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Micfo CEO charged with fraud for IP address theft - Page 2
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Micfo CEO charged with fraud for IP address theft

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Comments

  • WilliamWilliam Member
    edited May 2019

    jamuja said: Predictable in what way ? What's the difference between what he did with people selling or leasing IP /24 in AIO thread in this forum?

    No, they did defraud ARIN, first with lies (like most) and then with fake proof (see the issue?).

    jamuja said: Isn't he getting the charge because he is big enough fish to fry and he doesn't have politicians in his pocket? Moving outside US won't change

    He is not big lol, Heng Lu/Outsideheaven at best times owned a /9 total and even had OVH announce space. This guy is absolutely nothing even to CC and legit ARIN LIRs as eg. Softlayer.

    Moving outside the US changes everything.

    Compare it - I am "untouchable", and i sold stolen space of annexed areas to the gov that annexed said area. This violated EU sanctions but my company is not in EU and while violating RIPE transfer and ownership policy (plus in essence supporting the theft of said IPs) i have absolutely nothing to fear; the highest i could get is in Croatia probation.

    In US this would be grand theft (i guess, value 100k+), sale of stolen goods and the sanctions on top; in Croatia it is a white collar crime with UP TO 3 years probation max.

    You never want to be convicted in the US for such things, it never ends well and there are no real limits on maximum sentences or a human rights council as in Europe. The US owns you once you are sentenced.

    Kris said: Seems it's create generic name in South Africa, Digital Energy Technologies, etc under NetStack, keep requesting, and transfer out to ARIN for use in the US.

    They do this since forever in any possible way as they appear. See my VPSBoard Thread from years ago;:

    https://vpsboard.com/threads/host1plus-digital-energy-technologies-premium-ip-hoarding-proof-inside.7783/#post-108991

  • MadMad Member

    @Francisco said:

    Mad said: Isn't it legit and what's wrong with it? Many providers rent/sell them out; we have been seeing so many threads both here and on WHT concerning such thing.

    Obviously I'm not defending him at all but I'm just trying to understand what happened exactly, I'm curious to know it.

    Not a problem at all.

    It is a problem when it's all fraudulent though :)

    Francisco

    So, what they got charged for exactly? What's the fraud about?
    All I can read is "used to deceive ARIN and to fraudulently obtain IP address rights from ARIN" which is not exhaustive enough. We're talking about a $9M fraud so for sure it's something big but not properly described.

  • SplitIceSplitIce Member, Host Rep

    @Mad it's against the agreements of most (all?) LIR/RIRs. I can be certain it's against the terms of APNIC.

    Those ranges granted to you out of reclaimed final pools are for your use, not for resale. Making false claims to get them, and then renting them does make you liable to loose your membership (and/or legal action). Those ranges are there to help new companies get started, those who can't afford $6k+ (to buy) subnets.

    Thanked by 1Mad
  • FranciscoFrancisco Top Host, Host Rep, Veteran

    William said: In US this would be grand theft (i guess, value 100k+), sale of stolen goods and the sanctions on top; in Croatia it is a white collar crime with UP TO 3 years probation max.

    Jesus man, you really are a mercenary :P

    Francisco

  • MadMad Member

    @SplitIce thanks for explaining; it's somethng I was not aware of.

    @SplitIce said:
    @Mad it's against the agreements of most (all?) LIR/RIRs. I can be certain it's against the terms of APNIC.

    I suppose it's a particular rule applied only to such "new companies" that take part in this kind of "program", right? Otherwise I don't get the reason for which the resale is being done everywhere and for every LIR/RIR.

  • KuJoeKuJoe Member, Host Rep
    edited May 2019

    Wow, after reading this I hope they don't let him plea out and give him the max. Not only did he defraud ARIN for millions of dollars worth of IPs by using fake companies and documentation only to turn around and sell them to criminals, he tried to sue ARIN because they wouldn't give him more IPs.

  • SplitIceSplitIce Member, Host Rep

    @Mad If you own your ranges (legacy) you are free to do what you like. Most recent allocations that have not been purchased privately are not owned, some are not even available for transfer.

    All new allocations fall under these terms at APNIC AFAIK. Given the times involved, false statements and the multiple companies I'm suspecting something along these lines.

    Thanked by 1Mad
  • WilliamWilliam Member
    edited May 2019

    Francisco said: Jesus man, you really are a mercenary :P

    yea... not as much and not a moment i like much, this was in very low cash times when ex broke up last year - the risk:profit simply was there and i got good karma with the buyer; in the US i would have never touched that.

    I keep very grey area but ultimately legal plus avoid dealing in/with US/ARIN as much as i can to just not get into some weird crap and get arrested in transit in some weird ass country with US backing (see: viagra king was arrested on Maldives on a extradition treaty the US secretly dealt out with the dictator while he was there for tourism).

