THREE KAZAK MEN ARRESTED IN LONDON FOR HACKING INTO BLOOMBERG L.P.'S
COMPUTER SYSTEM
MARY JO WHITE, the United States Attorney for the Southern District of New
York, and BARRY W. MAWN, the Assistant Director in Charge of the New York
Office of the Federal Bureau of Investigation jointly announced that OLEG
ZEZOV, a/k/a "Oleg Zezev," a/k/a "Oleg Dzezev," a/k/a "Alex," and IGOR YARIMAKA,
who are citizens of Kazakhstan were arrested on August 10, 2000 in London,
England for allegedly breaking into Bloomberg L.P.'s ("Bloomberg") computer
system in Manhattan in an attempt to extort money from Bloomberg.
ZEZOV and YARIMAKA are charged in separate three-count Complaints unsealed
today. They are each charged with one count of interfering with commerce
by using extortion; one count of extortion of a corporation using threatening
communications; and one count of unauthorized computer intrusion.
According to the Complaints, ZEZOV gained unauthorized access to the
internal Bloomberg Computer System from computers located in Almaty, Kazakhstan.
In or about the Spring of 1999, Bloomberg provided database services, via
a system known as the "Open Bloomberg," to Kazkommerts Securities ("Kazkommerts")
located in Almaty, Kazakhstan. ZEZOV is employed by Kazkommerts and
is one of four individuals at Kazkommerts associated with Kazkommert's contract
with Bloomberg.
In addition, according to the Complaints, ZEZOV sent a number of e-mails
to Michael Bloomberg, the founder and owner of Bloomberg, using the name "Alex,"
demanding that Bloomberg pay him $200,000 in exchange for providing information
to Bloomberg concerning how ZEZOV was able to infiltrate Bloomberg's computer
system.
As described in the Complaints, Michael Bloomberg sent an e-mail to ZEZOV
suggesting that they meet. ZEZOV allegedly demanded that Michael Bloomberg
deposit $200,000 into an offshore account. Bloomberg established an
account at Deutsche Bank in London and deposited $200,000 into the account.
According to the Complaint, Michael Bloomberg suggested that they resolve
the matter in London and ZEZOV agreed.
As described in the Complaint against YARIMAKA, on August 6, 2000, YARIMAKA
and ZEZOV flew from Kazakhstan to London. On August 10, 2000, YARIMAKA
and ZEZOV met with officials from Bloomberg L.P., including Michael Bloomberg,
and two London Metropolitan police officers, one posing as a Bloomberg L.P.
executive and the other serving as a translator. At the meeting, YARIMAKA
allegedly claimed that he was a former Kazakhstan prosecutor and explained
that he represented "Alex" and would handle the terms of payment. According
to the Complaint, YARIMAKA and ZEZOV reiterated their demands at the meeting.
Shortly after the meeting YARIMAKA and ZEZOV were arrested.
On August 11, 2000, YARIMAKA and ZEZOV were presented to a British Magistrate
in Magistrate's Court in London, where they were held without bail.
The United States will seek their extradition.
If convicted, YARIMAKA and ZEZOV each face up to 20 years in prison on the
interference with commerce by using extortion charge; 2 years in prison for
the extortion of a corporation using threatening communications charge; and
1 year in prison for the unauthorized computer intrusion charge. Each
defendant faces a fine of the greatest of $250,000, twice the gross pecuniary
gain derived from the offense, or twice the gross pecuniary loss to persons
other than the defendant resulting from the offense, for each count.
Ms. WHITE praised the investigative efforts of the Federal Bureau of Investigation,
the Metropolitan Police of the New Scotland Yard and the Kazakhstan authorities.
Ms. WHITE expressed her appreciation to Michael Bloomberg and Bloomberg, L.P.
for their cooperation. The investigation is continuing.
Ms. WHITE stated: "The Internet is not a safe haven for criminals.
As this case demonstrates, through the cooperation of foreign law enforcement
officials and American businesses, hackers who use the Internet to extort
American businesses, and gain access to restricted computer systems, will
be apprehended and dealt with vigorously no matter where in the world they
are located."
Mr. MAWN stated: "This investigation and these charges should dispel the
notion that using a computer to commit criminal acts literally a world away
from one's victim provides a zone of safety from law enforcement scrutiny.
In fact, the growth of computer related crime in recent years has resulted
in a closer coordination among law enforcement agencies around the world.
This investigation demonstrates the cooperation of both American business
entities and our international law enforcement partners to address 21st century
crime."
OLEG ZEZOV, 27, and IGOR YARIMAKA, 37, live in Almaty, Kazakhstan.
Assistant United States Attorneys PAUL B. RADVANY and JOSEPH V. De MARCO
are in charge of the prosecution.
The charges contained in the Complaints are merely accusations, and the defendants
are presumed innocent unless and until proven guilty.
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