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September 18, 2006
Alleged VoIP Bandit Skips Out on Bail
By Patrick Barnard, Group Managing Editor, TMCnet
The man who has come to be known in some circles as the “VoIP Bandit” is on the loose again – and there’s no saying where he might strike next.
Edwin Pena, the Miami man who was charged in June with stealing millions of VoIP minutes and then re-selling them on a wholesale basis to his own customers, has reportedly skipped bail and fled from federal authorities, thus earning him “fugitive” status.
According to published reports, Pena, 23, disappeared about a month ago, after he violated the terms of his parole. He was arrested on June 7, following a lengthy investigation, for allegedly acting as a legitimate wholesaler of Internet-based phone services and selling up to 10 million stolen minutes to unsuspecting individuals and companies.
Federal investigators say Pena and a conspirator, Robert Moore, of Spokane, Wash., hacked into the computer networks of about 15 VoIP service providers, including one Newark, NJ.-based company, and used them to route his customers’ calls. The two men allegedly stole more than 10 million minutes and then sold them at deeply discounted rates, netting them more than $1 million in the process.
Pena, who was out on bail, reportedly disappeared after violating the terms of his pretrial release. Those terms included that he not be allowed to travel anywhere outside the Southern District of Florida and the District of New Jersey.
Assistant U.S. Attorney Erez Liebermann said in a published report that, at the time of his disappearance, federal prosecutors were waiting to find out if Pena was going enter into a plea negotiation or if his case was going to move on to trial. Meanwhile, Moore has not fled and is apparently cooperating with authorities.
Pena faces computer and wire fraud charges that could result in a sentence of up to 30 years in prison and up to $1,250,000 in fines. Moore, who allegedly did the actual hacking, is facing a maximum of five years and possible fines of up to $250,000.
A warrant has been issued for Pena’s arrest - and Liebermann said he is now considered a fugitive from justice.
In order to secure his $100,000 bail, Pena’s girlfriend’s mother reportedly put up two of her properties.
According to federal authorities, Pena was the mastermind of the VoIP scheme, while Moore acted only as the hacker. The pair reportedly used brut force techniques to hack into computers all over the world, including more than 6 million computers between just June and October of 2005, searching for exploitable ports in what is being called one of the most sophisticated VoIP scams yet.
Federal authorities say some of telecom companies which were targeted lost up to $300,000 each.
Pena allegedly used the money he gained from the scheme to purchase a variety of luxury items, including a BMW M3 sports car, a 40-foot SeaRay Mercruiser, a 2005 Cadillac Escalade SUV and some real estate.
As part of their investigation, federal agents executed nine search warrants in Florida, New Jersey, California, Washington, Illinois and Texas.
As pointed out in the published reports, Pena could easily set up shop somewhere else in the world and begin the scam all over again. If he should decide to do this, he will likely set himself up in a country where law enforcement doesn’t have the technological ability or capacity to investigate crimes involving the theft of VoIP services.
What’s the number one VoIP conference in terms of attendance? What’s the leading VoIP expo for exhibitors in terms of lead generation? And which VoIP industry event will feature special attractions for service providers, resellers, and the enterprise and SMB market as well as an overview on the Future of IP Telephony? Answer: INTERNET TELEPHONY Conference & Expo, WEST, which runs October 10-13, 2006. See you in San Diego!
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Patrick Barnard is Associate Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard’s columnist page.
Edwin Pena, the Miami man who was charged in June with stealing millions of VoIP minutes and then re-selling them on a wholesale basis to his own customers, has reportedly skipped bail and fled from federal authorities, thus earning him “fugitive” status.
According to published reports, Pena, 23, disappeared about a month ago, after he violated the terms of his parole. He was arrested on June 7, following a lengthy investigation, for allegedly acting as a legitimate wholesaler of Internet-based phone services and selling up to 10 million stolen minutes to unsuspecting individuals and companies.
Federal investigators say Pena and a conspirator, Robert Moore, of Spokane, Wash., hacked into the computer networks of about 15 VoIP service providers, including one Newark, NJ.-based company, and used them to route his customers’ calls. The two men allegedly stole more than 10 million minutes and then sold them at deeply discounted rates, netting them more than $1 million in the process.
Pena, who was out on bail, reportedly disappeared after violating the terms of his pretrial release. Those terms included that he not be allowed to travel anywhere outside the Southern District of Florida and the District of New Jersey.
Assistant U.S. Attorney Erez Liebermann said in a published report that, at the time of his disappearance, federal prosecutors were waiting to find out if Pena was going enter into a plea negotiation or if his case was going to move on to trial. Meanwhile, Moore has not fled and is apparently cooperating with authorities.
Pena faces computer and wire fraud charges that could result in a sentence of up to 30 years in prison and up to $1,250,000 in fines. Moore, who allegedly did the actual hacking, is facing a maximum of five years and possible fines of up to $250,000.
A warrant has been issued for Pena’s arrest - and Liebermann said he is now considered a fugitive from justice.
In order to secure his $100,000 bail, Pena’s girlfriend’s mother reportedly put up two of her properties.
According to federal authorities, Pena was the mastermind of the VoIP scheme, while Moore acted only as the hacker. The pair reportedly used brut force techniques to hack into computers all over the world, including more than 6 million computers between just June and October of 2005, searching for exploitable ports in what is being called one of the most sophisticated VoIP scams yet.
Federal authorities say some of telecom companies which were targeted lost up to $300,000 each.
Pena allegedly used the money he gained from the scheme to purchase a variety of luxury items, including a BMW M3 sports car, a 40-foot SeaRay Mercruiser, a 2005 Cadillac Escalade SUV and some real estate.
As part of their investigation, federal agents executed nine search warrants in Florida, New Jersey, California, Washington, Illinois and Texas.
As pointed out in the published reports, Pena could easily set up shop somewhere else in the world and begin the scam all over again. If he should decide to do this, he will likely set himself up in a country where law enforcement doesn’t have the technological ability or capacity to investigate crimes involving the theft of VoIP services.
What’s the number one VoIP conference in terms of attendance? What’s the leading VoIP expo for exhibitors in terms of lead generation? And which VoIP industry event will feature special attractions for service providers, resellers, and the enterprise and SMB market as well as an overview on the Future of IP Telephony? Answer: INTERNET TELEPHONY Conference & Expo, WEST, which runs October 10-13, 2006. See you in San Diego!
--------
Patrick Barnard is Associate Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard’s columnist page.