    I am solely afraid of the US gov as Israel has a tendency to bomb something flat if you keep citizens - as interpreted by IL gov - illegally. I like that policy and knowing if some whacko North Korean kills me we'll flat the capital (not sit around like the US w/ Warmbier...) gives me a good feeling :)

  • jamujajamuja Member
    edited May 2019

    @William In US this would be grand theft (i guess, value 100k+), sale of stolen goods and the sanctions on top; in Croatia it is a white collar crime with UP TO 3 years probation max.

    You never want to be convicted in the US for such things, it never ends well and there are no real limits on maximum sentences or a human rights council as in Europe. The US owns you once you are sentenced.

    So you're saying the difference between sentencing law in US and non-EU country right?

    For example if you defraud ARIN, being in Croatia as NON-EU citizen doesn't matter because criminal charges against you can result in Croatian government extradite you at the request of US government.

  • WilliamWilliam Member
    edited May 2019

    jamuja said: For example if you defraud ARIN, being in Croatia as NON-EU citizen doesn't matter

    I am EU citizen as well. I will not be extradited except inside the EU.

    Israel does not extradite under any circumstances.

    Trust me, i invested a lot in paranoia about such things and plan my travel extra careful just to be sure - because as said, if you end up in the US and they do not want you to leave... you are out of luck, as Russian, as Israeli, as EU citizen.

    EDIT: Notably even "in EU" is broken; Poland has an open order since 2011 renewed every 1-2 years and neither Austria nor Croatia care a single bit. Also extradition inside EU only is possible if both countries have a law for what one did; eg. this is why you will never be extradited for tax crimes from Austria.

  • Nate812Nate812 Member
    edited May 2019

    William said: Israel does not extradite under any circumstances.

    Although not common, the law permits them to entirely.

    April 19, 1999, the Knesset passed an Amendment (Number 6) to the Extradition Act, which permitted the extradition of Israeli citizens who had committed crimes abroad

    Additionally, countries (eg, Canada) has treaties in place with Israel.

    https://www.treaty-accord.gc.ca/text-texte.aspx?id=101288

    (Disclosure: Israeli citizen, Canadian citizen)

  • WilliamWilliam Member
    edited May 2019

    Nate812 said: Although not common, the law permits them to entirely.

    Which is rare generally, yes, but it is not used - especially not if you expect torture (which includes US) or the country does not recognise Israel (half of Asia, all arabs aside Egypt, not like IL would send a citizen to an arab country though).

    In other countries i would worry, in ours this law is just paper - precedent are few Russian jews (citizens by immigration, not birth) that just have "pending" extradition cases to Russia/Ukraine.

    IIRC the law was specifically implemented to curb underage sex tourism mostly in asia (thus also why very late), the US has something similar also.

    As for CA see Articles 2 (defines Gaza/Palestine as not Israeli), 4.A (IL will trial local rather than extradite), 9.B (high burden of proof on gov), 17 (requires essentially a fixed set of offences you go on trial for before extradition). Note also the footnote for crimes 29-34 which are most white collar things. I do not like this treaty and it is fairly solid but it is not used anyway if you 'accept' trial in Israel so kind of moot ;)

    Never said i would accept local trial either - but i want to be sentenced and jailed in my home country (or rather, one thereof), not the US which i have zero connection to (even more so if the crime was not committed on US soil or against Americans).

  • AnthonySmithAnthonySmith Member, Patron Provider

    I smell a big audit and new rules/regs coming, it will be an interesting few years following this.

  • jamujajamuja Member
    edited May 2019

    @AnthonySmith said:
    I smell a big audit and new rules/regs coming, it will be an interesting few years following this.

    I don't know, I'm pessimistic anything will happen.
    There's literally hundreds of "ISP companies" created in Asia just to get IP and to be transferred to use in ARIN. A lot of these have changed hands and legit companies use them. I checked many of these so called ISP address is non existent, provide no service or the address is a random shack house.

    As ARIN said, they dont go for legal action for these companies are valid ones who may not know the IP they get is from dirty way.

    Even for MicFo CEO, I don't think he will get anything heavy other than some fines and community work.

  • CVPS_ChrisCVPS_Chris Member, Patron Provider

    @Francisco said:

    Francisco

    And what is that supposed to mean?

  • CVPS_ChrisCVPS_Chris Member, Patron Provider

    Kris said: Seems it's create generic name in South Africa, Digital Energy Technologies, etc under NetStack, keep requesting, and transfer out to ARIN for use in the US.

    tired: foreigners creating companies in delaware, etc. to game ARIN

    wired: creating companies in south africa draining them dry (NetStack / H1P for years)

    bet CC is hoping that check from Deluxe cleared

    Do you even know what you are talking about?

  • JackHJackH Member
    edited June 2019

    I've reopened this thread as I'm not entirely sure why it has been closed...

    EDIT: I've also censored dumped some of the name calling. Let's try to keep it as professional as LET can @Amitz @CVPS_Chris ;)

    Thanked by 2d2itsme uptime
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