically, Polo admitted that ISIA offered more than 118,479 different television episodes and 10,980 individual movies.  

In fact, according to the plea agreement, ISIA had more content than Netflix, Hulu, Vudu and Amazon Prime, and Polo sent out emails to potential subscribers highlighting ISIA’s huge catalog of works and urging them to cancel those licensed services and subscribe to ISIA instead. 

According to Polo’s plea agreement, Polo obtained infringing television programs and movies from pirate sites around the world—including some of the globe’s biggest torrent and Usenet NZB sites specializing in infringing content—using various automated computer scripts that ran 24 hours a day, seven days a week.  

Specifically, Polo used sophisticated computer programming to scour global pirate sites for new illegal content; to download, process, and store these works; and then make the shows and movies available on servers in Canada to ISIA subscribers for streaming and downloading.  Polo also admitted to running several other piracy services—including a Usenet NZB indexing site called SmackDownOnYou—and earning over $1 million from his piracy operations. 

In addition, in Polo’s and Villarino’s plea agreements, they admitted that they separately worked as computer programmers at Jetflicks, another online, subscription-based service headquartered in Las Vegas that permitted users to stream and, at times, download copyrighted television programs without the permission of the relevant copyright owners.  

According to both plea agreements, Polo, Villarino and their co-conspirators at Jetflicks reproduced tens of thousands of copyrighted television episodes without authorization, and streamed and distributed the infringing programs to tens of thousands of paid subscribers located throughout the U.S.

Both Polo and Villarino also admitted that at Jetflicks they and their co-conspirators used automated software programs and other tools to locate, download, process and store illegal content, and then quickly make those television programs available on servers in the U.S. and Canada to Jetflicks subscribers for streaming and/or downloading.

In addition, as set forth in Polo’s and Villarino’s plea agreements, both Jetflicks and ISIA were not only available to subscribers over the internet but were specifically designed to work on many different types of devices, platforms and software including myriad varieties of computer operating systems, smartphones, tablets, smart televisions, video game consoles, digital media players, set-top boxes and web browsers. 

The other defendants in the case are scheduled to go to trial starting on Feb. 3, 2020.

The FBI’s Washington Field Office conducted the investigation. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Alexander P. Berrang of the Eastern District of Virginia and are prosecuting the case.  The CCIPS Cybercrime Lab provided significant assistance.

FBI frames charges against two Russians engaged in cybercrime scheme that infected computers in a malware conspiracy

The U.S. Department of Justice has joined with the U.S. Department of State and the United Kingdom’s National Crime Agency in charging two Russian nationals with a vast and long-running cybercrime spree that stole from thousands of individuals and organizations in the United States and abroad. 

Along with several co-conspirators, Maksim V. Yakubets and Igor Turashev are charged with an effort that infected tens of thousands of computers with a malicious code called Bugat. Once installed, the computer code, also known as Dridex or Cridex, allowed the criminals to steal banking credentials and funnel money directly out of victims’ accounts. 

Turashev and Yakubets were both indicted in the Western District of Pennsylvania on conspiracy to commit fraud, wire fraud, and bank fraud, among other charges. Yakubets was also tied to charges of conspiracy to commit bank fraud issued in the District of Nebraska after investigators were able to connect him to the indicted moniker “aqua” from that case, which involved another malware variant known as Zeus.

The long-running scheme involved a number of different code variants, and later version also installed ransomware on victim computers. The criminals then demanded payment in cryptocurrency for returning vital data or restoring access to critical systems. 

Assisted in some cases by money mules who funneled the stolen funds through U.S. bank accounts before shipping the money overseas, the group stole or extorted tens of millions of dollars from victims. Among those affected was a Pennsylvania school district that saw $999,000 wired out of its accounts and an oil company that lost more than $2 million.

The FBI, in partnership with the State Department’s Transnational Organized Crime Rewards Program, also announced a reward of up to $5 million for information leading to the arrest of Yakubets, who is alleged to be the leader of the scheme. The reward is the largest ever offered for a cyber criminal.

