SAN DIEGO – Vincent Ramos, the chief executive of
Canada-based Phantom Secure, and four of his associates were indicted by a
federal grand jury today on charges that they knowingly and intentionally
participated in a criminal enterprise that facilitated the transnational
importation and distribution of narcotics through the sale and service of
encrypted communications.
This is the first time the U.S. government has targeted a company
and its principals for knowingly and intentionally conspiring with criminal
organizations by providing them with the technological tools to evade law
enforcement and obstruct justice while committing transnational drug
trafficking.
“With one American dying of a drug overdose every nine
minutes, our great nation is suffering the deadliest drug epidemic in our
history,” Attorney General Jeff Sessions said. “Incredibly, some have sought to
profit off of this crisis, including by specifically taking advantage of
encryption technologies to further criminal activity, and to obstruct, impede,
and evade law enforcement, as this case illustrates. The Department of Justice will aggressively
prosecute not just drug traffickers, but those who help them spread addiction
and death in our communities. I want to thank the FBI, DEA, Customs and Border
Protection, Homeland Security Investigations, Washington State Police, the
Bellingham and Blaine Police Departments, and all of our law enforcement
partners around the world, including Australia, Canada, Panama, Hong Kong, and
Thailand for their hard work on this case. Today's indictment sends a clear
message that drug traffickers and criminals cannot hide, because we will hunt
them down and find them wherever they are.”
“When criminals go dark, and law enforcement cannot monitor
their phones or access evidence, crimes cannot be solved, criminals cannot be
stopped and lives can be lost,” said U.S. Attorney Adam Braverman. “As a result
of this groundbreaking prosecution, we will disable the communication
infrastructure provided by a criminal enterprise to drug traffickers and other
violent criminals. Phantom Secure was designed to profit off of criminal
activity committed by transnational criminal organizations around the world. We
are committed to shutting these criminals down.”
“The indictment of Vincent Ramos and his associates is a
milestone against transnational crime,” said FBI Director Christopher
Wray. “Phantom Secure allegedly provided
a service designed to allow criminals the world over to evade law enforcement
to traffic drugs and commit acts of violent crime without detection. Ramos and
his company made millions off this criminal activity, and our takedown sends a
serious message to those who exploit encryption to go dark on law enforcement.
I want to thank our partners at the Department of Justice, as well as our
Australian and Canadian law enforcement partners, for their incredible work on
this case.”
“Hidden or undetected
communication is key for any transnational organized crime network,” said John
A. Brown, FBI Special Agent in Charge of the San Diego Field Office. “This case
highlights how criminal enterprises, like Phantom Secure, knowingly provided
advanced technology and encrypted private networks to transnational criminal
operations in order to evade law enforcement. This break-through investigation
has undoubtedly disrupted countless criminal organizations from operating their
illegal and dangerous operations in the United States and abroad because their
communications mechanism has been shut down.
This indictment shows the impact law enforcement, working together
across the globe, can have on transnational organized criminal groups. The San Diego Division of the FBI would like
to recognize and thank our international law enforcement partners, who built
this international case with exceptional and dedicated collaboration.”
Ramos was taken into custody in Bellingham, Washington, on
March 7. Ramos made his first appearance
in the Western District of Washington and will face charges in San Diego. The
remaining four defendants are fugitives.
According to court documents, Phantom Secure advertised its
products as impervious to decryption, wiretapping or legal third-party records
requests. Phantom Secure also guaranteed the destruction of evidence contained
within a device if it was compromised, either by an informant or because it
fell into the hands of law enforcement.
According to court documents, Phantom Secure’s clients used email
handles like the following to conduct criminal activities:
leadslinger@freedomsecure.me
The.cartel@freedomsecure.me
The.killa@freedomsecure.me
narco@lockedpgp.com
Trigger-happy@lockedpgp.com
Knee_capper9@lockedpgp.com
Elchapo66@lockedpgp.com
Time4a187@freedomsecure.me
The indictment alleges that as a result of its efforts to
facilitate international crime, Phantom Secure has generated approximately $80
million in annual revenue since 2008 and facilitated drug trafficking,
obstruction of justice, and violent crime around the world.
The international operation to arrest the company’s chief
executive and seize Phantom Secure’s infrastructure involved cooperation and
efforts by law enforcement authorities in the United States, Australia, Canada,
with additional assistance from U.S. and foreign law enforcement in Panama,
Hong Kong, and Thailand.
Over the past two weeks, in cooperation with Australian
Federal Police and Royal Canadian Mounted Police, more than 250 agents around
the globe conducted approximately 25 searches of houses and offices of Phantom
Secure associates in Los Angeles, Las Vegas, Miami, and in Australia and
Canada, seizing Phantom Secure devices, assets, and evidence of the charged
crimes. The coordinated effort led to
the seizure of servers, computers, cell phones, and Phantom Secure devices used
to operate the Phantom Secure network, as well as drugs and weapons.