“The actions highlighted today, which represent a continuing trend of cyber-criminal activity emanating from Russian actors, were particularly damaging as they targeted U.S. entities across all sectors and walks of life,” said FBI Deputy Director David Bowdich. “The FBI, with the assistance of private industry and our international and U.S. government partners, is sending a strong message that we will work together to investigate and hold all criminals accountable.”

According to the charges, the co-conspirators distributed the malware through email phishing campaigns. In the early years, these messages were sent in massive, widespread campaigns. More recent attacks have been more strategic—specifically targeting businesses and organizations that have valuable computer systems and access to significant financial resources.

Victims were tricked into opening a document or clicking on a graphic or link that appeared to be from a legitimate source. The link or attachment downloaded the malicious code onto the user’s machine, where it could also spread to any networked computers.

According to FBI Supervisory Special Agent Steven Lampo, this campaign deployed a stealth type of malware designed to avoid detection by antivirus software. “The full program does too much and is too big to avoid detection,” Lampo said. The smaller piece of code, however, can inject itself into the running processes of the machine—beginning a process that allows the full suite of malware to load onto the machine or network. The malware’s creators were constantly creating new variants of the code to avoid antivirus tools.

“Although their realm is a digital one, this is one of the world’s largest organized crime groups,” said FBI Supervisory Special Agent Adam Lawson of the Major Cyber Crimes Unit. “They are personally getting rich, and new organizations and individuals are being victimized every day.”

Turashev and Yakubets were both indicted in the Western District of Pennsylvania on conspiracy to commit fraud, wire fraud, and bank fraud, among other charges. Yakubets was also tied to charges of conspiracy to commit bank fraud issued in the District of Nebraska after investigators were able to connect him to the indicted moniker “aqua” from that case, which involved another malware variant known as Zeus.

U.S. Department of Justice takes evolution of unmanned aircraft systems in account; updates its policy documentation

The Justice Department announced publication of its updated policy on the Use of Unmanned Aircraft Systems. In light of advancements in unmanned aircraft system (UAS) technology, and lessons learned from the Federal Bureau of Investigation’s limited use of UAS, the policy enables the Department of Justice’s law enforcement components to safely and responsibly employ UAS technology within a framework designed to provide accountability and protect privacy and civil liberties.

The Policy permits the use of UAS only in connection with properly authorized investigations and activities.  It also requires compliance with the Constitution and all applicable laws and regulations, including regulations issued by the Federal Aviation Administration.  

Department of Justice components anticipate using UAS to support crime scene response and investigation, search and rescue, and site security, among other authorized uses. 

In order to ensure accountability and airspace safety, the Department requires UAS operations to be approved at an appropriate level and conducted by personnel who meet Department-wide training standards. Importantly, the new policy also requires components to evaluate UAS acquisitions for cybersecurity risks, guarding against potential threats to the supply chain and DOJ’s networks.  

“UAS technology assists the Department in protecting public safety and, most importantly, reduces risks to officers and the public,” said Beth A. Williams, Assistant Attorney General for the Office of Legal Policy.  “Our new policy promotes the responsible, appropriate, and effective use of UAS by the Department and can serve as a model for our state, local, tribal, and territorial public safety partners as they develop their own UAS programs and best practices.” 

The policy reflects the department’s commitment to the protection of privacy and civil liberties, mandating annual privacy reviews of UAS programs and assessments of new UAS technology from a privacy perspective.  It also places limits on data retention, generally requiring privacy sensitive data to be deleted within 180 days, unless certain exceptions are met. 

In addition to utilizing UAS as a law enforcement tool, the Department takes seriously the threat posed by unlawful and unsafe uses of UAS.  The Department has trained federal prosecutors and agents across the country on the criminal and civil enforcement tools available to counter the misuse of UAS, such as the use of drones to smuggle contraband into prisons or violate restricted airspace.  

Department of Justice personnel have also trained and collaborated with senior state, local, tribal, and territorial law enforcement officials who face this new threat on a daily basis. 

The department welcomes lawful and beneficial uses of UAS, which promise to enhance the economy and transform the delivery of goods and the provision of critical services ranging from search-and-rescue to industrial inspections. At the same time, the department will not hesitate to take action against those who threaten the safety of skies and the public. 

The updated policy announced draws on the department’s long history of leveraging technology to protect the public, while promoting values and the rule of law.