Ramos and the others - Kim Augustus Rodd, Younes Nasri,
Michael Gamboa and Christopher Poquiz - are charged with participating in and
aiding and abetting a racketeering enterprise and conspiring to import and
distribute controlled substances around the world. The defendants have been
charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and
Conspiracy to Aid and Abet the Distribution of Controlled Substances in
violation of 21 U.S.C. § 841 and 846.
Authorities have seized Phantom Secure’s property, including
more than 150 domains and licenses which were being used by transnational
criminal organizations to send and receive encrypted messages. Authorities also
seized bank accounts and property in Los Angeles, California and Las Vegas,
Nevada.
This case stems from an investigation in the Southern
District of California of a Phantom Secure client who used Phantom devices to
coordinate shipments of thousands of kilograms of cocaine and other drugs
throughout the globe. According to court
documents, there were an estimated 10,000 to 20,000 Phantom devices in use
worldwide before the authorities dismantled the company. This coordinated
action means Phantom Secure’s clients can no longer use these devices to commit
crimes.
According to Timothy O’Connor, Executive Director of the
Criminal Investigations Division New South Wales Crime Commission, “The disruption
of the Phantom Secure platform has been one of the most significant blows to
organized crime in Australia.”
In addition to our foreign law enforcement partners, the
U.S. Attorney’s Office further recognizes the support and assistance of the
U.S. Drug Enforcement Administration; Customs and Border Protection; the
Department of Homeland Security; Seattle and Las Vegas field office of the
Federal Bureau of Investigation; the Washington State Police Department; the
City of Bellingham, Washington Police Department; the City of Blaine,
Washington Police Department; and the Canada Border Services Agency, among
others, without whose help this prosecution could not have been possible.
Speaking on behalf of Australian law enforcement
authorities, Australian Federal Police (AFP) Assistant Commissioner Organised
Crime, Neil Gaughan said today Australia’s role in this complex and unique
investigation began in early 2017 following an exchange of intelligence with
the FBI and Royal Canadian Mounted Police (RCMP).
As a result, Australian authorities executed 19 search
warrants across four states last week as part of the international action,
where more than 1,000 encrypted mobile devices were seized.
“The action taken in the U.S. directly impacts the upper
echelons of organized crime both here in Australia and offshore, who until now
have been able to confidently control and direct illicit activity like drug
importations, money laundering and associated serious criminal offending,” said
Assistant Commissioner Gaughan.
“Our thanks go to our international partners – the FBI and
RCMP – who have been outstanding in working methodically around the clock
together with us on this unique investigation. Without their cooperation,
commitment and shared singular drive, Australian law enforcement agencies would
not be announcing this significant result today.”
Australian agencies involved in this investigation include
the Australian Criminal Intelligence Commission, the New South Wales Crime
Commission, state police from New South Wales, Victoria, Queensland, South
Australia and Western Australia, the Australian Tax Office and financial intelligence
agency AUSTRAC.
“This investigation is a prime example of law enforcement
agencies from around the world working together to identify, investigate and
charge people involved in transnational criminal activity,” says Assistant
Commissioner Jim Gresham, RCMP Criminal Operations Officer, Investigative
Services and Organized Crime. “We remain committed to investigating and
disrupting these illegal activities that adversely affect each of our
communities.”
This case is the result of ongoing efforts by the Organized
Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together
the combined expertise and unique abilities of federal, state and local law
enforcement agencies. The principal mission of the OCDETF program is to
identify, disrupt, dismantle and prosecute high-level members of drug
trafficking, weapons trafficking and money laundering organizations and
enterprises.
DEFENDANTS
Vincent Ramos (1) Richmond, British
Columbia Canada
aka “CEO”
aka “Business”
Kim Augustus Rodd (2) Phuket, Thailand
aka Visith Vongthai
aka “Snowstar”
aka “Global”
Younes Nasri (3) Dubai, United
Arab Emirates
aka “Maestro”
aka “Jesse”
Michael Gamboa (4) Los Angeles, CA
aka “Chino”
Christopher Poquiz (5) Los Angeles, CA
aka “Caddy”
aka “Cad”
SUMMARY OF CHARGES
Racketeering Conspiracy to Conduct Enterprise Affairs (RICO
Conspiracy), in violation of 18 USC §1962(d)
Maximum Penalty: Life in prison
Conspiracy to Aid and Abet the Distribution of Narcotics, in
violation of 21 USC §841 and 846; Title 18 USC §2
Maximum Penalty: Life in prison
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
Department of Justice, Office of International Affairs
Australian Federal Police
New South Wales Police (Australia)
New South Wales Crime Commission (Australia)
Australian Criminal Intelligence Commission
Royal Canadian Mounted Police
International Assistance Group, Department of Justice,
Canada
*The charges and allegations contained in an indictment or
complaint are merely accusations, and the defendants are considered innocent
unless and until proven guilty.
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